University Strategic Risk Management for Windsome: Detailed Report

This report provides a comprehensive analysis of strategic risk management for Windsome, a company involved in equipment rental and supply. It begins with an executive summary and an introduction to strategic risk management, followed by a detailed discussion of the Windsome case study. The report critically evaluates the integration of risk management systems within a strategic context, emphasizing the importance of a structured approach for identifying, assessing, and managing risks. It then analyzes the major challenges Windsome faces, including uncertainty about the future, financial management issues, performance monitoring difficulties, and compliance and regulation concerns. Furthermore, the report examines the role of HSE (Health, Safety, and Environment) and employee wellbeing within risk management systems and explores the development, implementation, and significance of business continuity planning in alignment with corporate strategy. The report concludes with recommendations for Windsome to strengthen its risk management practices and enhance its business operations. It also includes references, a bibliography, and appendices with supporting information, such as the COSO framework.

Running head: STRATEGIC RISK MANAGEMENT
Strategic Risk Management for Windsome
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The main aim of the report is to understand the case study of Windsome. They have to
include strategic risk management in their respective business for ensuing that better
efficiency is being gained without any type of complexity. Risk management is the proper
recognition, assessment and even prioritization of different risks and threats that are followed
up through minimization, monitoring or managing the effect of risk realities for enhancement
of the opportunity potentials, through the application of economic and coordinated resources.
It is exceptionally vital in any typical business, and it lays significant foresight for returns on
the investments and projects any type of potential requirement after starting a completely new
endeavour. This report has critically discussed risk management systems and business
continuity planning with relevant details.

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Table of Contents
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1 Brief Idea of the Case Scenario........................................................................................3
2.2 Critical Evaluation of Integration of Risk Management Systems in a Strategic Context 4
2.3 Critical Analysis of the Major Challenges of Risk Management in Windsome..............6
2.4 Critical Analysis of the Role of HSE and Employees’ wellbeing within Risk
Management Systems.............................................................................................................9
2.5 Critical Analysis of the Development, Implementation and Significance of Business
Continuity Planning with Corporate Strategy......................................................................11
3. Conclusion............................................................................................................................13
4. Recommendations................................................................................................................13
References................................................................................................................................15
Bibliography.............................................................................................................................17
Appendices...............................................................................................................................18
Appendix A..........................................................................................................................18
Appendix B..........................................................................................................................18

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1. Introduction
Strategic risk management can be referred to as the significant procedure to identify,
assess as well as manage different types of risks within the organizational business strategy
like taking faster actions, as soon as these risks are being realized (Andersen and Sax 2019).
These are specific risk exposures, which subsequently impact the shareholders' values or the
organizational viability. It is the procedure to identify, assess and then manage the risks
within the corporate business strategy like undertaking fast action as soon as the risk is being
realized. Such distinct management is responsible for identifying the significant risks, their
probability and even their possible impacts. The nature and frequency of the up-gradation of
the identification of several top risks are also considered on the high level (Adams and
Setterfield 2016). Moreover, the overall influence of the risk sensitivity over liability
management as well as the financial decision is also focused on significant priority. This
report will be outlining a detailed description of strategic risk management for the case
scenario of Windsome with relevant details.
2. Discussion
2.1 Brief Idea of the Case Scenario
Windsome is a popular or significant organization, which is responsible for renting as
well as supplying a high range of higher quality apparatus for generation of power, tooling
and lifting and lifesaving within a variety of different markets from Offshore to Subsea,
renewables and onshore operation. The customers consider them as the significant parts of
this supply chain since they are dependent on them for providing access to the correct
equipment, plant and tools. The projects are required to be completed within budget and time.
Two hundred forty employees are currently working in this company, and the management
has ensured that these employees are gaining maximum satisfaction from work without much

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complexity. Huge investments are made in the business for increasing their storage and stock.
The significant impact on the reputation has become quite damaging, and fewer contracts
with longer-term customers have been shortened, after having curtailed activities and
deciding not to continue with the newer project.
Moreover, the overall profitability has been hit, and they have not been able to
maintain their position. The staff morale is not at all good, and the employees are anxious
about their jobs. As a result, according to management, a few key processes are not being
followed. There had been a sudden rise in the competition for this particular organization, and
it can increment the chance of this business failure. The organizational MD has been
eventually approached by one of the main clients, who has demanded to initiate drilling
offshore in Western Australia, and Windsome will be supplying the rig. It refers to the fact
that the business should be established in Perth. However, there could be high risks for the
company, and hence proper risk management is required for this particular project or business
expansion.
2.2 Critical Evaluation of Integration of Risk Management Systems in a Strategic
Context
A risk management strategy eventually provides a proper coherent and structure
approach for identification, assessment, as well as management of different risks (McConnell
2016). This type of risk management strategy builds within a procedure for regularly
upgrading and reviewing the assessment, based on newer actions and developments
undertaken by them. It could be developed and deployed by the smallest of projects or groups
or built into a complex strategy for the multi-site international company. The specific
procedure to identify and review the risks, which you face is termed as risk assessment (Kish-
Gephart and Campbell 2015). After successful evaluation of risks, the organizational
management would be able to remain aware of all surrounding events and outcomes, before

