Risk Management Analysis and Business Expansion Report for Nature Care

This report provides a comprehensive analysis of Nature Care's risk management strategies and business expansion plans. It begins with an introduction to risk management, defining its importance in identifying and mitigating potential risks. The main body of the report includes three assessment tasks. The first task covers the scope of risk management, organizational policies and procedures, relevant legislation and regulations, and stakeholder identification. It also evaluates the strengths and weaknesses of the company's retail approach and analyzes critical success factors for business expansion, including a PESTLE analysis. The second task focuses on a meeting invitation and the role of the chair in a risk consultation meeting, culminating in a detailed risk management plan. The third task presents a training report outlining various training options and includes email communications to the CEO and staff, along with an evaluation report on the training effectiveness and overall assessment. The report concludes with a summary of the findings and recommendations for Nature Care's risk management and business development.

Manage Risk

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Assessment Task 1...........................................................................................................................1
1. Scope of risk management process..........................................................................................1
2. Risk management process as per the business policy and procedure......................................1
3. Legislation and regulation context of the organization............................................................3
4. Identify Internal or external stakeholders with whom organization need to consult...............4
5. Evaluate strength and weakness of existing retail approach of the company..........................4
6. Analyse critical success factor for the expansion of business.................................................5
7. Evaluate PESTLE analysis to identify key factors which impact business environment........6
Assessment Task 2...........................................................................................................................8
1. Meeting invitation....................................................................................................................8
2. Chair the risk consultation meeting.........................................................................................9
3. RISK MANAGEMENT PLAN...............................................................................................1
Assessment Task 3...........................................................................................................................4
1. Training Report about training options and email to CEO .....................................................4
2. Email to staff advising them training options .........................................................................6
3. Evaluation report on the training emailed to CEO...................................................................6
4. Evaluation report of all assessment .........................................................................................7
CONCLUSION................................................................................................................................7

INTRODUCTION
Risk Management refers to the task of identifying the potential risks in advance,
considering them and taking major precautionary steps to reduce the risk. Basically risk
management includes the assessment, control, analysis and minimization or elimination of
uncontrollable risks. Nature Care is an Ayurvedic store in UK where customers can get all the
Ayurvedic products at the best price. Nature Care offers various products including body, skin,
hair and home care products which are ethical and cruelty free alternative for the customers. So
Nature care may use risk avoidance, risk assumption and risk transfer or any other strategy or
combination of various strategies for proper management of future events.
This report includes three assessments in which first one includes the research regarding
organizational context. It includes the scope of risk management, policy, procedure, standards,
analyse risk in context of legislation & regulation etc. Evaluate strength & weakness of the
company and those factors which helps in expanding business. Along with this, evaluate
PESTLE factors which impact business environment and identify risk. In addition, this report
include the action plan measurements for implementation and evaluation of risk.
MAIN BODY
Assessment Task 1
1. Scope of risk management process
Nature Care adopts various risk management strategies which are the basic parameters to
manage risk in the business. Scope of the risk management process already set which include
basis assumption and it will be taken by operation manager which totally depend of previous
results & trends. Main purpose is to identify potential problems and identify best alternate
solutions which helps the business to manage their operational or financial services. In context of
Nature Care, employees have to follow all policies and it will be extended as per requirement of
current or future opportunities.
2. Risk management process as per the business policy and procedure
Policy & procedure of risk management:
Risk management policies & procedures helps the NatureCare product company to
minimise their risk in order to increase their efficiency. It will explained below:
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 Risk assessment and analysis: Under this process, operational manager identify the
uncertain events which impact the business and its day to day operational functions. It
also includes the evaluation where manager estimated the damaged revenue of the
organization. Effective estimation will increase organizational efficiency helps in
protecting business assets. Risk assessment & analysis will helps in decision making
process as well as improve business efficiency which save time, money, resources and
efforts. In context of NatureCare, operational manager have to identify all the factors
which can generate risk and reduce efficiency. After analysis, manager develop
strategy in order reduce risk and try to control for longer period.
 Risk Evaluation: After analysing risk in the organization, next step is to evaluate and
then it will be compress with risk criteria. Risk criteria include various factors such as
cost & benefit, social economic factor, legal requirements and malfunctioning in the
systems. In the NatureCare, operation manager evaluate risk on the bases of given
criteria and then measure that its effectiveness which impact the production and profit
margin as well. Operation manager have to develop strategy which required to
implement in effective manner.
