BSBLDR803 Project: Risk Management Plan and Risk Register

This project focuses on the development of a comprehensive risk management plan and a detailed risk register. The assignment begins with an executive summary outlining the project's objectives, which is to identify and mitigate potential risks for a new business venture, UniSamColes Limited, a collaboration between Unilever, Samsung Electronics, and Coles operating in Australia. The project delves into risk assessment, including risk identification, analysis, and evaluation, considering factors like changes in corporate laws, supply chain disruptions, and economic risks such as inflation and currency fluctuations. It analyzes the impact of each risk and evaluates the likelihood and severity, categorizing risks based on a grading matrix. Furthermore, the project proposes risk mitigation strategies, including actions to reduce the likelihood and impact of identified risks, categorized by grade (A through D), and provides a detailed risk register. This project is designed to help students on Desklib understand and create a risk management plan.

<Project Title>
Risk Management Plan
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Table of Contents
1 Executive Summary.................................................................................................................
2 Introduction..............................................................................................................................
3 Risk Assessment........................................................................................................................
3.1 Identification.....................................................................................................................
3.2 Analysis and Evaluation....................................................................................................
4 Risk Mitigation.........................................................................................................................
5 Risk Monitoring......................................................................................................................
6 Roles and Responsibilities......................................................................................................
6.1 Steering Committee.........................................................................................................
6.2 Project Manager..............................................................................................................
6.3 Project Team...................................................................................................................
Appendix A: <Project Title> Risk Register (as at dd/mm/yy)................................................

<Project Title> Project - Risk Management Plan
1 Executive Summary:
The aim of the report would be identifying the risks which the new firm namely,
UniSamColes Limited would face in Australia. The firm would be a collaboration of
Unilever, Samsung Electronics and Coles. The three business giants would have
representatives on the board of directors but no company would be able to control the
autonomy of UniSamColes. However, it is clear that the very business of the company would
face several risks. The report would aim to identify the risks and present mitigation strategies.
The risk mitigation has been presented in the form of Gantt chart and WBS.

<Project Title> Project - Risk Management Plan
2 Introduction
The purpose of the report would be identification of the risks which M/s
UniSamColes Limited would face in Australia in its initial years and in the host markets post
expansion. The risk report would also identify the factors which can trigger the risks and
strategies which the company would adopt in order to mitigate or at least minimise the
impacts on the risk identified. The product umbrella of M/s UniSamColes Limited would be
largely based on its collaborating companies namely, Unilever Australasia, Samsung
Electronics Australia Pty Limited and Coles Supermarkets Australia Pty Limited. Thus, it is
clear that the firm would directly come under the risks which these companies would face. It
can also be pointed out that since the management board of UniSamColes Limited would be
appointed by the three collaborating companies, any risk impacting these any of these three
companies would impact the decision making of the management of UniSamColes Limited.
It can also be pointed out that the namely of the company clearly bear the names of the three
collaborating giant companies. UniSamColes Limited would be able to attract both customers
and investors by using the market goodwill of the three collaborators. On the other hand, any
negative incidence occurring to these three companies would impact the capital and revenue
generation of UniSamColes Limited. Thus, it is clear that the report would also aim to study
the risks facing these three collaborating companies.

<Project Title> Project - Risk Management Plan
3 Risk Assessment
3.1 Identification
The report would identify eleven risks which UniSamColes Limited would face while
operating in Australia. The first risk identified is changes in corporate laws which would
require the company to form new policies by scrapping its old policies. The second risk
which the report would take into consideration would be supply chain risks which would
arise if the company has to cede its overseas supply chains owing to political tensions. The
third risk which UniSamCole would face would be entry of foreign companies into Australia
which may collaborate with its competitors like Woolworths. The fourth risks identified is
weakening of AUD against foreign currencies while the fifth risk which the company would
face would be trade wars between nations like the US and China. The sixth risk which the
company would face would be threats of inflation while the seventh risk which the company
would face would be changes in customer preferences. The other risks which the firm would
face would be increase in technological expenses, data theft risks, natural disasters and WHS
risks.
In this section specify:
4 1.Risk Trigger -
2. Risk Identification
Attached
3. Risk Description describe the nature of the risk
Attached

<Project Title> Project - Risk Management Plan
4. Risk Impact:
Attached
Analysis and Evaluation
Once risks have been identified they must be analysed by determining how they might affect
the success of the project. Generally the impact of a risk will realise one or any combination
of the following consequences:
 Project outcomes (benefits) are delayed or reduced;
 Project output quality is reduced;
 Timeframes are extended;
 Costs are increased.
EG -
Identify Risk Consequences on UniSamColes
Changes in laws like formation of new
corporate laws in Australia would require
the UniSamColes Limited form new
policies.
UniSamColes Limited would be affected since the
representative of the collaborators in the management
would take decisions as per the prevailing laws in
Australia
UniSamColes would be forced to cede
supply chains in countries having hostile
relationships with Australia.
1. Expenses of acquiring new supply chains in other
countries.
2. Quality issues in products.
3. Loss of customers.
4. Loss of revenue
Entry of foreign firms and forming similar
collaborations with competitiors of Coles
like Woolworths would result in loss of
customers, supply chain
Loss of revenue, loss of market share
Weakening of AUD won would result in
increase of costs of importing raw
materials, machinery, technology,
employees etc. from foreign markets to
operate in Australia
1. Would be required to procure finished products at
higher costs.
2. Strengthen finished goods supply chains in
Australia to reduce depedence on foreign supply
chains

