Detailed Risk Management Report: NatureCare Products - BSBRSK501

This report provides a detailed risk analysis of NatureCare Products, an environmentally friendly skincare manufacturer based in Brisbane, Australia. The report focuses on the company's expansion strategy involving retail outlets. It examines the scope of the risk management process, including political and supply chain risks, with the objective of minimizing the impact of these risks on revenue generation. The report highlights the company's financial strength, organizational structure, and stakeholder involvement as critical success factors. It outlines the risk management process, including identifying hazards, assessing their impact, controlling the risks, and monitoring/reviewing the risk management strategies. The report also references supporting documents like sales data analysis memos, staff survey results, sustainability reports, team meeting minutes, and resource usage records to provide a comprehensive overview of the company's risk management practices and sustainability initiatives. The report emphasizes the importance of compliance with WHS laws, efficient identification and management of risks, and the implementation of risk control measures to ensure smooth operations and higher profits.

Running head: ERM
Enterprise Risk Management
Name of the student
Name of the university
Author Note:

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Assessment Task 1.
Answer 1.
The purpose of risk management standards is that they enable the business organisations to identify the risks and take
appropriate approaches to manage these risk identified. Barafort, Mesquida and Mas (2017) mention that risk management standards
as specific risk management strategies which are aligned to the core business strategies and principles. These standards remain
uniform and stable in general. This enables the management of the business organisations to follow these standards to manage
different types of risks like data theft risks and legal risks. Adelstein and Clegg (2016) mention that since the risk management
standards followed by particular companies are aligned to the core operations and business principles of the companies concerned,
these standards are aligned more with the market conditions prevailing. The Government of Australia has framed codes and practices
which can be adopted to business organisations like manufacturing companies to deal with risks (Safeworkaustralia.gov.au. 2020).
Thus, it can be construed that risk management standards enable the companies to comply with the laws in power. The companies can
follow specific risk management standards while forming risk management policies which ensures that their decisions are uniform and
lead to achievement of high levels of risk management. The companies can document these risk management approaches and treat
them as guidance in management of future risks. For example, companies can adopt risk management standards like AS/NZS ISO
31000: 2009 in forming risk management strategies (Iso.org. 2020).

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Answer 2.
The following are the eleven principles of risk management principles and guidelines under AS/NZS ISO 31000: 2009:
1. The principles aim to enable companies adopting them achieve high levels of risk management.
2. The AS/NZS ISO 31000: 2009 principles encourage the management of the business firms take proactive role in management of
the risks facing these firms.
3. The principles take into account that fact that all the risks which business organisations face interrelated. This means that the
organisations have to build efficient enterprise risk management or ERM strategies to manage risks (Florio and Leoni 2017).
4. The management and the employees of business organisations should improve their knowledge about risks. This would enable them
to identify and manage risks more efficiently.
5. The risk management strategies which the business organisations adopt should comply with the laws in power like the Safe Work
Act (Safeworkaustralia.gov.au. 2020).
6. The business organisations should improve their risk reporting standards.
7. The business organisations should improve their corporate governance standards.
8. The risk management strategies which the business organisations should adopt should ensure protection of the interests of the
stakeholders to the feasible extent and build their trusts.

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9. The risk management operations of the companies should be incorporated in the business decision making processes adopted in the
companies.
10. The risk management policies which business organisations adopt should enable the management of the companies exercise strong
controls on the different aspects of operations like financing so as to effectively manage the risks pertaining to the areas.
11. The management of the companies should allocate resources like financial resources to manage the risks (Iso.org. 2020).
Answer 3.
The Work health and safety laws require the employer organisations operating in Australia to take appropriate measures to
ensure that their employees are protected from workplace hazards to the feasible extent (Business.gov.au. 2020). Compliance with
these laws necessitate the management of the companies to form risk management strategies like installation of fire extinguishers to
ensure efficient fire management within their office premises. This installation of fire safety management enables the employees to
take prompt actions (extinguishing fires to the feasible extent) which reduces damage to the assets of the companies like furniture and
inventory of finished goods. Adoption of these risk management strategies enables to minimise injuries to employees owing to hazards
like fire (Safeworkaustralia.gov.au. 2020). This ensure smooth operations in the companies. Thus, one can establish on the grounds of
this discussion that WHS laws like Safe Work Act 2008 are required to enable organisations to minimise WHS risks like injuries of
employees owing to workplace hazards which in turn ensures smooth production.

