Commonwealth Bank: Risk Management Strategy Implementation Plan

This report presents a comprehensive risk management implementation plan tailored for the Commonwealth Bank. It begins with an introduction to the importance of risk management, followed by the development of an implementation plan that includes strategy management, monitoring methods (risk assessment, risk audit, and variance analysis), and evaluation methods. The report then delves into the development of a Work Breakdown Structure (WBS), outlining project management requirements, risk assessment, resource management, and financial considerations. It identifies crucial resources like human, financial, and technological resources, along with reputation management. The report further details procedures for staff, including financial planning, promotional strategies, risk management issues, and specific actions to be undertaken, along with timelines and communication strategies. A presentation to staff members is also covered. The conclusion reiterates the significance of the risk management strategy and its impact on Commonwealth Bank's operations, with references to relevant literature.

Determine and manage risk
exposure strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Develop an implementation plan ...........................................................................................1
a. Management of implementation strategy................................................................................1
b. Monitoring methods................................................................................................................1
c. Evaluation methods.................................................................................................................2
2. Development of WBS.............................................................................................................2
3. Identify resources which need to take in above section to make identity...............................3
4. Develop procedures for staff members with outline information and requirement for
implementation of strategy..........................................................................................................4
a. Financial plan..........................................................................................................................4
b. Promotional strategies.............................................................................................................4
c. Resource requirement..............................................................................................................5
d. Risk management issues and strategies...................................................................................5
e. Specific actions, initiatives and tasks to be undertaken..........................................................5
f. Staffing/responsibilities requirement and arrangements..........................................................5
g. Time lines................................................................................................................................5
h. Communication strategy.........................................................................................................7
5. Presentation to staff members.................................................................................................7
6. Outline, monitor and evaluate implementation of risk management strategy at workplace...7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy for risk management consider important perspective for Common Wealth Bank
in Australia. In this consideration, plan can be successfully implement with including appropriate
strategy, monitoring methods and evaluation methods (Modarres, 2016). Furthermore, it includes
project management requirement, assessing project risk and resource management as well.
MAIN BODY
1. Develop an implementation plan
In Common wealth bank, implementation plan consider important perspective that assists
to consider successful risk management strategy. It also protects and helpful to reduce risk and
increase insurance to people (Chorafas, 2016).
a. Management of implementation strategy
In Common Wealth Bank, it is important to consider successful operations and functions
that can helps to mitigate risk of data breach. Company also undertake review with compliance
and maintain security standards because failure aspects has been found and results will be gain in
form of a penalty (Hopkin, 2018). However, different factors create impact on insurance services
so that cybersecurity also need to maintained in Australia. As a result, communicate for this type
of strategy must be placed with customers and intermediaries because understanding this strategy
will assist to overcome from risk. With respect to manage this risk management strategy at
personal level, manager need to concentrate on digital technology and complying security
standards. It can be successfully take place with digital data security that can breach entire
payment network system.
b. Monitoring methods
In order to monitoring on implementation of strategy, there are several methods can be
established. They are as follows: Risk assessment: Risk assessment strategy involve identifying new risk and evaluation of
current risk (Stulz, 2015). This is because, evaluation of risk management process
ascertained to focus on closing risks exists in Common Wealth Bank. Risk audit: Project team of Common Wealth Bank need to defined risk responses so that
managers facilitate risk audit to examine effectiveness of risk response. In order to
1

