Risk Management Report: NatureCare Company - BSBRSK501 Assessment

This report, focusing on NatureCare Company, presents a comprehensive risk management analysis. It begins with an introduction and defines the scope of the risk management process, emphasizing eco-friendly packaging and supply chain reliability. A PESTLE analysis is conducted, examining political, economic, socio-cultural, technological, legal, and environmental factors and their associated risks, along with mitigation strategies. The report identifies and analyzes several risks, providing treatment options. It covers internal and external stakeholder analysis, team meeting minutes, a risk management plan including definitions, procedure, and a risk register. Furthermore, the report includes a risk action plan, staff training report, and risk monitoring report, culminating in a risk management process evaluation report. The content is well-structured, covering various aspects of risk management, from environmental factors to staff training, making it a valuable resource for understanding risk assessment and mitigation within a business context.

BSBRSK501 Manage risk
BSBRSK501 Manage risk
TABLE OF CONTENT
ASSESSMENT 2..........................................................................................................4
Risk briefing report..........................................................................................................................4
Introduction.................................................................................................................4
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Scope.............................................................................................................................4
PESTLE Analysis........................................................................................................5
Political Factors...........................................................................................................5
Economic Factors........................................................................................................6
Socio-Cultural Factors................................................................................................7
Technological Factors.................................................................................................9
Legal Factors..............................................................................................................10
Environmental Factors.............................................................................................11
Risks............................................................................................................................12
Internal and external stakeholder analysis.............................................................14
Team meeting minutes...................................................................................................................17
Risk Management Plan...................................................................................................................18
Definitions......................................................................................................................................18
Risk management procedure..........................................................................................................19
Risk assessment legend..................................................................................................................19
Risk register....................................................................................................................................21
Risk action plan..............................................................................................................................23
ASSESSMENT 3........................................................................................................24
Staff training report........................................................................................................................24
Staff members training...................................................................................................................25
Risk monitoring report...................................................................................................................26
ASSESSMENT 4........................................................................................................27
Risk management process evaluation report..................................................................................27
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REFERENCES..........................................................................................................29
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ASSESSMENT 2
Risk briefing report
Introduction
Risk is defined as the situation where the outcomes are based on actual return and is
categorised into different types. It is the possibility of losing something valuable. For instance,
NatureCare Products is promoted using the training and knowledge given to the employees and
build trust and loyalty among the customers. Their principles include managing and minimising
risks to identify, analyse, execute for achieving the objectives of the chosen organisation. This is
also crucial in establishing the strategic and operational planning for smooth running of operations.
Here, Nature Care Company is going to be considered.
The purpose of risk analysis is gaining or losing about the uncertainties and the associated
risks to implement good governance and fulfilling the CSR. It also focuses on removing the
triggering points that initiate the risk formation. This might be avoided by improving the knowledge
areas and the experience through training process that assure the risk identification process.
Scope
The scope of the risk management process of NatureCare Company is to recognise the
potential risks attached to its business procedures and assist in mitigating the risks before hand. In
addition, there are three stages which focus on defining the strategy, recognising the risks with
complete analysing each risk and executing the risk mitigated processes (Bouzon, Govindan and
Rodriguez 2018). Here this company is emphasising on the eco friendly packaging and has a very
reliable supply chain to distribute its products to the several health shops in all over Australia.
For this, the risks is associated with the delivery aspects and also might include about the
quality and maintenance of packaging and logistics part of the company. This might act as
challenges in fulfilling the assigned tasks. There is also provision of giving strategies to make the
necessary changes for systematic methodology of risk analysis. Thus, the risk-handling is essential
in mitigating the impacts.
PESTLE Analysis
Pestle Analysis is the model for gaining an understanding about the macro environmental
factors and includes about political, economic, social, technological, legal and environmental
factors. These has a direct influence on the working practices of the NatureCare company and the
associated risks that might impact the business scenarios.
