Comprehensive Risk Management Report for Biz Ops Enterprises

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Added on  2023/06/10

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This report provides a comprehensive analysis of risk management within Biz Ops Enterprises, a national retail business specializing in exclusive products with over 150 retail outlets and online presence across Australia. It identifies key risks faced by the organization, categorized under political, economic, social, legal, technological, and policy scopes. The report details the impact of international and national events on the business, including supplier issues related to toxic chemicals, economic uncertainties affecting consumer spending, and social media pressures. It reviews the organization's current policies and procedures in relation to risk management standards and proposes an action plan for treating identified risks, including necessary actions, responsibilities, timelines, and monitoring processes. The report also outlines a proposed folder structure for storing risk management information and key factors for implementing, monitoring, and evaluating the risk treatment action plan.
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Running head: MANAGE RISK
Manage Risk
Name of Student:
Name of University:
Author’s Note:
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1MANAGE RISK
Table of Contents
Part A...............................................................................................................................................4
Answer to Question 3..................................................................................................................4
Answer to Question 4..................................................................................................................4
a) Political....................................................................................................................................4
b) Economic.................................................................................................................................4
c) Social.......................................................................................................................................4
d) Legal........................................................................................................................................5
e) Technological..........................................................................................................................5
f) Policy.......................................................................................................................................5
Answer to Question 5..................................................................................................................5
Answer to Question 6..................................................................................................................5
Answer to Question 7..................................................................................................................6
Answer to Question 8..................................................................................................................6
Answer to Question 9..................................................................................................................6
Answer to Question 10................................................................................................................7
Answer to Question 11................................................................................................................7
Answer to Question 12................................................................................................................7
Answer to Question 13................................................................................................................8
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2MANAGE RISK
Part B...............................................................................................................................................8
Introduction......................................................................................................................................8
Key risks faced by the organization.................................................................................................9
Political.................................................................................................................................9
Economic..............................................................................................................................9
Social..................................................................................................................................10
Legal...................................................................................................................................10
Technological.....................................................................................................................10
Policy..................................................................................................................................11
Review and list of the organization’s current policies and procedures which relates to the current
risk management standards............................................................................................................11
Conclusion.....................................................................................................................................12
Part C.............................................................................................................................................13
List of options commonly used in risk treatment process.............................................................13
The most appropriate options for treating each of the identified risks..........................................14
Proposed action plan to treat the risks including...........................................................................14
-What actions are required.........................................................................................................14
- Who is taking the responsibility..............................................................................................14
- Timelines.................................................................................................................................14
- The monitoring processes........................................................................................................15
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3MANAGE RISK
- Proposed folder structure for storing the information relevant to the risk management process
...................................................................................................................................................16
- Key factors in implementing, monitoring and evaluating the risk treatment action plan.......16
References......................................................................................................................................17
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4MANAGE RISK
Part A
Answer to Question 3
The main purposed of the risk management is based on evaluating the potential problems
which may be planned and invoked across the life of the project and prevent the project from
adverse impacts throughout the life of the project. This is ensured by planning of the risk
management process, identification of the risk, risk analysis, risk response planning, risk
monitoring planning and implementing additional risk analysiss tools and techniques
(Hub.globalccsinstitute.com. 2018).
Answer to Question 4
The scope of risk management process is explained below as follows:
a) Political
The scope political risk factors are seen with risk management of the political decisions
effecting the business activity.
b) Economic
There may be several risks pertaining to regional instability, Misuse of funds,
Misappropriation of funds, Delegations and Currency fluctuations.
c) Social
There may several instances of the risk which may arise as a result of the community
perceptions.
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5MANAGE RISK
d) Legal
The legal scope of the risk management comprises of Fraud, Breach of statute, Breach of
contract, Outsourcing and Negligence.
e) Technological
E-commerce, Obsolescence, Information security, IT infrastructure and Innovation are
identified as some of the main areas of risk associated to technology.
f) Policy
These may include Inadequate safety measures, Noise, Poor safety management,
Contamination, Breach of procedure and Inappropriate project objectives.
