NatureCare Business Expansion: Risk Management Plan and Evaluation

Desklib provides past papers and solved assignments for students. This assignment details a risk management plan for business expansion.

BSBRSK 501 MANAGE RISK
Student Name:
Student Id:
1 | P a g e

Assessment 1
1. Discuss the purpose of risk management standards. Include an example of
a risk management standard in your answer.
Risk management standards provide the precise set of the strategic processes that start
with the overall objective or aspiration of organisation and mean to find the risks so that
the risk is minimized through mitigation steps. The purpose of designing the risk
management standards is to transmit out the processes of risk management that help
as a guide which help in work. These provide the international standards to deal with
risks and provide the best advice to deal with it. It helps the organisation in
implementing strategies that are tested or tried and confirmed for the work. In risk
management the issue of using the ineffective procedure. Example of risk management
standards is in the IT projects found to be black swans with the gigantic overruns. In the
NASA model, the risk is found due to impacts of the international space station. Risk
management standards used are:
ISO 31000 2009-Risk management guidelines and principles
Figure 1: NASA risk assessment
2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and
Guidelines and each of the 11 principles.
2 | P a g e

ISO 31000: 2009 risk management principles and guidelines are used as the private,
public and by community enterprises, group, and individual and by associations. Since it
is not specific to sector or industries. It is applied throughout the organisation life and to
the wide ranges of activities, operations, functions, products, assets, and services.
11 principles for the management of risks are:
 Tailored
 Create values
 Decision making
 Timely or systematic structure
 Transparent
 Dynamic and responsive change
 Taken cultural factor I account
 On the basis of the best present information
 Organisation process with an integral part
 Address uncertainty explicitly
 Organisation enhancement with improvements
3. Explain the requirements of WHS legislation in relation to risk
management.
The requirements of WHS legislation in relation to risk management are:
The work, health and safety legislation requires the duty holders want which work as per
the hierarchy in managing risks under WHS regulations.
3 | P a g e

Figure 2: risk control hierarchy
The aim is always to remove the hazard that is the most important control if it is not in
practice then the risk is minimized by using other hierarchy.
Requirements include:
 Administration or support service: travel agency, building cleaning and packing
service are available.
 Food and accommodation service: Employees are getting food from cafes, pubs
like small meals.
 Recreation and arts service: The business should support the sporting or the
recreational service and perform live performances, musicians.
 Insurance and financial service: the fact sheet is present for buying or selling of
items.
4. List the factors that must be taken into account in determining risk control
measures for hazardous manual tasks as stated in the model Work Health and
Safety Regulations 2011.
For determining risk control measures or for hazardous tasks in the WHS regulation act
2011 the factors are:
 Self-employed
 Employers
4 | P a g e

 Principal contractors
 Manufactures
 Suppliers in plant
 Importers
 Structure or substance used in work
5. Explain the purpose of risk management policies and procedures in the
workplace.
The purpose is to ensure each and every worker at the workplace. Some of the obs
arrive with some sort of risks but the employer should utilize the organisation procedure
and policies for the risk management which ensure that the risk should be minimized as
much as possible.
6. List three examples of the impact of risks for a workplace if risks are not
identified or actioned.
Three risks found at the workplace that affect the organisation of not solve timely are
 Uncertainty based risks: if this risk is not solved timely then court action and
customer is losses.
 Opportunity based risks: if this risk is not solved at the time then the better
opportunity is missed. Hazard-based risks.
 Hazard-based risks: if this is not solved timely then equipment related hazard,
chemical, and biological hazards.
7. Outline a step-by-step procedure that companies can use for analysing
risks.
The steps for analysing the risk in the organisation are:
 Identify risk with source and procedure
 Analyse risk
 Evaluate the risk rank
 Treat or classify risk
 Monitor or review risk
5 | P a g e

8. Outline three sources of information that a company could use to gather
information on potential risks.
Source of the risk from which the information is collected is all the organisation whether
they are the internal or external organisation which generate obstacles and threats for
achieving company goals.
 Customers
 Suppliers
 Industry association
 Employees
These are facing risk and the sources of the information collection are:
 Newspaper and magazines
 Training courses
 Industry newsletter
9. Describe three examples of tools or techniques that a company could use
to identify risks as part of a risk assessment process.
Document reviews:
 Delphi technique: In this questionnaire is given to expert for the collection of
information. Through this unbiased data is collected.
 SWOT analysis
 Expert judgement: Experience person shares their judgement using interviews.
Risk analysis
 Probability and impact matrix: Rating risks using the quantitative analysis through
the impact matrix.
 Risk categorization: This helps in analysing the risk Areas of the project that face
uncertainty issues.
Interviewing: The interviews are carried out for gathering the pessimistic and optimistic
or most like scenarios.
Risk response planning:
 Status meeting
 Risk audits
6 | P a g e

