Comprehensive Risk Management Report: Arcadia Group Operations

This report provides a comprehensive analysis of risk management practices within the Arcadia Group. It begins by outlining the company's current risk management process, including risk identification, analysis, evaluation, and treatment, and highlights the use of ISO 31000 as a standard. The report identifies key areas requiring risk management, such as work health and safety and technology, and explores stakeholder-related issues. It examines factors affecting risk management, including political, economic, social, legal, technological, and policy considerations. Strengths and weaknesses of the current risk management process are assessed, along with critical success factors and objectives for improvement. The report includes an example of a risk management communication to the Board, a risk assessment of technology and equipment, and departmental risk evaluations using various tools and techniques. It also describes methods for determining the likelihood of risks, using a risk matrix to assess the impact of damage to goods and data breaches.

Manage Risk

Table of Contents
ACTIVITY 1....................................................................................................................................1
Activity 1A.............................................................................................................................1
Activity 1B.............................................................................................................................2
Activity 1C.............................................................................................................................2
Activity 1D.............................................................................................................................2
Activity 1E..............................................................................................................................3
Activity 1F..............................................................................................................................3
ACTIVITY 2....................................................................................................................................4
Activity 2A.............................................................................................................................4
Activity 2B.............................................................................................................................5
Activity 2C.............................................................................................................................5
ACTIVITY 3....................................................................................................................................6
Activity 3A.............................................................................................................................6
Activity 3B.............................................................................................................................8
ACTIVITY 4....................................................................................................................................8
Activity 4A.............................................................................................................................8
Activity 4B.............................................................................................................................9
Activity 4D.............................................................................................................................9
Activity 4E............................................................................................................................10
Activity 4F............................................................................................................................10
SECTION 1....................................................................................................................................11
1............................................................................................................................................11
2............................................................................................................................................11
3............................................................................................................................................11
SECTION B...................................................................................................................................12
1............................................................................................................................................12
2............................................................................................................................................12
3............................................................................................................................................12
SECTION C...................................................................................................................................12

1............................................................................................................................................12
2............................................................................................................................................13
3............................................................................................................................................13
4............................................................................................................................................14
REFERENCES..............................................................................................................................15

ACTIVITY 1
Activity 1A
Risk management is all about reducing uncertainties related to action and operations that
are taken in company (Armstrong, 2016). All organisations have risk management process and
requirements to control uncertain activities that can hamper operations and profits. In context to
Arcadia Group, its current risk management process is as follows:
Step 1: Risk identification: Herein, the entire management team of Arcadia Group works
for uncovering, recognising together with describing uncertainties that can affect its operations
and outcomes. Wide types of techniques are opted by the team for the purpose of finding
pertaining risks.
Step 2: Risk analysis: When the management team of Arcadia Group identifies risks,
then they works to determine consequences together with likelihood of each risk. In this, they
develops an understanding about characteristic of risk along with potentials for affecting goals
and objectives of company.
Step 3: Evaluation as well as ranking of risk: Hereby, the identified risk are evaluated
and ranked through determining magnitude of risk that is combination of its occurrence and
consequence. The manager of company makes decisions related to acceptability of risks and adds
it in Risk register.
Step 4: Treating risk: in this process, managers of Arcadia Group assess highest ranked
risks so to set out effective plan for treating it and modify them for attaining acceptable level of
risks. Along with this, various risk mitigation strategies, contingency plan, preventive plans and
so on are devised in this procedure.
Step 5: Monitoring along with reviewing risk: In this step, risk register is taken by
organisational managers in order to monitor, track as well as review all the tasks.
For managing risks in present scenario, Arcadia Group requires highly competent staff
and essential tools so that all the workings are performed effectively and systematically to gain
effectual results.
As per the information, it is reviewed that Arcadia Group uses ISO 310000 as risk
management standard to effectively manage risk. It is the leading standard that is used by various
other industry that are automotive, food and beverage and so on to manage risk.
1

Activity 1B
In Arcadia Group, the two areas which requires risk management are Work health and
safety as well as Technology and equipment. In context to work health and safety, risk
management process is required for find out the risks that can hamper operations of employees
and to ensure that heath and safety of employees are protected against any uncertainties.
Moreover, in the business area of technology and equipment, risk management process is
required for dealing with the situation related to obsoleteness of technology and reimbursement
of equipment that results in hampering activities (Baer, 2019).
