BSBRSK501: Risk Management Plan for NatureCare Products Expansion

This report presents a comprehensive risk management plan for NatureCare Products, focusing on the expansion of retail outlets in Brisbane, Sydney, and Melbourne. It includes a detailed risk assessment table that identifies potential risks such as harm to products, lack of quality manpower, service quality issues, lack of operational infrastructure, and cost escalation. The report evaluates the severity and likelihood of each risk, proposes treatment and control methods, assigns responsibilities, establishes timelines, and sets priority ratings. The document also includes an email to the CEO summarizing the risk management plan and references supporting the analysis. The assessment considers internal and external stakeholders, critical success factors, and provides a framework for monitoring and disaster recovery, offering strategies to improve service quality, manage costs, and ensure operational efficiency. The plan aims to ensure the successful expansion of NatureCare Products by proactively addressing potential challenges.

TASK 3
Risk Assessment Template

Table of Contents
TASK 3...................................................................................................................................................................................................................................................................................................................................................................................................................3
1. Risk Management Plan...................................................................................................................................................................................................................................................................................................................................................................................3
2. Sending Email to CEO regarding risk management plan...............................................................................................................................................................................................................................................................................................................................5
REFERENCES.......................................................................................................................................................................................................................................................................................................................................................................................................6

TASK 3
1. Risk Management Plan
Scope of assessment: Establish retail outlets in Brisbane, Sydney and Melbourne for higher growth
Critical success factors: 1. More competitiveness
2. Maximized product range
3. Increased market share
4. Eco-friendly suppliers
5. Staff
Internal & external stakeholders: NatureCare Products staff, distributors, suppliers and customers, government.
Risk Consequences Severity Rating Likelihood
Rating Treatment/control methods Person responsible Timelines Priority
rating Monitoring process
Disaster
Recovery Plan
Harm to
products High Likely
For treating this, gathering of data
regarding weather updates from
Australia’s Bureau of Meteorology will be
taken. This will help to mitigate risks as
stock can be shifted to safer places.
Production would be done on prior basis as
per the results received from department.
This will help to attain customer demand.
Operations Manager and
Top management
It will be completed
within 15 days. 2
Daily updates from
meteorology department.
Checklists made on
continuous basis for
assessing process.
Lack of Quality
Manpower
High turnover
of staff
Moderate Likely Keeping database of staff in effective
manner (Charter, Gray, Clark & Woolman,
2017). Moreover, offering referral
incentives to current employees. They will
be motivated to bring desirable candidates
and as a result, appropriate candidates will
be selected in a better manner. On the
CEO, Operations
Manager, Sales Manager
It will take 10 days to
complete the same.
1 Performance reviews will
be done. Along with it,
staff training and staff
surveys will be done so
that inefficiencies may be
removed. Moreover,
people will be hired

Risk Consequences Severity Rating Likelihood
Rating Treatment/control methods Person responsible Timelines Priority
rating Monitoring process
other hand, usage of social media sites to
post online jobs so as to select appropriate
people.
through online job
postings suitable to job
role.
Service Quality Affect
customer
satisfaction
High Possible
Since, 70 % of customers are women and
thus, service quality should be utmost
good. The treatment is that demand of
customers will be addressed through
taking feedback. After analysing this,
customer-tailored goods may be offered to
them. This will satisfy them in effective
manner (Hazen et.al, 2018). Agent
feedback will be taken. After that, seeking
customer’s complaints and agent feedback
through direct contact, service quality can
be improved.
Marketing Manager,
Customer Service
Representatives
It will be completed in 10
days. 4
Service interactions will
be monitored between
agent and customers
through resolving service
issues (Hopkin, 2018).
Furthermore, sessions with
customers will be taken by
staff so that inefficiencies
can be removed and
service quality can be
improved in a better
manner.
Lack of
Operational
Infrastructure
Affects
Business
process and
operations
Moderate Most Likely The treatment for overcoming this risk is
to make proper synchronisation between
business processes and operations. Further,
re-validating of NatureCare Products’
business model will be made. This will
make sure that operational infrastructure
being underdeveloped is enhanced in
effectual way. Further, customers can be
offered faster delivery of goods to attain
higher satisfaction level.
Operations Manager It will take nearly 15
days.
3 Checklists will be made so
that work is being
performed as per schedule
(Yeoh & Popovič, 2016).
Moreover, communication
process will be analysed.
Monitoring of training and
development, policies and
procedures will be
assessed. This will make
sure that inefficient
operations are reduced and
smoother operations are

Risk Consequences Severity Rating Likelihood
Rating Treatment/control methods Person responsible Timelines Priority
rating Monitoring process
attained with ease.
Cost Escalation
Leading to
affect intended
budget
Moderate Possible
The finance will be availed from venture
capitalists which will provide by
determining firm’s financial health.
Alongside, loan from bank can be taken as
well. The bank will ascertain financial
position with interest to be charged on
principal amount (Ransbotham et.al,
2017). Further, proper budget will be made
so that costs may not exceed.
Accounts Manager It will be accomplished
within 15 days. 5
The monitoring process of
budgets will be made on
constant basis so that cost
escalation may not prevail.
Actual figures will be
compared with forecasted
ones so that business may
be able to predict accurate
costs. Hence, it will be
beneficial for NatureCare
Products in the long run
with ease.
2. Sending Email to CEO regarding risk management plan
September 23, 2019
The CEO
NatureCare Products
Brisbane
Respected Sir,
The risk management plan has been made by taking various risks of expansion to locations. NatureCare Products newer locations to establish
outlet in Brisbane, Melbourne and Sydney has risks such as disaster recovery plan, lack of quality workforce, lack of operational infrastructure,
service quality and cost escalation. Actions and treatments are provided for reducing impact of these risks.
Further, I’ll invite you to provide comments so that risks can be further mitigated and business expansion would be a success.
Thanks,
Yours’ Sincerely,
Operations Manager
NatureCare Products

REFERENCES
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research. 253(1). 1-13.
Charter, M., Gray, C., Clark, T., & Woolman, T. (2017). the role of business in realising sustainable consumption and production. In System Innovation for Sustainability 1 (pp. 56-79). Routledge.
Hazen, B. T., Skipper, J. B., Boone, C. A., & Hill, R. R. (2018). Back in business: Operations research in support of big data analytics for operations and supply chain management. Annals of Operations
Research, 270(1-2), 201-211.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Ransbotham, S., Kiron, D., Gerbert, P., & Reeves, M. (2017). Reshaping business with artificial intelligence: Closing the gap between ambition and action. MIT Sloan Management Review, 59(1).
Yeoh, W., & Popovič, A. (2016). Extending the understanding of critical success factors for implementing business intelligence systems. Journal of the Association for Information Science and Technology. 67(1). 134-
147.