Strategic Risk Management Plan Report - Business Development Module

This report presents a strategic risk management plan, analyzing potential risks faced by a business. It includes a business process map, failure mode effect analysis (FMEA), and an overview of risk mitigation strategies. The FMEA identifies potential failure modes, assesses their likelihood and impact, and proposes actions to mitigate these risks. The analysis covers various risk factors, including competitor actions, consumer trends, economic conditions, and brand reputation. For each risk, the report describes the impact on the business and suggests specific strategies such as increasing the responsiveness of the business, analyzing market conditions, reducing operational costs, and focusing on products with positive brand reputations. The report emphasizes the importance of stakeholder involvement, including process owners, legal authorities, and IT professionals, in the risk management process. References to relevant academic literature are included to support the analysis and recommendations.

Running head: STRATEGIC RISK MANAGEMENT PLAN
Strategic Risk management Plan
Name of the Student
Name of the University
Author’s Note

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STRATEGIC RISK MANAGEMENT PLAN
Table of Contents
Part 1 – Business process Map...................................................................................................2
Part 2 – Failure Mode Effect Analysis.......................................................................................2
Part 3 – Overview.......................................................................................................................4
References..................................................................................................................................6

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STRATEGIC RISK MANAGEMENT PLAN
Part 1 – Business process Map
Part 2 – Failure Mode Effect Analysis
Potential Risks Likelihood of
Identified risk
Impact analysis of
the identified risk
Explanation of the
risk response
strategy for the
risks
Competitors High
The increase in the
number of customer
in the current
business cause risk
for the online
business because if
the retail business
High
The increase in
responsiveness from
the competitors can
create loss of
customers and loss
for the business.
Increasing in
capability and
implementation of
new strategy for the
management of the
business process and
attract new

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STRATEGIC RISK MANAGEMENT PLAN
provides more
attractive offers it
can cause diversion
of the customer
(Gollenia, 2016).
customers.
Trends or preference
of the consumers
Medium
It can provide risk
and opportunity for
the origination to
take the leading
position in the
market.
High
It have an impact in
the current business
process of the
organization because
analysis of the
current needs of the
customer and
aligning it with the
business process can
eliminate the risk
and help in
development if a
successful
information system.
The current market
condition should be
analysed and
evaluated with the
current business
process for the
preparation of thee
risk mitigation plan.
Economic conditions Low
The economic
condition of the
market should be
analysed for the
High
The economic
condition can have
an impact on the
sales of the product
For mitigation of the
risk the profit
margins can be cut
off for remaining in
the current market

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STRATEGIC RISK MANAGEMENT PLAN
identification of the
risk and its impact
on the current
business process.
and an inflation can
cause open new
opportunity for the
small scale business
for its expansion
and implementation
of new strategy for
reducing the
operation cost of the
business can also
reduce the impact of
the risk acting on the
system (Harrison &
Lock, 2017).
Reputation of the
brands
High
Selling of products
with negative
reputation can cause
a negative impact on
the business.
Medium
The customer having
negative feeling on a
particular brand can
have the same
feeling for the retail
organization if it
sells products from
the same brand
(Sadgrove, 2016).
For the mitigation of
the risk the product
with positive brand
reputation and lower
price can be
included for
attracting the
customers loyal with
the brand.
Part 3 – Overview
The participation of the owner of the process is important for the analysis of the risk
and creation of the failure mode effect analysis. It is a structure group analysis process used
for the identification of the potential modes of failures and for the determination of the
prioritized action that should be taken for the mitigation of the problem (McNeil, Frey &

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STRATEGIC RISK MANAGEMENT PLAN
Embrechts, 2015). Thus the involvement of the process owner helps in identification of the
other sub process associated with the process and identify the risk that can arise from
different points in the business.
The participation of the legal authority and the information technology are required
for the development of the customer relationship management project. The legal authority’s
helps in identification of the compliance standards that should be followed for the
development of the project and the information technology helps in identification of the
issues associated with the hardware or the software devices for the implementation in the
project.