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Political Factors
Factor Risk treatments as applicable
Political Instability Due to political instability in Australia,
industry gets influence by the government and
its authorities which in turn influence the
business activities of the NatureCare
Company. In order to reduce the impact of
political instability, Company can closely
monitor the political conditions and structure
and accordingly make changes in their policy.
Customer Protection Policy This policy is prepared by the government
and its health care authority which basically
deals with the rights and protections of the
customers of the Health care companies. All
the companies under working health care
industry must have to follow this policy
(Font, Guix and Bonilla-Priego, 2016). Also,
NatureCare company has to follow this policy
in order to provide the best health care to their
customers and prevent it from any kinds of
political risks. In order to reduce the political
risk, Company can follow the political
requirements and check the political trends in
the country. This lead company to analysis
the impact of political factors on the
company.
Economic Factors
Factor Risk treatments as applicable
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Unemployment Due to high unemployment rate, only fewer
customers are being able to use NatureCare
products and services which impact the
revenue and profitability of the company. In
order to reduce the impact of unemployment
on the company, NatureCare company can
do contract with government authorities for
the providing health care products and
services to the customers at low costs.
NatureCare company can also do merge
with another government health care
company so that health care required people
can take benefits from the company at low
costs.
Taxes Due to rapidly change in the tax policy by
the government, Company is not able to
analysis its investment opportunities because
fluctuations in tax rates affect the
profitability of the company which also
influence the goodwill. This also affects the
revenue structure and profit stability of the
company. To mitigate the risks arise due to
change in tax policy and tax rates, company
should make reserves and deposit some % of
their revenue in that reserves.
Socio-Cultural Factors
Factor Risk treatments as applicable
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Cultural Factor It affects the health major. Cultural values
affects the perception of customers towards
illness, birth and death, approaches to
treatment and types of treatments etc. Thus,
company should understand the cultural
values and implement it on their service
providing style. If company will not follow
or respect the cultures, it can lead company
to face a lot of backlashes and opposition
from its clients and stakeholders. This will
cause the image of the NatureCare
Company.
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Technological Factors
Factor Risk treatments as applicable
Technological Trends Due to technological advancement,
NatureCare Company has to take care of the
technological trends existing in the health
care sector. Due to technological devices
being used, company is able to protect and
understand the patients' data which lead
doctors and nurses working under the
company to understand the problems, causes
and treatment of problems easily. Also,
technologies are changing at the rapidly speed
which influence the company's cost structure
and in turn profitability. But due to lack of
awareness, Company is not being able to
protect their customers' details which are
harmful for the company's reputation and
services provided. In order to prevent from
this risk, Company can make a new
department name, IT department in which
make focus is on the protection of data of
customers as well as employees. Also, with
the help of this department, company can
understand the advance health care techniques
which lead them to use these techniques
easily and optimum.
Legal Factors
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Factor Risk treatments as applicable
Health Insurance Company has not yet provided health
insurance to their employees as per the
government requirements which lead
company to face some lawsuit in case of any
accidents or illnesses with employees. In
order to prevent from this kind of risks,
company can hire compliance officer and do
contract with insurance companies in order to
provide health insurance to their employees.
Also, company can give training to their
employees regarding the importance of health
insurance and its related every aspects.
Employment law This legislation deals with the employment
structure and system of the organisation and
relationship between employees and
companies. NatureCare company must have
to follow these employment laws such as
Minimum wages act, discrimination act,
health & safety etc. at work place act, contract
act and data protection act etc. Avoidance of
these acts can lead company to face legal
actions and pay heavily penalty (López-
Gamero and Molina-Azorín, 2016). This will
impact the brand image of the company. In
order to mitigate the risks, Company can
make their health and care policy according to
the rules and regulations of government. Also,
company can provide training to their
employees regarding these acts.
