Effective Risk Management Strategies By Town And Country Services

Types of Risk Factors in Business Platforms

Elaboration of business objectives:

Risk management of any business structure is an important aspect as sometimes the occurred risk factor can cause a significant impact on the performance of that business platform. In order to enhance the business progress and opportunities Town and country services has taken a step to effectively deal with those risks (Sadgrove 2016). There are various risk present in a business platform, whose rectification is done by Town and Country services.

Those risk are listed below:

• IT and Security Risk Factors.
• Operational Risk Factors.
• Compliance Risk Factors.
• Economical and Market Position Risk.  

While analyzing the risk factors in any business platform it has been observed that there are two types of risk factors, one is Internal Risk Factors and another one is External Risk Factors (Vijayakumar 2017).

The brief discussion about External Risk Factor is described below:

Followed by the investigation it has been observed that the external risk occurs due to financial, political and natural problems which appears from the outside of corporate module. Elaboration of these risk factors are described below:

• Financial Risk Factors:This type of risk occurs when any organization faces economical breakdown lead to any sudden market loss.
• Political Risk Factors:Due the change of Government rules or political circumstances this types of risk occurs. Dynamic regulation of government rules are very much risky for any type of business field, those rules includes the change of interest rate, tariffs, import/export laws and others (van den Born 2013).
• Natural Risk Factors:These types of risk occurs when any kind of natural disaster takes place, as an example Earthquake, storm which an damage or effect the physical structure of any business.    

Stakeholder is an individual with a concern to any organization, which can have a positive or negative impact on the business, thus it is necessary to identify right stakeholder in order to protect the business from any kind of risk occurrence (Falkner 2015). In order to identify right stakeholders Town and Country services offers several steps which are listed below:

Step 1: Find a person or population who is effected by this business, no matter whether it is positive of negative.

Step 2: Find someone who can lead this business to the top or can make it to fail.

Step 3: Find the Financial Decision Maker.

Step 4: Investigate the supplier’s sources.

Step 5: Investigate the Clients requirement.

Step 6: Find the dominator.

Step 7: Find who can solve the problem effectively.

Step 8: Find the specialist who can help to enhance the business.

After following these queries it can be determined that which stakeholder has higher priority and who has the lowest, thus this investigation will be beneficial in order to analyze the role of stakeholders in a business.  

In order to analyze the threats Town and Country services has adopted two types of analysis technique which includes PESTL analysis and SWOT analysis.

PESTL analysis stands for P- Political, E- Economical, S- Social, T- Technological, E- Environmental, L- Legal. It is a type of frame work which identifies the threats by analyzing the external risk factors. Hence, Town and Country Services has included this technique into their Risk Management Policy in order to identify and reduce the business threats (Anderson 2013).

External Risk Factors and Stakeholder Analysis

According to (Yuan 2018) SWOT analysis stands for S- Strength, W- Weakness, O- Opportunity, T- Threats. The SWOT analysis frame work is introduced to analyze the internal factors in order to recognize the business threats. The first two step such as Strength and Weakness of SWOT analysis is used to investigate the internal factors and the last to step Opportunity and Threats are used to analyze the external resources. Hence, in order to rectify the business risk factors Town and Country Services has adopted this approach to their risk management policy.

Risk Assessment
Risk Priority	Risk Rating	Action Plan
1.	Financial risk factors caused by govt. Tax policy or export-import policy.	4.5	Developing a solid plan, performing tests for quality control, keeping records, limiting the loans, diversifying income, buying insurance and saving money.
2.	Legal environment risk factors caused by the govt. set of rules and regulation which affects the business operations and structure.	4.3	Regulatory bodies and their processes and maintaining the law of employment
3.	Technological risk factors caused by technical failure or technology up-gradation.	4.0	Use of updated operating systems
4.	Social risk factors caused by social values, traditions and beliefs.	3.0	Good understanding of the power of local structure and stop violating the human rights within the work force.
5.	Demographical risk factors.	3.0	Adaption of business model to the market which is local, proper recognition of the differences in regions and adaptation of practices of management
Risk matrix	Likelihood
Rare	Unlikely	Possible	Likely	Almost Certain
Consequence	1. Insignificant
2. Minor
3. Moderate			4	5
4. Major			2
5. Extreme			1		3

