Comprehensive Risk Management Report: HG Metal Manufacturing Company

This report provides a comprehensive analysis of risk management practices at HG Metal Manufacturing Limited, a metal manufacturing company based in Singapore. The report begins with an introduction to operational risks and the role of an operations manager in assessing and mitigating these risks. It then offers an overview of the company, its business nature, and the structure of its risk management team. The core of the report focuses on the operations manager's work processes, past incidents related to product quality, and hazard identification methods. The report explores qualitative risk assessment techniques, tools like information gathering and root cause analysis, and necessary documentation for risk assessment. The report also delves into risk evaluation and analysis, including safety control technologies and segregation of tasks to minimize operational risks. Overall, the report provides valuable insights into the company's risk management strategies and offers recommendations for improvement. The report utilizes various sources, including academic research papers to support its analysis. The report's primary objective is to present a thorough understanding of the different types of operational risks encountered by the company and the best practices for addressing these risks effectively.

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

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1. Introduction
The report helps in understanding about the different kinds of operational risks that are
involved in a company. The company that has been taken in this particular report is HG Metal
Manufacturing Company that is situated in Singapore. An operations manager is appointed in the
respective company as to properly assess the risk and suggest as well as implement different
measures to reduce such operational risks from the company. The risk management approaches
and framework of HG Metal Manufacturing Company has to be properly analyzed as well.
The main aim of the report is to understand as well as analyze the different incidents in
the past that has occurred as the operational risks in the respective company as well as the
industry. The main purpose of the report is to analyze the good practices of the safety
technologies with proper tools and techniques as well. The impact of the hazardous substances
treatment has to be implemented as this will help in treating the risk.
The structure of the report will include the proper process of treatment of the different
kinds of risk and this will help in reviewing the good practices that will help in reducing such
operational risks from the respective company. The impact has to be properly discussed that will
affect the company and recommendation has to be properly implemented by the Operations
Manager as this will help in assessing the risk that can be a danger to the entire company.
2. Overview of Company and Nature of Business
HG Metal Manufacturing Limited is a metal company that was founded in the year 1971
that is the retailer of steel as well as metal products. The respective company provides end to end
solution to the customers that range from services relates to distribution to the downstream along
with the value added services. The HG Metal Manufacturing Limited Company is properly

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equipped with different kinds of sourcing capability that is strong in nature and they have a huge
network of suppliers from different countries namely Japan, Russia, Tokyo along with other
European countries. The nature of the business is that the company has also offered steel and
metal solutions that are customized in nature for different industries namely transportation,
energy as well as electronics.
2.1 Structure of the risk management team
The main duty of the risk managers is to analyze the safety of the supervision along with
proper handling of different claims. The operations manager has to report to the higher officials
in the management regarding any kind of losses, other programs related to prevention of loss of
the company as well as results of the insurance marketing. Proper identification of the exposures
related to exposure has to be ascertained as this will help them in identification of the solutions
of the insurance related products. The entire team will work effectively to minimize the payment
of the loss for litigation as well as claims.
The operational management of risk has focused previously on the mitigation of the risks
from the internal processes that are internal in nature but due to the increase in the regulatory
requirements along with the requirement of the improvement in the performance of the business
the scope of Operations Risk Management has been expanded. The ORM program of the

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respective company is based on framework of the sponsoring company and this will help their
clients in reimagining the different risks as well as compliance process with internal control that
will offer:
Reliable reporting that is financial in nature
Proper safeguarding of assets (Armstrong and Taylor 2014)
Efficient and effective programs
Proper compliance with regulations and law
2.2 Risk Management Team
Figure 1: Risk management Team
(Source: Created by author)
3. Description of the process of work and Activity of Operations manager
RiskManager

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This is the duty of the operations manager that all the workings that are manufactured in
cost effective as well as timely manner as this will help in meeting the quality
requirements
Proper improvement of the operational systems along with processes is the other duty
that guarantees the well being of the entire organization and ensure the efficiency at the
warehouse
Proper examination of the financial statements as this will be used to improve the
profitability
Proper contribution towards the achievement of the operational as well as strategic
objectives
Lastly, it is the duty of the operational manager to cater to the concerns of the different
personnel (McNeil, Frey and Embrechts 2015)
These are the different activities that have to be performed by the operations manager of
the respective company HG Metal Manufacturing Limited wherein they have to handle and
manage the raw materials as well as personnel. The proper oversight of the entire inventory
along with supplies as well as purchasing has to be properly taken care by the operations
manager. The operations manager has to analyze the kind of operational risk that is affecting the
brand image of the company and in this particular scenario, the change in the organization can
come in different forms that can affect the structure of the entire business.
4. Review of Past incidents
In HG Metal Manufacturing Limited Company, there was a risk that has been faced by
the respective company due to the low quality of the products that are produced by them. In the

