Case Study: Developing a Risk Management Plan for OSY (BSBRSK501)

This case study focuses on developing a risk management plan for Office Supplies to You (OSY), a small business facing challenges in a declining market. The assignment requires a review of current organizational processes, procedures, and requirements, including the application of a performance management model. It involves determining the scope of risk management, assessing current strengths and weaknesses using a SWOT analysis, and documenting critical success factors to ensure compliance. Stakeholder involvement is emphasized, including internal and external stakeholders. The student is expected to apply research methods such as PESTLE analysis, consult with stakeholders to identify risks, and develop a consultative approach for risk mitigation. The provided solution addresses these tasks by analyzing market trends, identifying potential risks (e.g., declining paper consumption, lack of market research, lack of effective HR strategy, lack of technology adoption), and proposing strategies for improvement such as implementing a mix marketing strategy, SWOT analysis, development of standard operating procedures, and stakeholder engagement in risk assessment. The assignment emphasizes the importance of adapting to market changes and ensuring business sustainability. This case study provides a comprehensive overview of risk management principles in a real-world business scenario.

BSBRSK501 Manage risk
Case Study v2.0 (2017/10/11)
BSBRSK501 Manage risk
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Assessment
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Read through the following case study and, using the information provided, your own research
and reflection on your learning within this unit answer the three (3) Tasks that follow. The
attached workbook contains useful information and templates for use in your responses. Attach
all documents, including any templates used, with your submission.
Case Study
You are employed by Office Supplies to You (OSY), a small business providing office supplies to
small and medium-sized businesses within the South-East Queensland market. The business is
starting to grow with a staff of two (2) business owners/partners, three (3) Administration staff
and Finance Manager, all of whom work in head office, and two (2) sales staff who mostly work
remotely. As growth is continuing, the business projection is to employ an additional three (3)
staff over the next 12 months, one of whom will join the sales team.
The market trends show that there has been a decline in Industry revenue as paper
consumption declines. The Stationery Goods Retailing industry includes companies that retail
stationery goods, writing materials, art supplies, ink, pens, pencils, and notebooks. The
industry is a very small component of the overall Retail Trade division and is subject to
increasing external competitive pressure and threats. For example, an increasing number of
alternative retail channels that also sell stationery items, including online retailers, are
challenging the industry’s long-term survival, as is the ongoing move towards a digital
economy. As a result, the industry has been gradually shrinking. Over the five years through
2016-21, industry revenue is expected to fall by an annualised 1.7% as it continues to contend
with external variables.Organisational processes and procedures currently used at OSY were
developed by the Partners to meet original requirements and are all paper-based. Because OSY
is expanding, risk management needs to be reviewed and updated to ensure the business
remains competitive.
To establish risk context, your CEO has asked you to prepare a risk management plan by firstly
reviewing current practises and applying a performance management model; also, to consider
political, economic, legal, technological and policy context. You will need to seek the assistance
of stakeholders in your research of identified risks and generate a list of applicable risks that
may apply to scope using relevant techniques and tools. The current administration systems
are paper-based, including all HR documentation, customer accounts and financial reporting;
there is no formal input by stakeholders. These systems and processes need to be streamlined
and improved as the business continues to grow.
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BSBRSK501 Manage risk
Case Study v2.0 (2017/10/11)
Task 1
Answer the following three (3) questions. Templates used must be included in your response:
1. Explain the strategies you will use in your review of current organisational processes,
procedures and requirements in accordance with current risk management standards.
Include in your response the resources you would access.
2. Use the template provided to demonstrate how you determine scope for risk management
process and to review current strengths and weaknesses of current arrangements and any
relevant policy context.
3. Explain how you will document critical success factors to accurately reflect on legislation and
to ensure compliance with requirements within OSY’s procedures. You may choose to use
the Template in your response.
1. It is seen that OSY organisation has not have adequate market research in order to
understand the market trend of South-East Queensland. Therefore, it lacked to show skill in
making effective marketing strategy in terms of generating high revenue in business. There
is necessity to put a process in the organisation to achieve sales. In addition, OSY
organisation needs to develop a mandatory procedure for the staffs who are opening and
closing business daily. There should be s standard for staff behaviour and quality customer
care service. Due to the lack of effective human resource strategy the organisation cannot
concentrate on making a suitable workforce plan towards fulfilling business mission, vision
and objectives. Effective communication is another important area where the organisation
needs to pay attention in order to represent workforce with integrity (Sadgrove 2016). In
order to be successful in retail business the organisation requires to follow mix marketing
strategy. On the other hand, the organisation needs to consider training and development
for their sales personnel in terms of accomplishing business target. The organisation also
needs to take into account which things are record keeping, privacy laws reporting and
money management (McNeil, Frey and Embrechts 2015). The use of technology is also
important in terms of promoting sales of the organisation. The organisation also needs to
develop an IT team in terms of accessing to information regarding market trend.