 Risk treatment & responsibility: It is the last step where manager implement various
strategies in the organization. Here management have to follow their organizational
policies and procedures which further helps in avoiding risk or minimising risk. Risk
treatment also consider to transfer risk or financing risk. Operation manager of
NatureCare have to develop effective strategy for the business which minimise risk
and help the organization to grow.
Risk management is on going process where identification of risk is not sufficient to
know. Even they have to develop effective procedure to detect or mitigate from their roots. For
this operation manager of the company have to enhance their presence and need to be updated
and develop policies according to it.
Risk management principle:
 It is unique, independent and global function of risk management.
 All risk will be managed under their life cycle process.
 Each business units have to complete their responsibility in order to maintain their risk
profile.
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 Infrastructure develop for risk control in terms of people, tools, database, information etc.
Risk management for new opportunity:
Risk is a kind of future estimation and it can be positive as well as negative which impact
the organization. But positive impact provide opportunity which beneficial for the organization.
With the help of helps of risk management organisation able to identify the problems which
occur in front of the business. So manager ensure that it will not repeated in the future and helps
in expanding business to maximise productivity as well as profitability. There are some points
need to consider such as potential upside, downside and investment required to grab that
opportunity.
Risk management is the part of decision making process where it helps the manager to
develop strategy which minimise the risk and it totally depends upon the action which taken by
the organization as per their policies & procedures.
3. Legislation and regulation context of the organization
At the time of managing risk in the business, manager have to management have to
ensure that some regulation and legislation will impact the each actions of organization. In
context of NatureCare, operation manager ensure that some regulations are need to follow which
helps in dealing with disasters, emergency, occupational health & safety, environmental safety,
employment opportunity and privacy. Risk management will be done with the help of some
following procedure which required to follow under business regulation. In context of Nature
Care organization, company follow various regulations to save their rights regarding their own
producing skincare products. Along with this, business has to follow, Drug and Cosmetic Act
etc. Government ensure that beauty products include nature ingredients which make each item
safe for its users. Skincare company have to follow various regulation because it is directly
linked with the health of an individual.
Cosmetic ingredients labelling is the mandatory standards which cosmetic producers have
to follow and it came into effect on 29th Oct, 1991. It was amended on May 2008, It includes
various trade practices and standards. Cosmetic products fixed for replacement of any external
body part including teeth & mouth. It has different purpose such as cleansing the body,
Protecting & perfuming the body, maintain body in good condition etc.
In addition, Industrial Chemicals (Notification and Assessment) Act 1989 is the complied
law with modified by another law. Under this act, government agency or body ensure that
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developed products are safe for customers, employees as well as for environment. Australian
Government identify the risk that associated with the cosmetic products or ingredients which
impact production or imported into Australia.
4. Identify Internal or external stakeholders with whom organization need to consult
Internal Stakeholders are those individuals or groups who have an interest in the
company such as owners, shareholders, employees and management. Even the internal
stakeholders of Nature Care are always concerned about its ability to operate into the future and
its advancement opportunities. External stakeholders are groups, individuals or organization such
as creditors, customers, government and competitors. The external stakeholders of Nature Care
are also interested in the company as per their preferences like creditors are interested in
knowing the company's ability to pay its debts.
In context of Nature Care, when manager think to introduce new product in the market
they have to analyse risk which is associated with the product. Before implementation of plan
organization have to consult with risk consultant, customers through survey method and their
employees opinion that if they develop new beauty product then what are the chances of their
success. It help the business to analyse market trend or demand of customer regarding that
particular product and market researcher also provide them rough idea about market trend,
demand and future growth.
Internal stakeholders of the NatureCare are their existing employees who already face the
issue regarding risk adversity and reluctance to change. Here, change in the organization policy
will impact the business where workers can reject the change and protest against organization.
External stakeholders such as customers & suppliers, these are those people who get affected due
to change in the organization and any kind of activity. As per the given scenario, NatureCare
company wants to open their retail stores in the various locations such as Sydney, Brisbane and
Melbourne. Due to high price of the product
5. Evaluate strength and weakness of existing retail approach of the company
Basis Strength
No shop costs It is the current strength of the company where online shop
costs are lower than opening a retail stores. Company focus on
demographic segment where they target women between 25 to
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55 age group. Majority will be employed with high disposable
income rather than teenage market. Not only NatureCare
company sell their products but some healthcare stores also
selling their product on behalf of NatureCare.
