Risk Management Policies of BizOps Enterprises
Nowadays, the majority of business organisations are implementing different strategic planning to gain more competitive advantages in the operating market. The Human Resource Managers plays a vital role in managing day to day workforce of an organisation leads to improves overall financial position as an organizational brand image (Schlosberg, Collins & Niemeyer, 2017). This particular study mainly focused on the different innovative strategies of Business Operation, and that is essential for the entire organisation to improve the service quality in grabbing the attention of more customers (Paschen & Beilin, 2017). Apart from that, this study also indicates the risk management policies of BizOps enterprise for mitigating all the issues during strategic implementation and avoids future risks.
According to the risk management policy, the entire business organisation needs to identify the risk of every proposed project to mitigate all the issues, and the organisation also needs to keep all the records such as identification, evaluation, treatment of uncertainty in risk management register (Schlosberg, Collins & Niemeyer, 2017). Identification of risk is one of the significant factors for the entire business organisation before strategic implementation otherwise it can hamper the brand image as well as the financial position of that organisation. In BizOps enterprises, the higher management of that organisation needs to analyse the expected risk of the proposed project. The primary responsibility of managing director is to review the report thoroughly to recommend various strategic ideas that help the organisation to minimise the level of risk and to make the development process sustainable. The management needs to evaluate the previous issues faced by the organisation and also needs to form a risk register, and these useful tools will help this company to track all the problems efficiently (Paschen & Beilin, 2017). Moreover, the Human resource managers of this organisation need to provide training to each, and individual employees on risk management and identification of different risk management principles will improve the overall operational excellence of BizOps enterprise. At the same time, the organisation needs a monitoring team to monitor the risk management procedures I an effective manner leads to sustainable development.
At first, monitoring team and the management needs to identify the risk factors effectively, and after identification of risk, the management needs to understand the level of risk. Risk rating process is one of the suitable options to recognise the risk level such as low, medium, high, extreme etc. (Zou, Kiviniemi & Jones, 2017). The management generally treats the risk by the risk level. Identification of consequences level also enables the manager to take a vital decision regarding risk management planning. The Human resource manager of business operation enterprise will evaluate the likelihood rating based on different probability factors. Identification of risk score is vital for BizOps and managers generally treat the risk based on risk score, if the score is low then management accept the risk and if the risk score is high enough than management avoids the risk (Furlong et al., 2017). After evaluation, the management team of Business Operation provides all the reports to the general manager. Monitoring team of this organization will monitor the strategic implementation efficiently to identify new risk, and that will help this company to take further actions that ensure sustainable organisational development.
Risk Management Procedures of BizOps Enterprises
The primary objectives of BizOps enterprises are to improve the financial stability, and these organisations want to increase its revenue by 15 per cent in comparison to the previous fiscal year. The organisation also intends to reinvest its 75% of profit for business development. The objective of this organisation is to provide a training program for all the employees to improve the overall performance of BizOps enterprise. At the same time, this organisation will research the whole market to recognize the current trends and buying behaviour of the customers (Furlong et al., 2017). It generally helps the company to select a proper pricing strategy to grab the attention of customers. The organisation will invest money on e-commerce, website and various promotional activities to gather feedback from customer lead to further product development as well as improve customer experience (Fokaefs, Barna & Litoiu, 2017). Apart from that, the managing director also wants to implement new and advance technology in the organisation to trigger organisational growth.
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Operational Planning |
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|
Activity |
Organizational Objective |
Resources |
Procedures |
Key Person |
Budget |
Key-performance Indicator |
|
Purchase of Additional Resources |
Purchase of vehicles will increase sales by reducing delivery time. |
Purchase delivery van for every outlet |
Contact with suppliers and local dealer also helps to find suitable places for business. |
The managing director |
$45000/ van |
Vehicle purchased to reduce delivery time. |
|
Increase the number of outlets |
Increase number of customer as well as sales volume. |
Need to Places in different location of Australia |
Management will set individual planning and design for each and every outlet. |
Sales manager and retail outlet manager |
$10000 per outlet |
Increased outlets will also increase the number of customer. |
|
Provide training to the staffs |
To improve overall operational excellence of this organization |
Hiring of resource an technical persons |
Resource person will provide training on week off days |
Human resource manager |
$2000/ training program |
Training completed and organizational performance improved. |
|
Open Online outlets and invest in promotional activities |
It will grab the attention of young generation customer leads to improve financial profitability. |
Implementation of digital technology and virtual team is essential to manage overall system |
Buy domain and server for online operations and invest in social media marketing. |
Marketing manager |
$3000/ outlet |
All the digital technology installed within 6 months. |
According to the Enterprise organisational chart, the board of directors generally takes the vital decision during operation. The Chief Executive officers evaluate all the risk typically, performance and financial position to take further action for instant improvement of the company (Furlong et al., 2017). BizOps enterprises also have four managing directors for four different segments such as managing director of financial operations, Human Resource, Business operations and Retail operations. The principal responsibility of the financial managing director is to collect a financial or transactional report from company accountants and fiancé manager for further evaluation (Hopkin, 2018). At the same time, managing director of business operation mainly provides the strategic decision for effective management of day to day operations. Managing director of Human resource department primarily evaluate the employee as well as organisational performance and also provide training to the employees based on the requirement. The principal responsibility of Retail department MD is to increase sales volume and revenue through proper marketing.