determine this element, changes must be consider to evaluate process and respond
towards this (Goetz, Laeven and Levine, 2016).
 Variance and trend analysis: With many control processes, variance between schedule
and cost baseline must be prepare for actual results. When variance increases, uncertainty
of risk in Common Wealth Bank also enhances. As a result, trends and respond must be
consider to respond for particular situation (DeAngelo and Stulz, 2015).
c. Evaluation methods
In order to evaluate risk in Common Wealth Bank, manager need to identify threats and
hazards that helps to assess wrong and right valuation with brainstorming activities. It is
successfully carried out by the people to process and exposed hazards and events.
Furthermore, strong leadership also need to implement relevant information that
encourage with creative approach to risk assessment. In Common Wealth Bank, checklist mainly
consider for using hazards and operability study that assists to identify threats easily. If analysis
included in the method, it is essential to focus on very knowledgeable interdisciplinary team that
is available for particular areas, operations and processes which exposed event and conditions.
Failure mode and effect analysis also identify to figure out and method begins to select system
for analysis (DeAngelo and Stulz, 2015). It helps to predict whole aspect to find failure and best
suitable aspect for accomplish purpose.
2. Development of WBS
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 Project management requirement: In the risk management, financial, technical and
physical resources are needed to complete project management plan. Assessing project risk: There are high and low hazard risk ascertained which need to be
consider to implement successful plan (Waemustafa and Sukri, 2016). Resource management: Financial principles and policies must be implemented as
resource management consideration. Performance management and tracking: Imperfection of legal system need to be track to
consider successful performance management plan. Project financial management: In financial management, policies and procedures must be
change with contingency plan so that risk management strategy will be successfully
regulated to focus on appropriate functioning (Esposito, Nobili and Ropele, 2015). Resource acquisition: Management structure with purpose and guidelines must be shown
in appropriate manner so that resource acquisition must be carry to develop appropriate
functioning. Budget and financial management: In budget and financial management cash flow and
inflow statement must be undertaken to schedule different activities (Waemustafa and
Sukri, 2015). Project schedule and time-frame: Total 10 weeks required to implement this plan with
project schedule and effectiveness.
 Continuous improvement: With the help of furthermore development and resources,
present risk management plan will be continuously develop at workplace for
improvements (Bromiley, McShane and Rustambekov, 2015).
3. Identify resources which need to take in above section to make identity
There are several resources required to implement risk management strategy. They are as
follows: Human resource: In order to create successful plan, it is essential to focus on human
resource requirement in Common Wealth Bank. According to capabilities, efficiency and
interest, it can be stated that human resource plan successfully develop to ascertained
desired level of results at workplace.
3

 Financial resources: Furthermore, there are several financial resources required to attain
overall goals and objectives. In this consideration, on the basis of activities money need
to be undertaken to accomplish desired results. Technological resources: Moreover, technological resources are also required to attain
more systematic work at workplace. Advance technology helps to attain positive work
performances in business. Physical resources: In order to manage risk, there are several physical resources required
to attain overall goals and objectives. In this consideration, several employees are take
part to focus on management of risk in Common Wealth Bank.
 Reputation: Due to breach of data security, all legal rules and regulations must be
compile in the chosen business. As a result, imperfection in legal system create negative
impact on results.
4. Develop procedures for staff members with outline information and requirement for
implementation of strategy
a. Financial plan
In Common Wealth Bank, financial plan for risk management consider important role
with insurance. It is important to manage risks when stock market declines, economic instability
exists, loss of income occur and damage assets (DeAngelo and Stulz, 2015). This is because,
insurance protects policy holders from large and unexpected financial losses by compensating it.
Another way to protect against potential loss is risk avoidance so that consequences are
unavoidable.
b. Promotional strategies
There are several risks factors exists that assists to evaluate risk to take determine
potential impact on business. Risk assessment process in marketing plan also ascertained to
quickly change and prevent loss for company. Target market is one of the promotional strategy
that ascertained to complete appropriate market research which present risk factor. Common
Wealth Bank need to conduct survey with potential consideration to focus on current customer
needs and requirement.
4

c. Resource requirement
Different kinds of resources are also required to complete and conduct enough market
research with risk factor. Creating marketing message also appeals to new prospects with similar
issue and problem. Therefore, paying proper attention for customers is possibly causing for cash
flow and estimated sales is higher which actually occur (Goetz, Laeven and Levine, 2016).
d. Risk management issues and strategies
Risk management issues and strategies must be successfully develop at workplace of
potential consideration which impact on organisation. It can be varies from the product that are
offered to customers. In Common Wealth Bank, there are several risk management issues occurs
such as data breaching and strategies must be develop to mitigate it with cyber law in particular
working areas. In order to lead with this issue and problem, it is essential to make changes in
policies and procedures in appropriate way to regulate functioning (Bromiley, McShane and
Rustambekov, 2015). Change management strategies also successfully establish in management
structure so that hurdles can be reduced to gain success of path in Common Wealth Bank.
e. Specific actions, initiatives and tasks to be undertaken
With the help of changes in management strategies, structure can be successfully opt to
mitigate risks and system. Therefore, previous management creates hurdles in path of success to
make changes in structure. Moreover, contingency plan also created that directly linked to reduce
risk and applying into work areas to overcome issue and problems.
f. Staffing/responsibilities requirement and arrangements
With the help of requirement and arrangements, it can be stated that staffing and
responsibilities must be successfully consider as per requirement and arrangements. Therefore, it
can be stated that proper policies and strategies need to be successfully implemented that
ascertained more desired level of results at workplace. Furthermore, arrangements also need to
undertake as per roles and responsibilities of staff members in Common Wealth Bank.
g. Time lines
5