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identification of steps, which could be undertaken for protecting the respective company,
assets and people involved.
Five vital steps of risk management include successful recognition of risk, analyses of
the risk, and assessment of threats, treating the threats and finally monitoring the respective
risks. It helps in reduction of complexities or risks to a high level, and the business becomes
free from hazards (Cameron 2017). As a result, the entire risk management strategy is
beneficial and efficient for the respective organization. It helps in increasing the overall
chance of gaining profit to a higher level. Hence, the business needs to ensure that every
organization is implementing a successful risk management strategy for eradicating their
existing risks and threats.
There exists a chance for compliance management and hence ensuring excellent
operations and activities in the business without much complexity. There are several
international strategies and policies, which are needed to be considered on top priority (Mok
and Saha 2017). One of such famous and significant risk management system is COSO or the
Committee of Sponsoring Organizations of the Treadway Commission that focuses on the
highly anticipated ERM framework, and it successfully integrates with performance and
strategy. It is the most widely recognized as well as applied risk management framework in
the world and also helps the business in creating, preserving or realizing the company (See
Appendix B).
The upgraded version of this particular system is being designed for helping the
companies to create, preserve as well as realize the value, during the improvement of their
approach towards successful management of risk (Luís, Lickorish and Pollard 2015). A range
of all possible outcomes is being optimized then decisions are being undertaken on top
priority. Moreover, the enterprise risk management can be considered within the subsequent

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formulation of the organizational strategies and business goals to ensure outcomes. The total
understanding of risk and the following risk practice for enterprise risks has been improvised
for a few years. There exists a high chance for proper integration of risk management system
within a strategic context. It is similar for the case study of Windsome as they are considering
a new business in Perth (Bromiley et al. 2015). They should reduce the impact of their
probable risks for increasing flexibility and scalability in the company successfully.
2.3 Critical Analysis of the Major Challenges of Risk Management in Windsome
Risk management is the principal procedure to identify different potential risks for
proper analysis and then taking any type of precautionary steps for reducing the impact of
these risks to a higher level. This particular framework is required for the evaluation of the
business risks that are involved as soon as the business is involved in any type of complexity
or issue (Ozdemir 2018). It is needed for successful evaluation of the business risks involved
when any change is occurring within the business processes, systems and operations (See
Appendix A). As a result, the penalties can be minimized by proper identification,
prioritization, and addressing the risks. It even allows an integrated response to several
threats and eventually facilitates a more informed risk-based decision-making ability (Pierce,
Goldstein and Pierce 2016). The businesses are highly unpredictable, and they seem to
become highly complicated regularly. Proper risk assessment subsequently provides an
important mechanism to identify which distinct risks are representing different opportunities
as well as potential pitfalls. These risks could comprise of negative impacts, positive impacts
or even both. This process of risk management includes recognition of threats, analyses of
these risks, responding to risks and finally monitoring the risk and opportunities (Agarwal
and Ansell 2016).
The risks with negative effects could prevent value creation and the risks with
positive effects might offset for representing opportunities. Different kinds of risks include

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hazard risk, financial risks, operational risks, as well as strategic risks. A risk assessment
must start and finish with the business goals, which are being anchored within major value
drivers (Chernobai, Ozdagli and Wang 2020). It acts as a guide in the process of decision
making and planning to the business. It is important for organizing and allocating resources
by setting up subsequent priorities. The most effective risk management process helps in
providing success to the business, ensures a consistent approach and also interpret the results
of the risk management procedure for bringing maximum success. The organization of
Windsome is going to start an overseas base in Perth and hence spreading their business,
outside the domestic market (Edwards and Taborda 2016). As a result, there could be some of
the most significant and noteworthy threats, and these risks are provided below:
i) Uncertainty about the Future: The first as well as the most significant challenge
that the organization of Windsome might face in their new business or overseas base in Perth
is subsequent uncertainty about the future. As a result, they are unable to deal with the
complexities and issues successfully. It could eventually increment the chance of better
execution of business process and activities (Lee and Moon 2016). The respective customer
trends and market trends could not be predicted properly due to the changing economic
climate and lack of predictive powers of the senior management. To bring out in a consultant
trained reading and prediction of the most vita trends can bring out a major difference for
impacting a bright future easily and promptly. Since this was the first time that Windsome
was creating an overseas base in Perth, it was required for them to ensure that they are
secured from any type of uncertainty regarding the future.
ii) Financial Management: The second important and significant challenge that the
organization of Windsome might face in their new business or overseas base in Perth is
financial management. The organization is already facing major issues related to staff morale
and lack of financial support; they might be in subsequent issues related to finance

