Risk Management Plan Report: JM Transport - Business Development

This report presents a comprehensive risk management plan for JM Transport, a transportation company. It begins with an introduction to risk management, emphasizing its importance for business operations. The report then outlines the advantages of a risk management plan, followed by a review o...Read More

Running head: RISK AND WORKPLACE SAFETY
Risk management plan for JM Transport
Name of the student
Name of the university
Student Number
Dated:
Author Note:

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RISK AND WORKPLACE SAFETY
Table of Contents
Introduction......................................................................................................................................3
Advantages of a risk Management Plan..........................................................................................4
The Legislative Framework.............................................................................................................4
Section 2 Risk..................................................................................................................................6
Management in JM Transportation..................................................................................................6
The different types of risk and hazards are;.....................................................................................6
Insurance..........................................................................................................................................7
Strengths/weaknesses of the current Risk Management Process....................................................8
Section 3 Risk Assessment..............................................................................................................9
Risk Identification...........................................................................................................................9
Section 4........................................................................................................................................11
Risk Treatment Plan......................................................................................................................11
1. Internal and external stakeholders.............................................................................................11
2. Key Responsibilities and Timeframes.......................................................................................11
3. Communication and Participative arrangements.......................................................................11
4. Monitoring and Evaluation........................................................................................................12
References......................................................................................................................................13

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Section 1
Introduction
Risk Management is considered to be the process of identifying, assessing and
controlling the threats of the capital and the revenues of the organization. The following kinds of
threats and risks can occur from a large number of different sources that includes the likes of
legal liabilities, strategic management errors, financial instabilities and many more as such.
Risk management plans are thus becoming a necessary for the efficient running of the
organization in the modern world (Kameshwar and Padgett 2014). The planning has to be done
in such a way that it increasingly includes the company’s processes for the identification and
controlling of the threats to the digital assets that also includes the different types of corporate
data and many more as such.
Advantages of a risk Management Plan
According to, Beven et al., (2015) the formulation of a risk management plan has become
one of the topmost priorities of the business in the modern times. Each and every business
organization irrespective of their size and nature of business must formulate a proper risk
management plan to avoid any complications that can complicate the smooth functioning of the
business. Some of the main advantages are as follows;
a. Can see the risks that are not apparent
b. Provide proper insights and support to the board of directors
c. Reduce the liabilities of the business
d. Frame regulatory issues

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e. Get the necessary credit for cooperation
f. Reduce the wastage of money and resources
The Legislative Framework
 AS/NZS 4360:2004 Risk management (superseded by AS/NZS ISO 31000:2009)-
The purpose of the following act was to put greater emphasis on the importance of
embedding risk management practices in the organizational culture and also laying
greater emphasis on the management of potential gains as well as different potential
losses (Dupont Ganesan and Theodore 2017).
 Duty of care- The purpose of duty of care is to enable the organizations around the world
to benchmark or legalize the following set of practices with the others and also to develop
a range of proper and effective practices to safeguard the interests of the employees
globally.
 Company law- The company law seeks to identify the risks inherent to business
operations of the organization and provides standard set of different guidelines that helps
the management of the companies to define, assess, measure and control the different
types of identified risks.
 Contract law- Contract Law seeks to identify the responsibility for a loss arising from
the loss of its own actions. It also identifies the persons who are responsible behind the
alleged incidents.
 Environmental law- The laws and legal decisions are the different factors that aim to
define the basis for the risk of the agency (Duggan et al. 2015). The environmental laws
must be maintained more appropriately as because the mentioned company is a

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transportation company and there is a huge scope for the creation of pollution and
emission of harmful pollutants to the atmosphere.
 Freedom of information- The freedom of information act makes the management of the
particular company capable of asking the third parties for some precise information’s
regarding the conditions of the company, processes, maintenance and the proper training
of the workers. The management of JM transportation gets the idea of the different
operational procedures through the implementation of such information in the
organization.
 Industrial relations law- The main purpose of the industrial relation lays in the
promotion of the workers and the economic prosperity of the business in the year
(Kameshwar and Padgett 2014). The industrial relations law helps the management of the
organization to increase the productivity of the business by creating high level of
economic development and increasing the amount of international competitiveness.
 Privacy and confidentiality- The maintenance of the privacy and the confidentiality of
the organizations is one of the key to the success of the business organization. It is
important to avoid sharing the private data and important strategies that are to be
undertaken by the management. The absence of privacy would lead to a block in the
organizational growth (Beven et al. 2015).
 Equal opportunity- The prevalence of a diversified workplace in JM Transport may lead
to different conflicts within the employees (Bernal et al. 2017). It is a challenge for the
organization to control them and steer the organization towards growth. The main use of
equal opportunity is that it helps to avoid conflicts and create a sense of friendly and
pleasant working atmosphere for the smooth operations of the organization.

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Section 2 Risk
Management in JM Transportation
The different types of risk and hazards are; Political- The political environment of the country is a major risk as because the political
scenario of the area of its operations will depend on the success of the business.
 Economic- The economy of the country of its operation has major role to play as because
a strong and compact economy helps in the growth of the business (Rahman et al. 2016).
The presence of a weak economy is a major risk for the business organization.
 Social-The absence of an idea on the social and cultural background of the place of the
operation is a major source of risk.
 Legal- The presence of different laws and regulations formulated by the government is a
major legal threat to the success of the organization.
 Technological- The management of JM Transportation will face risks if the latest
technologies to avoid risks are not adapted as because such an adaption will help the
organization to achieve success in the business.