Activities Week
1
Week 2 Week
3
Week 4 Week
5
Week
6
Week
7
Week
8
Week
9
Wee
k 10
Project
manageme
nt
requiremen
ts
Assessmen
t of project
risk
Resource
manageme
nt
Performan
ce
manageme
nt and
tracking
Project
financial
manageme
nt
Resource
acquisition
Budget and
financial
manageme

nt
Schedule
and time-
frame
Continuou
s
improveme
nt
manageme
nt
Project life
cycle
Execute
the plan
h. Communication strategy
Staff members need to focus on procedure that can be successfully establish information
in appropriate manner. In this consideration, it can be stated that procedure and action plan must
be taken to regulate systematic functioning. This procedure and action plan may be regulated in
Common Wealth Bank to perform several functions and operations in successful manner. With
this regard, effectiveness also increases in positive consideration to communicate several benefits
in the program (DeAngelo and Stulz, 2015). Moreover, risk management strategy require
efficient and effective communication to focus on goals.
5. Presentation to staff members
Covered in ppt
6. Outline, monitor and evaluate implementation of risk management strategy at workplace
With respect to evaluate overall risk management plan, it is essential to look upon
Common Wealth Bank functions and operations in successful manner. Therefore, it can be stated

that feedback also gather from staff members through interview, meetings and reviews. These
meetings can also incorporate gathering of feedbacks which need to be successfully developed to
complete assessment process that collate all information (Goetz, Laeven and Levine, 2016).
CONCLUSION
From the above report, it can be concluded that risk management strategy is one of the
important perspective that assists to implement to solve issues and problem exists in Common
wealth Bank Australia. In this regard, report focuses on different activities and tasks that are
accomplished to focus on desired level of results. Furthermore, it also carried WBS structure
through project management plan can be successfully build to ascertained more desired
performances at workplace. On the basis of time frame, it can be stated that appropriate
functioning will be successfully develop to attain goals and targets.

REFERENCES
Books and Journals
Bromiley, P., McShane, M. and Rustambekov, E., 2015. Enterprise risk management: Review,
critique, and research directions. Long range planning. 48(4). pp.265-276.
Chorafas, D.N., 2016. Enterprise architecture and new generation information systems. CRC
Press.
DeAngelo, H. and Stulz, R.M., 2015. Liquid-claim production, risk management, and bank
capital structure: Why high leverage is optimal for banks. Journal of Financial
Economics. 116(2). pp.219-236.
Esposito, L., Nobili, A. and Ropele, T., 2015. The management of interest rate risk during the
crisis: evidence from Italian banks. Journal of Banking & Finance. 59. pp.486-504.
Goetz, M.R., Laeven, L. and Levine, R., 2016. Does the geographic expansion of banks reduce
risk?. Journal of Financial Economics. 120(2). pp.346-362.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Modarres, M., 2016. Risk analysis in engineering: techniques, tools, and trends. CRC press.
Stulz, R.M., 2015. Risk‐taking and risk management by banks. Journal of Applied Corporate
Finance. 27(1). pp.8-18.
Waemustafa, W. and Sukri, S., 2015. Bank specific and macroeconomics dynamic determinants
of credit risk in Islamic banks and conventional banks. International Journal of
Economics and Financial Issues. 5(2). pp.476-481.
Waemustafa, W. and Sukri, S., 2016. Systematic and unsystematic risk determinants of liquidity
risk between Islamic and conventional banks.