Risk	Assess Risk	Controls	Monitoring	Timelines	Responsible
Financial Risk factors.	Because of the change of Govt. Tax rules and export rules as well as for the product failure and not performing a good role in market financial dropdown occurs.	A solid plan development, performing tests for quality control, keeping records, limiting the loans, diversifying income, buying insurance and saving money.	Keeping a continuous track and check if there is any kind of dropdown in finance.	15days	Financial manager
Legal Environment Risk.	This problem is caused by the set of rules and regulation that are dynamically changing in case of operational and structural business framework.	Regulatory bodies and their processes and maintaining the law of employment	Checking if all the rules and regulations are followed.	20days	Human resources department
Technological Risk.	In case of any technical failure this types of risk occurs.	Use of updated operating systems	Checking if there is any technical failures or not.	15days	IT and mechanical technicians
Social Risk Factors.	This types of risk factors are caused by when the social emotions and values are affected by the any organization.	Good understanding of the power of local structure and stop violating the human rights within the work force	Checking if the social emotions and values within the organization is maintained.	20days	Manager
Demographical Risk Factors.	This types of risk factors occurs when the business or organization is dangerous or impactful for any area.	Adaption of business model to the market which is local, proper recognition of the differences in regions and adaptation of practices of management	Checking if the organization does not become dangerous.	5days	Manager

A Town and Country Services Company is currently focuses on identification and managing the risks in a regional expansion project.  The company executives have identified certain functional, financial and strategic risks those are required to be mitigated.  The risk management plan includes detail stakeholder analysis, risk treatment, reporting mechanism etc.  In order to implement a risk management plan for the company an action plan in prepared and the details of the action plan in elaborated in the below section:

1. a) Firstly, the risk management process that has been developed needs to be known to some of the project team members.  For this specific project the people who will need to know the risk management process include project manager, resource manager, finance manager, security manager, operational manager, system developer, tester and system designer.
2. b)  The entire risk management plan should be documented in the company server with needful protection mechanism in terms of encryption, firewall, DMZ.  The information those are stored in the server will be easily available and can be accessed regardless of the time and location y the consumers.
3. c)  In order to evaluate the risk management on the ongoing basis, the processes those are to be followed include:

Defining the actual problem associated to the Town Service Company

Collect and analysis of all needful information

Clarification and prioritization of the problems

Preparing the project goal statement

Implementation of final solution for the action plan

Risk management plan monitoring and evaluation

Restart with a new problem or else refining the older risk

The conducted action plan has covered all the desired needs of the risk assessment process, and successfully provided the company a best solution.

1. Information Sheet: Recognition and Elaboration of Risk.
2. Information Sheet: Risk assessment Policy
3. Information Sheet: Risk Management framework.
4. Information Sheet: Risk Control and action.
5. Enterprise risk management framework.

Establishment of the communication protocol with Stakeholders:

After the identification of the business stakeholders it is necessary to communicate and consult the risk factors with them, thus the Town and Country Services should follow a specific communication protocol in order to ensure that the stakeholders are able to understand the business goals and objectives. In order to have the highest engagement from the stakeholders it provides the regular updates and progress report to the possible stakeholders (Martínez 2013).

There are several communication protocol present in the field of stakeholder’s communication, but the Town and Country Services should selected the Purposeful Communication method in order to communicate with the stakeholders effectively.

According to (Cox 2014) the concept of this Purposeful communication method is to concentrate on the important stakeholders with proper information and report. The main purpose of this method is to strategies which decision should be taken in order to make it highly effective. This generally offers the effective decision which demands the stakeholder to start or stop doing something for the betterment of business effectiveness.

Analyzing Threats Using PESTL and SWOT Analysis

The tactics which are conducted to make it better are listed below:

• Mutuality approach: This approach offers the organization to relate their needs with the stakeholders need. It follows the WIFM method (what is in it for me).
• WIFMF (What is in it for my friend): This approach follows the concept in which it should be monitored that whether there is any benefits for the stakeholder’s friends or colleagues.
• It creates a network to stay connected with all the stakeholders.
• It contains the secure plan to deliver information among all the stakeholders.

Following these tactics the organization will be able to rectify there risk factors following the reviews and suggestions of the stakeholders.  

The above diagram is fishbone diagram, and the Town and country services has should this risk identification tool to identify the possible threats.

S Strengths	W Weaknesses	O Opportunities	T Threats
Ability to create products which are unique Provide high level of customer service Staffing a training	Lack of resources Lack of capabilities Limiting the ability to compete with smaller companies	Chance in improving the performance Improving the competitive advantage	Individual outside the company Group outside the company Products which are new from other companies Regulation of government

By this above risk analysis strategies these risks can be identified. And by managing these can help to provide the stake holders an effective business service. The management strategies are mentioned below:

• A solid plan development, performing tests for quality control, keeping records, limiting the loans, diversifying income, buying insurance and saving money. Keeping a continuous track and check if there is any kind of dropdown in finance.
• Regulatory bodies and their processes and maintaining the law of employment. Checking if all the rules and regulations are followed.
• Use of updated operating systems. Checking if there is any technical failures or not.
• Good understanding of the power of local structure and stop violating the human rights within the work force. Checking if the social emotions and values within the organization is maintained.