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past, there was a risk related to the poor quality of the metal products that are sold by HG Metal
Manufacturing Limited Company and the customers faced lot of difficulties as well. The proper
quality assurance is essential for the company to provide to the customers as the customers trust
the brands and they go ahead with the purchase of different goods as well as different services.
HG Metal Manufacturing Limited Company supplied different metal and steel products that were
sold to the customers but they were of low quality as the assurance of quality was not provided to
the clients and this created bad reputation for the defective products that were sold by the
company. There were different kind of defects in the steel and metal product and there is a policy
of replacement that has been provided by the company to the customers when the problem is
discovered (Aven 2016).
According to Farrell and Gallagher (2015), operations risk is the kind of issue that affects
the internal ability of the company to supply as well as produce different goods as well as
services. There can be different risks that can affect the reputation of the firm as well as the
impression upon the customers as well. In the last few decades, Barakat and Hussainey (2013)
commented that risk management in the supply chain management has properly developed but
there are different operational risks in the different companies. Chiu and Choi (2016) outlined
that the risk management is the area with different conflicting terms along with proper critical
reflection on the principles as well as regulations (Chen, Sohal and Prajogo 2013).
The operational risks that has been faced by Reliance Company as the gap analysis was
done with the help of proper vulnerability assessment. The root cause analysis was properly
reviewed as this will help in resolving such issues with proper implementation of different
strategies as shown in the picture below:

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Figure 2: Operational Risk at Reliance
(Source: Farrell and Gallagher 2015)
5. Identification of hazard risk
There are different methods of the identification of the risks by HG Metal Manufacturing
Limited Company on the basis of the databases of the different events that has happened in the
past as this will be helpful in nature to understand such issues that has occurred in the future and
try to resolve such issues as this will help in understanding the potential risks that are involved in
such kind of cases (Thomas, Crook and Edelman 2017).
HG Metal Manufacturing Limited Company has to identify the root causes of the
different operational risks wherein proper identification of the undesirable events that has gone
wrong and proper identification of the potential impacts is essential as well in such events.
Secondly, it is essential for the company to identify the different functions that are essential in
nature and possible modes have to be identified that are crucial for gaining success (Xu et al.

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2014). The method of the qualitative risk assessment is essential to be done by HG Metal
Manufacturing Limited Company wherein the following steps have to be followed:
Screening of the risk is essential to be done by the respective company as this will help
in identification of the different risks that are operational in nature. The operational risks
has to be properly omitted by the company as this will help the company along with the
employees of the organization to understand the causes of the operational risks and
resolving such issues with proper implementation of different strategies as well. It is
determined with proper analysis of:
 High impact and low probability (Lam 2014)
 Low impact and high probability
 Low impact and low probability
 High impact and high probability (Soin and Collier 2013)
Pareto diagram helps in identification of the different operational as well as other risks
with proper implementation of the different strategies that will help in mitigating the risks
and this helps in improving the brand name of the organization as well.
Analysis of the failure modes as well as effects helps in assessing the risk of the
organization that has caused failure in the organization as well. The failures can be
related to the operational risks of the company wherein there is impact on the demand as
well as supply of the goods and services (Wiengarten et al. 2016).

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Figure 3: Qualitative Risk Assessment
(Source: Created by author)
There are two different tools and techniques that help in identification as well as analysis
of the operational risks of HG Metal Manufacturing Limited Company are as follows:
Information gathering technique is one such technique that helps in rating the risk that
is high or low in nature. The respective company has to understand whether the risk is
dangerous, then the company should immediate stop such process as this will help in
implementation of the control techniques. The proper information from the past records
has to be collected by the operations manager in the organization as this will help in
emphasizing the requirements that are essential in nature to reduce such risks with the
help of proper protection.
Root Cause Analysis is another technique wherein the level of the risk has to be
identified and the involvement of such risks as well. This will help in determination of

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the risks that are hazardous in nature and such risks have to be controlled with reviewing
and monitoring the hazards that can affect at the workplace.
Figure 4: Tools and techniques of identification of hazards
(Source: Created by author)
There are different kinds of documentation required for the proper assessment of the risks
in the workplace that are as follows:
Level of the risk that is involved (Heckmann, Comes and Nickel 2015)
The requirements that are legislative in nature
Implementation of different kinds of control measures that will help in reducing the
operational risks in the company
Reviewing as well as monitoring the hazards at the workplace as this will help in
reducing the kind of risks and this will help in measuring the suitable risk factor as well.