Activity 1C
Arcadia Group is the retail business that manages relations with wide types of
stakeholders. Following are the list of stakeholders and issue with each:
Employees: The main issue associated with employees of Arcadia Group is
communication as there are different personnel that work in the company which belongs to
different areas and have uses distinct languages. Due to this, there is communication issue among
the employees of the company.
Shareholders: With the shareholders of the company, it is seen that transparency is the
issue that is faced by them. There are various times when proper information is not clearly
provided to them and because of this they faces this type of issue.
Board of directors: Board of directors of Arcadia Group are facing issue of insider
trading as there are various organisational people which makes attempts to buy and sell the
products without providing information to the them.
Activity 1D
There are various factors that affect risk management in the workplace of company
(Carlson, 2019). In context to Arcadia Group, certain factors that affect management of risk are
as follows:
Political: When there are some changes in political environment of UK then a company
may face various uncertain situation that affects the risk management process in workplace, in
context to Arcadia Group, it is seen that changes in political system results in diverse outcomes
that affects the ways in which the company manages risk at premise.
Economic: Economic involves macroeconomic situations that create significant loss
aspects to business. Situations such as inflation, business cycle, new government regulation
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along with other decision hampers conditions and implementation of risk management procedure
is largely affected because of this.
Social: The negative perceptions of population residing in society also impact largely on
risk management of company. As preferences of social people changes rapidly because of which
various internal activities gets hampered and this affects overall risk management practices of the
Arcadia Group.
Legal: In UK, there are wide legislations that are to be adhered by companies for
managing risk and other aspects. In context to Arcadia Group, when some legislations are not
implemented properly then the company has to face critical situations due to which its risk
management process also gets affected at workplace.
Technological: Factors related to automation of technology, absoluteness, innovation and
so on results in affecting existing risk management in the workplace of Arcadia Group as it
requires shift of focus from exiting technology to available technology that results in impacting
entire management of risk.
Policy: When company fails in implementing effective policy then various impacts are
seen in affecting risk management of Arcadia Group. There are situation in which employees
fails to implement policy in appropriate manner that leads to affecting its risk management at
different workplaces (Collins and Shennan, 2016).
Activity 1E
In context to Arcadia Group, the strengths and weaknesses of current risk management
process for the business are of operations are the following:
Strengths: In the business operational area, current risk management process helps in
devising successful strategies, identifying all risks, generating awareness about risk among
whole department and protecting resources that are its key strengths.
Weaknesses: However, current risk management of operational business area of Arcadia
Group is dependent on external aspects, involves potential threats and evaluating risk is complex
tasks that are its some of weaknesses.
Activity 1F
In case with operations area of Arcadia Group, it is identified that commitment and
proper support from top administrators, structure of company and trust among employees are the
critical success factors that can help in achieving good risk management within it. Moreover, the
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objectives that can help in achieving good management of risk in operations business area are the
following:
 To build strong and competent operations team in 1 month.
 To achieve better risk understanding in coming duration (Gee, 2017).
 To create balance as well as more informed decision in coming 2 months.
ACTIVITY 2
Activity 2A
To,
The Board Members,
Arcadia Group
Date: 19th March, 2020
Subject: Invitation for identification of risk
Respected Board,
This is to notify you that there is a keen requirement within the company to identify
several risks that could impose harmful impact on the resources, as well as people within the
organisation. Hence, to address this requirement, it is necessary to acquire your assistance in
identification of the risks that is related different areas within the company.
The risk area that would be considered in the meeting is Technology and Equipments that
are being used within several functions of the company. Some of these functions include
logistics, stocking, warehousing, supply, as well as sales. Thus, for this purpose, all the members
are required to be prepared with suggestions and requirements that must be addressed in order to
manage this risk area. Moreover, another requirement which would required to be fulfilled is
deciding upon the investment upon risk management ways to effectively deal with this area and
mitigate the contingencies.
Your presence would be much awaited to deal with the risks which the company is
currently facing.