Online approach It is a online marketing strategy where company sell their
products through online mode and provide suitable or secure
payment options. There are unlimited scope to sell their
product anywhere in the world.
Change brand & price for
online stores
Online mode is more faster than retail stores and t is beneficial
for those organization who manufacture huge range of product.
Basis Weakness
Saturation of Online market It will increase competition in the local market and if they sell
online than they have to select health stores which are very
limited for the business expansion. Most of the customers still
belief that they visit store and purchase items through smelling
& touching. They think that, it is the best way to buy.
Selling through healthcare
shops
There are no control over the product display in the stores as
well as if any store done something unethical than it will
impact the image of product brand.
6. Analyse critical success factor for the expansion of business
For the expansion of business, manager have to analyse their critical success factor such
as organizational goals, objectives, vision etc. To become Australian number one beauty product
company, they have to sell quality product to their customer in order to increase demand and
satisfy their customer with other services. Manager also ensure that product price range,
manufacturing process also impact the business. Operational manager develop a proper plan
where they think to expand 10% new product range for the customer because it will provide
various options to buy. Along with this, they required minimum 95% of customer satisfaction.
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For the success of their expansion they have to fulfil some strategic objectives which is discussed
below:
 Expand existing product range to attract more customers with the help of quality product
or services.
 Expand their market share by 10% by opening new retail shop in the location of
Melbourne, Sydney and Brisbane. NatureCare company have to increase competitiveness
with local stores.
 Collaborate with those suppliers who provide 100% eco friendly material for the
production of high quality product. So develop sustainable relation with suppliers who
available in the local area.
 Company have to sustain 95% customer satisfaction.
 NatureCare have to introduce new product range to attract more customers.
 Produce same products for the existing customers.
7. Evaluate PESTLE analysis to identify key factors which impact business environment
A PESTLE analysis is done to find out the macro-environmental factors that as an
impact on the performance of the organisation. The factors like political, economical, social,
technological, environmental and legal can be found by using this analysis.
Nature Care is a leading beauty and cosmetics company in UK. Given below is the Pestle
Analysis of Nature Care Company.
 Political factors- These factors impact the workings of Nature Care. It includes rules and
regulation framed by the government of UK which Nature Care has to follow to Conduct
its operations smoothly. Nature care needs to conduct its activities ethically and use fair
means of trade practices. For example:-changes in importing regulations of drugs or
strikes of health experts are core political issues that may affect the operations of Nature
Care. Import duties, trade tariff and government taxes are vary high which become
burden for the company to expand their business. Cost of product increase which
automatically reduce the profit margin and create difficulty to expand or survive in the
global market for the longer period. These factors impact the organization at the time of
their expansion.
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 Economical factors- The economic factors which generally affects the businesses are
uneven economic growth, foreign exchange rates, import, export, inflation, monetary
policies, interest rates,etc. Since the economy of UK is stable which is favourable for the
Nature Care to expand its business, to use the disposable income of the population. It is
also wise to ascertain infrastructures that helps to improve medical services and increase
investment in the industry. Inflation impact the cost of living, doing business, mortgage
etc. Before developing any strategy regarding business expansion manager have to
analyse this factor. Along with this, interest rates impact the economy and then it
automatically impact the business. So manager have to develop their expansion strategy
accordingly.
 Social factors- Population, gender preferences, customers' beliefs and cultures and age
factors are the social factors which have an impact on the growth and working of the
company like usage of natural products in UK is increasing day by day as the people use
these herbs for various diseases like flu, fever and headache. So Nature Care has to
understand this approach to reach its patients with a better idea. And even rising concern
and demands for the beauty products in UK boosted the sales of Nature Care. Company
choose demographic sector where they target the woman from the age group of 25 to 55
years. They also analyse the current cultural trend of Australia where organization
analyse buying pattern of the customers.
 Technological factors- These include technological change, automation, research and
development, etc. like developments in computer applications help the customers to
receive treatment or care faster than before. Nature Care needs to adopt latest
technologies to gain customer satisfaction as technological innovations can also be
utilized as marketing strategies. Nature Care also mentions scientific information of the
ingredients on the package of the products in UK to achieve customers loyalty. Manager
of the NatureCare ensure that every manufacture after enough of research and
development after analysing whole cosmetic market. Research & development team need
to done intense research regarding new technology for the production of goods, standards
regarding skincare products and technical awareness of market.