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Answer 4.
There are several factors which must be considered to determine the risk management methods for manual operations in
business organisations which may lead to workplace hazards as per model Work Health and Safety Regulations 2011
(Safeworkaustralia.gov.au. 2020). First of all, the employers should ensure that the workplace is free from workplace hazards like
heat. Secondly, the management of the companies should deploy trained personnel to ensure that the WHS risks are mitigated or at
least minimised to the feasible extent. Thirdly, the employees who engage in manual lifting should be provided with aids like
scaffolding to enable them to lift objects with less strain. Fourthly, the management of the companies should monitor and review the
risk control measures to ensure that they are appropriate with the business requirements of the companies.
Answer 5.
The risk management policies and procedures play several important purposes. First, risk management policies enable efficient
identification and management of the risks. Secondly, the adoption of risk management policies enables the management of the
companies to gain participation of the employees in implementation of the policies by holding meetings with the employees and
training them on risk management. Successful implementation of the risk management policies leads to reduction in accidents and
injuries of employees. This ensues more uninterrupted operations which in turn ensures high profits. Thus, it is clear that the main
purpose of risk management policies and procedures is to generate higher profits by mitigating or at least minimising the risks or
threats to business facing the companies.

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Answer 6.
The three examples of impacts of risks in a workplace if not identified and managed efficiently are increase in employee
injuries owing to accidents like fire, decrease in employee motivation and finally dwindling employee productivity.
Answer 7.
The following are the step by step procedures which companies can adopt to analysing risks:
1. The management of the companies should conduct analyses of the markets concerned like Australia.
2. The management of companies should obtain feedback from stakeholders like customers, suppliers and employees on the risk
which they may have identified.
3. The management should hold meetings with the top managers on the findings of steps 1 and 2 to analyse the risks. It should also
identify the likelihood, intensity and consequences of the rsiks identified.
Answer 8.
The following are the three documents which the companies can consult to gain information on potential risks:
1. Official websites of the Government of Australia.
2. Documents containing findings from the PESTEL analysis and feedback of the stakeholders.

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3. Documents of the company holding records of risks which were experienced in the past, the consequences of the risks and the steps
taken to mitigate the risks.
Answer 9.
The three tools which the companies can use identify risks as components of the risk assessment process are risk register, risk
matrices and decision tree. The management should gain information on the risks identified on the risk register and plot them on the
risk matrices to identify their impacts as likelihood. The decision tree could be used by the company to form decisions on management
of the risks.
Answer 10.
The companies in Australia should adopt four options to control risks. The first option which companies should take to control
risks would be avoiding of the risks. For example, installations of new wires enable the companies to avoid the risks of fire and
electrocution to a great extent. The second strategy which the companies can adopt to control risks would be reducing of risks. For
example, the aggressively promoting products in the market enables the companies to reduce revenue risks to a great extent. The third
risk control which companies can adopt would be transfer of risks. For example, the companies transfer their risks to the insurance
companies. The fourth risk control strategy which the companies could adopt would be acceptance of risks.
Answer 11.
The following are the four procedures which companies should take to minimise risks:

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Step 1. Identification of the hazards:
The management of the companies should identify the risks which may result in risks and consequent losses to the business.
For example, the management bodies of the company should conduct market analysis to identify factors like changes in the customer
preferences and emergence of new competitors which would likely result in reduction of revenue generation.
Step 2. Risk assessment:
The management of the companies should assess the impacts of the risks on the business of the firms concerned. For example,
if the risk identified is entry of a new firm, the management of should consider the aspects of the identified competitor like its
financial strength, its market position and brand equities of the brands under its ownership.
Step 3. Control the risk:
The management of the company should take steps to control the risks identified or at least mitigate them to the feasible extent.
For example, in order to reduce the risk of revenue losses which the existing firms may face owing to entry of new firms, the
management of the former should promote the products more aggressively in the market.
Step 4. Monitoring, reviewing and further actions:
The management of the firms should monitor the actual benefits gained from implementation of the risk management
strategies. For example, the management would monitor the actual fall in revenue generation estimated owing to entry of the new
competitor.

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Assessment Task 2.
Part 1. Risk briefing report:
Introduction:
Enterprise risk management has emerged as the indispensable part of the core decision making operations of business
organisations. Florio and Leoni (2017) mention that business organisations should enhance their capacities to manage the risks they
face in order to sustain in the extremely competitive and volatile market. They also mention that adopting ERM enables the business
organisations to minimise the impact of risks on their respective revenue generation and business growth. The aim of the report would
be conducting a risk analysis of NatureCare Products, an environment friendly of skincare products manufacturing firm based in
Brisbane., Australia. The company had been dependent on third party health food shops besides its own official website with built in
ecommerce capability to market its products. The company restructured its marketing channel strategy to incorporate its own chain of
retail outlets to market its products directly to consumers. The operations manager on behalf of the company would conduct risk
assessment on behalf of the company pertaining to the retail outlet launch strategy.
The scope of the risk management process:
The scope of the risk management process at NatureCare Products which the operations manager would undertake would take
into account the risks which the company would encounter while launching its chain of retail stores to market its skincare products.

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The risks management process would include different types political risks and supply chain risks. The objective of the risk
management process would be effectively managing the risks identified and the risks which would be identified in the future to ensure
that their impact on the revenue generation of the company could be minimised.
There had been critical success factors of the risk management procedure of NatureCare Products which came to the forefront
upon conducting the analysis. First, the firm was financially strong which meant that it was in the position to invest immense capital
in the risk management process. The second success factor was that the firm had a strong organisational structure aligned to enterprise
risk management. This was evident from entrusting of the responsibilities of conducting risk assessment of the retail expansion
strategy with the OM. The third critical success factor of the RMP of NatureCare was involvement of stakeholders like shareholders
in making important decisions like business expansion and risk management.
An outline of the risk management process:
The following are the steps which would build up the risk management process which the OM would undertake pertaining to
the retail chain strategy of NatureCare:
Step 1. Identification of the hazards:
The operations manager should identify the risks which NatureCare could encounter while establishing its own chain of retail
outlets. He should conduct market analyses of Australia to recognise the risks. For example, the OM should identify the future

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changes in the customer preferences in terms skincare products which could impact the sale of products at the retail outlets and
consequent revenue generation.
Step 2. Risk assessment:
The OM should assess the impact of the risks on the revenue generation at the retail outlets and the company as a whole. For
example, political risks like changing of laws would require the company to comply with them in order to avoid infringement charges
which would enable the firm to lower the legal costs. This would eventually boost the net profit generation of the firm.
Step 3. Control the risk:
The OM would form strategies to control the risks to the feasible extent. This step would involve training of the employees
across different designations and departments in order to gain their participation in the risk management process.
Step 4. Monitoring, reviewing and further actions:
The management of the company would monitor the outcomes of the risk management plan implementation at the company. It
would review the outcomes on the basis of sets of key performance indicators or KPIs to recognise the future risk management
strategies. For example, in order to manage the supply chain risks, the company maintained contingent stock. It was expected as per
the KPIs that supply chain risks would be overcome within 60 days deadline by acquisition of new suppliers. If the company in reality
succeeded in acquiring new suppliers within 60 days, it would mean that the risk management plan was successful. However, if the