Background:
BizOps enterprises are the popular operational organizations in Australia. Implementation of different technical tools generally helps this organization to ensure better services to the customers (Weldon, 2017). All the employees of this organisation are responsible for applying risk management principles to working areas.
Context:
The mission of these organizations is to increase revenue by 15% so that higher management also wants to implement various strategies for overall organizational improvement. For that reason, risk management is essential to identify the ability of all the team to make the changes successfully (Fokaefs, Barna & Litoiu, 2017).
Organizational Business Planning
Identification and analysis
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Risk likelihood legend |
Grade |
Level of likelihood |
|
A |
Expected (will occur regularly) |
|
|
B |
Probable (will occur at some stage) |
|
|
C |
Possible (could occur) |
|
|
D |
Improbable (could occur but unlikely) |
|
|
E |
Rare (may occur but in limited situations) |
|
Risk impact/ |
Grade |
Level of impact |
|
1 |
Insignificant |
|
|
2 |
Minor |
|
|
3 |
Moderate |
|
|
4 |
Major |
|
|
5 |
Catastrophic |
Risk categorisation matrix
|
Level of likelihood |
Level of impact |
||||
|
1 |
2 |
3 |
4 |
5 |
|
|
A (Expected) |
Medium |
Medium |
High |
Extreme |
Extreme |
|
B (Probable) |
Medium |
Medium |
Medium |
High |
Extreme |
|
C (Possible) |
Low |
Medium |
Medium |
High |
High |
|
D (Improbable) |
Low |
Low |
Medium |
Medium |
High |
|
E (Rare) |
Low |
Low |
Low |
High |
Medium |
Risk categorisation table
|
Priority |
Risk |
Likelihood |
Impact |
Level of risk |
|
1 |
Loss of potential customers |
Possible |
major |
High |
|
2 |
Risk of new entrants in the market |
Probable |
Moderate |
Medium |
|
3 |
Lack of proper training |
Improbable |
Moderate |
Medium |
|
4 |
Hampers organizational Brand Image |
Rare |
Insignificant |
Low |
|
5 |
Lack of technical expert |
Possible |
Moderate |
Medium |
Risk control/treatment
|
Activity: |
|||
|
Risks |
BizOps can face different problems during the implementation of new strategies for sustainable development. Various risks such as loss of potential customers, lack of proper training, lack of technical expert and risk of new entrants can hamper the overall financial position of this organization (Themsen & Skærbæk, 2018). For that reason, the management needs to take some treatments to mitigate all the issues effectively. |
||
|
Control measures/ treatments |
Control measure |
Strength |
Weakness |
|
Proper market research |
The current financial position of BizOps is good enough to research the operating market. |
Lack of experienced employees can hamper the overall market research. |
|
|
Implement advance techno to improve performance |
Good financial position and world class suppliers. |
Lack of proper technical person in this organization. |
|
|
Recruit experienced people and provide proper training |
The HR department of this organization is very strong. |
Candidates lack the skill and experience. |
|
|
Better quality service to gain customer loyalty |
Operational management team has ability to provide high quality services to the customer. |
Lack of proper technical instrument generally hampers the overall customer service. |
|
|
Promote the organization through cultural program to improve organizational brand image |
The current brand image of BizOps is very good in operating market of Australia. |
Experienced employees needed to manage the overall digital process. |
|
|
Impact of risk/s on areas outside your responsibility |
The loss of the potential customer is the high threat for this organization, and it can reduce the financial position of BizOps so that the management of this organisation needs to avoid the risk otherwise proper action is required before implementation of the project (Themsen & Skærbæk, 2018). |
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|
Personnel involved |
The general manager of the marketing department and the entire marketing manager are responsible for building good relationships with customers so the loss of customer will create a negative impact in their career. |
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Expected outcomes of risk treatment plan |
Risk treatment plan also helps this organization to reduce the level of risk at the same time it is also urgent for all the organization to manage the implementation process in a smoother manner (Weldon, 2017). |
At first, the BizOps enterprise will evaluate all the legal requirements before strategic implementation. The management will monitor and identify the significant risks, and after identification, they will report all the risk to the general manager for evaluating the level of risk by using different tools such as level of likelihood, level of impact etc. (Cole, Giné & Vickery, 2017). Based on risk level management will take further action to mitigate all the issues efficiently.