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Environmental Factors
Factor Risk treatments as applicable
Consumer Attitude towards sustainability The risks involved lack of education or
learning that might affect the maintenance of
surroundings. It also reflects upon the
imparting education to make consumers
aware about the sustainability and organise
conferences, sessions and events (Crowther,
2018). Moreover, the focus is on giving a set
of guidelines to highlight the risks ad give
training for overcoming with it as well. Thus,
it is essential for the employees of the
company to understand the customers' attitude
in order to maintain the sustainability of the
organisation.
Government approach towards
environmental issues
Australia's Government is worrying about the
environmental issues such as rapidly changing
in weather, increasing in pollution and
wastages of natural resources etc. which in
turn influence the social life of the community
(Andriof and Waddock, 2017). In order to
reduce the risks arising out of environmental
issues, government is constantly changed in
usage of materials as well as standards of
quality policy of the products which lead
company to be change in their structure as
well as quality of products. Also, company is
making green and recyclable products which
are being promoted by government.
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Risks
Identify at least five risks identified with the expansion and at least one potential risk treatment
options for each of the risks you identify.
Risk Treatment
Increasing number of competition This makes the staff in maintaining quality in
their packaging and delivery services to
establish transparent and reliable mediums
(Widya Yudha and Tjahjono, 2019)
Technology updation This is required by the technical team to be
upgraded from time to time updation in order
to reach an upper hand and build credibility
among the customers'
Eco friendly packaging The production department must be vigilant
in packaging the products in systematic ways
by proper evaluation and review processes
Maintenance of quality and delivery of
services
The sending off the products to the company's
distributors via packaging it and the
production team must use the tools properly
in detecting any damaged or unwrapped
product to avoid any conflicts or minimise the
reputational risks
Acceptability rate of customers This is avoided by making the customers
release the authenticity through proper
channels of promotion via digital platforms
like email, Whatsapp message etc.
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Internal and external stakeholder analysis
This analysis is done to gain insights about the on-going activities of the company and give
a clear picture to each responsible individual in reaping benefits. Here, the external and the internal
stakeholders are important that shape the decision making and make the important change to
minimise the risks associated with it.
INTERNAL STAKEHOLDERS
1. Managers- Their role is to make the entire procedure of risk management in proper
manner to bring feasibility while completing the tasks (Rastogi and Trivedi, 2016). It is
possible that different departments has separate roles and responsibilities to function and
thus, it is necessary to adopt a strategic planning in fulfilling the entities.
2. Employees- The staff plays crucial role in shaping the performance management with
integrated contribution in generation profits. For instance, technology updation would require a
specific skills set and must be in accordance wit the market trends. However, they sometimes resist
and influence the changes in the operations' management.
3. Board of Directors (BOD)- Their role is important in decision making and assist in policy
formulation. For instance, if the company is required to promote eco friendly packaging then this
must be done under the decisions made by the BOD They also must be in unity while working
together but there might be the onset of conflicts when there is issue resolving
EXTERNAL STAKEHOLDERS
1. Suppliers- The suppliers help in maintaining and managing the distribution channels to
make the delivery time of goods and products in viable modes. The supply chain is to
provide the high quality products to the customers through the direct channels. The risks like
eco friendly packaging has an integral contribution in making the changes more robust.
2. Customers- The customers are key entities for any business and has the capacity to help in
retaining the financial risks. When this company initiated the use of organic and eco friendly
products then its focus area was growing probability by making a loyal customer base (Patel
and Moore, 2017). Moreover, their contribution is significant in reaching the expectations of
the employer in terms of revenues and profits.
3. Government- The government of any country has the role in making the legislations and
policies to be followed with strict adherence and the organisation here is taking initiatives
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under the corporate social responsibility. Thus, they must be given assistance in both
monetary and non monetary aspects. In addition to these, the technology updation can be
achieved through foreign direct investment and should be encouraged through flexible rate
of interest.
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Strengths and weaknesses
The following has the strengths and weaknesses of the company’s existing retail approach to know
about the marketing trends and events.
