BSBRSK501 Manage Risk Online Tutoring

Manage Risk

⦁ Organizational processes, procedures and requirements for undertaking risk management assessments and managing risk should be periodically reviewed. Why?

Ans. Organizational procedures, policies and strategies are formulated in consideration of all the factors that might influence the planned operations, in pursuit of the organizational goals. However, there are certain factors that are prone to changes and are quite unpredictable like market competition, economies, consumers demand or weather conditions, as such organizations have to periodically evaluate the performance of procedures in alliance with the changing factors.
As stated by de Souza (p. 149, 2012) that risk is the potential of losses and rewards as a result of risk event, it is an important component of effective organizational management. Risk management is significant as it enables the organizations to recognize the elements that could disrupt its planned operational procedures or identify an opportunity. Organizations cannot analyze risks, develop plans and simply assume that the plans can be perfectly implemented as needed (Coyle et al, p. 308, 2011). It is of great importance for an organization to frequently analyze its risk management procedures to determine if they are in accordance with the present risk management standards. It also enables the organization to pinpoint the weaknesses of the applied risk management and any modifications required.

⦁ How do you determine the scope for risk management process?

Ans. scope for risk management is about sharing of information and developing coordination among the stakeholders of risk management planning. The scope of risk management illustrates that how the process will be pursued and what factors will be considered for the process. It is the risk scope that influence the performance of the managers of the risk management process, how well the process is implemented and favorable results are achieved. It portrays the boundaries of a risk management plan (Gibson, p. 445, 2015).

⦁ Why is it necessary to consider stakeholders’ issues throughout the risk management process design?

Ans. stakeholders are the elements having vested interests in organizational procedures for achieving a common goal. Though stakeholders are not in a leading position but sharing information and taking them on board for any decision-making process is vital for the effectiveness of organization’s plans or strategies. Potential hurdles later in the implementation of policies or strategies can be prevented if main concerns of stakeholders are addressed prior the policy making process through efficient communication with them (Cullen et al, p. 160, 2018).
Considering stakeholders issues throughout the risk management procedures develops a relation of trust enabling the stakeholders to share their opinions and suggestions in decision making processes. As risk management is about getting prepared for any unpredictable challenges, stakeholders issues might hinder the process of risk management resulting in ineffective decisions. Recognizing and addressing stakeholders concerns or issues not only eliminates the obstacles but also enhances the productivity of risk management procedures. When stakeholders issues are addressed competently, their confidence level is enhanced and are motivated to contribute their interest and knowledge for better performance of risk management procedures.

⦁ Comment on the influences each of these factors have on the organisation – political, economic, social, legal, technological and policy context?

Ans. Many external factors have a significant influence over the organizational policies and strategies. Though the same factors are always uncertain and beyond the control of managers, however constant monitoring and flexible policies are beneficial in minimizing the impact of these factors over the organizational procedures. The influence of these factors over the organization are;
Political: – Political environment holds a major influence over the organization’s performance, if unfavorable it could lead to heavy losses or suspension of organization’s operations. Labor laws, tax system, licensing or environmental regulations are few major components of political factor that have significant tendency to effect organization’s procedures. Managers through vigil monitoring of political environment can adjust their strategies to cope up with the changes.
Economic: – Economic factors does not directly affect the organizational procedures but it does influence the external elements which have a direct impact over the organization’s performance, for instance monetary policies, exchange rates, inflation, consumers demand, etc.
Social:- social factors relate to social and cultural changes that affect the way a market functions or the way that customers view the product or the services offered by an organization (Eagle et al, p. 76, 2015). Social factors are highly volatile and tends to change influenced by various elements like weather, consumers mindset or preferences, and fashion trends.
Legal:- organizations have to perform their procedures in accordance with the regional prescribed laws. It includes health & safety, advertising standards, consumer rights, product labelling and safety (Pilinkiene et al, p. 24, 2017). It is the legal system of the region that decides the parameters for the entire procedures of an organization.
Technological: – As stated by London (p. 464, 2011) technological advancements have rapidly changed how work gets done, it has not only modified the customers preferences but has also compelled the organizations to align there operational procedures in accordance with the technological developments to enhance their performance providing better products or services.
Policy: – Organizations design their policies in consideration of various internal and external factors, for operating its varied procedures. the same policies become the main reason of organization’s failure if these are not supported with authentic information and knowledge of the market competition, government policies and market trends.

5. Conduct a SWOT analysis for the current risk management practices of an organisation with which you are familiar. Complete the template below. If you do not know an organisation, then you are able to make up an example if you demonstrate an understanding of what is required.

SWOT analysis
Name of organization: Christy Ng Shoes
Brief description of core function of the organization: A Malaysian company involved in the making of lady’s footwear and handbags in its production facilities in Malaysia. The company is selling its products through stores across Malaysia and online globally.

Strengths Weaknesses
Decision making procedures of the company are conducted in consultation with all its stakeholders and are based on authentic current market information and customers preferences. Company’s policies are constant and not flexible, it’s operations are more depending on online sales. If there’s any change in customers preferences, or disrupt in online sales, company’s performance would be affected. Like at the moment due to Covid-19 Global issue it cannot deliver its online orders.

Opportunities Threats
Having an Effective communication with all the stakeholders the company can take advantage of their knowledge and information in determining the risks, and how to counter with it. Having a rigid sales and marketing strategy and unpreparedness for any future change may lead to financial loss.

⦁ What do you need to consider when you document critical success factors, goals or objectives for area included in scope?

Ans. Critical Success Factors (CSFs) represent those areas that are significant for an organization’s success (Fleisher & Bensoussan, p. 175, 2015). Prior to documenting the CSFs the management must ensure that the same are well communicated and acknowledged by all stakeholders, any potential risk associated in accomplishing the prescribed CSFs are identified and solution for it are formulated, deliverables are specified, all CSFs are based on authentic information of external and internal environment of the organization.

CSF will be documented in a proper journal on regular basis, in order to make sure that all the agendas are properly met and addressed. While recording the CSF’s it is also important to determine which ones are more important as compare to others, as the important ones need to be documented first.

⦁ Why do you need to obtain support for risk management activities?

Ans. Risk management procedures and adopting strategies to counter with any risk identified may require more budget or changes in already implemented operational procedures, as such to avoid any resistance from the employees or stakeholders their support and coordination is mandatory for the seamless performance of risk management process. Taking onboard all the stakeholders ensures the favorable results of the risk management procedures.

⦁ Communicate with relevant parties about the risk management process and invite participation?

Ans. As stated by Horine (p. 211, 2013) that Risk management is a continuous, iterative process throughout the project lifecycle, hence involvement of all the concerns like employees and stakeholders in the process guarantees best results from the process.
All the concerned parties must be well informed about the process through sharing information, reporting potential risks, strategy of risk management, possible impact of the risk over the organization and target to be achieve. The risk management team have to make sure that their procedures are well communicated and acknowledged by all concerns of risk management process. Even the team members of risk management process must be well coordinated.
Employees and managers could be informed about risk management process through newsletters, daily or weekly reports, and staff training sessions. Whereas, conducting meeting sessions with stakeholders and other major concerns, by providing them detailed agenda prior the meeting dates will enable them to share their knowledge and suggestions which could enhance the productivity of the risk management process