Risk Management in Facilities: Vauxhall's Carbon Emission Challenges

This report analyzes risk management strategies within the context of Vauxhall, a car manufacturing company facing challenges related to carbon emissions. It begins by outlining a risk management policy with clear responsibilities at different organizational levels, followed by a communication strategy to disseminate the policy and foster a risk-aware culture. The report then establishes risk criteria, reviews and updates them, and determines the review process. It evaluates current and planned organizational activities to identify potential risks, analyzing their nature, probability, and consequences. A risk profile is produced, and practices to ensure senior management commitment and resource allocation are discussed. Finally, the report assesses the effectiveness of the risk management process, identifies potential improvements, and reviews strategies for dealing with threats to business continuity and disaster recovery plans, offering a comprehensive overview of risk management practices within the automotive industry and specifically addressing carbon emission concerns.

RISK MANAGEMENT IN
FACILITIES
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Develop a risk management policy setting out clear responsibilities for risk management
at different levels.........................................................................................................................2
1.2 Develop a strategy to communicate the policy across an organisation and to other relevant
parties..........................................................................................................................................3
1.3 Produce a strategy to develop an organisational culture in which people are risk aware.....4
TASK 2............................................................................................................................................5
2.1 Establish the risk criteria for an organisation taking account of the views of relevant
people across an organisation and stakeholders..........................................................................5
2.2 Review and update the risk criteria for an organisation.......................................................7
TASK 3..........................................................................................................................................10
3.1 Determine the review and updating process.......................................................................10
3.2 Evaluate current and planned organisational activities and identify potential risks
associated with these.................................................................................................................11
3.3 Analyse the nature of these potential risks, their probability of occurrence and possible
consequences for the facilities management function and an organisation..............................12
TASK 4..........................................................................................................................................13
4.1 Produce a risk profile of an organisation taking account of the risk criteria and other
relevant information..................................................................................................................13
4.2 Practices to ensure senior management commitment to the risk management process......15
4.3 Resources that need to be allocated across an organisation to support and enable effective
risk management.......................................................................................................................15
4.4 Review and evaluate the effectiveness of the risk management process in an organisation,
identifying potential improvements and making changes where necessary.............................16
TASK 5..........................................................................................................................................17
5.1 Collect and evaluate information from across an organisation on how identified risks have
been or are being dealt with, including contingency plans which have been put in place........17
5.2 Review and update strategies for dealing with threats to business continuity and the
robustness of disaster recovery plans........................................................................................18

CONCLUSION .............................................................................................................................19
REFERENCES .............................................................................................................................20

INTRODUCTION
Risk management is the important aspect which is required to adopt by every
organisation to gain sustainability within their operations at market place. It is the process which
includes identification factors tat have negative impact over the business operations and
ascertainment of mitigation measures for same. Risks are of different types. Those are
manageable in nature does not have negative impact over the operations as these can be
mitigated in future at the time of their occurrence. Otherwise, those which are of not manageable
in nature adversely impact the business operations of an organisation and leads to reduction in
their image and profitability in market (Batkovskiy and et. al., 2016). Management of an
organisation has the main duty to build the strategies and contingencies plan at initial level for
reducing the impact of risks over the operations of an organisation. This depicts that aspect of
risk management has wide scope that includes coverage of different kind of activities such as
planning, directing, organising, monitoring and controlling. These aspects are work as principles
that contributes in strengthening the power of functioning management actions related to
mitigation of risks. The main aim of this report is about application and adherence of different
polices along with measures for the purpose of reducing the amount of risks.
The organisation which is considered in this report is Vauxhall. It is car manufacturing
organisation and having their operations in many nations. It was founded in 1857 by Alexander
Wilson and headquartered in Chalton, Bedfordshire, England. Vauxhall is one of the oldest and
well-established vehicle manufacture and distributor in the United Kingdom. Company mainly
specialise in selling of light commercial vehicles and passenger cars, and formally sold buses,
trucks and vans under the Bedford Vehicles brand. Currently, the major risk faced by this
organisation is related to emission of carbon that negatively impacts environment and societal
standards (Beverina and Ware Haystax Technology, 2016).
