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Activity |
In the chart below, identify three stakeholders, state their objectives towards your organisation, or an example organisation, in terms of risk management (i.e. supplier believes goods loaded onto an unsafe delivery dock). Who is your contact with the supplier and how would you consult with them? What are the recommended feedback and consultation procedures with them?
Case study: In recent months, your organisation has grown as demand for the product has increased. In turn, the number of deliveries from one of your suppliers has increased. Your organisation has established a strong relationship with one driver, Nick, and he is the only one able to deliver goods to the organisation due to the volatility of the goods delivered. Do you believe that the driver is put at risk? Why? Yes, the driver is put at risk because it will be a burden on him to solely handle the task of delivering goods to the organization. As there is an increase in demand for the product among the customers, therefore the organization needs to look out for more sources who will deliver goods to the organization. It will not be wise on the part of the organization to depend only on Nick because there might natural and artificial risk in the way. If there is any unexpected natural calamity then the driver might fall prey to it and the goods will not be delivered on time. What could the impact of the increase of deliveries have on the supplier? The increase of deliveries will increase the amount of pressure on the suppliers to provide more goods within less time. The organization might face the threat of quality hamper due to extra burden on the suppliers. The increase in the deliveries can also lead to steep rise in the production and transportation cost and the company will also have to take extra care of volatile goods and have to thus shell out extra amount to meet the demand of the organization. The supplier contacts you and asks you to change your driver policy as the driver has complained. What is this called? How would you resolve this problem? It is known as amendment as per the driver policy. This situation needs to be handled very tactfully. Both the driver and the supplier need to be contacted individually and listen to the problem that they have faced. |
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Estimated Time |
40 Minutes |
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Objective |
To provide you with an opportunity to identify risks. |
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Activity |
Identify a risk in your work area or example work area (this can be a possible risk if there are no risks requiring improvement). What is the risk? There might be two kinds of risk- data risk and resources risk. Provide details of the problem. For instance, the company might face increase in product demand but they do not have enough resources to meet that demand. Again, the company’s data might be leaked to the rival companies while changing their work structure entirely online. Who would you discuss this problem with? This problem will be discussed with the manager of the organization and higher authorities. What type of research would you do to measure the level of risk? Primary and secondary research will be conducted to find out about the risks in the market. What documentation could you use? Interview and survey will be used as the base of the research. What literature would you research? The company records will be sorted to know about previous risks in the market. Invite other members of your team/training group to also help identify any risks and note down the outcome of this. Other types of risks are; · Financial risk · Market risk · Credit risk · Liquidity risk · Legal risk Consultation is an important part of the risk analysis; in what ways can you gather information from stakeholders in this instance? The consultation with the stakeholders must be done after a regular interval of time so that the management of the organization can have the best idea about the future course and the decisions that are to be taken. The consultation can be done by means of different ways. Some of the ways are as follows; Ø Personal interview Ø Online survey Ø One- to- one communication Ø Focused group interview |
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Estimated Time |
45 Minutes |
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Objective |
To provide you with an opportunity to analyse risks. |
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Activity |
Using the research from Activity 2.1.1-2.3.1, complete the following: Likelihood Ø Probability of a given risk occurring, such as: o Almost Certain (exposed to hazard constantly) o Likely (exposed to hazard occasionally) o Unlikely (could happen but only rarely) o Highly unlikely (could happen but probably never will). Moderate Injury consequences & possible likelihood form part of standard Risk Management but you can decide if they meet your requirements. Consequences may be rated as: a) A fatality b) Major or serious injury (serious damage to health that may be irreversible, requiring medical attention and ongoing treatment). This is likely to involve significant time off work; c) Minor injury (reversible health damage that may need medical attention but limited ongoing treatment). This means that it is less likely to spend more than a day off work.
d) Negligible injuries (might sustain slight injury and may require only primary first aid) and no time off work Assess the risk What is the likelihood of this problem arising again? Considering the case study where a driver named Nick is provided the sole responsibility of transporting volatile goods it is problem for the organization to manage the risks accordingly. The risk can be categorized as fatality or a high level risk and also a major or serious injury in other cases What are the possible consequences of this risk? The possible consequences of the risk can either be fatal or serious injuries that can be harmful to the person. Evaluate and priorities risks for treatment? The risk of continuing with only one transport carrier for transportation of volatile goods is dangerous and must be treated with high level of priority. What risk priority would you consider? The following risk is rated as a high risk category and thus it is given most importance. What opportunities do you think there are in your case? How can these opportunities be used? Moderate Opportunity is present in this particular case and management must take responsibility to avoid any crisis. |
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Estimated Time |
30 Minutes |
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Objective |
To provide you with an opportunity to determine and select most appropriate options for treating risks. |
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Activity |
Using the Hierarchy of Control Pyramid to identify ways in which to eliminate, control or minimise the hazard used in the Activity 2.1.1-2.3.1 and 3.1.1-3.3.2:
Suggest at least one way of handling the risk for each step of the process:
Ø Elimination
The elimination of the risk is the main or the primary aim of the management and the organuization have to take adequate steps to ensure the same. Ø Substitute or modify
Risks are substituted by other moderate to low amount risks to ease the pressure off the management of the organization. Ø Isolate
The isolation of the organizational risks is one of the most important elements of risk management. Ø Engineering controls
The appointment of expert engineering professionals and implementation of the latest technologies that will be useful for the success of the organization in the market
Ø Administration controls
The managment must make sure to tighten the administrative set up so that the organization is able to control the different kinds of administration controls Ø PPE The management of the organization must make sure to use different kinds of the safety tools and items that are deemed utmost neccesary for use in workplaces and companies that dealo with volatile goods and involve risk factors in work. What control would you recommend? Why?
