Detailed Risk Assessment and Management Plan for Pricebeat Store

This report provides a comprehensive analysis of risk management for the Pricebeat store, addressing internal operational challenges such as distance-related meeting inefficiencies and inventory management issues. It identifies critical success factors related to customer interaction and the importance of maintaining an effective ERP system. The report outlines the goals and objectives of risk management, emphasizing security and data protection, and discusses stakeholder concerns, including the roles of both internal and external stakeholders. A SWOT and PEST analysis is conducted to evaluate the competitive strengths and environmental factors affecting Pricebeat. The report also examines current risk management standards, legislative and regulatory aspects, and organizational policies. Furthermore, it analyzes the likelihood and consequences of various risks, such as theft and data breaches, and proposes a risk treatment plan with stakeholder engagement and a communication plan. Desklib provides this document and many other resources to support students.

Running head: RISK MANAGEMENT
Risk Management
[Name of the Student]
[Name of the University]
[Author note]

2RISK MANAGEMENT
Table of Contents
Task 1.........................................................................................................................................3
Scope of risk...........................................................................................................................3
Critical success factor............................................................................................................3
Goal and objective of risk management.................................................................................4
Stakeholder concern...............................................................................................................5
SWOT, PEST and Risk analysis............................................................................................5
Analysis of risk......................................................................................................................7
Current Risk management Standard.......................................................................................8
Legislative and regulatory aspect relating to risk management.............................................8
Policies...................................................................................................................................8
Task 2.........................................................................................................................................9
Analysing likelihood of risk...................................................................................................9
Consequence of risk...............................................................................................................9
Risk Treatment plan.............................................................................................................11
Risk management plan with stakeholder engagement.........................................................12
Communication plan............................................................................................................13
References............................................................................................................................14

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Task 1
Scope of risk
The main scope of the risk is related to the aspect of the internal operation in the store.
The main problem which can be seen is the distance factor from Taralgon to Melbourne
which makes attending of the meeting a problematic process. Most of the meeting did not
finish on time due to the aspect of time problem involved into the aspect. The problem
relating to the scope of the stock and the inventory can be sometimes a problem due to the
factor of long distance travel1. The working has no specific pattern or manner as they are
propagated verbally which does not involve any type of official documentation.
Critical success factor
There are different risk factor which were involved into the scenario most importantly
into the sector of customer involvement. Most of the time this leads to major problem which
directly emphasis on the sector of interaction which is created towards the customers. It can
be stated here that in most of the cases customer interaction can be one of the most important
factor which can help in the increase of the business. The factors of risk are generally
involved into the internal working of the organisation2. Point of emphasis should be given
into minimizing the problem which is related to the distance which alters the interaction face.
Most of the failure of the business of the business is initiated by a means of removal of the
ERP system which acts as a basic framework of working of the organisation.
The banking of the organisation is not done on a daily basis which directly mean that
it would be including a risk orientation which would be affected in a manner of breakthrough.
It could directly affected the financial condition of the organisation. In most of the
1 Renz, David O. The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons,
2016.
2 Sweeting, Paul. Financial enterprise risk management. Cambridge University Press, 2017.

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organisation important documents pertain, so it can be stated here that the security of the
document can be one of the factors of security. As it is stated in the case study the computer
system are not password protected which would directly mean that there are no safety
prospective involved into the working. This would directly mean that anyone could directly
access the data which is stored in the system3.
Goal and objective of risk management
Goal
The main goal of the approach of the risk management strategy is to provide a
security means which would be protecting the overall internal as well as external working of
the organisation. The access of the data to the organisation should be given only to the
authorised people which would be directly safeguarding the data. The protection of the cash
can be stated to be another important point as if there are any type of financial loss it would
be directly affecting the financial sector of the organisation. The main goal would be achieve
a standard of working which would involve proper orientation of working4.
Objective
The main objective which can be stated here is that enhancement of the security
policy should be one of the most primary factors. If the security level is maintained it would
be directly enhancing the overall working of the organisation. The main setting would be to
include a framework which would be cover up all the aspects of the working which does not
involve primary focus5. There are many other factors which are included into the process with
affect the working, primary objective would be involve different sectors of security
3 Chance, Don M., and Roberts Brooks. Introduction to derivatives and risk management. Cengage Learning,
2015.
4 Subramaniam, Nava, et al. "Integration of carbon risks and opportunities in enterprise risk management
systems: evidence from Australian firms." Journal of Cleaner Production 96 (2015): 407-417.
5 de Groot, Nynke, et al. "Vulnerable pregnant women in antenatal practice: Caregiver's perception of workload,
associated burden and agreement with objective caseload, and the influence of a structured organisation of
antenatal risk management." Midwifery 40 (2016): 153-161.