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management and hence such issues should be resolved on top priority (Maia and Chaves
2016). As a result, the cash flows, profit margin, finances and reduction in costs are required
to be considered eventually. Being a small and medium business, Windsome does not require
a full-time CFO and hence issues related to financial management could be common for the
business.
iii) Monitoring Performance: Another vital and noteworthy challenge that the
organization of Windsome might face in their new business or overseas base in Perth is an
issue related to the monitoring of performances. The organization is facing situations related
to lowered staff morale and hence it would be vital for them to ensure that the performances
of employees are being monitored (Gatzert and Schmit 2016). With the help of a set of few
performance indicators, the business gets insight regarding the performance of the business,
even in Perth.
iv) Proper Compliance and Regulation: The organization might also face the
challenge of a lack of proper compliance and regulation. The main reason for such an issue is
that there would be a change in the technologies and markets and hence rules and regulations
would also be changed for both customers and employees (Agarwal and Ansell 2016). The
risk fines are worse for noncompliance for a business, and hence high complexities would be
included.
v) Usage of Technologies: The next significant and important challenge that the
organization of Windsome might face in their new business or overseas base in Perth is the
usage of technologies. It becomes quite important for the organizations to innovate or be left
behind (Pierce, Goldstein and Pierce 2016). Hence, Windsome will have to implement some
of the most vital aspects of technology for better execution of business processes and

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activities. The new technologies are required to be integrated into their organization for
eradicating the issues successfully.
vi) Customer Services: Although Windsome is starting their overseas base in Perth,
they might face issues related to customer services. They have to bid for the project, and
hence it is required that the customers are satisfied with their bidding. The consultants could
find out different ways for improvement of customer services as these customers require a
continuous and prompt response.
2.4 Critical Analysis of the Role of HSE and Employees’ wellbeing within Risk
Management Systems
A proper SWOT analysis is required for understanding the overall business of
Windsome and also identify the gaps and weaknesses successfully, for making the business
processes and activities much more effective and efficient. This SWOT analysis is provided
below:
i) Strengths: The major and the most significant strengths of the organization of
Windsome include the main supplier of high-quality equipment in Australia. As a result, the
customers can get proper equipment for power generation, lifting, tooling and lifesaving
within different markets (Mok and Saha 2017). The other strengths include maintaining their
subsequent business processes effectively and also ensure customer satisfaction to a high
level. As a result, they are enjoying customer support and popularity to a high level.
ii) Weaknesses: The major weaknesses of the organization of Windsome include lack
of staff morale, challenging economic environment and major concern about the prospects of
the organization. One of the major reasons for such issue is that the management has made
huge investments in the business in the last 10 years and have set up their business in Baku.

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The loss of productivity has decreased the market shares, which is also a vital weakness for
the business.
iii) Threats: One of the major threats that the organization can have from their
overseas base is that they might not be able to set up their entire business and the customer
might be unhappy with the services of Windsome (Kish-Gephart and Campbell 2015). Great
competition from other organizations is the next distinct threat that might be faced by the
company.
iv) Opportunities: The organization can also gain a few of the most distinct and
noteworthy opportunities from their business. Since they are entering into a new overseas
base, there is a high chance that the business might be getting some of the most significant
and important advantages without any complexity.
The subsequent role of HSE and the wellbeing of employees is quite significant for
the risk management systems. HSE or health and safety executive within work are required
for encouragement, enforcement and regulation of workplace health, welfare and safety. The
role of HSE is high for any type of risk management system, and hence major effectiveness is
gained (Adams and Setterfield 2016). This type of risk management includes evaluation of
the process of a broader range of all possible scenarios and events, affecting the strategy as
well as its execution and the ultimate effect over the organizational values. Risk eventually
encompasses every aspect from the dangers of product innovation or market towards risks for
supply chain or reputational risks.
A significant element as well as foundations of the enterprise risk management or
ERM, SRM needs the business to describe significant tolerable risk level as the essential
guide for the subsequent decision-making process (Andersen and Sax 2019). Such distinct
risk management is a nonstop procedure, which must be embedded within a proper strategy

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setting and execution. Strategic threats are different specified risks, which are the most
important to the organizational capability of implementation of strategies and achievement of
business goals. The significance of strategic risk has increased along with both the
expectations of stakeholders and regulatory.
Strategic risk management is required for ensuring that several strategic risks are
being identified so that effective results are obtained easily and promptly. Moreover, it helps
in ensuring that the goals and objectives of the business related to strategic management are
being fulfilled under every circumstance and the respective organization is gaining higher
competitive advantages (McConnell 2016). There is an integrated framework that is
responsible for providing the major principles as well as components of the enterprise risk
management and is eventually grounded for emphasizing on the overall achievement of the
objectives of an entity.
Moreover, the risk management system can also be controlled by the employees and
employees’ wellbeing. It is required to ensure that the existing processes are not harmful to
the employees, and they would be working properly without any type of complexity (Kish-
Gephart and Campbell 2015). Moreover, the respective risk management systems would not
incur any extra cost, and hence Windsome would be benefitted eventually. The health of the
employees should be kept on top priority, and they would gain high job satisfaction and
extend beyond health. This type of strategy also enhances the chance to implement a risk
management system. With such a distinct system, the organization effectively controls
different processes relations, roles and players of the business for the core purpose of
achievement of objectives and values. Public risk management even emphasizes on the public
domain (Luís, Lickorish and Pollard 2015). Unique is the subsequent establishment as well as
the connection of an open approach of external or internal uncertainty, performance-driven
attitude, a distinct will for mitigation of the risks and value to diminish the issue. Hence, HSE