Costs: This company has ample amount of investments and financial stability to expand its
operations. Their long-standing mark in the marketplaces of 10 years has been a driving force to
manage the operations and maintain the reputation through loyal customer base.
Profits- This is fluctuating and must be kept in check by making the important changes through
mutual decision collectively taken by the stakeholders, both external and internal.
Inventory- They must work on this aspect to maintain the smoothness while completing the tasks
for the packaging and delivery of products from the two branches (van der Linden, 2015). One is
the direct to the shops in all over the districts of Australia and the next is through the suppliers with
the relationship of ten years and has complete tryst in completing the tasks of maintaining quality
and reaching the delivery time.
Competition- This is important and thus helped the chosen company in order to keep upgrading
and innovating their products to give something affordable and feasible to their customers
Marketing- This is the strongest part of the company to give a solid base in maintaining the
stakeholders interests and assist the customers in being eco friendly.
Critical success factors
It is defined as the component that requires to achieve the goals, objectives and mission of
the organisation. For instance, the sustainability element is seriously adopted by the NatureCare
Company to strictly follow the Corporate Social Responsibility (CSR). Nevertheless, this aspect
helps in formulation of ensuring success rate in context to monetary gains and reputation. The risk
management process is in relation with the competitive emphasis to reach the targeted audience and
articulating the entire procedure for financial gains.
Team meeting minutes
Date: 2-2-18
Present: All Staff
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Apologies: None
Purpose of meeting: Discuss new business expansion project
Summary of key points
1. The new business expansion being the establishment of new retail outlets in Brisbane,
Melbourne and Sydney was discussed.
2. The CEO outlined the timelines, with the establishment of the retail outlets as being
commenced in June.
3. The Marketing team advised that market research conducted indicates that consumers
welcome the ability to be able to try out and buy products at the new retail store and the
planned CBD location is also suitable although they would also like further outlets over time
in suburban areas.
4. The Sales Manager advised that it would be important to discuss the planned expansion to
the health food chain as up to now the supply of products in a retail environment had been
exclusive and that this was written into the original contract. Thus, the contract would need
to be re-negotiated.
5. The Operations Manager reported on the budget that has been allocated to the expansion.
There are sufficient funds but there will be very little margin for overrun, if any.
6. One of the Customer Service Representatives wondered if there would be any obligation to
work directly in store as he is very happy with the existing location being the office that is
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part of the factory. The CEO advised that new staff would be recruited as retail assistants.
However, there was some doubt about who would manage stores as they are very keen to
have Managers who have a very strong knowledge of the company and its products at least
initially.
Risk Management Plan
The risk management process will be used by the management team to ensure risk control methods
are included in all organisational planning, management of operations and governance.
Definitions
The following definitions are based on the Australian and New Zealand Risk Management Standard
AS/NZS 4360:2004.
Risk
The chance of something happening which will have an impact upon objectives. It is measured in
terms of consequence and likelihood.
Likelihood
A qualitative description or synonym for probability or frequency.
Consequence
The outcome of an event or situation, expressed qualitatively or quantitatively, being a loss, injury,
disadvantage or gain. There may be a range of possible outcomes associated with an event.
Risk assessment
The overall process of risk analysis and risk evaluation.
Risk treatment/control methods
Selection and implementation of appropriate options for dealing with risk.
Conceptually, treatment options will involve one or a combination of the following five strategies:
4. Avoid the risk.
5. Reduce the likelihood of occurrence.
6. Reduce the consequences of occurrence.
7. Transfer the risk.
8. Retain/accept the risk.
Risk management process
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The systematic application of management policies, procedures and practices to the tasks of
establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating
risk.
Risk management procedure
This risk management plan template should be used. The following procedure should be followed
for risk management:
 Gather information about potential risks and risk treatments or controls using a range of risk
management tools and techniques. The preferred method is brainstorming potential risks
with key staff members and conducting a PESTLE analysis to identify external risks.
