Comprehensive Risk Management Report: Dayton Energy Company, PSPGEN038

This report, prepared by a student, presents a comprehensive risk management analysis for Dayton Energy Company. It begins with an introduction outlining the company's goals and the importance of a robust risk and safety management system. The report then delves into risk management procedures, including stakeholder consultation, risk identification, and analysis. A risk matrix is provided, detailing potential risks, their causes, impacts, and control measures. The report also covers communication strategies for risks and control measures, emphasizing the role of senior management and the implementation of various control measures. Furthermore, the report discusses risk monitoring and review procedures, highlighting the importance of continuous monitoring, impact analysis, and the development of effective risk management plans. The report concludes by emphasizing the need for continuous improvement in risk treatment and management, including clear responsibilities, recognition of good work, and the design of corrective measures to prevent future risks. References to relevant literature are also included.

SAFETY & PSPGEN038 RISKS1
SAFETY & PSPGEN038
Name of student
Course
Date

SAFETY & PSPGEN038 RISKS2
ASSESMENT 3
TASK 1
REPORT
Introduction
Dayton Energy Company is the name of our company. This name is specifically attractive to the
company’s stake-holders whose belief is that the name is destined for success. This company
was founded in 2012 and has the aim of producing reliable and quality energy at affordable
prices to its customers. Achieving all these are possible if the company's employees work
together as a team towards these goals. Having a proper risk and safety management system and
the creation of a healthy environment of work is the key to performance and motivation for our
employees.
RISK MANAGEMENT.
This process involves the identification and analysis of potential risks and drawing a plan to curb
them within the company. Our employees’ safety has always been our priority. There is therefore
the need to create reliable safety management system within the company.
Relevant stake holders to be consulted.
The relevant stakeholders who should be consulted on matters to do with risk management are
the senior stakeholders, the key decision makers and emergency services within the organization.
Procedure for identifying and analysis of risks.

SAFETY & PSPGEN038 RISKS3
The procedure involved in identification and analysis of risks is as follows1:
 Identify the potential risk and its causes.
 Evaluate the level of risk, whether it is urgent or not, the kind of harm it might potentially
cause.
 Design and implement an appropriate action that should be taken in managing the hazard
that has caused the risk.
 Examine whether the risk control measure implement is effective.
Risk matrix
Risk
Causes of
Risk
Risk
Potentia
l
Impact
Consequenc
e of
Exposure
Likelihoo
d of
Exposure
Current
Control
Measures
Risk
Treatment
Plan
Economic
Client
dissatisfactio
n
High Moderate Possible
Fortnightl
y meetings
Mitigate by
Quality
Control
1 Chapman, R. J. (2011). Simple tools and techniques for enterprise risk management (Vol. 553). John
Wiley & Sons.

SAFETY & PSPGEN038 RISKS4
Political
Regulations
from the
government
High High Possible
Payment
of
licencing
fees on
time
Follow
government
laws on
licencing
procedures
Geological
Condition of
the land
during
excavation
High Moderate Possible
Frequent
testing
before
excavatin
g
Quality
testing of the
land surface
before
excavation.
Technologic
al
Frequently
advancing
technology.
High High Possible
Monitor
current
trends
Development
of a strategy
to deal with
the changes
brought by
technological
advancement
s.
TASK 2
Communication of risks and the control measures for the organization.

SAFETY & PSPGEN038 RISKS5
These risks are to be reported to the senior management who draw a plan on how they can be
managed. The following control measure can be adopted;
 For technological risks, form a technological management team who can monitor the
current trends around the world, and provide a reliable report on the solutions that can be
adopted.
 For geological risks, ensure to carry out proper testing on the land surface to avoid
accidents when excavating.
 For political risks, ensure to adhere to government regulations and procedures on
licensing to avoid fines or even closure of the business.
TASK 3
Risk monitoring and review.
Procedure for monitoring ongoing risks.
This activity involves constant monitoring of risks to ensure progress within the management
system2. The procedure involved is;
 Identification of the risk impacts on the company.
 Risks analysis and identification of impacts towards the company.
 Prioritize those risks with a lot of impacts.
 Develop an effective risk management plan.
Improvement of risk treatment and management.
2 Zwikael, O., & Ahn, M. (2011). The effectiveness of risk management: an analysis of project risk
planning across industries and countries. Risk Analysis: An International Journal, 31(1), 25-37.

SAFETY & PSPGEN038 RISKS6
A further improvement in risk management is an important factor within the organization. The
reason for this is because some risk management action may fail to deliver and therefore,
developing a new strategy may be a necessity. Addressing the key issues within an organization
through proper decision making can help in dealing with future uncertainty risks. In order to
improve risk treatment and management, the following can be done;
 Having a proper clarity of responsibilities of members within the company. Every
individual will be accountable in case issues arise from their areas of work.
 Recognition of good work done by individuals involved in risk management. This will
motivate them, be interested in doing the same in case of a similar occurrence in future.
 Determine the impacts caused by a particular risk, design corrective measure to avoid a
similar one in future.

SAFETY & PSPGEN038 RISKS7
References
[1].Chapman, R. J. 2011. Simple tools and techniques for enterprise risk management (Vol.
553). John Wiley & Sons.
[2].Zwikael, O., & Ahn, M. 2011. The effectiveness of risk management: an analysis of
project risk planning across industries and countries. Risk Analysis: An International
Journal, 31(1), 25-37.