Risk Analysis And Mitigation Strategies For Real Estate Agency

Priority to treat risk

Risk rating

Potential impacts of risk

Sources of information
about risk

Causes of risk

Identified risk

High

7/10

The risk may cause accidents and may injure the employees which would make the agency liable for the injury

The information in relation to this risk can be obtained via the accidents records, the safety procedures in place and compliance level records.

Work health and safety related risk may be caused due to non compliance with safety instructions and in adequate safety features being present

Work health and safety risk

High

7/10

The risk may lead to the breach of consumers’ laws which would result in fines and penalties as well as loss of reputation. The risk may also potentially hamper the benefits of the consumer

The information in relation to this risk can be obtained via the consumer protection laws and recent cases where such laws have been discussed by the courts.

These issue may arise out of non compliance with Australia Consumer law which includes restraining from misleading and deceptive conducts and providing consumer guarantees in relation to services

Consumer protection issues

Medium

5/10

The risk may lead to poor quality services being provided to the consumers which would not be in their best interest. It will also cause loss of reputation for the agency.

The information in relation to this risk can be obtained via customer complaints records and audit reports

This risk may arise where there is inadequate quality control framework in place. The quality of services provided has to be high or else it will cause detriments to the agency. Presence of inadequate supervision causes this risk

Quality control which includes auditing

Medium

5/10

Due to political circumstances and natural events there may be changes in polices which may or may not be in the favour of the agency

The information in relation to this risk can be obtained via newspapers and media on a regular basis

This risk is caused due to the changes in political circumstances which often leads to the change in policies and procedures.

Political circumstances or natural events

High

7/10

Employee fraud and corruption will make the agency vicariously liable and will also cause detriments to the consumers.

The information in relation to this risk can be obtained via employee previous records and present conditions and character.

This risks also arises due to the lack of supervision on the employees which provides them an opportunity to indulge in fraud and corruption

Employee fraud and corruption

High

7/10

The risk may lead to the breach of laws which would result in fines and penalties as well as loss of reputation. The risk may also potentially hamper the benefits of the consumer

The information in relation to this risk can be obtained via subscribing to various updates provided by regulatory authorities such as the Australian Competition and Consumer Commission

This risk arises which there is no proper framework within the agency to ensure compliance with regulatory and legislative requirements.

Failure to comply with regulatory and legislative requirements

High

7/10

The risk may not only be subject the consumers to risk as their private data is leaked but also lead to legal actions against the agency

The information in relation to this risk can be obtained via complaints form the consumers.

The risk is caused when the privacy laws are violated negligently or intentionally

Leaking clients data

Work health and safety risk

·         Having in place a health and safety supervisor

·         Having in place prominent and clear safety instructions

 Work health and safety

All employees are required to abide by the rules laid down by the safety instructions

Consumer protection issues

·         Having in place a compliance framework

·         Education and training on consumer laws

consumer protection, fair trading and trade practices (ACL)

All action must be in compliance with consumer laws

Quality control which includes auditing

·         Supervising the quality department

·         Providing support to the department by training

property sales and management

Quality of services has to be provided utmost priority  

Political circumstances or natural events

·         Having a backup plan to address the changes in policies

·         Having a risk management committee

All

The managers will keep a close check on change in Political circumstances or natural events  

Employee fraud and corruption

·         Strict supervision

·         Training and education

·         Fines and penalties

anti?money laundering

The agency will not tolerate any form of corruption and fraud

Failure to comply with regulatory and legislative requirements

·         Having in place a compliance framework

·         Education and training on regulatory and legislative requirements 

All

Agents should refer to the law in force to base their actions

Leaking clients data

·         Prioritizing confidentiality

·         Storing confidential data safely

privacy

All private data of the clients have to be stored safely