 Confirm key risks and risk treatments or controls to be documented in the risk management
plan. For each risk, indicate the consequence of the risk e.g. loss in sales, loss in profits,
business closure, lack of qualified staff, etc.
 Identify key risks and document them in the risk register.
 Using the risk legend within the risk management plan, assess and document the likelihood
of the risk occurring.
 Using the risk legend within the risk management plan, assess and document the severity of
the risk occurring.
 Identify and document the agreed treatment or control method for each risk.
 Assign a ranking to the
risk using the risk
assessment legend. The
ranking of the risk will
determine its
importance in terms of
risk management.
Risk assessment legend
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Risk register
See risk management procedure.
You must document at least five risks and treatment measures using your research and review of
team minutes, feedback from CEO and brainstorming meeting.
Evaluate each risk as to whether it is high, medium or low priority and assign an order for
treating risks.
Scope of assessment:
Critical success factors:
Internal & external stakeholders:
Risk Conseque
nces
Severity
Rating
Likelihood
Rating
Treatment or control
methods
Priority
rating (high,
medium or
low)
Order of
priority
Strategic
risk
Impact on
business
profitabilit
y
3 5 Implement better
strategies
2
Operation
al risk
Impact on
market
reputation
4 4 Hire workers 3
Financial
risk
Impact on
operational
efficiency
2 2 Bank Loan and investor 2
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Scope of assessment:
Critical success factors:
Internal & external stakeholders:
Risk Conseque
nces
Severity
Rating
Likelihood
Rating
Treatment or control
methods
Priority
rating (high,
medium or
low)
Order of
priority
Complian
ce risk
Impact on
internation
al
expansion
procedure
3 3 Implement legal procedure
and follow rules under
laws.
1
Reputatio
nal Risk
Impact on
overall
business
position in
market
1 2 Increase operational
efficiency
2
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Risk action plan
Each of the risks identified above should be included in the table below and actions shown. The
table should be copied and pasted for each risk.
Description of risk Strategic risk- it is kind of business risk that is created by
company's business strategic objectives and strategy.
Summary of recommended
response and impact
Consider building alliance and make effective business
strategies. It impact on market position and profit margin.
Proposed actions Via making better and appropriate business plans.
Resource requirements Training and superiors advice
Responsibilities Leader and management
Timing 2 to 3 weeks
Reporting/Monitoring Higher authority
Description of risk Operational risk- the changes' organisation facing in course of
conducting their every day business procedures, activities and
systems. Poor trained workers is the reason of operational risk.
Summary of recommended
response and impact
It impacts on firm financial budgets and profitability and also
affect its market image.
Proposed actions Trained overall staff members and hire new talented and skilled
applicants in company.
Resource requirements Effective hiring plan
Responsibilities HRM- human resource management
Timing 20 days
Reporting/Monitoring HRM department
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Description of risk Financial risk- it refers to firm's ability to manage financial
leverage and its debt. Financial risk is any of several kinds or risk
associated with financing, including financial dealing that involve
organisation loans in risk of failure or default.
Summary of recommended
response and impact
Quick action against it because it affect on operational efficiency
of company.
Proposed actions Take loans via bank and make partnership with investors who
invest money in business.
Resource requirements Business investors and bank loans.
Responsibilities Financing department
Timing 1 month
Reporting/Monitoring CEO
Description of risk Compliance risk- it is exposure to financial forfeiture, legal
penalties and material loss the company face when it fails to act on
according with specific industry laws and internal policies
practices.
Summary of recommended
response and impact
Compliance risk impact on overall business process and its
operation.
Proposed actions Work according to industry law and follow legal procedure within
entire business structure.
Resource requirements Appropriate Guidance and Strategic directions
Responsibilities CEO and higher authority
Timing 1 month
Reporting/Monitoring High management or business owner
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Description of risk Reputational Risk- it is kind of potential loss to social capital,
financial capital and market share resulting from indemnity to
company reputation.