Thank You
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Activity 2B
Arcadia Group is one of the most prominent supermarket chains which has a wide market
within the country that has a wide market in relation to enhancing the scope of improvement
(Glendon, Clarke and McKenna, 2016). Moreover, there are different functions and operations
within the company which involves several risks within the same. Hence, one such area of risk
management within the workplace is Technology and Equipments. This aspect has several risks
that are important to be analysed. Some of these risks are explained below:
Manual Handling: One severe risk within the firm is related to manual handling, which
is related to handling of heavy products and cartages with hands to move them from a place to
the next. The risk within the same is that it if the posture of individual is not right, then it might
result in severe back injuries.
Machine Dysfunctionality: The warehouses of this company are quite big, which has
equipments like forklifts and cranes to ensure handling of materials. If these machines
dysfunction, then it could lead to breakage and damage to crucial products.
Chemical Allergies: The equipments related to cleaning have several chemicals that
might be very much inappropriate on skins of individuals, which might causes burns or itches.
Slips and Falls: This is related to the floors and stairs within the company, along with
entering and exiting the cranes, which might cause trips and falls that could relate to major
injuries.
Data Misplaced: A risk associated with technology is that the data stored within the
digitalised systems of the firm might be hacked or misplaced with effective hacking techniques.
Activity 2C
There are several departments within the organisation that has several risks associated
within these, that are necessary to be evaluated and assessed using several tools and techniques
(Hacker, 2019). Hence, within Arcadia Group, the three departments that are being considered
are, logistics, finance and administration. Hence, below are three departmental roles and risks
associated with the same through usage of tools and techniques:
Finance Employee: There are certain risks related to the same, which includes
misinterpretation of information and wrong calculation of data. To assess these the tool that is
being used are incident logs, which have identified past records with similar risks. Moreover, the
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technique that is used is quantitative analysis of information which would be revealing the scope
of these risks.
Logistics Worker: The risks in this role are manual handling and damage to goods. To
determine the same, interviews are used which helped in identified these risks as part of the
logistics function. Moreover, the tools include examination of tools used in the company that
enhances likelihood of the same.
Administration Staff: Within this role, the contingencies that are likely to be enhanced
is related to mismanagement of information an inappropriate administration of information
(Hassani and Hassani, 2016). To assess the same, work records and checklists are used that
identified the risks in a proper and structured manners by using information from the past.
Moreover, as for techniques, examinations were appropriately subjected upon the administration
department.
ACTIVITY 3
Activity 3A
There are several techniques that are related to appropriate and effective determination of
likelihood of risks. Hence, some of these aspects include:
 Risk Matrix
 Historical Records
 Brainstorming
In addition to these techniques, it is necessary to provide a scale of system that is
necessary in order to identify the risks associated with different processes and operations. Hence,
for this purpose, the risks are determined at a high, medium and low scale (Lendvai, 2019).
Hence, in relation to this, below is the application of risk matrix to assess the likelihood
of occurrence of 2 risks mentioned above and impact or consequences of these:
RISKS LIKELIHOOD IMPACT
TIMESCALE TO
DEAL WITH THE
SAME
Damage to Goods HIGH The impact associated
with the same is that it
might result in loss
3 Months
6

within the firm in
terms of money for the
company. Moreover, it
could also lead to
severe injuries to
workers who might be
involved within the
incident.
Inappropriate
Administration LOW
In context with
inappropriate
administration, the
impact would be upon
management and
authenticity of the
information that is
required within the
administration
function of the
company. Moreover,
the reliability within
the same is the
relevance and
reliability on the
company and its
information would be
reduced (Lisboa and
Miguel, 2018).
12 Months
7

Activity 3B
As per the hierarchy of controls and evaluation, the managers of Arcadia Group have
prioritised the two risks that are inappropriate administration and damage to commodities.
Following are some of the identified option to manage or treat them:
Damage to goods: To treat or manage the risk, managers of Arcadia Group can adopt
inventory system so that all the goods are monitored properly. When the company will apply the
system then it can protect its goods from damages as all the inventories will be used as per first
in first out basis. Moreover, the products that have high chances of damage can be used earlier
(Lobo-Guerrero, 2016).
Inappropriate administration: Inappropriate administration risk can be mitigated
through setting suitable hierarchy in the organisation. Along with this, hiring effective people at
top level and also making contractual agreement with them so that they do not leave the entity
without providing information and work with set rules and regulations.
ACTIVITY 4
Activity 4A
From the risks identified above, the most suitable options are as follows:
Inappropriate management: To treat the risks, administrators of Arcadia Group have
decided to make contractual agreements with all the hired people at top management. Moreover,
setting hierarchy relationships among manager and employee is also the suitable option to tret
the risk.
