Risk Management Assessment Report for SmarTech Company

This report presents a comprehensive risk management assessment for SmarTech, an Australian smartphone technology company. The assessment begins with defining the scope of risk management, including internal and external analysis, identifying stakeholders (customers, employees, governm...Read More

Running Head: Risk Management Plan
Risk Management Assessment
Name of the Student
Name of the University
Author’s Note

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Scope for Risk Management
With the help of a outline for the management of risk, the basic factors within which the
risk of a company are managed are defined within the scope of risk management. The scope of
risk management incudes organization’s internal and external environment and the overall
objective of the process of risk management and the activities associated with it. The explanation
of the scope and outline are central to the establishing of risk management. An efficient
framework of risk management comprises of:
 Understanding the framework of the organization and the risks it might encounter such
as the valuable assets, the core processes and competitive area.
 A proper evaluation of the risk management activities that are already being undertaken
by the company.
 Develop structure for the various risk management initiatives could take place.

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High
Low High
P
O
W
E
R
INETEREST
CUSTOMERS
EMPLOYEES
GOVERNMENT
MANAGERS
EMPLOYEES
Scope for Internal and External Analysis
Figure 1
Source: Created By Author
The customers and the employees are of high interest in the company while the managers and the
government are of low interest. The internal stakeholder are managers and employees and the
external stakeholders are government and most important are the customers (Missonier and
Loufrani-Fedida, 2014).

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Review and Document Strength and Weakness of the Existing Arrangement
The strength of SmarTech is the emerging technological market; with the emergence of
the new smart watch series the technology market has gained a lot of momentum. The company
has a lot of scope to grow and develop given the kind of situation in the market where the
consumers prefer technology based items; most of the normal goods are now getting replaced by
the items that are dependent on technology (Lam, 2014). The fact that market in this area is
promising; this shows that the company has a lot of scope to grow in the market. The company
has a lot of great workers and technical workers but the company has not yet explored the smart
watch area. This means that they are losing a lot of the market economy because of the them
failing to make a mark in the smart watch industry.
Document critical success factors and goals that are essential to measure the success
of your risk management arrangements
The company should have a clear cut mission and vision statement so that it can grow
without any hassles. The company needs to be clear on the areas that they need to grow and the
areas the needs improvement such as the Smart watch market (McNeil, Frey, and Embrechts,
2015). The risks that the market has are organizational incapability and the lack of technological
advancement (Cardona, 2013)

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Section 2: Risk Identification
The identification of any risks within an organization is extremely essential. The main
objective of any private sector enterprise is to attain a higher form of profit level (Giamarellos-
Bourboulis et al. 2017). This occurs as a consequence of the increase in the sales volume which
in turn, is dependent on the production level of the concerned business firm. As a result, there is
a need on the part of the management of such a private business firm to ensure that their level of
production continues to rise at a significant level and at a consistent pace. This would lead to the
generation of the desired profit level of the firm.
One of the tools which is used for the identification of risks is that of root cause analysis.
This tool provides the entrepreneurs with the strength to understand the root problem of the
occurrence of the risk factor (Dulkin et al. 2016). For instance, if a company suffers from
financial incapability, then the managers would try to infuse more finances in the organza ton.
Another technique which can be used for risk identification is that of Risk Breakdown Structure
(Modarres 2016). The strength of this technique is that the different risks are broken down in to
various segments so that they can be properly addressed.
The analysis of the case study revealed that SmarTech Company of Australia is one of
the relatively newer business firms established in the field of smartphone technology. This is
significant to understand because the duration of time served by an organization greatly impacts
its profitability level. One of the risks therefore, which has been identified in the functioning of
the organization is that of organizational capability. Often times, it is observed that the
employers of a business are unable to establish a clear goal or vision for itself. Such uncertainties
in the direction of the firm adversely impacts the motivation of the employees to work as they

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are not provided with a clear and defined guideline of how to proceed with their own tasks and
responsibilities (McNeil, Frey and Embrechts 2015). Thus, in order to ensure the proper
functioning of the firm, the risk of organizational capability needs to be eliminated.
Another risk which can be identified with the working of the SmarTech business firm is
that of lack of technological advancements. Since the firm is involved in the sector of
smartphones, there is a continual need on the part of the firm to constantly update its technology.
SmarTech is a newly established organization which was formed in the year of 1980. Thus, the
knowledge of technological advancement which is available to its competitors such as Lenovo
and Apple, is not available to SmarTech. This is significant to take in to cognizance because
technological advancement is one of the most important requirement for the functioning of any
business which is involved in the digital sector. Thus, the lack of technological advancement of
SmarTech has a potential to greatly impact the productivity level of the firm in the long run.

