Risk Management Plan for Nature Care Products Business Expansion

Desklib provides past papers and solved assignments for students. This project analyzes risk management in business expansion.

Manage Risk

Contents
Manage Risk....................................................................................................................................1
Introduction......................................................................................................................................3
Assessment Task 1: Project.............................................................................................................4
Introduction to the risk management and effectiveness of risk management process.................4
Scope of risk management process for the organisation.............................................................6
Pestle Analysis of the company...................................................................................................7
Identification of the stakeholders for consulting the potential risk.............................................8
An analysis of the strengths and weaknesses of the company’s existing retail approach namely,
online and through health food shops........................................................................................10
Analysis of critical success factors, goals or objectives for the business expansion project.....11
Email to the CEO of the company.............................................................................................12
Assessment task 2: Role Play........................................................................................................13
Email to Marketing manager and the office manager for the invitation to meeting..................13
Chair the risk consultation meeting...........................................................................................14
Risk management plan...............................................................................................................15
Email to CEO.............................................................................................................................17
Assessment task 3: Project.............................................................................................................18
Part A- Implementation.............................................................................................................18
Research training options......................................................................................................18
Report to the CEO.................................................................................................................19
Email to the customer support representatives......................................................................20
Part B- Evaluation......................................................................................................................21
Review of the effectiveness of the implemented treatment...................................................21
Evaluation of the risk management.......................................................................................22
References......................................................................................................................................23

Introduction
Management risk is considered as the risk that may include the financial risk, ethical risk or
otherwise includes the ineffective, destructive or underperforming management of the company.
This can be considered as the significant factor for the investors which may impact their
investment and may also relate to the company’s financial problem. This may also relate to the
association with the risk of the management in handling the funds (Bromiley and et. al., 2015).
This may be referred to the companies risk profile that impacts its functioning. This report is
based on the assessment of the Australian company named the Nature Care products which is
based in Brisbane. Here the analysis of the risk management plan of the company would be done
and an email would be sent to the CEO of the company so as to discuss about the risk that are
related to the company’s performance. While in this report the E-mail is sent to the CEO of the
company which will analyse the risk that are associated with the company’s management. Also a
role play would be done so that they are able to tackle the risk that is associated with the
organisation.

Assessment Task 1: Project
Introduction to the risk management and effectiveness of risk management process
The risk management framework of the company gives the information about the important
elements which helps the company to give their customers best services as well as resolving the
company’s risk that are associated with its management framework. Hence in this framework the
company is used to identify and resolve the operational, financial, commercial and the legal risk
that can hamper the company’s performance (Churpek and Godley, 2016). This is also seen that
the Nature Care Products have clearly outlined the risk management framework which helps
them to tackle the situation that arises in front of them. Also the company is able to identify the
obstacle which may arise in front of them. While there are certain risk that are related to the
company’s management and the structure which would lead to decrease in the company’s
performance and could also lead to legal issue. As the company wants to expand the business
and to open the retail chains so that they are able to increase the profits and achieve the increase
in the number of customers. This is seen that the company is using the ISO 31000:2009 risk
management Principles and guidelines so it is important to identify the risks which are associated
with it. Hence there are various risk management framework that are incorporated in the
company which can be identified as:
 Create and protect the values: This is important for the company to identify the
objectives of the company and the so as to create and protect the values. As they are tend
to expand their business so the company should create the values which will define the
company’s values.
 Strategic objectives: The Company should prepare and identify the strategies which will
help the company to have a strategic direction for the same. Hence this is seen that senior
executives of the company are responsible for providing the strategic direction of the
agency.
 Business planning and budgeting: This is seen that as per the governmental regulations
of the risk management the company is properly budgeting the plans and take decisions
on the business strategies which help in achieving the purpose of the company as well as
their desired goals.

 Continual improvement plan: The Company is facilitating continual improvement plan
which helps the company to improve their production and achieve the profits from the
successful business plan.
 WHS legislations: WHS is considered as one of the main objective of the company
where they provide best health and safety practice to the employees. As in the case of
NatureCare they have meet the objective of this act as they are providing their employees
secure and the safe environment for their work. Also protecting the employees from the
risk which arise while performing their roles (Cottrell, et. al., 2018).
Hence the risk management process that is used by the company to identify the risk that are
associated with functioning and the expansion of the company includes the following:
 Hazard identification: Here in this step the hazard should be identified by the company
so that they are able reduce the impact that is caused due to this hazard. This process will
help the company to establish the link so that hazards are eliminated before they impact
the company’s performance. While this has to be improved by the company a little bit.
 Risk assessment: This is the process where the company asses the risk and up to which
amount this risk would hamper the company’s performance would be identified. Here the
company would make various strategies that will help to reduce the risk factor with the
company.
 Risk control measures: In this approach the risk control measures are identified by the
company where they implement the steps so as to reduce the risk that are associated with
the company’s performance so that the measures can be taken to protect the employees of
the company against any harm that may arise in front of them.

Scope of risk management process for the organisation
This has been seen that the NautreCare is in the process of expanding the business hence it is
important for the company to identify the risk that are associated with the new plan so that they
can effectively battle those risk and problems that arise in front of them while operating their
business in new retail outlets.
The company has seen that there are various risk factors that are related to the organisational,
financial and project management. It is seen that there are multiple things and topics should be
analysed by the company so that they are able to reduce the risk that is associated with the
company. While this was seen that one of the biggest problems which is identified in the plan of
the company includes the funding requirements and the marketing problems so as to promote the
company’s performance. While one of the main factor that are included in this is whether the
retail store would be successful or not. While this is also seen that various legislations which has
to be identified and are to be implemented by the company so that they do not get into any legal
proceedings. Also WHS practices should be identified by the company so that they are able to
provide the employees with the best practice (El-Osta, 2018). While the problem of stock and the
risk of running out of stock is also determined by the company in this process as if the retail
stores run out of stock then it will lead to the losses to the company. While in the case of running
the online website this has been identified that company has a risk of managing the warehouse
and has to check the delivery options which are very risky while in their transition.