Damages to goods: For the risks, managers of Arcadia Group have planned to set
inventory system so that all of its goods will be protected from any damages. It is the most
suitable option for the company to treat the risk.
The risk control strategy for that suits best for the identified risks are as follows:
Risk Dissection: It is the strategy to control risk in which risks are analysed in the business
as well as learned huge about them (Risk control strategies. 2012). It suits best to the option of
damage of goods in which managers of Arcadia Group will learn about the uncertainty and will
work to prevent it.
Risk Avoidance: It is another risk control strategy that includes elimination as well as
reducing probable risks. The strategy fits best in inappropriate management risks as when it is
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analysed in Arcadia Group, major workings will be done on it and will help in reducing such
type of risk.
Activity 4B
Risk action plan to the treating the risks is as developed:
Phase 1: The contain phase: In this phase, company aims to stop the spreading of risks
across the company through detecting the areas that are affected by the risk (Louche and Idowu,
2017). In context to Arcadia Group, managers in this phase plan actions to stop spreading
impacts of the risks in its departments.
Phase 2: The Delay phase: Herein, major aim is to slow the spread of risks. In association
to Arcadia Group, major actions are taken by the departments of company to delay spread of the
identified risks. It can involve possibilities to cancelling outside inventory orders and many
more.
Phase 3: The research phase: The phase involves researching about the risks so to reduce
its impacts. In relevance to Arcadia Group, workings related to diagnosing uncertainty and
coming with best actions are performed.
Phase 4: The mitigation phase: In this phase, plans are set by administrators of the
company to mitigate or treat the risks properly.
The one area of work that is chosen for risk management is operations as all the operations
of Arcadia Group are required to be managed properly so that no hindrances can occur and
working are performed smoothly.
Activity 4D
It is important to keep documentation of risk management process along with activities as
documentation helps in successfully implementing the actions on time. It also acts as guidance or
provides directions to implement effective solutions for the certain risks. In arcadia Group,
documenting procedures and activities associated with risk management are important s they
provides clear approval process, time frame, reflects communication and are easily accessible to
managers. Moreover, information associated with risk management procedures as well as
activities are stored in records that are maintained properly (Rittinghouse and Ransome, 2016).
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Activity 4E
In order to implement as well as monitor action plan for the purpose of treating risks,
managers of Arcadia Group will get involve in following practices:
Issuing risk management statement: It is considered as good starting point to implement
action plan to treat risk. In this phase, managers of Arcadia Group will outline proposed
timetable as well as contact with various organisational people for contributing in the procedures
of risk management.
Training: Herein, training are provided to people that are involved in action plan in
context to Arcadia Group, training to manage risk are provides to manpower so that further
activities are performed effectively.
Establishing as well as documenting procedures: As per the identified areas and risks,
the next is to written procedures are established and documented. While implementing action
plan, it is seen that committee members are working effectively for developing procedures and
ensuring consistency among existing procedure and new ones.
Allocating specific responsibilities: To implement the action plan, various responsibilities
are allocated to different people in different phases or distinct parts of the plan. All the
responsibilities are made clear to internal manpower of Arcadia Group tp implement action plan
effectively.
Activity 4F
As per the review and evaluation of risk management process, administrators of Arcadia
Group has identified following three points that requires changes and development:
Risk identification: In this managers of Arcadia Group are planning to change the existing
ways of identifying risks, for this, company will use various new methods that are brainstorming,
interviewing with stakeholders and nominal group techniques (Sadgrove, 2016).
Evaluation as well as ranking of risk: Herein, administrators of arcadia Group have
decided to make effective teams that will make huge attempts properly rank the risks and work
on mitigating them properly.
Treating risk: In this, Arcadia Group managers will treat the risk as per the prioritises and
impacts they can have on company and its workings.
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SECTION 1
1.
As per the review, it is identified that are the main aspects of risk management policy are
risk identification, risk sourcing, risk measuring and evaluation. All these are used in the
procedures in effective manner. For example, risk sourcing is used in the step of risk analysis.
Further, risk measuring is used in the stage of ranking risks.