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These are the different kinds of tools and techniques as this will help them in
understanding the level of risk and implement the safety technologies with the help of proper
advancement of technologies.
6. Risk evaluation and analysis
There are different safety control technologies that will help HG Metal Manufacturing
Limited Company in order to reduce the operational risks in the respective company. The
analysis can be done with the help of the following the steps that are as follows:
Proper segregation of the task as this will help in reducing the risks related to theft as
well as fraud. This will help in proper prevention of taking proper advantage of the
different numerous aspects of business practices as well as transactions.
Secondly, the risks has to be curtailed in the process of the business as this will help in
reducing the complexities in the business and this will help in mitigating the operational
risks. The respective organization can achieve and reduce the complexities with curtailing
the different manual activities along with proper implementation of the processes of
business (Therivel and Paridario 2013).
The respective organization named HG Metal Manufacturing Limited Company has to
create a proper ethics that is related with proper mitigation of the operational risks
management. The ethics of the organization has to be properly enforced by proper
combination of the different workplace principles along with the personal values as well
The respective organization needs to allocate the right individuals for the right kind of
tasks as this will help in reducing the issues that pertains to the execution of the entire
process of the business along with the proper skills as well as usage of advanced

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technologies (Adeusi et al. 2014). This will help in resulting proper and appropriate
utilization of the workforce as well as proper adherence to the technologies as well
as timelines with proper enhancement of the technologies as this will help in reducing the
number of errors as well as breakdown of the processes.
Proper monitoring as well as evaluation at proper intervals is essential and necessary in
nature as the process of the business is effective as well as efficient in nature and this will
help HG Metal Manufacturing Limited Company in reducing the operational risks from
the different areas of the business (Hopkin 2017). The well designed indicators of the
performance have to be properly implemented by the company as this will help in
enhancing the process of business. The key performance indicators are critical in nature
as this will help in making timely decisions as well as proper mitigation of the different
operational risks that can impact the performance of the entire business. The continuous
monitoring as well as reviewing is essential in nature as this will help in identification of
the discrepancies proactively as well as manage them accordingly (Sharifi et al. 2016).
The assessment of the risk has to be done periodically in the company HG Metal
Manufacturing Limited Company as this will provide proper relief to the entire
organization and this will help in making the regulatory frameworks for the entire
organization to mitigate such operational risks in the organization. It is imperative to be
properly risk ready by properly gauging the regulatory obligations along with the
different competencies of the skills of information technologies as well (Alexander
2013).
7. Impact of risk treatment

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The risk incidents as well as different activities those are remedial in nature for proper
effectiveness in the entire organization. The strategies that are effective in nature will help in
countering the future risks. The risk occurrences that has happened previously has to be properly
analyzed by the company in order to make some amendments in the future as well as in the
present as this will help in handling the current operating scenario at the workplace. The task in
hand that is critical in nature is wherein the organization can implement different the steps in
reducing such kinds of risk. Proper corporate governance as well as the compliance platform
enabled proper advancement of technologies and this helped in effectively support the proper
implementation of the 7 step approach to reduce the operational risk management (Hora and
Klassen 2013). This will help the respective company HG Metal Manufacturing
Limited Company in handling such risks and this helped them in maintaining and this will help
in mitigating the operational risks and this helped the entire company along with the employees
to support proper implementation of different technologies (Sturm 2013).
8. Review of proper good practices and safety technologies
There are different advantages as well as disadvantages in the risk treatment of the
operational risk in the respective company wherein the risks can be nurtured and with the proper
handling of the previous risks, the future risks can be mitigated with proper implementation of
technologies.
However, on the other hand, there are disadvantages as well wherein there can be
unmanaged losses that can impact the entire business and the external entities along with
ambiguity that is uncontrollable in nature (Wang and Hsu 2013). The potential threats cannot be

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managed properly as there are external uncertainties that cannot be controlled by the
management.
9. Recommendation
Therefore, it can be recommended that the respective company has to adopt certain other
strategies in mitigating the different kinds of operational risks and this will help in focusing
properly on the assessment of the risks and this will help in understanding the impact of the risk
on the entire business as well. This will help in promoting the culture of the entire organization
as well. Lastly, the risks can be nurtured properly by compensating the risks within rigid
comparisons along with different choices that will help in mitigating the risks as well from the
entire business. These are the different process through the advancement in technologies that will
help in mitigating the operational risks.

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