Comprehensive Risk Management: Stakeholders, Controls & Planning

This case study solution provides a detailed analysis of various risk scenarios faced by businesses, focusing on stakeholder impact, legal aspects, and the implementation of effective risk controls and contingency plans. It covers scenarios such as customer incidents, credit card scams, transport strikes, health crises impacting tourism, and employee poaching. For each scenario, the solution identifies key stakeholders, assesses the legal implications and potential damages, proposes risk control measures, and outlines contingency plans. The risk management process involves risk assessment using techniques like SWOT analysis and flowcharts, determining risk levels, exploring insurance options, and developing risk treatment plans. These plans include documentation, communication strategies, legal consultation, operational adjustments, and staff training to mitigate risks and ensure business continuity. Desklib offers a wide range of similar solved assignments and past papers to aid students in their studies.

Consequence stakeholders Legal
aspects
Damage Risk controls Contingency plan Likelihoo
d
Description
Major A The event is expected to
occur in most
circumstances
Moderate Customer Compliance
management
Medical
treatment
Can be controlled by making
strict provisions regarding
compliance of rules and
regulations.
Training of employees
while dealing with
customers.
B The event could occur at
some time
Minor C The event could occur,
but only rarely
Insignificant D The event may occur,
but probably never will
Risk Management Plan Template
Two hours ago the kitchen served a meal containing peanut oil to a customer with a severe nut allergy, despite the wait staff having written the
food allergy on the docket and telling the cooks about it when ordering the meal. The customer had to be rushed to hospital after exhibiting a
severe anaphylactic reaction and is still in a serious condition
Risk management process:
Risk assessment:

The concerned risk would be assessed with the adoption of making identification and analyzation of risk. This means that the risk would be
identified in terms of its usual or non-usual occurrence. This will be followed up by analyzation which means that how dangerous the risk would
be. This will be followed up by consequence in which the degree of damage would be identified and accordingly the management would be
directed to take most suitable steps so that the risk of customer will never occur.
Technique:
The risk will be assessed by SWOT analysis and flowchart in which it will be assessed that where is the mistake occurred so that adequate steps
can be taken. In this case the SWOT can show the actual capabilities and weakness in terms of non-consideration towards customer
requirement. Likewise, lack of communication with respect to flowchart is also identified here. The process will be documented with the
provisions of communications.
Risk level:
The risk level would be moderate
Insurance option:
Likewise, health insurance in terms of customer safety is available for the risk.
Risk treatment Plan?
In order to treat the risk, the incident will be documented with every details and aspect of the incident. This will be followed up by
customer’s views. Likewise, on that basis the legal advice in terms of compliance management would be taken. Lastly, a food safety plan
would be adopted so that the such accident would never occur in future.

Risk Management Plan Template
An urgent advice from a credit card company about a team of con- artists who are targeting major hotels in a
credit card scam. They have so far been able to fraudulently obtain $880,000 of credit and the last activity was in
a nearby hotel
Consequence stakeholders Legal aspects Damage Risk controls Contingency plan Likelihoo
d
Description
Major Shareholders,
owners
Documentation
and recording
protocol
>$100K Can be controlled
by monitoring and
installation of
security system
Installation of cctv
cameras and security
system. Likewise,
system monitoring will
also be installed.
A The event is expected to occur in
most circumstances
Moderate B The event could occur at some time
Minor C The event could occur, but only
rarely
Insignificant D The event may occur, but probably
never will

Risk management process:
Risk assessment:
The risk assessment will be conducted with the adoption of practice of making analysis and monitoring. This is because with the monitoring of
surrounding environment and activities. This will lead to have a formulation of future course of action in terms of determining the activities. This
assessment will lead to have minimization of risk because if it will be analyzed in advance then it can be treated adequately by suitable
managerial steps.
Technique:
The above risk will be accessed by SWOT analysis and the flowchart technique. This is because with the SWOT analysis the existing capability of
the organization would be accessioned in terms of capacity of firm towards the protection of risk. This will also include taking of suitable stepes
so that threats will be reduced. Likewise, with the flowchart technique adequate communication structure will be established and risk can be
mitigated.
Risk level:
The risk level would be major.
Insurance option:
Likewise, business insurance in terms of protecting the business contingencies will be included.
Risk treatment Plan?
The incident will be documented with the help of adoption of procedure of communication so that it will be traced effectively. In the same way it
will be continuously followed up with the respected personnel which are being appointed in association with keeping a watch with respect to
accident. In this legal advice in terms of making informed to nearest police so that the occurrence can be captured quickly. In addition of this, an
operational training and process will also be enabled which will prepare the employees in advance regarding the handling of such risk.