A strong administrative control along witht ht eimplementation of the action plan that is effective as well as sustainable in managing risks within the organization. |
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Estimated Time |
45 Minutes |
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Objective |
To provide you with an opportunity to develop an action plan for implementing risk treatment. |
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Activity |
Briefly explain the risk action plan for this assessment. The Risk Action Plan for the organization has been constructed by considering the different kinds of risks that are involved and the severity of the following risks. The Action Plan will address the different financial, operational and stakeholder needs that is necessary for the success of the organization. Apart from addressing these risks the action plan must also address different kinds of physical risks to the employees in case the company deals in volatile goods or provide services that may consists of fatal elements. Group activity; in groups of three/four, take turns in briefly discussing your risk action plan. The Risk Action Plan as considered can address different issues starting from managerial risks, financial risks, operational risks, physical risks and health risks. All these risks must be addressed to ensure a full and complete Risk Action Plan. |
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Estimated Time |
30 Minutes |
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Objective |
To provide you with an opportunity to ensure all documentation is in order and appropriately stored. |
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Activity |
Individually or in pairs, discuss the following questions:
What documentation and records do you think you will need to maintain and file before, during and after the action plan is implemented? The documentation and methods that are needed for the management of the organization for the assessment of the risk and the action plan are as follows; a. First, as an employee of the organization a list of federal government records needs to be implemented and followed accordingly. Federal records must be maintained and stored properly for future use. b. Keeping proper records helps the organization in a number of different ways. This includes improvement of the access to education, reduction in the cost of the operations, minimization of the litigation risks, safeguarding of the crucial information and the preservation of the vital history of the organization. A number of different steps can be taken by the management of a company to identify the risks and ensure its elimination. The steps are as follows; a. Determine the responsible person or the party and the determination of the different types of resources that are available for the organization. b. Identify records needed to document the activities and functions of your office c. Establish the different procedures and match the record according to the schedules d. Preparing a plan and documenting the recordkeeping Why? The documentation process helps in the sustainability of the organization and helps the organization to deal with different forms of risk that may occur in the future. |
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Estimated Time |
40 Minutes |
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Objective |
To provide you with an opportunity to implement and monitor action plan. |
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Activity |
Individually or in pairs, discuss the following questions:
You need to be able to implement the action plan. What do you need to do? Briefly outline how you will implement each step.
The Project Risk management plan effectively defines the “How” when it comes to the identification of the risk and the formulation of different kinds of risk process to be done. It consists of the following elements. this includes the likes of; 1. Analysis or anticipation report of likely risks 2. Solutions or mitigation strategies that generally vary from high impact risks to risks that generally have a low impact The risk management plan can be implemented in the following organization by implementing a number of different procedures. This includes; a. Identification of the Risk and Creation of a Risk Register b. Analysis and Evaluation of Risks c. Identification of the Risk Triggers d. Brainstorming for solution ideas e. Creation of a plan f. Implementation of a plan g. Monitoring and Reviewing Risks How often will you communicate with stakeholders?
Stakeholders are the essential assets of the company and they must be contacted all the time to provide them with all the latest updates of the organization. The management of the company must schedule monthly or weekly meetings every now and then to ensure the smoothness in the flow of operations. The constant meetings and conferences with the stakeholders of the organization provide the ideal way to help the stakeholders updated and thus avoid any risk.
Implement your action plan for managing the risk(s) identified in Activity 2.1.1-2.3.1 and monitor this over a 3-4 day period. Note down the outcome of this.
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Estimated Time |
30 Minutes
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Objective |
To provide you with an opportunity to evaluate risk management process. |
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Activity |
How will you evaluate your case? Develop a tool that you can use to perform this task. The management of the organization has evaluated the type of risks that may occur in such cases as mentioned here. The risks arising in the workplace includes the production related risks as well as risks arising from the transformation of the organizational system into a totally digital system. Such transformation can result into huge breach of data and will lead to a huge loss for the organization. The management of the organization have to take some appropriate steps to ensure the safety of the organization from such kinds of risks. This will involve the formation of the different kinds of risk management plans. Some of the risk management plans or steps to ensure the avoidance of risk by the management are as follows; a. Interviews and Training programs- The interviews with the employees and proper training programs provided to them by the management of the organization will help in the avoidance of possible risks and will help in the success of the organization in the market. b. Direct Observations- The direct observations over the organizational procedures can be helpful for the organization as a thorough watch over the different proceedings can help to eliminate the risk of any kind of data breach and help in the formulation of a strong internet policy. Case study: In recent months, your organisation has grown as demand for the product has increased. In turn, the number of deliveries from one of your suppliers has increased. Your organisation has established a strong relationship with one driver, Nick, and he is the only one able to deliver goods to the organisation due to the volatility of the goods delivered. Do you believe that the driver is put at risk? Why? The following case highlighted the challenge that most of the companies face while they take supplies from only one possible supplier. The risk factor is even more volatile when the product supplied is volatile and risky to transport in nature. Nick who is the driver in this particular case is put at risk as because the total risk percentage falls upon him. He has to take extreme caution to deliver the goods as one mistake can even be fatal for him. Thus it will be a big risk for the organization to provide supply duty to only one driver and rather transfer the duty to a number of different drivers. |
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