|
Political |
Economical |
|
There are different political factors such as fiscal policies of government, tax and other rules and regulation can reduce the profitability (CAMPUS, 2018). The current political position of Australia is stable so that the probability of risk factor is very less. |
Different economic factors such as change in the currency rate can hamper the overall financial condition of this organization (Cole, Giné & Vickery, 2017). Apart from that, increase employment and low-interest rate can also hamper the overall operation of BizOps. |
|
Social |
Technological |
|
Use of advance technology and online marketing trends will also reduce the number of customers leads to reduce revenue as well as profit (Weldon, 2017). |
The increase of population in Australia and ad a vast number of ageing population can reduce the sales volume of this organisation. |
|
Cost Benefit Analysis of BizOps Enterprises |
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|
Quantitative Costs |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Total |
|
Non-Recurring Costs |
||||||
|
Tools and Hardware |
250 |
250 |
150 |
150 |
100 |
900 |
|
Servers |
150 |
100 |
100 |
100 |
100 |
550 |
|
Furniture and fixtures |
1000 |
500 |
0 |
0 |
0 |
1500 |
|
Project organizational/support costs |
450 |
400 |
350 |
300 |
250 |
1750 |
|
Planning (upon approval) |
150 |
150 |
150 |
150 |
150 |
750 |
|
Procurement |
200 |
200 |
200 |
150 |
150 |
900 |
|
Contract negotiations |
100 |
100 |
100 |
100 |
100 |
500 |
|
Labour |
600 |
600 |
500 |
500 |
500 |
2700 |
|
Infrastructure |
1000 |
750 |
500 |
0 |
0 |
2250 |
|
Development |
250 |
250 |
250 |
250 |
250 |
1250 |
|
Business Process owners |
300 |
300 |
250 |
250 |
200 |
1300 |
|
Management cost |
150 |
200 |
250 |
300 |
350 |
1250 |
|
Training of employees |
150 |
250 |
250 |
200 |
200 |
1050 |
|
Transition costs |
100 |
100 |
100 |
100 |
100 |
500 |
|
cost of Post implementation reviews |
100 |
100 |
100 |
100 |
100 |
500 |
|
Total Non-Recurring Costs |
4950 |
4250 |
3250 |
2650 |
2550 |
17650 |
|
Recurring Costs |
||||||
|
Software |
250 |
250 |
200 |
200 |
0 |
900 |
|
Software maintenance and upgrades |
50 |
50 |
50 |
50 |
50 |
250 |
|
Computer supplies |
150 |
150 |
150 |
0 |
0 |
450 |
|
Desktops |
500 |
500 |
0 |
0 |
0 |
1000 |
|
Help Desk support |
150 |
150 |
100 |
100 |
100 |
600 |
|
Ongoing Additional Labour |
150 |
150 |
100 |
100 |
50 |
550 |
|
IT staff costs |
250 |
250 |
250 |
250 |
250 |
1250 |
|
User training |
200 |
200 |
200 |
200 |
200 |
1000 |
|
Other |
50 |
50 |
50 |
50 |
50 |
250 |
|
Telecommunications |
100 |
100 |
100 |
100 |
100 |
500 |
|
Office leases |
200 |
200 |
200 |
200 |
0 |
800 |
|
Total Recurring Costs |
2050 |
2050 |
1400 |
1250 |
800 |
7550 |
|
Total Costs |
7000 |
6300 |
4650 |
3900 |
3350 |
25200 |
|
QUANTITATIVE BENEFITS |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
Year 5 |
Total |
|
Revenues |
||||||
|
Sales revenue |
3000 |
4500 |
6000 |
8500 |
10000 |
32000 |
|
Tax return |
100 |
200 |
300 |
400 |
500 |
1500 |
|
Total Revenues |
3100 |
4700 |
6300 |
8900 |
10500 |
33500 |
|
Cost Savings |
||||||
|
Decreased cost of services |
100 |
100 |
100 |
100 |
100 |
500 |
|
Savings from Business improvements |
50 |
50 |
50 |
50 |
50 |
250 |
|
Gains from productivity |
100 |
150 |
150 |
200 |
250 |
850 |
|
Savings from different structural changes |
50 |
50 |
50 |
50 |
50 |
250 |
|
Savings from various optimized information |
50 |
50 |
50 |
50 |
50 |
250 |
|
Decreased information publishing cost |
0 |
0 |
0 |
