Risk Management Business Workplace

Question: Describe about thr Risk Management in Business Workplace. Answer: Insert Date Dear Penny Binskin, I wanted to express my concern about certain risks prevailing within the workplace, which I mentioned in my last mail, i.e., relating to banking, travel, by-law compliance and human resources. The possibilities of such risks have been determined after meeting with the supervisor and landlord of the store. These possible risks somehow can be eradicated with the adaptation of certain measures and controlling mechanisms. For instance, the organisations inadequate controlling mechanism of keeping the bank deposits, cash and sales record, causes the risk related to banking. The organisation currently has lack of proper regime for keeping the bank records and $4,000 are kept overnight in the store. Lack of securities in the store premises increases the possibility of break-ins. Another risk, which I also discussed in my last mail, is related to travel risk, as the travel time between central bakery and store location is of two hours. I also want to raise the concern over the issue of by-law compliance risk, as policies and procedures of the company have not been documented in written form. Another risk is related with human resources, as employees lack understanding of the use of various equipments effectively. The detailed summary of risk, possibility of its occurrence, probable consequences and plan of treatment initiatives have been discussed in a lucid manner. However, proper justifications regarding adaptation of measures are also presented to raise concern about the matter and seek suggestions about further proceedings on the issues. Kindly let us inform, if necessitated additional information regarding the matter. Yours Sincerely, Your Name Assistant Manager Risk Management Plan Risk (provide a description of the risk) Risk Likelihood Consequence Rating Treatment Plan Risk priority (14) Rationale behind the effectives and feasibility for the organisation Travel Risk The travelling time between location of the store and the central bakery is of two hours. Such a long journey travelling made it difficult to reach within time from Red Hill to Perth. The pastries are prepared during the morning hours in the central bakery and delivery could only be possible in the afternoon period. Moreover, high rush and traffic congestion further increases the problem. The concern also rises about receiving company-branded supplies within the time. Problem related to large distance travelling also made it difficult in retain the customers expectation and in the long run, this can be a major issue for the business. The risk related to uncertain accidents also rise due to narrow steep and long distance travelling, as manager every week visit the factory for meeting and it last until evening. High: The likelihood of travel risk is high because of frequent requirements of raw materials are required in stores. Moreover, the risk related to delay in supplies are also high because during afternoon there were high rush and congestion in the roads. The possible consequences of travel risk are as follows: 1. Delay in supply to customers with uncertain delay in receiving pastries 2. Possibility of delay in the organisational operations resulting to slow supply chain process 3. Probable accidental issues for the manager travelling in peak hours from the central bakery after meeting 4. Uneven delay in deliverance of pastries could further evolve issue related to hygiene factor and resulted interruption in manufacturing process (The University of Tennessee, 2014; Kroese, 2010) To mitigate this risk, the possible mechanism should include renting the central bakery plant into nearby location of the store. The work in the weekly meeting and formality of refreshment must be completed earlier so that the managers do not need to travel during rush hours. Besides, discussion based on teleconferencing can be the alternative mechanism of meeting. 2 Establishing central plant in nearby location will enable saving travelling time required for procuring the raw materials and improves delivery time. Additionally, reducing meeting time will lower the possibility of accident and injury, which is probably higher while travelling during the peak hours in steep narrow roads (Fawcett, Magnan McCarter, 2008). Banking Risk The financial measures in store are inappropriate and possibly result to fraud and financial misappropriations. The store does not have adequate policy regime for keeping bank deposits, payment receive and paid in cash, withdrawing of cash and sales record. Risk related to robbery also exists, as around $4,000 is stored in stores cash counter overnight. The daily transaction registers and reports are not updated regularly. The store does not have adequate safe measure in its premises, which increase the possibility of break-ins and theft of cash. Thus, it lowers the income and financial gaining of the company and increase risk related to improper financial management. Moderate: The banking risk is moderate for the company. The likelihood of risk is moderate because the cases of robbery and thefts are very much uncertain and can arise anytime. Additionally, in accordance to the current security measures in the store, the possibility of break-ins is estimated at 50%. The consequences of evolving banking risks are very much severe and are presented below: 1. Robbery in store will result to financial losses and will hamper the sustainability of business operations 2. Not keeping the regular update of register by the authority will create difficulty in monitoring the financial performances of business 3. The events related to break-ins will possibly result to physical injury and personal harm to the staff members 4. The staff members of the store develop insecurity feeling about their wellbeing in working environment The banking risk can be resolved with the initiative of opening bank account of the store rather than keeping cash. The practice of keeping regular record of cash transaction should be made compulsory. To make the responsible staff committed towards keeping the records updating, training initiative can be an effective measure (Jones, 2007). 