Others follows the current policy by first understanding their requirements and then
implementing them in suitable stage so that all activities are executed promptly. It is easily
applicable as companies have efficient staff members that have huge understanding capabilities
that help them to work effectively towards risks management (Schuilenburg, 2017).
It is found that the risk management procedures are performed effectively in the company.
Various important actions are also taken by managers to understand the risks and their
occurrence. The two business areas which requires risk management are work health and safety
as well as technology and operations. From the above discussion, it is concluded that the main
stakeholders that are part of the company are Board of Directors, shareholders and employees.
Moreover, external factors such as political, economic, technological and many so on affects risk
management of company.
2.
As per the analysis, it is found that that the risk assessment tools as well as technologies
that are available for usage to the arcadia Group are Brainstorming, Risk matrix and historical
records that are implemented in different functions which are stocking, warehousing, logistics,
supply and so on. Along with this, all these techniques and tools are utilised in systematic,
accurate and effective modes to get successful outcomes (Scharre, 2016).
3.
As per the consultation and discussion with the managers and stakeholders of Arcadia
Group, it is seen that there is no need to make any changes in the risk management process or
other aspect.
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SECTION B
1.
Risk management standards are defined as set of strategic measures that begins with entire
aspirations along with goals of entity (Smallwood, 2019). One of the risk management standards
that is followed by the company that is Arcadia Group is ISO 31000 which is family of standards
that are associated with risk management codified and provides generic guidelines for the
context to manage risk. The main element of risk management standards is identification of asset
or aspect for protection against risk.
2.
For the business area of Work health and safety as well as Technology and equipment, it
is important to fulfil legislative and regulatory provisions related to Work place safety act, 2011,
Data Protection Act, 2018 and so on to manage risks.
3.
Organisational policies as well as risk management procedures provide detailed analyses
and evaluation of risks that have huge possibilities for occurrence. Furthermore, policies and
procedures also help in determining what risk can occur at which duration and how it can be
mitigated promptly.
SECTION C
1.
As per the discussion, it has been identified that the scope of risk management in the
business area is high. In this, manpower of Arcadia Group are involved in managing risks at
different business areas that are Technology and Equipment along with workplace health and
safety. The practices and actions of the company are generally affected by management of risks.
the factors like political, legal, policy and economic have huge impacts on risk management of
the company as these are dynamic in nature and have huge influences on enterprises to manage
risks. At present, risk management practices as well as controls of Arcadia Group are
involvement of stakeholders, clear risk management policies and effective communication. The
risks which are applied are inappropriate management and damages to commodities (Sweeting,
2017).
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2.
As per the work performed with the colleagues of Arcadia Group, the risks that are found
involves Manual Handling, Machine Dysfunctionality, Chemical Allergies, Slips and Falls, Data
Misplaced and Damages to product. The risk management process involves various stages such
as risk identification, risk analysis, risk evaluation, risk ranking and mitigation actions. There are
various ways to manage the risks. Some involves setting inventory system, placing huge
competent manpower in top level and so on. The risk must be sequences through their chances of
occurrence and must be carried out so that all are managed properly.
3.
The managers of Arcadia group have developed an action plan for the purpose of treating
risks. Following is the action plan:
Step One Step two Step three
Explanation of step In this step,
organisational
managers aim to stop
spread of risk in the
company. They
detects the areas
which are affected
and have huge
possibilities of
affections.
In this step, managers
work for spreading
the risk spread at slow
aspects. Variuos
actions are occupied
by the division of
company to hindrance
spread of the
identified risks
(Waxman, 2017).
The phase includes
proper researching
about the risks for
reducing its impacts.
Managers plan
workings to diminish
the risks properly.
Equipment and
resources required
In this stage, main
equipment and
resources that are
required are financial
resources and human
capital to analyse the
risk and work to stop
its spread.
The main equipment
required for spreading
risk is risk register
and data handling
tools.
The equipment that
are needed in this
stage are research
techniques and
brainstorming tools.
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4.
To monitor the risk, managers of arcadia Group have chosen the time period of one month in
which they will work effectively and implement all the practices that are involved in risk
management procedure. They will also prepare the documents by considering workplace systems
as well as requirements for maintaining documentation in effective manner. After the period,
information about the risk management is collected and this will help in taking suitable actions.
At same time, if favourable outcomes are analysed then no changes will be made in the
management process.
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https://www.boltinsurance.com/four-risk-control-strategies/>
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