Above mentioned strategies are best in order to mitigate the business risk. As these risk management policy uses the best threat analyzing process and also analyzes how the stakeholders are affected by these risks.

Political factors are considered to be mainly those factors which involves usually some things which are seen to have a great impact on the business organization which is provided by the government or any standpoint which is legal. These political factors are quite similar to both the legal as well as social factors but there is a little difference because political factors often seem to change a lot. Some political factors include income tax or other taxes, influences which are union, laws of wages which are minimum and policies which belongs to federal, state or local environment.

Economic factors:

Economic factors are mainly the fluctuations which are financial and are typically not under control. If an example is taken it can be seen that sometimes interest goes down which means that the business loan is costing much more in the last year as compared to that which will be in the current year. Some economic factors include rates which are inflated, debt of the company, potential customers which are included in the area and salary trends of employee in the organization.

Social factors:

Social factors mainly refers to all the norms as well as attitudes of any culture of the demographic which is targeted and also that of the employees and several competitors within the organization. Some of the social factors which are seen to be having impact on the success of the project include the age of the customer, norms and traditions of the culture, growth or the declination of population, attitudes of the career of service, influences of any religion as well as the health and safety of the public.

Technological factors:

Technological factors are mainly those which have an impact directly on the expense of performing several operations within the organization and maintaining efficiency within it. Some technological factors mainly includes opportunities which are automated, incentives of technology like the credits of tax and equipment which provides better services. If technological trends are seen have been lagging behind or using equipment which are already outdated and properly examining the barriers which are technological then the business may fail to enter into the new market.

Risk Assessment and Action Plan

The strengths and weakness of any existing arrangements:

The status of the existing management of risk are mainly the starting position which are logical for any kind of review or change. There is a need for the organization to determine properly how the management of risk is doing well currently. The SWOT analysis is considered to be a tool which may help the organization in focusing on the strengths, lowering the weaknesses and finally taking advantage of all the opportunities by reducing all kinds of threats faced by the organization.

SCOPE:	Product innovation
OBJECTIVES:	Instrument for increasing competitiveness of business Creation of conditions for enhancing the research of the contribution of system towards the economic development as well as social. Stimulation of significant increase in investing in technological research privately. Stimulation of the development of innovations which are technological. Enabling business for associating with the researchers in an environment which is academic on the projects based on technological innovation
CRITICAL SUCCESS FACTORS:	Technological innovation

SCOPE:	Actual product which is tangible including the features or the characteristics of the product itself
OBJECTIVES:	Promotion of products to all the potential customers. Promotion of services to all the consumers within a specific frame of time.
CRITICAL SUCCESS FACTORS:	New Products or services

SCOPE:	Defining new market and try to be a competitive one.
OBJECTIVES:	Increase in sales and building awareness of brand. Growing share of market and launching of new products. New customers targeted Improvement of the relation of stakeholders. Enhancing the relationship with the customers. Increasing profit Improvement of the internal communications
CRITICAL SUCCESS FACTORS:	Opening new markets

SCOPE:	Production of product and completion of project
OBJECTIVES:	Providing a command chain Improving efficiency Proper controlling and maintaining uniformity
CRITICAL SUCCESS FACTORS:	Organizational structure

Stakeholder	Internal / External	Role in process	Stake in process
Clients or customers	External	Communication with the providers and providing feedbacks	Main communication needed between them and the suppliers
Suppliers and contractors	External	Provides business with several products or services	Providing products to the customers
Internal personnel	Internal	Dealing with the management of the employees by providing employment, growth and training.	Managing employees
A project funding body	Internal	Responsible for initiating, executing and controlling successfully.	Designing and monitoring properly
Employees	Internal	Have specific roles of business as well as responsibilities within the business organization	Main building block of the organization
Government	External	Enforcement of contract,  protection of employee,  taxation, protection of investor	Providing protection to the employees and investors
Owners	Internal	Managing risk and execution of project	Risk management
Union	Internal	Resolving issues within workplace as it forms the voice for employees	Voice for all the employees

Relevant parties	Support
All staff	Providing input into several activities of risk management, assisting in risk identification and conduction of the assessments of risk.
Internal and External Stakeholders	Providing varying perspectives on risks which are potential and managing risks.
Specific teams	Providing input into several management activities of risk, assisting in risk and control identification,
Technical experts	Planning, designing and implementation of the management of risks

4) Analysis

P Political	E Economic	S Social	T Technological	L Legal
· Tax or other taxes · Influences which are union · Laws of wages which are minimum · Policies which belongs to federal, state or local environment	· Rates which are inflated · Debt of the company · Potential customers which are included in the area and salary trends of employee in the organization.	· Age of the customer Norms and traditions of the culture · Growth or the declination of population · Influences of any religion as well as the health and safety of the public.	· Opportunities which are automated · Incentives of technology like the credits of tax   · Equipment which provides better services	· Employment law · Consumer protection · Industry-specific regulations · Competitive regulations · Current legislation home market · Future legislation · Regulatory bodies and their processes Environmental regulations