There is a transport strike called for tomorrow and, due to your city location, more than 75% of your workforce is public transport reliant
Consequence stakeholders Legal
aspects
Damage Risk controls Contingency plan Likelihood Description
Major A The event is expected to occur in most
circumstances
Moderate Employees
and owners
Strike is yet
not allowed
but it need
to be
complied
by
company
and follow
it
$50-
$100K
The risk can be
controlled by
taking pre action in
terms of making
advance work and
hold some
employees for
emergency or
called the nearby
employees.
The contingency plan
would include preparation
of the company against
the strikes in terms of
taking pre actions and
make preparation of
emergency production.
B The event could occur at some time
Minor C The event could occur, but only rarely
Insignificant D The event may occur, but probably
never will

Risk management process:
Risk assessment:
The risk with regard to the above scenario can be assessed in terms of making its identification that whether there are chances that the
risk will be occurred or not. Likewise, it will be made analyzed that if the strike will occur then what will be its impact towards the organization
and its woks. This is the based that will be followed by taking of suitable and adequate steps in association with the risk and its types along with
its
Intensity.
Technique:
For the above risk flow chart and SWOT can be adopted as technique. This is because with the technique of flow chart the future course
of action along with its linkage and relation will be determined so that adequate steps and actions would be taken. Likewise with the adoption of
SWOT analysis organization can determine required action which may lead to have minimization of impact in terms of threat towards the
business.
Risk level:
The risk level is moderate and include financial damage.
Insurance option:
Business insurance and accidental insurance will be available that the business can opt against it.
Risk Treatment plan:
It will begin with the documentation through the mode of consultation under which a consultation will be performed between the workers
and the union. Likewise, it will be followed up by management that what would be an alternative plan that if such situation will arise. Legal
advice in terms of making consultation with the advisor and the union will also be taken. Lastly an operational plan in terms of holding the
employees and calling of nearby employees will be adopted. Extra preparation and working of employees would also be taken care off.

In today’s newspaper are reports of a major health issue in Asia which has immediately halted inbound tours from all major airports. It is
likened in severity to a similar event 2 years ago which dropped your occupancy rate by 25% for 2 full months. You have already had bulk
cancellations for
this week and the occupancy rate dropped by 22% overnight
Consequence stakeholders Legal
aspects
Damage Risk controls Contingency plan Likelihoo
d
Description
Major A The event is expected to occur in
most circumstances
Moderate Owners,
shareholders
Compliance
of
governmenta
l rules.
$50-
$100K
The risk can be
controlled by
taking adequate
steps in terms of
making
arrangement of
sufficient funds so
that the situation
will be handled
The plan includes
utilization of preserved
funds towards the
handling of situation. In
the same way adoption of
practice of business that
will be in complied with
changing situation.
B The event could occur at some time
Minor C The event could occur, but only rarely
Insignificant D The event may occur, but probably
never will

Risk management process:
Risk assessment:
The risk will be assessed by making identification of risk that what will happen if the report of newspaper will come true. Then making
analyzation of the external environment particularly the economic and environmental factors. Likewise, after making consideration towards the
associated aspects and the environment, adequate controlling methods in terms of making policies and plans related with the handling of the
situation would be adopted.
Technique:
For this the adopted technique would be SWOT and fishbone. This is because with this technique and by making an analyzation of the
strength and future threats adequate steps would be taken by the firm so that the future threats would be minimized and the firm’s strength
and capability would be inculcated in right way. likewise, with the fishbone technique quality services along with price focused tactics would be
delivered by the firm to its customers.
Risk level:
Risk level is moderate with an involvement of financial risk.
Insurance:
Business and unforeseen circumstances insurance would work best with regard to the above case.
Risk treatment Plan?
The incident will be documented by communication and consultation at managerial level. This will lead to have taking of suitable steps
so that the situation of risk would be handled in a managed manner. This will need to be followed up among various department and divisional
level so that the risk and its associated impact would be handled adequately. Operational planning and staff training would further be adopted in
order to make deal with the current situation and risk. This is because with these strategies firm can make incorporation of required changes
that are going to take place with the occurrence of event.