3 To evaluate the likelihood, consequence and priority of banking risk, the situational practice following in the store during the last 2 weeks have been monitored. The measure of opening a bank account will allow insuring the cash of the store and lower the risk and possibility of theft in the store at any point of instance. Moreover, keeping frequent record of daily cash facilitates determining financial strength of the business and possibility of manipulation of funds (Jones, 2007). By-Law Compliance Risk Considering the fact that the store is a family-run store, there is high possibility of developing by-law compliance risk, as family members are employed as staff. Responsible person govern some of the jobroles, such as James is responsible for monitoring and controlling the store operations, while Stirling has the authority to monitor wages policies. However, few activities are conducted in informal manner such as any of the staff members is authorized for making a delivery. This raises fault compliances, if the staff member makes wrong deliveries and does not ensure appropriate care of the responsible job role. Senior authority has also raised the concern that policy measures of the company are verbally informed to staff. Moreover, it does not involve any written documentation. Not having written governing policy measures evolve risk related to high wastage of water in the internal operations that increase unnecessary cost and tax. The likelihood of facing such risk ranges from moderate to high, as the lack of proper formal guided principal create absence of coordination and evolve uncertain working environment. Apparently, the likelihood of the risk depends on the commitment of the employees in their job role and organisational benefits. The consequences of by-law compliance risk are outlined hereunder: 1. Fault in delivery process of the products will hinder the business operations and customers perception 2. Charge of high tax can also be levied by the authorities due to not ensuring conduct of business operations in a sustainable manner 3. High wastage of water can raise issue related to high cost and expenses 4. Customers would loss preference over products offered by the company due to the low commitment of the business over environmental aspects (EPA, 2012; MWRA, 2008) To deal with by-law compliance risk, a guided policy and procedure of performing the organisational operations in sustainable manner should be prepared. A trainer needs to be hired to raise the skills and understanding of the staff members to operate effectively and perform operations with appropriate use of water (Markos Sridevi, 2010). 4 The likelihood, consequence and priority of by-law compliance risk have been determined with growing internal costs and taxable expenses in the recent periods within the organisation. The formulation of written guide policy can be an effective treatment initiative against the identified risk, because it inclines employees to remain committed towards the organisational benefits and lowering the overall costs from their operations (Bertels, Papania Papania, 2010). Human Resources Risk Human resources risk is another possible risk in the organisation, as there is no governing approach to eradicate the occupational hazards or injuries, which might arise in workplace. The personal and confidential data of the staff members in the computer are not been kept in a secured manner. Moreover, certain employees lack understanding about working in appropriate manner in their designated work position. The employees lack understanding about calculation of wage and superannuation. Issue associated to fit-out and improper management of organisational resources are other problems related to human resource. In terms of likelihood, surfacing of such risk is high, as the lack of knowhow of the employees is likely to be uncertain. Moreover, operations in caf include frequent use of computers and other electronic equipments, which make it highly venerable of facing such problem. The adverse consequences of human resources risk include: 1. Disclose of important information about the organisation to third party 2. Manipulation and misrepresentation of confidential information 3. Employees can face occupational hazards or injuries in their work 4. Low motivation and lack of satisfaction among the employees (Pay Benefits, 2016; Ministry of Ethics, 2014; Cole, 2012) The planned measure to lower human resources risk can be possible with the appointment of expertise trainer, who will be responsible for evaluating the technical lags in the organisation and raising the skills and understanding of the staff members about the mode of protecting confidential information. In addition, plan should also include replacement of the old office equipments (Jehanzeb Bashir, 2013). 