S Strengths	W Weaknesses	O Opportunities	T Threats
Ability to create products which are unique Provide high level of customer service Staffing a training	Lack of resources Lack of capabilities Limiting the ability to compete with smaller companies	Chance in improving the performance Improving the competitive advantage	Individual outside the company Group outside the company Products which are new from other companies Regulation of government

In order to establish the risk context and identification policies of Town and Country services several steps has been followed. In first step the establishment of the risk context has been done which are very much impactful for business platforms. In the next step the identification of project objectives has done and the rectification of the risk are described. Followed by the above steps it has also includes the stakeholder identification and the role of stakeholders in the business platforms. Lastly in this stage it has analyzed the risk factors by two analysis tools which are PESTEL and SWOT analysis. This step will help the organization or business platform to identify the highest priority stakeholder and will also help to recognize the business threats which has been observed by the analysis tools.

Risk Assessment Table:

Risk assessment
	Risk/Priority	Risk Rating	Action Plan
1.	Financial risk factors caused by govt. Tax policy or export-import policy.	4.5	Developing a solid plan, performing tests for quality control, keeping records, limiting the loans, diversifying income, buying insurance and saving money.
2.	Legal environment risk factors caused by the govt. set of rules and regulation which affects the business operations and structure.	4.3	Regulatory bodies and their processes and maintaining the law of employment
3.	Technological risk factors caused by technical failure or technology up-gradation.	4.0	Use of updated operating systems
4.	Social risk factors caused by social values, traditions and beliefs.	3.0	Good understanding of the power of local structure and stop violating the human rights within the work force.
5.	Demographical risk factors.	3.0	Adaption of business model to the market which is local, proper recognition of the differences in regions and adaptation of practices of management

Risk matrix	Likelihood
Rare	Unlikely	Possible	Likely	Almost Certain
Consequence	6. Insignificant
7. Minor
8. Moderate			4	5
9. Major			2
10. Extreme			1		3

Risk management table:

Risk	Assess Risk	Controls	Monitoring	Timelines	Responsible
Financial Risk factors.	Because of the change of Govt. Tax rules and export rules as well as for the product failure and not performing a good role in market financial dropdown occurs.	A solid plan development, performing tests for quality control, keeping records, limiting the loans, diversifying income, buying insurance and saving money.	Keeping a continuous track and check if there is any kind of dropdown in finance.	15days	Financial manager
Legal Environment Risk.	This problem is caused by the set of rules and regulation that are dynamically changing in case of operational and structural business framework.	Regulatory bodies and their processes and maintaining the law of employment	Checking if all the rules and regulations are followed.	20days	Human resources department
Technological Risk.	In case of any technical failure this types of risk occurs.	Use of updated operating systems	Checking if there is any technical failures or not.	15days	IT and mechanical technicians
Social Risk Factors.	This types of risk factors are caused by when the social emotions and values are affected by the any organization.	Good understanding of the power of local structure and stop violating the human rights within the work force	Checking if the social emotions and values within the organization is maintained.	20days	Manager
Demographical Risk Factors.	This types of risk factors occurs when the business or organization is dangerous or impactful for any area.	Adaption of business model to the market which is local, proper recognition of the differences in regions and adaptation of practices of management	Checking if the organization does not become dangerous.	5days	Manager

The new office was flooded due to heavy rain and therefore a huge amount of money was required for replacing the furniture of meeting room and the carpet. An insurance for the new premises has been purchased but that insurance does not cover the damage done by the storm. The main risk which has been identified is nothing but being unable to recruit staff for full time with the previous work of experience. This risk is thought to be mitigated by undertaking recruitment for filling the vacancies. However it has been seen that this has not worked very well for those who are from the Head Office as they cannot be stay longer than a week. This is quite a big problem and finally it has been seen that there is a huge requirement for recruiting local staffs by advertising on Seek.com.au. A lot of time is being wasted in taking a number of interviews and not being able to find anyone who will be suitable for the office. As a result of not getting anyone from the head office as they are not being able to stay more than a week, the needs of the customers are not met. Another risk which has also been identified is that the local council is not being able to abide by the timeframes of the customer service for the approvals which has been proven to be true.

The risk which has not been identified at all is the current or the most recent delays which are occurring due to waiting lists which are long as well as not being able to work efficiently with Town and Country Services. The risk management process will be followed by identifying the risk at first and then treating the actions by consulting with the manager as well as the stakeholders. There is also a need for realizing that advices from some specialists are also required for addressing each of the risks which are identified.

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