This report divided into different tasks which will be covered risk management policy
and culture within an organisation. It also includes risk criteria for an organisation which will be
beneficial for an organisation in overcoming of risk and achievement of better outcomes easily.
Along with this, evaluation of organisational activities and the potential risks that might emerge
will also an important par of this report. Number of techniques or methods will also covered for
managing and improving risk management process in an enterprise. Finally, effectiveness of
actions being take to reduce risk and maintain
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business continuity will also an essential part for completing this report in systematic manner.
TASK 1
Vauxhall is car manufacturing organisation having intense operations in UK. Also, this
organisation having operations in many other nations. The main issue faced by the organisation
is related to carbon emission after strengthening the polices of pollution control. At international
level, there are many groups which are working towards the development of carbon emission
controlling policies. Also, the government of different nation has major concern towards this
issue (Zou, Kiviniemi and Jones, 2017). So, the major risk arose in front of the organisation is
related to reduction of carbon emission, fulfilment of societal standards, focus over fulfilling
environmental sustainability policies etc.
1.1 Develop a risk management policy setting out clear responsibilities for risk management at
different levels.
Risk management introduces as an effective process of identifying, assessing and
monitoring threats to an enterprise's capital and earnings. Vauxhall is a car manufacturing
company in the United Kingdom. They currently faced risk of Carbon emission. It is a major risk
that negatively impact on business operations of an organisation. Along with this, risk
management depend on different methods that will be beneficial for company to avoid and
mitigate any kind of risk that have to impacted on their business performance (Burtonshaw-
Gunn, 2017). There are certain policies of managing risk of carbon emission that help in setting
out clear responsibilities and duties for each level of risk management. There are basically three
levels of risk management including strategic level, tactical level and operational level. These
are main levels within an organisation that help an enterprise in managing of risk systematic
way. At strategic level, risk is mainly related with the vision of an organisation. Under tactical
level, risk management mainly emphasis on loss avoidance and risk mitigation techniques.
Lastly, the dynamic level will give a natural reduction of operational incidents by rearranging
flawed processes proned to creating errors, eliminating superfluous tasks and useless controls
and improving general productivity. There are some policies that will be used by Vauxhall in
order to manage risk of carbon emission. These policies will be determined as under:
Recognition of the need for risk management: Vauxhall will recognise the requirement
for managing risk to feature as a consideration in operational and strategic planning, decision
2

making at operational, strategical and tactical level, and day-to-day management within an
organisation. This is an effective policy that help an organisation to make an effective decision
about how to reduce issue of carbon emission (Fewings and Henjewele, 2019).
Commitment to implement risk management effectively: Under this policy, company
will manage and minimise risk of carbon emission by identifying, analysing treating and
evaluating impact such type of risk that may impact on business operations and performance.
This policy of risk management will also involved as a consideration in operational and
selectional planning as a delegated responsibility of line management.
Commitment to training and knowledge development within the area of risk
management: This policy will also support Vauxhall to manage risk of carbon emission. In this,
company will provide training to their staff members about the risk of carbon emission and its
impact on business growth and success. Under this, company will ensure that all staff members,
particularly those with advisory, management, and decision making duties, obtain a sound
knowing of the risk management principles and the needed skills to utilize risk management in
effective and efficient manner (Ghaffarianhoseini and et. al., 2017).
Therefore, above mentioned all policies will be beneficial for the company to manage
risk of carbon emission and achieve better results within given time duration.
1.2 Develop a strategy to communicate the policy across an organisation and to other relevant
parties.
Communication introduces as an effective and systematic process by which information
related with the business policies are exchanged across an organisation and to other relevant
parties through a common system of signs, behaviour or symbols (World Health Organization,
2017). Good communication is more essential and important for any kind of risk management
strategy. Along with this, management of Vauxhall need to communicate above mentioned all
policies of risk management to their staff and other parties. In order to communicate risk
management policies across an organisation and to other parties, there are certain strategy which
will be determined as below:
Inform employees up-front: In this strategy of communication, Vauxhall must explain
who information about the risk management policy is essential and relevant, and what impact it
will have on business operations and performance of company (Giannakis and Papadopoulos,
2016). This will help an organisation in reduction of higher possibility related with the carbon
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emission and any other kind of risk. As it will support an organisation in achievement of better
outputs and results within given time duration.