Pestle Analysis of the company
This part of the assessment task requires you to develop an initial report for the CEO about the
risk management project and processes and to seek approval to proceed.
PESTLE analysis identifying the key factors that impact on the environment in which Nature
Care Products operates and their relevance to the risk management process.
It is concluded that there are six areas which can affect the product and it will be uncertain and
uncontrollable. So the manager tries to control the risk by the help of PESTLE. The areas which
are creating risks are:
1. Political Factors- The political factors include the rules and policies of the government
in which the companies Nature Care Products have been working. As the manufacturing
company is from Brisbane, so mostly the governmental policies of Australia can affect
the company.
2. Economic Factors- It include the rates of the country or state in which the companies are
working , recession can also happen during an upbringing of the new product like Nature
care which can create problem for the company.
3. Social Factors- The modernization can also a risk for the company because more peoples
are interested in fashion trends so in Nature care Product. The societies who have a sense
of latest technology and are always eager to adopt the contemporary technical trends.
4. Technology Factors- The technology gives it possible to spread the innovation within
seconds and the fashion is there to purchase the trendy products. So company have to
think 1 step ahead more from the competitors
5. Legal Factors- NatureCare should maintain the graph of success it’s so difficult to fulfil
all the legalities of the region in which it is working. The world has now become a global
village and people have become very much vigilant about the legal aspects of the
products.
6. Environment Factor-The World has now taken the responsibility to making the planet a
beautiful and pollution free. In this perspective, all the international brands are playing
their role in showing the support to the world. So Nature care Product can also play its
part by supporting such campaigns and following the norms of the world

Identification of the stakeholders for consulting the potential risk
Stakeholders Internal/external Role in process Stake in process
Workers Internal They should ensure a
smooth operation
while dealing with the
customers.
The employees
should be retained so
that they are able to
satisfy the desires of
the customers.
Manager Internal They should manage
the stores properly so
that they are able to
run the store
smoothly.
Here it has to be seen
that company must
profits most from this
store.
CEO Internal They have to check
the process of
expansion as this is
done smoothly or not.
Here this would be
used to expand and
reach the potential
information so that
they are able to

achieve the objective
of earning the profits.
Suppliers External They should check
the supply of the
materials in the new
store so that they are
able to provide them
with the materials and
the ingredients.
They should retain
the loyal customers.
Customers External The customers should
regularly visit the
shop so as to help the
company to increase
the sales.
They should provide
the best services and
the products to the
customers so as to
achieve the success.
Shareholders Internal They should retain
the share of the
company and achieve
The company should
provide better profit
to the investors so as

the objective
maximising the
investment in the
company.
to increase their
outcomes.
Investors External They should invest in
the company so that
the company fulfils
the expansion
requirements.
The company should
provide them the
maximum return from
the investments that
are made by the
investors.

An analysis of the strengths and weaknesses of the company’s existing retail approach namely,
online and through health food shops.
The Strength and Weakness of the online selling of Nature Care Product:
Strength:
1. Easily Accessible for the customer – It is open for 24hrs and seven days in a week, which help
the customer to access anytime and anywhere. Customers can tie the order entry and customers
can place orders with up-to-date information any time of the day or night.
2. No Barriers- There are no barriers for the e- business it can grow and change the component as
company see fit to accommodate the needs of the customers, or the needs of the growing
business.
Weakness:
1. Security and Fraud: Some time after the order completed and the package is in track of deliver
to the customer address, in some case deliver boy or in the time of shipping there are chances of
exchanging or displacing or damaging of product can also affect the target customer trust
(Gerner, Bruckheimer and Cohen, 2018).
2. Website Cost: 1.Planning, designing, creating, hosting, securing and maintaining a
professional e-commerce website isn’t cheap, especially if company expects large and growing
sales volumes.
The strength and weakness of the selling the products by retail or health food shop are:
Strength:
1. Clarity – It defines no confusion between the seller and customer, customer can easily
give the feedback after using the product. This kind of business helps to build trust issue
easily by good communication skills.
2. Communication- Directly communicate with the customer and can easily analysis the
psychologically it help to convincing the people by satisfying the needs.
Weakness:
1. Narrow Range: It only covers a particular area or city, the target market is narrow in
nature. Only the local customer get attract and comfortable to buy the products.
2. Restrictions: Customer cannot buy or order product after closing of the shops, in working
time the customer can buy or order the product.

Analysis of critical success factors, goals or objectives for the business expansion project.
The success factors for the business expansion are:
1. Planning for growth and success: Strategies the plan for the growth process for directing,
controlling and managing the business.
2. Understand and work your market- Analysing the market of the existing product, which
help to predict or forecast the future.
3. Innovate for the right product or service for today and tomorrow- Innovation is one step
ahead of success, which help the company for future also.
The goals or objectives for the business expansion are to:
1. Maximize the profit- The main goal of every investor has this objective to get high rate of
return or generating revenue for the company.
2. Increasing the market value of the company share-Profit is not only the objective of
company wealth maximization should be more profitable for an organization which helps
to increase the brand value of the product.
3. Business diversification and growth- Diversify and development is also an objective for
an organization which gives surety of survival and globalizes the company.