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Section 3: Risk Analysis and Evaluation
The risk that has been identified in the previous section are:
 Organisation capabilities
 Technological advancement
The consequence of the technological advancement is based on the internal and external
factor of the organisation (Kuma, Kumar and Tyagi 2013). The organization focus on the
organizational capabilities and the factors that are associated with it. The impact on the risk in
based on the economic, political, technological, social and legal factors. Each of the factor caters
to the goodwill of the SmarTech technological company. Once the risk are identified the risk
should set its target in overcoming it for the long run of the business. The risk needs to be
assessed with the possible impact of the risk. The minor risk of the organisation needs to be
separated with the risk of linked to technological advancement and the capabilities of the
organisation while dealing with the stakeholders (Lim et al, 2015).
The analysis of the level of risk determines the likelihood of what is occurring in the
company related to the innovative creation of smart phones and tablets. The likelihood scale
determines the range of the customer preference which can vary from vary likely, likely,
unlikely, and very unlikely.
Evaluation of the risk can be established on the level of the risk it can face in the future
course of time. Once the SmarTech establishes the factors of risk in section two it is the
responsibility of SmarTech to evaluate them in different ways and procedure (Brown et al,
2014). The risk comprises of:

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 The potential losses of the business activity
 The benefits that are attached along with the opportunities identified.
 The importance of the organizational activity
 The amount of control it has over risk.
 The business continuity plan needs to be redirected
 Preparing an incident response plan that will recover the company from losses.
 Economic competitors need to be analyzed and guideline of the risk management is to
be maintained.
The evaluation of the procedure allows the company to determine the significance of risk in the
organisation. The risk has to be accepted for future and action has to be taken to prevent the
cause. The cause of the SmarTech to evaluate the risk would stand as a factor of securing the
factors which are against the company stakeholders. Both the internal and the external factors
needs to be considered as the customers are facing issue with the devices. The various types of
risk that are analyzed for SmarTech are based on the ground of strategic risk, operational risk,
financial risk and reputational risk (Christiansen et al, 2014).
Section 4:
Risk management:
SmarTech is an Australian organization established in the year 1980 and has been
manufacturing smart phones to cater the customers. The organization is a small scale
organization and is trying to keep up with the pace of other manufacturers in the market
(Mylonas 2013). The organization on establishing a brand name in the market had to face certain
challenges and risks. Thus, in order to overcome such challenges, the organization has to work

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on its capabilities in order to produce enough number of smart phones to fulfil the needs of the
customers. The company has to concentrate and focus on the stakeholders and their requirements
which in turn will keep them motivated to work harder for the company. This will help in
producing more smart phones and in turn help the company grow in size and revenue. The
company will also be able to create a brand image in the market and impact the buying decision
of the consumers and thus have a competitive edge in the market (Worley, Williams and Lawler
2014). The company should thus improve their manufacturing unit by recruiting employees
suitable for the work and a strict supervision on the stakeholders can invariably make a
difference in the production of the company. Technological advancement is also a challenging
aspect for any tech based companies in order to survive in the market. Thus, SmarTech should
focus more on improving their technologies and implement the new strategies in order to
produce more items in less time (Chen and Liu 2013). This will also help the company to create
a platform for the customers to raise their complaint or any other issues related to the smart
phones. Thus, technological advancement automatically improves the relationship of the
company and the customers and makes it easier for both the parties to communicate in a common
platform. The company thus can have a great scope of addressing the issues and appreciations of
the customers. Technological advancement can help the company to produce better smart phones
with unique features which can attract ad grab the attention of the customers (Jacobsson, Boldt
and Carlsson 2016). Thus, the company will be able to establish their brand image in the minds
of the customers and in turn will be able to be the market leader. In global market, companies
producing smart phones are way advanced by the use of newer technologies and in order to
compete with these fast growing companies, SmarTech also has to improve their capacity for
producing a large number of smart phones not only for Australia but also for the global market.

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Time frame Risk Stakeholders involved
6-9 months Organizational capacity Internal stakeholders like the
managers and the employees
working in the manufacturing
unit
9-14 months Technological advancement Internal stakeholders who are
working in the IT department
of the company and dealing
with the technological
requirements of the company.
The company should also focus on choosing the appropriate suppliers of raw materials for the
company in order to establish an effective manufacturing unit to cater the needs of the customers.
The company should thus follow the above mentioned time frame to overcome the risks that has
been identified for the company.

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