Answer to Question 5
The CSF are conducive in attracting new customers for the business. It has been further
identified to be conducive for sustaining a successful dealership with the local suppliers. In
addition to this, the critical success factors are father seen to be based on retaining of the staff
and keeping up with the customer focused training. It is also beneficial in securing financing for
expansion (Omsar.gov.lb 2018).
Answer to Question 6
It is important to review and analyse the existing risk management process, requirements
and procedures before updating to define the constraints and the gaps in the resources,
automation and build effective communication among the departments or certain areas like
technology. This is seen to be conducive for the organization for defining the organizational
policies which govern the processes and policies (Statswiki.unece.org 2018).
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6MANAGE RISK
Answer to Question 7
The importance of obtaining the support of the risk management program has been
depicted with protecting the own members, participants and friends form the legal formalities
and improving the acceptability of the organization for public liability and other insurance
facilities. The undertaking of the risk management program is also observed to improve the
acceptability of the decimos making. Lastly, it is also seen to aid the process of better asset
management (Mindtools.com 2018).
Answer to Question 8
The two important nature of the information which a manager may use to research the
risk that may apply to the scope are stated as follows:
It is important to consider the information which shows the risks which may like occur
in the business
To know whether the risks are internal or external
Answer to Question 9
The application of the two tools and techniques used for generating the list of risk which
applies to the scope are seen with Brainstorming and Assess the processes. Brainstorming
involves taking the idea of the different peoples like interested parties, financial adviser,
suppliers, accountant and staff. On the other hand, the assessment of the process will consider the
use of inspections. Checklists and flow chart are able to assess the work process (Amadei and
Amadei 2018).
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Answer to Question 10
The five possible options for treating the risks are seen with avoid, reduce the likelihood,
Reduce the consequence, transferring of risk and OHS Treatment. The avoiding of the risk seen
with not proceeding with the project or activity. This may be considered only with the legislative
requirements and business agreements. The reduction of the likelihood of the risk occurrence is
depicted with technical controls, contract conditions, compliance programs, training and quality
control manuals. The reduction in the consequence is seen with contingency planning, relocation
of activity or operation. The transfer of the risk is depicted with the use of contracts, insurance,
partnerships. The OH&S treatment is seen with the elimination, substitution/isolation,
engineering, administrative and personal protective equipment (Ltd 2018).
Answer to Question 11
The four key components of the risk treatment action plan are depicted with identification
of the options, Development of Action Plan, Approval of Action Plan and Implementation of
Action Plan. The identification of the options is determined with the starting or continuing an
activity which is likely to create or maintain the positive outcome. The modification of the
possibility of the risk is seen with increasing the possible beneficial outcomes. The approval
process is seen with the initial management process for ensuring the effective implementation of
the process. In this case, the top management assistance is critical throughout the life of the
project life cycle. The implementation plan is seen with the ongoing support directors of the
organization and senior executives (Business.qld.gov.au 2018).
Answer to Question 12
The four reasons of risk management documentation are listed as follows:
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8MANAGE RISK
Risk management helps the companies in identifying the risk
Risk management plan is fiscally prudent
The risk management plan is depicted to protect the resources of the company
The risk management process is conducive in improving the brand of the company
Answer to Question 13
The activities for the risk identification is observed to focus on the identification of the
risk and placement of the blame. The significant impact of the risk identification is seen to be
involved with the evaluating the performance of the individuals. The evaluating process is
depicted with various process, which involves examining the individual risk elements,
conducting risk assessment and reviewing of the risk management. the evaluation of the risk is
essential to assign the relative importance to the identified risk and determination of the
appropriate management attention. In general, evaluation of the risk is essential in assessment of
the determination of the appropriate management attention. It is also seen to be useful in
aggregating the risks and provide the cover for rolling up the lower risk levels (Enisa.europa.eu
2018).