A former employee who is now managing a nearby hotel has been systematically poaching key supervisors and successfully offering them
employment. You also suspect that they have copied your database as they have been able to effectively target and win function bookings
from your regular client base. The functions they are winning are ones held on a monthly basis that have been a mainstay of your functions
revenue
Consequence stakeholders Legal
aspects
Damage Risk controls Contingency plan Likelihoo
d
Description
Major A The event is expected to occur in most
circumstances
Moderate Owners,
employees
Ethical
violation
and
violation of
employmen
t
legislations
$50-
$100K
The risk will be
controlled by
making strict rules
and policies.
Likewise, rising of
potential standard
with respect to
confidentiality
Preparation of
documentation of plans
containing amended
employment rules and
regulations.
B The event could occur at some time
Minor C The event could occur, but only rarely
Insignificant D The event may occur, but probably
never will
Risk management process:
Risk assessment:

The risk will be assessed with the process of making identification of risk that whether this action will lead to have an occurrence of any
risk. Likewise, it is also need to be analyzed that what are those individual who are committing such acts. This will be followed by taking of
adequate steps in association with controlling and monitoring under which employee’s unusual acts will be monitored and adequate actions will
be taken with respect to such persons who are making commitment of such acts and actions.
Technique:
Flowchart and SWOT would be considered as best technique. This is because with these techniques frim can take suitable actions in
terms of making identification of such event and persons. This is because with the flowchart structure and its associated communication and
distributed network identification of such event would become very easy. Likewise, with the enabling of SWOT technique adequate steps in
terms of making stopping such event with the tightening of existing plans and policies with respect to work would be executed.
Risk level:
Risk level is moderate with a manpower damage and loss.
Insurance:
No such insurance.
Risk treatment Plan?
The entire process will be documented with the help of consultation tactics. This is because with the consultation and co-ordination the
entire risk treatment would be performed. In the same way this will be followed up by employees themselves in terms of reporting of such event
and making compliance with the organizational plans and policies. Here legal advice in terms of compliance of employment legislation and
ethical compliance plays an important role in terms of resisting this act. Lastly, operation process in terms of making into consideration towards
the legal procedures and firm’s internal rules and regulations with respect to the risk would be adopted and worked.

You are seriously understaffed in the Bar department and have not been able to attract appropriate responses to the advertised positions for
over three months.
Consequence stakeholders Legal
aspects
Damage Risk controls Contingency plan Likelihood Description
Major A The event is expected to occur in most
circumstances
Moderate B The event could occur at some time
Minor Employees
and owners
Employment
legislation
$5-$50K The risk will be
controlled by
making immediate
hiring of
employees.
Likewise, it will
also include
adequate
recruitment.
Some existing employees
will be shifted and
transferred internally
C The event could occur, but only rarely
Insignificant D The event may occur, but probably
never will
Risk management process:

Risk assessment:
The risk will be assessed with the process of making an analyzation of demand of customers which are fond of bar. Then it will be
followed by monitoring of the existing and past demand and if it shows a positive outcome then taking of appropriate steps in terms of making
recruitment of employees as per the requirement in the organization with the use of social media and other modes.
Technique:
Fishbone and flowchart will work beast. This is because this technique enables the organization to make deal with the existing risk either
in terms of making some arrangement in terms of employing more employees or make shifting of existing employees within the organization.
Likewise, this technique enable the better delivery and management of risk with the dealing of customers too.
Risk level:
The risk level is minor with an involvement of financial risk.
Insurance:
No such insurance is available
Risk treatment Plan?
This risk will be documented with the help of consultation because with the consultation adequate number of employees will easy to be
hired. Likewise, this will also lead to have make arrangement of employees in terms of risk. This will be followed up by the employees at
managerial level. This is because they will lead to have a resolvence of the issue. Here advice in terms of enabling better opportunities and other
attraction so that employees will be recruited would be performed. This risk need to be addressed at operational level under which as per
requirement employees will be hired and situation of risk in terms of losing customer would be resolved.