BSBRSK501: Managing Risk Case Study for Town and Country Services

This case study analyzes the risk management plan for Town and Country Services, an architectural design and consultancy company. The report assesses the company's existing business situation, aiming to develop a comprehensive risk assessment, mitigation, and action plan. It includes stakeholder analysis, environmental analysis (PESTEL), and SWOT analysis, focusing on five prioritized risks. The case study covers the company's business background, goals, and scope, followed by an evaluation of existing risk management procedures, a detailed risk matrix, and a risk management plan. The conclusion and recommendations highlight key findings, assessing the feasibility of the proposed plan and providing an overall evaluation of the company's risk management strategies. The study also uses ISO 31000 and ISO/IEC 31010 standards to assess financial risks.

Running head: MANAGING RISK
Managing Risk
Case study: Town and Country Services
Name of the Student
Name of the University
Author note

1MANAGING RISK
Executive Summary
In this following risk management plan Town and Country Service has been taken as a case
study. The purpose of this report is to assess the existing business situation while aiming
towards their current objectives in order to develop proper risk assessment, mitigation and
action plan. The stakeholder analysis and environmental analysis has been done while taking
the 5 most prioritised risk for evaluation.

2MANAGING RISK
Table of Content
Introduction................................................................................................................................4
Business Background.............................................................................................................4
Business goals........................................................................................................................4
Analysis of external and internal factors....................................................................................4
PESTEL analysis....................................................................................................................4
SWOT analysis.......................................................................................................................5
Scope..........................................................................................................................................6
Stakeholder analysis...................................................................................................................7
Existing risk management legal procedure, regulations and policies....................................8
Risk Assessment.........................................................................................................................9
Risk Matrix.............................................................................................................................9
Prioritisation...........................................................................................................................9
Risk management plan.............................................................................................................10
Conclusion and recommendation.............................................................................................11
Summary..............................................................................................................................11
Assessing the feasibility of risk management plan..............................................................11
Evaluation............................................................................................................................12
Reference..................................................................................................................................13

3MANAGING RISK
Introduction
Business Background
An architectural design and consultancy company named Town and Country Service
was established in 1984. From the beginning of the organisational growth this company is a
very successful architectural consultant. Recently the company additional offering other
services namely building planning, construction project planning, and supervising
construction projects. In commercial, residential and aesthetic building development Town
and Country Service has already made a good place in Australian market. According to their
new plan, an office will be going to be established in the regional city of Orange, NSW. The
purpose is to expand their market while enhancing their existing service base. Tas per their
new provisional plan, for operating 24x7 hours through the workforce of full time and part
time employees.
Business goals
Offering quality services to their customers while prioritising their values and
opinions is the mission of Town and Country Service business. Besides, their vision is to
strengthen the business by executing risk free environment with proper integration and
cooperative relationship. Town and Country Service have planned to rent an office to
increase the potential profitability while expanding their market base and accessibility. The
office will be at street level for offering sufficient space for Median Services and
constitutions meetings [1]. It is a strategic development plan of Town and Country Service
aimed to increase their customer relationship through consistent communication to expand
their market reputation across Australia.

4MANAGING RISK
Analysis of external and internal factors
PESTEL analysis
Political In this particular situation of Town and Country no specific external political
intervention was found. However, Town and Country Service always receive
enough cooperation from the political groups and government from the
beginning of the establishment. For the consistent support from tread union,
labour union and governing authority allows Towns and Country Service to
prosper.
Economic Currently the economic situation of Town and Country is going to experience a
turbulence because of the financial loss for raining and flood. At the same time,
Australia is a 13th largest economy in the world where their economy has
grown by 2.4% from 2016 to 2017 and 8% in 2018 [7]. Only in building and
landscape construction the investment has been enhanced by 20% in 2018 [2]
Social Because of the current natural disaster no one is willing to stay for prolonged
period, irrespective of their cultural or sociological origin. However, rapid
interviewing could increase the diversity. In Australia about 37% of total
population are originated from other countries, which enable the nation to
consist different cultures, values and perspectives.
Technological The national level merchandising operation of technical equipments has grown
by 4% in 2018. With this growth rate IT and other technical investment will
also grow from 63% to 65% within 2019 [3]. Town and Country service has
enough option to utilise those technological advancement for communicational
activities.
Legal When it comes to business, Taxation is a major as aspect of legal condition.
Currently the average tax business rate is 30% [3]. Besides, Australia has
strongly imposed the Workplace health, customer rights and contractual
regulations. In this case Town and Country Service has to ensure the security of