0 |
0 |
0 |
|
Reduction of staffing cost |
100 |
75 |
75 |
50 |
50 |
350 |
|
Reduction of turnover costs |
75 |
50 |
75 |
50 |
50 |
300 |
|
Total Cost Savings |
525 |
525 |
550 |
550 |
600 |
2750 |
|
Cost Avoidance |
||||||
|
value added cost |
50 |
50 |
50 |
50 |
50 |
250 |
|
Total Cost Avoidance |
50 |
50 |
50 |
50 |
50 |
250 |
|
Other Benefits |
||||||
|
Reduce Operational cost |
75 |
75 |
75 |
75 |
75 |
375 |
|
Total Other Benefits |
75 |
75 |
75 |
75 |
75 |
375 |
|
Total Benefits |
3750 |
5350 |
6975 |
9575 |
11225 |
36875 |
Based on cost benefit analysis it has been identified that majority of business organization needs to implement proper strategies and identify different risk related factors during project management to reduce the overall cost of project and to get maximum benefits from business (Cole, Giné & Vickery, 2017). Based on above analysis it has been recorded that biz ops enterprises will get the benefit of $36875ad italso helps the organization to improves its financial position as well as brand value.
Conclusion
Based on the above project it has been identified that Risk management planning essential for Business Operation enterprises to determine the future risk that can create a negative impact on organisational performance as well as operations. Implementation of various treatments preparation generally needed to minimise the risk effectively to gain more competitive advantages from operating market. At the same time, Implementation of different operational planning will help this organisation to improve its performance leads to increase profitability as well as brand value.
References
Aspire, 2018. BizOps Enterprises organisational charts. Organization. Retrieved from: https://aspire-bizops-docs.s3.amazonaws.com/info/organisational-charts.pdf
CAMPUS, X. C. (2018). Activity Committees for the Academic Year 2018-19 Effective from June 1, 2018 (Doctoral dissertation, XAVIER UNIVERSITY).
Cole, S., Giné, X., & Vickery, J. (2017). How does risk management influence production decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6), 1935-1970.
Fokaefs, M., Barna, C., & Litoiu, M. (2017). From DevOps to BizOps: Economic Sustainability for Scalable Cloud Applications. ACM Transactions on Autonomous and Adaptive Systems (TAAS), 12(4), 25.
Furlong, C., De Silva, S., Gan, K., Guthrie, L., & Considine, R. (2017). Risk management, financial evaluation and funding for wastewater and stormwater reuse projects. Journal of environmental management, 191, 83-95.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Paschen, J. A., & Beilin, R. (2017). How a risk focus in emergency management can restrict community resilience–a case study from Victoria, Australia. International journal of wildland fire, 26(1), 1-9.
Schlosberg, D., Collins, L. B., & Niemeyer, S. (2017). Adaptation policy and community discourse: risk, vulnerability, and just transformation. Environmental Politics, 26(3), 413-437.
Themsen, T. N., & Skærbæk, P. (2018). The performativity of risk management frameworks and technologies: The translation of uncertainties into pure and impure risks. Accounting, Organizations and Society, 67, 20-33.
Weldon, M. N. (2017). Corporate Governance, Compliance, Social Responsibility, and Enterprise Risk Management in the Trump/Pence Era. Transactions: Tenn. J. Bus. L., 19, 275.
Zou, Y., Kiviniemi, A., & Jones, S. W. (2017). A review of risk management through BIM and BIM-related technologies. Safety science, 97, 88-98.
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