Collection of feedback: This is an effective and essential strategy that will be used by
Vauxhall in order to identify opinion of staff and other parties about the risk of carbon emission.
With the help of feedback from the employees, company can easily reduce risk and get better
outcomes within given time duration. This will further assist an enterprise to retain employees
for long time and increase number of customers. Apart from this, feedback from the customers
about the products and services will also support an organisation in reduction of risk and
accomplishment of better results easily (Hajmohammad and Vachon, 2016).
Provide training where required: This is another effective way that must be used by
Vauxhall to communicate information about the risk management policy and another kind of
policy. Along with this, some procedures as well as policies may need more intensive and
extensive training in order to ensure that staffs know how the risk management policy follows to
them. Therefore training will be require to provide by company to their employees.
Therefore, above mentioned all these are consider more effective and useful ways or
strategy of communication. These strategies will support Vauxhall in communication of each
information or data about the risk management policies. Thus, proper identification of risk
management policies across organisation will be useful for them in reduction and minimization
of risk of carbon emission (Hillson, 2017).
1.3 Produce a strategy to develop an organisational culture in which people are risk aware.
Organisational culture defined as the underlying assumptions, values, beliefs and ways of
interacting that contributes to the unique psychological and social environment of an enterprise.
There are different strategies or ways that will be used by Vauxhall in order to develop
organisational culture effectively. Some effective ways will be determined as below:
Promote a team atmosphere: This is an effective and important way or strategy for
Vauxhall to develop a strong organisational culture. For this, company must develop friendly and
safety environment to their employees who have to belongs with different culture or background.
As it will be beneficial for company to retain worker for long time and to accomplish
competitive advantages easily (Ivanov, 2018). Effective working environment within a
workplace will be beneficial for company to promote teamwork and improve their growth and
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success. This strategy will also useful for other members who have knowledge about risk of
carbon emission over business performance.
Communicate purpose and passion: This is another kind of strategy that will be useful
and valuable for company while communication of risk management policy and business
purpose. Proper communication about the business purpose and policies among team members
will be beneficial in development of strong organisational culture. Communication will help
Vauxhall to communicate information about their business policy, strategies, product and
services to the employees who haves to belong with diverse culture (Khan and et. al., 2016).
Give and solicit regular feedback: This is also introduces important and useful strategy
for company to develop organisational culture effectively. Under this strategy company must
collect and solicit feedback from the employees on regular basis. As it will support an enterprise
in identification of employee's needs and wants about the business policy, strategies, process etc.
Feedback on regular basis will be beneficial for company to retain employees for long time and
also to maintain them strong relationship. This will support company to develop strong
organisational culture which will turn to assist company in accomplishment of its competitive
advantages easily (Qian and Lin, 2016).
TASK 2
2.1 Establish the risk criteria for an organisation taking account of the views of relevant people
across an organisation and stakeholders.
Basically, risk criteria can be defined as levels of risks for a particular subject where it is
showed measured and developed on the basis of the overall acceptance or tolerance. In present
context, Vauxhall has effectively utilised risk criteria in order to enhance the performance level
and to analyse number of risks that are present within the market for them (Bröchner, Haugen
and Lindkvist, 2019). Including this, it is also said that during process of making decisions, the
criteria is specifically be taken into consideration for making number of determinations in
relation to the risks that if they are acceptable, unacceptable, or need to be reduced to a
reasonably practicable level. Particularly, qualitative and quantitative are the two types of risks
criteria that are available and picked on the basis of overall situation. Here, qualitative risk
criteria has been taken into consideration where a Risk Criteria has been developed for Vauxhall
in presented underneath:
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S.
No.
What is
going on?
What could
go wrong?
What
problems
might it
cause?
What
company is
already doing
to prevent it?