Summary of recommended
response and impact
Impact on overall business position in market, management give
quick response to it as taking guidance to its higher authority.
Proposed actions Increase operational efficiency and trained staff members to work
perfectly.
Resource requirements Resources, training and development plan
Responsibilities Senior Manager
Timing 20 Days
Reporting/Monitoring CEO and High management
ASSESSMENT 3
Staff training report
To,
CEO
Naturecare
Subject: Staff training report
This is workshop will be helping to write about information and thorough study, subsequent in
studying being interested. It helps to engage and provide ultimate satisfaction which help to
make better decision. Council members never consider agendas, in writing employee studies its
is required to understand needs of both author and reader. With the help of this workshop staff
learn proven techniques that support to make interesting report. It also contributes to improve
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practices for conducting public reports for closed meeting subjects.
Staff members training
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To,
All members
Subject: Regarding training.
This is to inform you all that from Monday onwards we would be having training sessions for
required candidates from 2-3PM which would be arranged in boardroom. So team leaders kindly
send me the details and names of members who would be attaining these sessions till Friday.
Thank You
Senior Team leader
Risk monitoring report
Impact Control strategy
High Risk will be statused on daily bases and owner
of risk would be informed for this with
avoiding mitigation efforts. As mitigation and
avoidance action occur the risk
Medium Risk will be statused on weekly basis and
owner will document all avoidance and
mitigation efforts
Low Risk will be statused on monthly bases no
mitigation or avoidance efforts will be
necessary unless risk become elevated
ASSESSMENT 4
Risk management process evaluation report
Complete the following activities
1. Develop a risk management evaluation report
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This assessment task requires you to evaluate and report on the risk management
process that you have completed in the previous two assessment tasks.
Review all of the following questions and prepare a short report of approximately 1 to
2 pages that addresses each question.
A. Evaluate the overall risk management process.
 Was it easy or difficult to identify risks?
 Was staff input (at the meeting) helpful?
 How confident are you that all the risks have been identified?
It was not so easy for evaluating all the risk management process as it would require much time
and efforts for evaluating them all with requiring to standardise the resources required.
The staff input at meeting was helpful for completing the training and meeting.
I was very much confident with what all risk I have identified at my level
B. Consider whether the process indicated in the NatureCare Products’ current Risk
Management Policy and Procedures is sufficient to guide the risk management process
used for the business expansion project. Explain why or why not.
C. Explain whether the principles of risk management in the NatureCare Products risk
management policy and procedure is consistent with AS/NZS ISO31000:2009 Risk
Management Principles and Guidance.
D. What changes would you recommend to the risk management process?
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REFERENCES
BOOKS AND JOURNALS
Personal semantics of meta-concepts in conceptual modeling languages. [Sl: sn].
PESTLE technique–a tool to identify external risks in construction projects. International
Research Journal of Engineering and Technology (IRJET).3(1). pp.384-388.
A PESTLE policy mapping and stakeholder analysis of Indonesia’s fossil fuel energy
industry. Energies. 11(5).p.1272.
Stakeholder Mapping and Analysis of the Renewable Energy Industry in
Indonesia. Energies. 12(4).p.602.
Unfolding stakeholder engagement. In Unfolding stakeholder thinking (pp. 19-42). Routledge.
A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate Financial and
Environmental Reporting: A Semiotic Analysis of Corporate Financial and
Environmental Reporting. Routledge.
Environmental management and firm competitiveness: the joint analysis of external and internal
elements. Long range planning.49(6). pp.746-763.
Corporate social responsibility in cruising: Using materiality analysis to create shared
value. Tourism Management.53. pp.175-186.
Evaluating barriers for reverse logistics implementation under a multiple stakeholders’
perspective analysis using grey decision making approach. Resources, conservation and
recycling.128.pp.315-335.
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