2. It is seen that OSY cannot make revenue up to the market due to the decline of paper
consumption (Venkatesh, Rathi and Patwa 2015). In this case the organisation needs to
promote the sales of the stationary products which is not depended on paper. Decline of
paper consumption is considering the main threat of the organisation towards fulfilling
sales target. Risk management is considered is an integral part of good management
practice. It is an interactive process consisting of steps, which, when undertaken in
sequence, enable continual improvement in decision making. the organisation needs to
consider in identifying and analysing risks which are associated with their business. The
correct approach for dealing risks of business helps an organisation to minimise losses and
maximise opportunities. OSY organisation had hardly consideration in managing risk
positively. In this context, Australian Standard AS/ NZS 4360:1999 – Risk management is
required to take into account (Choi, Chan and Yue 2017). In order to identify risk related to
the business of OSY organisation I would like to develop SWOT analysis which is followed
below.
Strength
Being a retail organisation the organisation
has variety of products to sale in the
market. OSY is an organisation which is
driven by partners based on paper.
Weakness
Being a small organisation, OSY involves
online retailers in business when the
organisation needs to be much focused on
direct selling of products.
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BSBRSK501 Manage risk
Case Study v2.0 (2017/10/11)
Opportunities
The organisation needs to concentrate on
selling the products which consumers need
on daily basis. It enables the organisation
to promote their sales rate in generating
high business revenue. The organisation
has less chance to fall in legal dispute as
they maintain the relationship between
the partners based on paper.
Threats
The organisation cannot sustain business
for long term.
In analysing SWOT, it is concluded that the organisation needs to sale daily required
products for maximising sales. The organisation needs to hire more sales executives in
order to focus on direct selling of products in terms of maximising profit.
3. It is essential to create a ‘standard operating procedures’ manual (Hess and Cottrell
2016). OSY requires to be grounded in the vision and strategy of business. The
organisational leaders of OSY requires to have clear knowledge and sense about general
business procedures as well as role-specific procedures. The organisation needs to consider
staff training programme in order to promote sales. It is also necessary to keep close
supervision on the performance of the staffs that they are working properly in order to
fulfil target. Setting a target is also one of the premium requirement for maximising
productivity in business. Distant communication needs to be avoided in managing the
business in the most effective way. It is essential to review the system of business regularly
so that legislative and compliance changes cannot leave negative impact on business (Burns
2016). Developing business values and principles is also required to be successful in
business.
Task 2
Answer the following two (2) questions:
1. Why is it important to include stakeholders when developing the risk assessment plan and
who are the internal and external stakeholders you will invite to participate in the risk
identification and research process?
Communication is reliable and reasonable to boost business. Hence, there is necessity to
involve stakeholders in terms of developing the risk assessment plan. In this context, it is
necessary to have a sense who are stakeholders. The people who are associated to
business are called stakeholders. Internal stakeholders of business are those people who
are included in the organisational process of business. The people who are excluded in
business, but have influence on business, are called external stakeholders. It means that
employees, business partners are internal stakeholders and the consumers of business are
external stakeholders. It is necessary to invite the internal stakeholders to participate in the
risk identification and research process. It is because employee hold the best
understanding of their area of work and the risks involved (Niehm et al. 2016). Moreover,
involvement of the stakeholders fosters the development of organisation and productive
relationships over the long term.
2. What research methods will you apply for risk management activities?
I would like to implement PESTLE analysis in terms of identifying risks in business. After
that the process of risk evaluation is proceeded. Then, it is possible to take decision for
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BSBRSK501 Manage risk
Case Study v2.0 (2017/10/11)
mitigating risk in business.
Task 3
Your stakeholders will assist in the identification of risks and in researching risks that may apply to
the scope developed in Task 1. Explain the consultative approach you will use with these
stakeholders and use the Template provided to generate a list of risks that apply to the scope.
The consultation with the internal stakeholders about risks are necessary in having the
right initiation to mitigate risks. Constant meeting with employees is reliable to conduct in
this context. Risk mitigation is the development and deployment of a plan to avoid,
transfer, share, and reduce project risk. The employees often develop an alternative
method for accomplishing project goal when a risk event has been identified that may
frustrate the accomplishment of that goal (Lam 2014). These sort of plan are called
contingency plans. Potential risks are often found in the categories are listed below.
 Technical
 Cost
 Client
 Schedule
 Political
 Contractual
 People
 Environmental
 Weather
Calculating the risks in the mentioned categories, new scopes for business development
can be measured.
References
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Choi, T.M., Chan, H.K. and Yue, X., 2017. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics, 47(1), pp.81-
92.
Hess, M.F. and Cottrell Jr, J.H., 2016. Fraud risk management: A small business
perspective. Business Horizons, 59(1), pp.13-18.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Niehm, L.S., Dorie, A., Jablon, S., Fiore, A.M. and Hurst, J., 2016. Innovating with
Underutilized Marketing Strategies to Enhance Profitability for Small Retail-related Firms.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Venkatesh, V.G., Rathi, S. and Patwa, S., 2015. Analysis on supply chain risks in Indian
apparel retail chains and proposal of risk prioritization model using Interpretive structural
modeling. Journal of Retailing and Consumer Services, 26, pp.153-167.
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