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RISK AND WORKPLACE SAFETY
 Policy- The policies of the government along with the environmental and economical
policy are a risk for the transportation company.
 Property-The Company faces issues on the allocation and the claiming of different lands
that are owned by them. They take the help of legal advice to avoid such issues.
 Personnel-The staff issues have to be addressed by the management of the mentioned
company with utmost precision to make the best out of the business (Suter 2016).
Insurance
The different types of insurance undertaken by the mentioned transportation company are
as follows;
1. Professional Indemnity- Helps to cover claims in respect of breach of duty in the course
of carrying out the usual activities or the functions
2. Goods In transit- Being a transportation company, the management of the organization
has to cover the loss or the damage of the goods in transit
3. Theft or fire- The company has to make sure that the organization has the insurance
against any sudden and unavoidable circumstances or any other forms of events

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Strengths/weaknesses of the current Risk Management Process
STRENGTH WEAKNESSES
 Easy Identification of
risk
 Adequate funds to
cover the risk and take
the appropriate
measures to avoid risk
 High chance of risk
occurrence
 Different chances of
internal as well as
external risk
OPPORTUNITIES THREATS
 Implementation of
new technologies and
scientific measures
 Threats from fires and
other natural
disturbances

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RISK AND WORKPLACE SAFETY
Section 3 Risk Assessment
Risk Identification
Risk Likelihood of
occurrence
Impact /
Consequence
Priority
for
treatme
nt
H/M/L
Suggested Treatment Who is
responsible
for action
Action
by
date
Business Risk High chance of
occurrence as
because it
always faces
different kind of
pressure and
risks that are
quite tough to
handle
Loss of business
opportunities
High Concentration on
formulating one of the
best strategies
General
Manger and
CEO
12th
June,
2018
The physical
resource risk
Loss of
resources/wasta
High Concentrating on the
generation of revenue
Operations 18th of
June,

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RISK AND WORKPLACE SAFETY
Physical
Resource Risk
occurs as a low
finance which
restricts the
management to
utilize the risk
from the
physical
resources
ge of resources and finance manager 2018
Road Risk
High chance as
road accidents
and small minor
break downs can
be the cause of a
major risk
Loss of lives of
the employees
HIgh Training to drivers and
being much more careful
Transportati
on Manager
25th of
June,
2018
IT Risk
Medium chance
as the company
is not too
dependent on IT
risk.
Loss and theft of
data from the
main server of
the industry
Medium Installing latest software. IT experts
appointed
by the
managemen
t of the
organization
25th of
June,
2018
Transportation High chance as
demand has
Transportation
Risk is high in
High Training Programs Driver
manager
4th of
July,

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RISK AND WORKPLACE SAFETY
Risk gone up. nature and thus
has a high
impact
2018
Section 4
Risk Treatment Plan
1. Internal and external stakeholders
The stakeholders of the following organization include the likes of the different kinds of
shareholders, the customers and the management of the business who invests in the stock market
of the business. The internal as well as the external shareholders have a great deal of sayings in
the running of the business and thus are an important part of the business.
2. Key Responsibilities and Timeframes
The main responsibilities of the management of the mentioned organization is to make
sure that they perform the best results and implement the best possible strategies that can help
them to achieve quality success (Bernal et al. 2017). The management of the organization must
also maintain a proper and efficient timeframe to establish the business properly.
3. Communication and Participative arrangements
Communication is the most important element that helps to avoid any sort of risk in the
business (Suter 2016). A proper communication between the departments of the organization, the
employees and the supervisors of the organization will help the management to formulate the
right set of strategies to achieve the goals of the organization.

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RISK AND WORKPLACE SAFETY
4. Monitoring and Evaluation
The identification, monitoring, assessment and the mitigation of the risks ought to be done by the
management of the organization by means of constant watch and the use of latest technologies
like monitoring softwares or installation of the GPS system to track the different transport goods
and services either to the clients or the warehouses (Li 2014).

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References
Bernal, G.A., Salgado-Gálvez, M.A., Zuloaga, D., Tristancho, J., González, D. and Cardona,
O.D., 2017. Integration of probabilistic and multi-hazard risk assessment within urban
development planning and emergency preparedness and response: Application to Manizales,
Colombia. International Journal of Disaster Risk Science, 8(3), pp.270-283.
Beven, K.J., Aspinall, W.P., Bates, P.D., Borgomeo, E., Goda, K., Hall, J.W., Page, T., Phillips,
J.C., Rougier, J.T., Simpson, M. and Stephenson, D.B., 2015. Epistemic uncertainties and natural
hazard risk assessment–Part 1: A review of the issues. Nat Hazards Earth Syst Sci
Discuss, 3(12), pp.7333-7377.
Duggan, J.M., Eichelberger, B.A., Ma, S., Lawler, J.J. and Ziv, G., 2015. Informing management
of rare species with an approach combining scenario modeling and spatially explicit risk
assessment. Ecosystem Health and Sustainability, 1(6), pp.1-18.
Dupont, R.R., Ganesan, K.N. and Theodore, L.W., 2017. Health and Hazard Risk Assessment.
In Pollution Prevention(Vol. 153, No. 161, pp. 153-161). ROUTLEDGE in association with
GSE Research.
Kameshwar, S. and Padgett, J.E., 2014. Multi-hazard risk assessment of highway bridges
subjected to earthquake and hurricane hazards. Engineering Structures, 78, pp.154-166.
Li, W., 2014. Risk assessment of power systems: models, methods, and applications. John Wiley
& Sons.