5RISK MANAGEMENT
implementation which would be affecting the area. Most of the organisation tend to include
security policies which enhance the security as well as the policy of the organisation6.
Stakeholder concern
The stakeholders may be directly affected by the working of the organisation. In most
of the cases it can be stated that the stakeholders tend to indulge into the overall working of
the organisation. They may be also involved in the formation of the policy according to
which the employee would be abide to follow. This eventually forms a basic guideline of
operation which focus on the aspect of working. Basically it can be stated here that in any
organisation the stakeholders are very much important as they directly aim at convincing the
customers and create a sense of relationship which would be directly enhancing the loop hole
of the organisation. The role of the stakeholders play a very important role in the internal
working of the organisation7.
Internal stakeholders: The internal stakeholders affect the internal working of the
organisation. They basically form the identification of the problem which forms the execution
phase of any process within the organisation.
External Stakeholders: They basically support the internal stakeholders in a
collaborative manner which forms a support of the working of the organisation. Most of the
time the factors of risk are judged more properly by the external stakeholders than the
internal stakeholders.
6 Bromiley, Philip, et al. "Enterprise risk management: Review, critique, and research directions." Long range
planning 48.4 (2015): 265-276.
7 Hopkinson, Martin. The project risk maturity model: Measuring and improving risk management capability.
Routledge, 2017.

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SWOT, PEST and Risk analysis
SWOT: SWOT analysis can be stated as a proper kind of framework which can be
used for evaluation of competitive strength of Price beat. It mainly works on identifying
various strength, weakness, opportunities and lastly various threats in Price beat.
Strength Pricebeat store is located on the corner of the two main roads which
creates a platform for easy access to customers. This departmental
store comes up with parking space of 1000 cars.
Weakness There are separate employees which are responsible for various things
like payment, deliveries and inventory management
Opportunities Brand awareness of Price beat can be easily improved by proper kind
of marketing and various advertisement.
Expansion of Pricebeat to various global market platform.
Innovation in the domain of product can be done to attract large
number of customers.
Threats At Pricebeat the banking is not done on everyday basis. And many
times 10 thousand dollars are kept on premises on the various cash
register.
Change in economic condition can easily impose some kinds of
restriction on the spending of various customers.
Local market can result in some kind of risk for this organization that
is Pricebeat.
PEST: PEST analysis can be considered to be measurement tool which is used for
assessing a product or market at a particular time. PEST stands for Political, Economic,

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Social and technological factors. With the help of this factors, Pricebeat can easily make
better decision for its business.
Political factors like various government policies can affect the revenue and profit of
Pricebeat industry. Political factor can easily affect various kinds of parameters like SCM
(supply chain management) of Pricebeat. Proper political stability is required because it can
provide better business which can easily affect the supply chain and sales of Pricebeat.
Economic factor can be considered to be an important factor for this Pricebeat
organization. World economy have considered economic factor to be an important parameter.
Economic growth merely focuses on the fact people round the globe are more interested on
shopping. With the help of better economy there will be chances of higher revenue and profit
for Pricebeat organization. Better economic condition merely focuses on the fact that there is
growth in sales and overall improvement of Pricebeat organization.
Social trend can be considered to be a vital factor on Pricebeat and its profitability.
Any kind of demographic changes and consumer preference can have a deep effect on
Pricebeat. Demographic changes can easily effect the popularity of the product at Pricebeat.
Technological factors are considered to be a vital factor in terms of supply chain,
service and sales of customers. The growth of digital technology has increased the number of
players in the market. So this can be challenging for Pricebeat organization.
Analysis of risk