<Project Title> Project - Risk Management Plan
Trade wars (like the US-China) may result
in loss of customer base and supply chains
1. Would be required to procure finished products at
higher costs.
2. Strengthen finished goods supply chains in
Australia to reduce dependence on foreign supply
chains
Inflation would result in fall in demand for
goods and revenue generation. The costs
would increase
Inflation would result in fall in demand for goods and
revenue generation. The costs would increase
Change in customer preferences would
result in fall in revenue
Change in customer preferences would result in fall
in revenue
Increase in expenses in technology,
decrease in revenue
Increase in expenses in technology, decrease in
revenue
Data theft, loss of business data including
financial and customer data
Loss of customers
Loss of investors
Loss of market goodwill
Loss of key business strategies to competitors
Natural disasters lead to loss of resources,
inventory and assets
Depends on the seriousness and intensity of the
calamities
Minor WHS risks can cause minor injury
to employees. Major WHS risks like fire
can cause loss of manpower, resources etc.
1. Minor WHS hardly affects the operations.
2. Major WHS can stall production periodically or
even totally.
3. Actions form governments
4. Massive revenue loss
5. Loss of customers
6. Loss of investors
7. Loss of market goodwill
Once analysed, risks should be evaluated to determine the likelihood of a risk or threat being
realised and the seriousness, or impact, should the risk occur.
'Likelihood' is a qualitative measure of probability to express the strength of our belief that
the threat will emerge (generally ranked as Low (L), Medium (M) or High (H)).
'Seriousness' is a qualitative measure of negative impact to convey the overall loss of value
from a project if the threat emerges, based on the extent of the damage (generally ranked as
Low (L), Medium (M), High (H) or Extreme).
From this risks will be graded as A, B, C, D or N according to the following matrix:

<Project Title> Project - Risk Management Plan
Likelihood
Seriousness
Low Medium High EXTREME
Low N D C A(1)(6)(10)
Medium D C(9)(8) B(1) A(10)
High C(11) B(2)(4)(7)
(11)
A(3)(5)
(11) A(2) (11)
Risk 1 –
Likelihood Grading - A
Seriousness Grading – A
Overall Grading - A
 How the identified risks could potentially impact on the project in terms of the four
categories of consequence (eg. x have potential to delay or reduce project
outcomes/reduce output quality etc);
The risks were identified taking the macroeconomic conditions of Australia and the risks
which retail companies face in the country. For example, if the first risk identified which is
legal risks due to changes in laws is taken into account, it is clear that there is medium
likelihood of such changes occurring. However, the impact of legal changes on the company
would vary. Legal changes like introduction of new exim taxation system would have deep
impact on the expenses of UniSamColes. That is why the risk has been placed in block A of
the matrix.
 Summarise the distribution of risks according to the grading (Grade A Risks – 2 Grade
B Risks – 3 etc)

<Project Title> Project - Risk Management Plan
The risks were graded as per their likehood and impact on the company. Risks like
natural calamities have extremely devastating impact on the operations of companies.
That is why the natural disasters has been placed in A.
Identify and List ‘A’ Grade risks.
Attached

<Project Title> Project - Risk Management Plan
5 Risk Mitigation
Mitigation of risks involves the identification of actions to reduce the likelihood that a threat
will occur (preventative action) and/or reduce the impact of a threat that does occur
(contingency action). This strategy also involves identifying the stage of the project when the
action should be undertaken, either prior to the start of or during the project.
Risk mitigation strategies to reduce the chance that a risk will be realised and/or reduce the
seriousness of a risk if it is realised have been developed. The following table is useful to
determine how risks will be treated in terms of preparation and/or deployment of mitigation
strategies during the life of the Project. Mitigation strategies are usually only prepared
and/or deployed for Grades A through to C, however where an existing risk graded at D
appears likely to be upgraded, mitigation strategies should be prepared.
Grade Possible Action
A
Mitigation actions, to reduce the likelihood and seriousness, to be identified and implemented
as soon as the project commences as a priority.
B
Mitigation actions, to reduce the likelihood and seriousness, to be identified and appropriate
actions implemented during project execution.
C
Mitigation actions, to reduce the likelihood and seriousness, to be identified and costed for
possible action if funds permit.
D To be noted; no action is needed unless grading increases over time.
N To be noted; no action is needed unless grading increases over time.

<Project Title> Project - Risk Management Plan
Risk nos Identify Risk Overall Grading Mitigation Possible Action
1
Changes in laws like
formation of new corporate
laws in Australia would
require the UniSamColes
Limited form new policies.
A
Comply with the laws and adapt
strategies accordingly
2
UniSamColes would be
forced to cede supply chains
in countries having hostile
relationships with Australia.
B
Strengthen supply chains in Australia
3
Entry of foreign firms and
forming similar
collaborations with
competitiors of Coles like
Woolworths would result in
loss of customers, supply
chain
A
Form strong marketing strategies to
establish itself more strongly
compared to competitors
4 Weakening of AUD won
would result in increase of
costs of importing raw
materials, machinery,
technology, employees etc.
from foreign markets to
operate in Australia
B 1. Using its ecommerce portal to sell
more goods. The company would earn
higher revenue and diversify the high
procurement costs.
2. Market its goods more aggressively
in the Australian market to attract
more customers.
3. Adopt product bundling strategy to
reduce cost of product per unit.
4. Recommend Samsung to reduce its