Part B
Introduction
Biz ops enterprises is recognized as a small company which has grown in a national retail
business specialised in the range of the various types of the exclusive products. It needs to be
further understood that Biz ops are seen to be consisting of more than 150 retails online and
orders for phone across Australia. The business is seen to be wary of the risks as per the horizon.
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This is particularly depicted to be evident in the international, national and the organizational
incidents which have impacted the business.
In terms of the international forefront the organization is seen to be based on the various
types of the functions which ranges from five suppliers of the best-selling range of products. It
needs to be further observed that the top ranged of the produces of the company has received
global condemnation for the use of toxic and banned chemicals for the production procedures.
Event the online sales of the company is depicted to be affected by the impact of the floods. The
report aims to summarize the key risks faced by the organization and list them as per the scope of
the political, economic, legal, social technological and political. In addition to this the second
part of the report will review the list of Biz ops enterprises present policies and procedures which
relates to the risk context as per the risk management standards (Federal Trade Commission
2013).
Key risks faced by the organization
Political
The political nature of the risk is comprised of the significant national and
international events which has affected the business. These are depicted to be persistent
in the organization for the past three months. In the recent times, there has been raising
concern associated to the political uncertainty, challenges of leadership and several
allegations of corruption. The main form of the political constraints face by Biz ops
enterprises is identified as per the restrictions to the suppliers for selling the top range of
products. These products have received global condemnation on the use of toxic
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10MANAGE RISK
chemicals in their materials which is responsible for hampering the environment. In
addition to this, the recent political uncertainties relate to the allegations of corruption
and leadership challenges. This issue is further catalysed by the impeding federal election
which involves the leading customers, investors and businesses to take the approach of
wait and watch (Spacey 2018).
Economic
As stated earlier the five main suppliers of the top selling range of the products is
seen to be receiving the global condemnation on using the banned and toxic chemicals in
the products which is responsible for polluting the environment with the use of
unsustainable method of production. This is mainly due to the economic and
environmental issues. In addition to this, the Australian consumers have been seen to
spend less due to uncertain global financial situation and rumours of governmental
increase in the income tax. These are seen to likely reduce the disposable incomes in the
households. In terms of the national forefront the Australian consumers are seen with the
trend of spending less pertaining to the uncertainties which exist due to the uncertainties
in the global financial situations (Torrance et al. 2014).
Social
The occurrence of floods is seen to affect the Asian suppliers in such a way that the
manufacturers and the transporters of the numerous top seller lines has suffered
interruption for the last three months. The social impact is also seen in terms of the
polluting the environment which is having a major social impact in terms of the
increasing harmful consequence for the society. Additionally, the increasing social
media pressure is evident with claims which shows that the major suppliers of Biz Ops’s
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suppliers are depicted to use child labour, sweatshops and other methods which is
responsible for destruction of the environment.
Legal
As per the given scenario the Federal consumer legislation was seen to be
introduced in 2011. This is seen with the need of all the states to stay up to date with the
policies due to the increased consumer knowledge and the rights related to the product
safety law. This has led to all the states the need to update the legal policy terms and
conditions, especially with the increasing customer knowledge associated to the use of
the rights like product safety law. The legal aspect is also seen with the application of the
uniform WHS laws which was introduced by most of the states. However, without
practicing them on a regular basis the risks won’t be averted.
Technological
It needs to be also discerned that there are numerous issues incumbent within the
organization associated to the technical factor. There has been increasing instances in the
upsurge in the complaints from the customers related to the online purchasing system. It
needs to also seen that there is an increasing complaint from the customers for the online
purchasing system is mainly due to the glitchy purchasing links. These problems are
often observed in terms of problems with disconnections and goods not delivered on
time. In addition to this, there has been many cases of allegations where the confidential
information of the customer is passed to the other companies. Moreover, the rise in the
pressure from the social media has made many claims where the Biz Ops’s major
suppliers use the sweatshops, manufacturing processes and child labour which is seen to
cause environmental destruction.
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