 Environmental factors- Aspects related with the environment like climate change,
change in weather contributes to environmental factors. Nature Care adopted the usage of
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natural and organic environmental friendly constituents in the manufacturing of their
products. Nature Care has to conduct internal audit at regular intervals to comply with the
environmental regulations in UK and to measure overall performance of the company
with respect to the environment. This factor based on climate change, animal friendly
product because most of the skincare brands use animal essential to manufacture their
products.
 Legal factors- Legal factors include the factors like law and protection, consumer rights,
health and safety, standards and regulations. Nature Care has to follow the rules and
regulations of UK. It has to produce such products which are not harmful for the
customers. Naturecare also has to face the legal issues for misleading advertisement.
Company have to follow various regulation such as consumer law, labour law, privacy
law etc. NatureCare product company also follow the Cosmetic ingredients labelling and
Industrial Chemicals (Notification and Assessment) Act 1989.
Assessment Task 2
1. Meeting invitation
Invitation to marketing manager:
To Marketing Manager <[e-mail]>
From Nature Care Products <[e-mail]>
Subject Invitation to meeting
Dear sir/ma'am
I am writing to request a meeting in relation to various risk that has emerged in the recent times
in market of skin care products. Main concern will be given on the agenda that you will bring to
us about biggest risk as per your department. You are kindly requested to provide all the inputs
that will help to identify solutions of the risk available. Please mark yore presence at
Conference hall on 15th October 2019 in the head office at Brisbane for meeting. It will start by
10 am and all the board members will be present their to look into the scenario.
Thank you for your consideration of this request. I will contact your staff for follow up. If you
need to contact me in the mean time then feel free to email me at
<[e-mail]>.
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Regards,
Operations Manger,
NatureCare Products
Invitation to office manager:
To Office Manager <[e-mail]>
From Nature Care Products <[e-mail]>
Subject Invitation to meeting
Dear sir/ma'am
I am writing to request a meeting subject to managing the risks in association of opening a new
store. Please mark yore presence at Conference hall on 15th October 2019 in the head office at
Brisbane for meeting. It will start by 10 am and all the board members will be present their to
look into the scenario. Kindly bring all the inputs required for the meeting (Liu, 2016).
Thank you for your consideration of this request. I will contact your staff for follow up. If you
need to contact me in the mean time then feel free to email me at
<[e-mail]>.
Regards,
Operations Manger,
NatureCare Products
2. Chair the risk consultation meeting
Risk briefing report describes internal and external risk that are attached to NatureCare
Products organisation with the introduction of new retail stores. This reports provides us with the
finding of some great risk that organisation is suffering from. As the new retail store opening is
proposed but no qualified staff is available to manage this new branch. Together with this
serving consumers with poor product variety puts organisation into deep risk in the high
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competitive market. Change in the risk policies and procedures is going on continues basis this
leads to partial understanding of new risk and risk management is kept at stake.
PESTLE analysis helps in identifying that business follow all the policies in the county as
per law. It enjoys economical benefits and through exchange rates and enjoys social trust by
providing eco-friendly products. Using of new technology with all the legal rules and regulation
helps Nature Care Products organisation to create goodwill.
Risk needs to be managed at each level in the organisation to get effective results. For
this risk management process needs to be explained by each employees of the Nature Care
organisation. Risk management process start with risk assessment that means to explore the
uncertain events that can hinders business operations. As risk of poor variety of products may
impact profitability in future with emergence of new companies. Nature Care organisation needs
to understand importance of wide variety and start its process to introduce some new range of
products. After risk assessment it needs to be evaluated on the basis of cost and benefits involved
with the risk of introduction of the new range of the products. At last treatment of risk is done
with the implication of new policies and risk transferring and risk financing.
Managers of marketing and office are invited to identify risk and various risk are
mentioned by them. Marketing department manager considers limited variety of products with
poor research and development strategy as great risk. Together with this old marketing tactics
make NatureCare Products organisation less competitive. Office manager considers less
qualified employees as threat as productivity and accuracy of information gets hindered. Poor
coordination for information exchange is also a risk to taker decision on tame to grab more
opportunities. Despite of managers of both the departments CEO has also analysed risk of power
outages. This as production process gets delayed and this delay makes organisation less
competitive by not serving on time.
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