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Figure 1: (FLOW CHART OF RISK ANALYSIS)
(SOURCE: By author)
Current Risk management Standard
The risk management strategy forms the basic working in the aspect of the working of
the organisation. In most of the cases it should be taken into consideration that risk mitigation
should be one of the most important aspect and it should be taken care that the factor of risk
of risk may include into the process8. The role of the manager can be very much important in
this sector due to the factor that the mitigation of the risk strategy is directly incorporated by
the manager in the possession of the other employee.
Legislative and regulatory aspect relating to risk management
The main aspect which can be taken regarding the regulatory and legislative part is
the introduction of the law relating to legislative and regulatory requirement. This majorly
8 Honey, Garry. A short guide to reputation risk. Routledge, 2017.

9RISK MANAGEMENT
include different sector of laws which the organisation has to abide. If there are any type of
failure to abide to the compliance to the standard in the OHS, privacy and the relation law of
the industry and is required to form a legislative and regulatory standard9. Sometimes it can
be stated that law forms the basic guidelines which puts the working of the organisation in a
proper manner. These laws should always be abided by the employee and the higher officials.
Sometimes there can be few internal laws of the organisation which aim at working of the
organisation towards a predefined goal.
Policies
Board Policy Management Policy
The board policy directly relate to the
organization governance. They do not take
into consideration the day to day policy
The management policy are created by the
management policy
Main policy
 Should be abiding by the rules of the
government
 Policy should focus on the view
point of the customers
 They are related to mission, external
communication and code of ethics,
issue for staff and the compliance
with the sector of legislation.
Main policy
 The policy mainly involve internal
working of the organization.
 They are basically related to admin,
finance, PR, confidentiality and
ethics.
9 Aven, Terje. "Risk assessment and risk management: Review of recent advances on their foundation."
European Journal of Operational Research 253.1 (2016): 1-13.

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Task 2
Analysing likelihood of risk
Risk Likelihood of risk
Theft Severe
Data Breach Moderate
Damage to inventory Severe
Injury of customer Minor
Competition from big store Severe
Consequence of risk
Risk Consequence of risk
Theft Theft in Pricebeat can easily result in large number of problems
like
 Shirking of product inventory
 Divides the attention of various employs.
 Theft issues with employee.
Data Breach Data breach can large number of effects like
 Security and data breach
 Compromise with the consumer data

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 It can keep the employee data at risk.
 One can easily suffer from various kinds of DDoS attack.

Damage to inventory Damage to inventory can have large number of issues like
 Damage of documentation
 Time
 Cost and capital
 Not understanding the value
 Choosing of costing method in proper way.
Injury of customer Injury to customer can have large number of effect like
 Cost of salary
 Loss of productivity
 Medical and travel expense10
Competition from big
store
Competition from big stores can easily result in loss of profit for
Pricebeat organization.
Risk Treatment plan
Risk Impact of risk Treatment
Theft high Theft in Pricebeat can be tackled by providing training
to employees, spot check on regular basis and posting
signs can be easily considered to be effective way for
prevention from any loss.
10 Hopkinson, Martin. The project risk maturity model: Measuring and improving risk management capability.
Routledge, 2017.

12RISK MANAGEMENT
Data Breach low Data breach can easily result in legal obligation, theft
of customer identity. Damage to the POS system of
Pricebeat
Damage to
inventory Medium
Property insurance can be easily used for better
protection for various retailers. Traditional coverage
can easily reimburse various from various losses like
fire, robbery and environmental damage 11.
Injury of
customer
Low Various insurance policies can be considered to be
well known store policy which covers various legal
costs when customers and third parties sue the
employees over these accidents.
Competition
from big store
The top level management of Price beat should stay in
current with various changes in the retail industry. By
this they can easily have an idea about the liabilities.
Risk management plan with stakeholder engagement
Risk Impact of risk Treatment Stakeholders
Theft high Theft in Pricebeat can be tackled by
providing training to employees, spot
check on regular basis and posting
signs can be easily considered to be
effective way for prevention from any
IT manager
11 de Groot, Nynke, et al. "Vulnerable pregnant women in antenatal practice: Caregiver's perception of
workload, associated burden and agreement with objective caseload, and the influence of a structured
organisation of antenatal risk management." Midwifery 40 (2016): 153-161.