How bad
is it, if it
does go
wrong? (1
to 5 scale
where 5 is
highly
impacting)
How
likely is it
to go
wrong? (1
to 5 scale
where 5 is
highly
impacting)
What is
the risk
(High,
Moderate
or low)?
1 Heavy
emission of
carbon
from
economic
cars.
Vauxhall
may start
dealing with
one of the
major issue
i.e. related
to sales.
Unable to
make
improvisati
on within
the sales
unit due to
negative
image
within the
market.
Identifying
possible
solutions with
the help of
effective
research and
development
of Vauxhall.
5 4.5 High
2 Updates
within the
technology
utilised to
improve
emission of
carbon.
Loss of
goodwill
and low
return on
investment
due to
wrong
decisions.
Loss in
production
and waste
of time as
well, in
order to
perform the
R&D to
resolve the
issue
(Hashim,
Sapri and
Taking
decisions and
purchasing
updated
technology to
cover the
losses and
regain
position as
well.
3 3.5 Moderate
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Low, 2016).
3 Performing
the CSR
activities,
in order to
regain the
lost
position
from UK's
market.
Decrease
within the
reputation
of Vauxhall
within the
Automotive
industry.
Vauxhall
would have
to make
alterations
within it's
existing
strategies
that has
been
utilised by
them over
the years.
Company has
found that
society is not
happy with
what they
have done i.e.
environmental
pollution, this
is where
organisation
has thought of
conducting
CSR activities
to sustain in
UK's
Automotive
industry.
2 2 Low
Under this, number of stakeholders that are being taken into consideration within the risk
criteria of Vauxhall than these:
 Government
 Investors
 Employees
 Consumers
 Board of Directors
2.2 Review and update the risk criteria for an organisation.
Just when a risk criteria gets developed, it gets also necessary for a business organisation
to keep on bringing modifications in it. With the help of this, proper updates could effectively
take place. Since, primal most and major risk for Vauxhall that came in front is that it's cars were
continuously emitting carbon, which impacted negatively over the environment and became a
7

cause of global warming (Hillson, 2017). Due to this, society has started boycotting or started
intentional abstention from utilising cars that has been manufactured by Vauxhall. A few updates
within the risk criteria of Vauxhall are showing below :
S.
No.
What is
going on?
What could
go wrong?
What
problems
might it
cause?
What
company is
already doing
to prevent it?
How bad
is it, if it
does go
wrong? (1
to 5 scale
where 5 is
highly
impacting)
How
likely is it
to go
wrong? (1
to 5 scale
where 5 is
highly
impacting)
What is
the risk
(High,
Moderate
or low)?
1 In order to
remove
heavy
emission of
carbon
from
engines of
company,
Vauxhall
has started
manufactur
ing
electronic
cars.
Society may
not accept
the change
brought by
Vauxhall
i.e. electric
cars.
Decline or
pause
within the
sales of
particular
vehicles
with the
petrol and
diesel
engines of
business
organisatio
n i.e.
Vauxhall.
Identifying
possible
solutions with
the help of
effective
research and
development
of Vauxhall
(Islam and et.
al., 2018).
3.5 2.5 Moderate
2 Considerati
on of
Artificial
Intelligenc
e, as
Less
effective
policies
along with
the plans,
Time
related
issues came
in front,
which
Investing
among
different areas
like
manufacturin
2 2.4 Low
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company is
looking
forward to
launch
electric
cars in near
future.
that would
support
Vauxhall
among
different
areas.
needs
appropriate
attention to
enhance or
improve
economic
conditions
of
company.
g, HR and
other
departments
considering
AI as major
source.
3 Major is
related to
adopting a
whole new
strategy to
grab the
attention of
society and
create
positive
image
through
making
commitme
nts to use
100
percent
renewable
energy by
2050.
Green
Washing
effect could
take place
and it is
highly
dependent
upon
society.
Due to this,
Vauxhall
may create
bad
impression
among
society and
government
of United
Kingdom.
Development
among CSR
activities like
full
concentration
towards
utilising the
renewable
energy at
workplace
and so on.
1.5 1.2 Low
9