10. Explain four options that a company could take to control risks.
Four options for controlling risk in companies are:
 Design the new professional process with an acceptable built-in risk controller
and repression measures from start.
 Periodically re-assess the risks which are acknowledged by the ongoing
procedures as the normal feature in a business operation.
 Transfer risks with the external agency.
 Avoid the risks altogether
11. Explain four procedures that a company could use to minimise risk.
Four procedures to minimise risk in the company are:
 Liability claims: Protecting the business with the potential lawsuit is very critical.
The three things considered are professional liability, public liability and product
liability.
 Employee's health: The people or employee whether at the site or at the desk the
risks are always is with us so the employee is having the compensation
insurance. The machine operator is trained
 On the site security: The property and people are protecting from the alarm
systems, nightly patrols through private guards and through CCTV cameras.
 Natural catastrophes and disasters: The emergency management or the
recovery plan is created for being prepared with a natural disaster like storms,
floods, and fires.
Assessment 2
1. Develop a risk briefing report.
Overview of risk management project and risk management policy & procedure:
NatureCare is making the environment and eco-friendly skin care products which are
now currently work in the retail market and the organization want to expand their
business expansion so that large amount profits are earned. I am appointed ad the
operation manager which helps to analyze the risk that occurs in business expansion
7 | P a g e

and take the proper risk management policy and procedure to minimize it. In risk
management policies and procedure should be used which help in analyzing the
NatureCare risk and information associated with it.
Scope: Through analyzing risk management policies and plans NatureCare all products
have applied the policies that help in extending the current and the future activities of
the company with new innovative opportunities which provide employment and
competition in the market.
Team meeting minute
In a team meeting the discussion is made on new retail stores that will be opened in
which the CEO provides the timelines. The meeting team tells that customer has to try
nature care products by the new retail store of NatureCare. Sales manager give the
advice to supply the food products alike with products of NatureCare. Operation
manager provides the budget of business expansion. CEO tells that new staff recruited
as the retail assistants.
Risk briefing report:
NatureCare Products
Risk Briefing Report
Introduction
NatureCare is the small business organization which wants to expand the business operation by
10 in the areas of beauty care but due to business expansion, it faces the issue of employee
management and limited resource constraints in the business. This issue faces the problem in
business expansion and that minimize the financial benefit of the organizations. The purpose of
risk analysis is to analyze the potential threats and business projects issue throughout life so
proper mitigation plans are used for mitigating risk and achieve the NatureCare business
expansion objective.
Scope
If the risk management is done in the NatureCare then the needs of the customer as well
employee needs are fulfilled with good financial benefits to the organization. It also protects the
value of NatureCare in future.
8 | P a g e

PESTLE Analysis
Political Factors
Factor Risk treatments as applicable
Trends Take the customer survey for the skin care
products that what they need.
Tax policy The charted accountant is appointed for
discussion industry tax policy.
Environment The seasonable process should be adopted
Stability Herbal products should be used
Economic Factors
Factor Risk treatments as applicable
Globalization Improve organization structure
Labour cost Appraisal or incentive should be provided
Change in the economic environment Operate in the different foreign market
Exchange rates Use the fixed amount or make the same
level of purchase
Economic growth Invest in a strong and stable market
Inflation cost Conduct frequent demand analysis
Technological Factors
9 | P a g e

Factor Risk treatments as applicable
Emerging tech Innovative products are used that analyse
through scale
communication Through conferences and debate in
organisation
Legal Factors
Factor Risk treatments as applicable
Target market Make the product according to people needs
copyright The product should be patent
Environmental Factors
Factor Risk treatments as applicable
Climate change Product rotation affinity to season
competitiveness Herbal and chemical are products are used
10 | P a g e

Risks
Figure 3: business expansion risks
Risk Treatment
Operation risk Hiring quality employees
Sector risk Governance and policies should be set
Financial risk Market investment should be thoughtful
Competitors risk Customer satisfaction must be maintained
Technology risk Installation of latest machinery
Internal and external stakeholder analysis
Internal stakeholder
 Employees: Economic risk due to fluctuation or discrimination of pay in employees
 Manager: operation risk which affects the workforce management and work distribution
of the NatureCare
11 | P a g e

 Owner: Financial risk which should affect the failure of the product that directly impacts
the owner's personal interest in profit.
External stakeholder
 Government: Legal risk which affects the organisation to follow government laws and
policies and the products should be patent and certified from ITC.
 Customer: Economic risk due to which customer faced inflation or cost changing issues.
 Supplier: Economic risk in which supplier faces the problem of product storage or
management for fulfilling the demands of customers.
Strengths and weaknesses
Analyse the strengths and weaknesses of the company’s existing retail approach.
Costs:
The strength of NatureCare is it generates a large amount of profit with the low-cost products
through retail approach but the weakness is it has low product pricing than the other companies
products.
Profits: Strength of NatureCare products is that the products with low prices help in getting a
large number of profits but the weakness of profits is it does not focus over customer expectation
and requirements in terms of scheme.
Inventory: Strength of inventory with the retail approach is it meets the current customer needs
but a weakness is if the business is expanding then it does not meet the future needs of a
customer.
Competition: Strength of competition is competing in the local market with other companies
products but the weakness is it does not compete with foreign market products it reserve beyond
the local market.
Marketing: Strength of retail approach in marketing is customer use the same products number
of times retailer recall the items but the weakness is the products is not go out of the limited area
it limits in the boundary.
Critical success factors
Document your analysis of the critical success factors, goals or objectives for the business
expansion project.
12 | P a g e