5MANAGING RISK
their existing and new workforce in this time of natural disaster.
SWOT analysis
Strength Weakness
The ever expanding market base and reputation
are the major strength of TCS
TCS currently has enough assets for investing in
a new business strategy
TCS also evolves their The research based
development in order to improve the product and
service quality without compromising the cost
Limited physical expansion restricting to operate
through other part of the nation in this natural
catastrophe.
Because of lengthy approval time, the customer
service is declining rapidly, in terms of
communication and situation handling.
Most of the workers are employed as part-time
workforce that is creating obstacles to the
operational efficiency
Opportunity Threat
New and innovative action plan and
distinguishable implication can be used for
lowering the risk of ultimate failure.
Seeking for external recruitment help by third
party could be very helpful for this situation.
New virtual team management and
communication strategy could improve the
overall communicational competence.
The further weather forecast can increase the risk
of more raining and potential flood. Increasing
the potentiality of natural risk is a major threat.
Because of the decreasing workforce and their
availability for this emergency period the risk of
ultimate operational collapsing is high [4].
The increasing amount of delayed operations
from council will fatherly weaken the capabilities
of Towns and Country Service company.
Scope
SCOPE:

6MANAGING RISK
New and innovative architectural plans and distinguishable implication
can be used as a have higher potential value in construction market
Along with the expansion of industrial and commercial businesses the
demand for innovative and scientifically feasible constructional ideas
are very high.
New simulation and technological advancement for prototyping models
and simulation is helping the business to grow
OBJECTIVES:
Establishing an operating quarter or office at street level that has
enough space for meetings with the visiting consultants as well as
private rooms for mediation services
Reducing constructional building plan developing time by 35% while
using innovative strategic planning.
Control the development and operational cost to keep it cost below the
20% advancement from the earlier cost
Recruiting mainly full time employees to improve the workforce ability
[6]
CRITICAL
SUCCESS
FACTORS:
Strategic implementation of innovative ideas while keeping the
developing and operational cost as low as possible
Through advancing the workplace culture and security adequately,
improving the workforce ability.
Improvement of marketing strategies and promotional activities while
taking good care of customer relationship.
Stakeholder analysis
Stakeholder Internal /
External
Role in process Stake in process
Owners and Internal Making decision and Share the profit and loss from

7MANAGING RISK
directors primary developing Profit and asset the monetary and non
monetary investment.
Employees Internal
Secondary
Working efficiency with
coordination and
cooperation
Quality of reporting risks and
supporting refurbishment
Suppliers External
Secondary
Supplying quality products
efficiently in reasonable
price
Raw materials and human
resource
Governments External
Tertiary
Monitoring and control the
legal operations
Imposed regulation and
direction of frameworks
Customers External
Primary
Availing the service while
cooperating with the pricing
of the company
Monetary values and mouth
to mouth promotions
Community External
tertiary
Cooperating with the labour
market and contributing to
the workforce
Opinions and human resource
Investors External
Primary
Investing enough values to
develop revenues
Monetary values and variable
assets
Existing risk management legal procedure, regulations and policies
Towns and Country Service Company has to abide by multiple legal policies and
procedures as an architectural consultant and construction project management company
considering all the possible risk factors. Operational risks, financial risks and Human
resource related risks are the major potential risk areas. In order to assess and mitigate human
resource related risk occupational health and safety framework will be very helpful through
proper hazard recognition, reporting and documentation practice. The company has to also
present their plan to the local government. ISO 31000 underlined transition implications