1 In frequent occasions, the responsible staff members of the Caf raise concern about the loss of certain information. Discussion of the issue in detailed manner will help in ascertaining likelihood, consequence and priority of such risk. Training by a hired expert is likely to be an effective mechanism, as measure facilitates developing knowledge to evade loss of confidential information and ensure proper management of internal database in the organisation. The training initiative allows developing critical understanding about job requirement and enhances satisfaction (Khan, Khan Khan, 2011). Risk Action Plan Risk Tasks to Complete Timeline Person Responsible Travel Risk The following tasks should be completed to lower the travel risk: 1. Conduct a market analysis of the place nearby the store to purchase or hire property for the central bakery plant 2. Cost-benefit analysis of the properties suitable for central bakery plant 3. Use of telecommunication approach for communicating and avoid frequent visiting of manager to central bakery plant 4. Reduce overtime duration of meeting and refreshment time for the managers, if they have to visit central bakery plant 5. Shift in time of the employees working in central bakery plant and ensure pastries are ready for delivery before high road congestion period 6. Until finalisation and completion of new central bakery plant in nearby place, excessive meeting and need of travelling should be minimised to maximum possible extent to avoid possibility of accident July to October 2016 Ron Langley (Landlord and Counsellor), Board of Directors and Senior Management Team with consultation from Chief Executive Officer Banking Risk To evade banking related risk, the tasks that are needed to be completed include: 1. Consultation with the financial advisor of the company to discuss the issue 2. Opening business account with nearby bank based on the suitability of services 3. Direct the accountant department employees about keeping the records of financial transactions and cash operations in regular basis 4. Developing practice of depositing overnight cash in the bank accounts before the closing of store 5. The senior management of the company need to ask for the regular update of the financial transaction related to the store for evaluation at regular instance to avoid false representation of financial transactions 6. Consult with bank executives to develop real time money transfer solution related to customer payments directly into the bank accounts of the business, which will lower the requirement of keeping excessive liquid cash in store (Segovia, Szczepaniak Niedzwiedzinski, 2013) August to September 2016 Senior Management Team, Board of Directors and Caf Employees responsible for accounting transactions By-Law Compliance Risk The tasks involve in mitigating by-law compliance risk are as follows: 1. Review the measures adopted by the competitors in the market to ensure sustainably of their operations 2. Prepare policy document and Code of Conducts for the employees and evaluate its effectiveness 3. Documentation of Code of Conducts in written forms and communicate to every employees regarding its compliance 4. The written code needs to review its applicability that helps to ensure forming common value and employees perform their operations within the organisational boundary 5. Trainer need to be hired to enrich employees understanding and adopt mechanism of harvesting the rainwater into courtyard to ensure effective utilisation of water 6. The staff members must be guided regarding effective use of dishwashers and water consumption used for cleaning fruits and vegetables 7. Adaptation of quality flushing system in the restrooms and other places within the office premises to avoid excessive water usage and lower the overall cost (Wiggins, 2010) July to August 2016 All the higher and lower authority of employees involved with the company Human Resources Risk To ensure mitigation of human resource risk, the tasks need to conducted: 1. Appoint qualified expertise technical staff 2. Arrangement of training session for the employees, wherein they learn about the technical knowhow of keeping secured personal and official data and information 3. Evaluate the effectiveness and learning outcome of the training module and communicate it to the employees to underwent with training process 4. Repair the current fit-out and old equipments of stores 5. Developing proper reporting mechanism of preventing the occupational hazards behaviour by appointing a sole communicating agent in the store responsible for evaluating the problems 6. Motivate the employees to adopt and implement that they have learnt during the training sessions by communicating advantages and benefits of the change practice 7. Monitoring the actions of the employees frequently after training initiative by the senior manager to evaluate if the risk is prevailing in the working environment (Niazi, 2011) July to August 2016 Senior Management Team and Caf Employees References Bertels, S, Paranoia, L Papania, D 2010, Embedding sustainability in organizational culture:A systematic review of the body of knowledge, Simon Fraser University, pp. 8-67. Cole, M A 2012, Disclosing confidential information, Minnesota Office of Lawyers Professional Responsibility, pp. 1-4. EPA 2012, Saving water in restaurants, Water Sense, viewed 07 July 2016, https://www3.epa.gov/watersense/commercial/docs/factsheets/restaurants_fact_sheet_508.pdf. Fawcett, S E, Magnan, G M McCarter, M W 2008, Benefits, barriers, and bridges to effective supply chain management, Supply Chain Management: An International Journal, vol. 13, no. 1, pp. 35-48. 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MWRA 2008, Water efficiency for restaurants, Water System, viewed 07 July 2016, https://www.mwra.com/comsupport/ici/restaurants.htm. Niazi, A S 2011, Training and development strategy and its role in organizational performance,Journal of public Administration and Governance,vol. 1, no. 2, pp. 42-57. Pay Benefits 2016, Employment case law: Disclosing confidential information, Article, viewed 07 July 2016, https://www.payandbenefitsmagazine.co.uk/printpdf/5666. Segovia, J, Szczepaniak, P S Niedzwiedzinski, M 2013, E-Commerce and intelligent methods, Physica, Poland. The University of Tennessee 2014, Managing risk in the global supply chain, Report, viewed 07 July 2016, https://globalsupplychaininstitute.utk.edu/publications/documents/Risk.pdf. Wiggins, J M 2010, Facilities manager's desk reference, John Wiley Sons, UK.