8MANAGING RISK
could be very effective to avoid financial risk [5]. On the other hand, from ISO/IEC
31010:2009 the company can have adequate guidance to maintain proper communication to
the stakeholder in order to reduce the likelihood and impact of any potential risk.
Risk Assessment
Risk Matrix
Likelihood
(1) Rare (2) Unlikely (3) Possible (4) Likely (5) Certain
Consequence
(1) Insignificant Internal
Conflicts
(1)
Employee
Turnover (3)
(2) Mirror Natural
issues (4)
Lack of
workforce
(8)
Performance
inefficiency
(10)
(3) Moderate Operational
failure (3)
Political
Changes (6)
Poor
Funding (9)
(4) Major Legal issues
(4)
Workforce
hazard (12)
Over costing
(20)
(5) Extreme Bankruptcy
(5)
Prioritisation
Risk Risk
Rating
Action plan
1 Over costing 20 Developing budget plan focusing on break even
points while leaving scopes for amendments as
well as manage supply chain strategically
2 Workforce hazard 12 Impose effective occupational health and safety
framework with appropriate monitoring and

9MANAGING RISK
reporting system
3 Performance inefficiency 10 Providing on-job and event based training while
improving employee engagement through
cooperativeness and cultural competency
4 Poor Funding 9 Increasing the number of investors and
improving partnership strategies
5 Lack of workforce 8 Recruiting more part time and full time
employees while providing adequate training
and development
Risk management plan
Risk Assess Risk Controls Monitoring Timelines Responsible
Over
costing
Repeated
budgeting
Developing budget
plan focusing on
break even points
while leaving scopes
for amendments as
well as manage
supply chain
strategically
Repeated
budget
publishing,
supplier
communicatio
n
1st week to
3rd week
Finance
Manager,
Accountants,
project
manager
Workforce
hazard
Hard
identification
and reporting
Impose effective
occupational health
and safety
framework with
appropriate
monitoring and
reporting system
Direct and
indirect
surveillance
and
interviewing
2nd week to
5th week
Human
Resource
manager,
Administrators
, General
Manager
Performance
inefficiency
Integrated
communication
Providing on-job and
event based training
while improving
Survey the
ground
employees
3rd week to
5th week
Human
Resource
Manager,

10MANAGING RISK
employee
engagement through
cooperativeness and
cultural competency
and
interviewing
leaders
employees
Poor
Funding
Communicating
with
shareholders
Increasing the
number of investors
and improving
partnership strategies
Repeated
budget
estimation
and break
even analysis
7th week to
10th week
Directors,
Owners, Legal
advisors,
Finance
Manager
Lack of
workforce
Measuring
departmental
performance
Recruiting more part
time and full time
employees while
providing adequate
training and
development
On job
monitoring
8th week to
12th week
Human
Resource
Manager,
Operational
Manager,
employees
Conclusion and recommendation
Summary
From the above discussion and risk assessment it has been found that Town and
Country Service have planned to rent an office to increase the potential profitability while
expanding their market base and accessibility. The office will be at street level for offering
sufficient space for Median Services and constitutions meetings. At the same time, the
political, economic, social and technological environments of Australia and the market of
Town and Country Service are suitable to make sufficient business growth. However the
major threat is increasing number of competitors in Australian market. Besides, the key
factors are their Innovative ideas, workforce efficiency and customer relationship that will

11MANAGING RISK
support the company to make success. As an architectural consultant and construction project
management company, Towns and Country Service Company has to abide by multiple legal
policies and procedures as an architectural consultant and construction project management
company considering all the possible risk factors where ISO 31000 and ISO/IEC 31010 will
be helpful.
Assessing the feasibility of risk management plan
The discussed risk assessment plan has mentioned and included all the essential parts
of the business in order to mitigate the possible risk occurrence. The major risks that have
been found are Over costing, Workforce hazard, Performance inefficiency, Poor Funding and
Lack of workforce. On the contrary, the limitation of tis risks analysis id absence of proper
financial or cost estimation. It should be considered that Risk assessment monitoring and
implementation requires a considerable amount of financial support. Therefore, the risk
assessment must include the financial assessment as well as cost estimation. Because of the
absence and inadequacy this risk assessment has become less feasible and attainable.
Evaluation
Operational integration and communication is very essential for evaluation of this risk
assessment plan that also needs the involvement of all departments and responsible
personnel. Through Feedback collection and reporting the evaluation process can be
executed. Both survey and interview techniques can be used to collect the feedback. At the
same time, survey will be more reasonable for ground level employees and interview will be
affected for collecting feedback from leaders and departmental executives.