Risk Management Plan For JM Transport

Advantages of a Risk Management Plan

Discuss about the Risk management plan for JM Transport.

Risk Management is considered to be the process of identifying, assessing and controlling the threats of the capital and the revenues of the organization. The following kinds of threats and risks can occur from a large number of different sources that includes the likes of legal liabilities, strategic management errors, financial instabilities and many more as such.

Risk management plans are thus becoming a necessary for the efficient running of the organization in the modern world (Kameshwar and Padgett 2014). The planning has to be done in such a way that it increasingly includes the company’s processes for the identification and controlling of the threats to the digital assets that also includes the different types of corporate data and many more as such. 

According to, Beven et al., (2015) the formulation of a risk management plan has become one of the topmost priorities of the business in the modern times. Each and every business organization irrespective of their size and nature of business must formulate a proper risk management plan to avoid any complications that can complicate the smooth functioning of the business. Some of the main advantages are as follows;

1. Can see the risks that are not apparent
2. Provide proper insights and support to the board of directors
3. Reduce the liabilities of the business
4. Frame regulatory issues
5. Get the necessary credit for cooperation
6. Reduce the wastage of money and resources

• AS/NZS 4360:2004 Risk management (superseded by AS/NZS ISO 31000:2009)- The purpose of the following act was to put greater emphasis on the importance of embedding risk management practices in the organizational culture and also laying greater emphasis on the management of potential gains as well as different potential losses (Dupont Ganesan and Theodore 2017).

• Duty of care- The purpose of duty of care is to enable the organizations around the world to benchmark or legalize the following set of practices with the others and also to develop a range of proper and effective practices to safeguard the interests of the employees globally.
• Company law- The company law seeks to identify the risks inherent to business operations of the organization and provides standard set of different guidelines that helps the management of the companies to define, assess, measure and control the different types of identified risks.
• Contract law- Contract Law seeks to identify the responsibility for a loss arising from the loss of its own actions. It also identifies the persons who are responsible behind the alleged incidents.
• Environmental law- The laws and legal decisions are the different factors that aim to define the basis for the risk of the agency (Duggan et al. 2015). The environmental laws must be maintained more appropriately as because the mentioned company is a transportation company and there is a huge scope for the creation of pollution and emission of harmful pollutants to the atmosphere.
• Freedom of information- The freedom of information act makes the management of the particular company capable of asking the third parties for some precise information’s regarding the conditions of the company, processes, maintenance and the proper training of the workers. The management of JM transportation gets the idea of the different operational procedures through the implementation of such information in the organization.
• Industrial relations law- The main purpose of the industrial relation lays in the promotion of the workers and the economic prosperity of the business in the year (Kameshwar and Padgett 2014). The industrial relations law helps the management of the organization to increase the productivity of the business by creating high level of economic development and increasing the amount of international competitiveness.
• Privacy and confidentiality- The maintenance of the privacy and the confidentiality of the organizations is one of the key to the success of the business organization. It is important to avoid sharing the private data and important strategies that are to be undertaken by the management. The absence of privacy would lead to a block in the organizational growth (Beven et al. 2015).
• Equal opportunity- The prevalence of a diversified workplace in JM Transport may lead to different conflicts within the employees (Bernal et al. 2017). It is a challenge for the organization to control them and steer the organization towards growth. The main use of equal opportunity is that it helps to avoid conflicts and create a sense of friendly and pleasant working atmosphere for the smooth operations of the organization.

The different types of risk and hazards are;

• Political- The political environment of the country is a major risk as because the political scenario of the area of its operations will depend on the success of the business.

• Economic- The economy of the country of its operation has major role to play as because a strong and compact economy helps in the growth of the business (Rahman et al. 2016). The presence of a weak economy is a major risk for the business organization.

• Social-The absence of an idea on the social and cultural background of the place of the operation is a major source of risk.

• Legal- The presence of different laws and regulations formulated by the government is a major legal threat to the success of the organization.

• Technological- The management of JM Transportation will face risks if the latest technologies to avoid risks are not adapted as because such an adaption will help the organization to achieve success in the business.

• Policy- The policies of the government along with the environmental and economical policy are a risk for the transportation company.

• Property-The Company faces issues on the allocation and the claiming of different lands that are owned by them. They take the help of legal advice to avoid such issues.

• Personnel-The staff issues have to be addressed by the management of the mentioned company with utmost precision to make the best out of the business (Suter 2016).

Insurance

The different types of insurance undertaken by the mentioned transportation company are as follows;

1. Professional Indemnity- Helps to cover claims in respect of breach of duty in the course of carrying out the usual activities or the functions
2. Goods In transit- Being a transportation company, the management of the organization has to cover the loss or the damage of the goods in transit
3. Theft or fire- The company has to make sure that the organization has the insurance against any sudden and unavoidable circumstances or any other forms of events

Risk Identification

Internal and external stakeholders

The stakeholders of the following organization include the likes of the different kinds of shareholders, the customers and the management of the business who invests in the stock market of the business. The internal as well as the external shareholders have a great deal of sayings in the running of the business and thus are an important part of the business.

Key Responsibilities and Timeframes

The main responsibilities of the management of the mentioned organization is to make sure that they perform the best results and implement the best possible strategies that can help them to achieve quality success (Bernal et al. 2017). The management of the organization must also maintain a proper and efficient timeframe to establish the business properly.

Communication and Participative arrangements

Communication is the most important element that helps to avoid any sort of risk in the business (Suter 2016). A proper communication between the departments of the organization, the employees and the supervisors of the organization will help the management to formulate the right set of strategies to achieve the goals of the organization.

Monitoring and Evaluation

The identification, monitoring, assessment and the mitigation of the risks ought to be done by the management of the organization by means of constant watch and the use of latest technologies like monitoring softwares or installation of the GPS system to track the different transport goods and services either to the clients or the warehouses (Li 2014).

References

Bernal, G.A., Salgado-Gálvez, M.A., Zuloaga, D., Tristancho, J., González, D. and Cardona, O.D., 2017. Integration of probabilistic and multi-hazard risk assessment within urban development planning and emergency preparedness and response: Application to Manizales, Colombia. International Journal of Disaster Risk Science, 8(3), pp.270-283.

Beven, K.J., Aspinall, W.P., Bates, P.D., Borgomeo, E., Goda, K., Hall, J.W., Page, T., Phillips, J.C., Rougier, J.T., Simpson, M. and Stephenson, D.B., 2015. Epistemic uncertainties and natural hazard risk assessment–Part 1: A review of the issues. Nat Hazards Earth Syst Sci Discuss, 3(12), pp.7333-7377.

Duggan, J.M., Eichelberger, B.A., Ma, S., Lawler, J.J. and Ziv, G., 2015. Informing management of rare species with an approach combining scenario modeling and spatially explicit risk assessment. Ecosystem Health and Sustainability, 1(6), pp.1-18.

Dupont, R.R., Ganesan, K.N. and Theodore, L.W., 2017. Health and Hazard Risk Assessment. In Pollution Prevention(Vol. 153, No. 161, pp. 153-161). ROUTLEDGE in association with GSE Research.

Kameshwar, S. and Padgett, J.E., 2014. Multi-hazard risk assessment of highway bridges subjected to earthquake and hurricane hazards. Engineering Structures, 78, pp.154-166.

Li, W., 2014. Risk assessment of power systems: models, methods, and applications. John Wiley & Sons.

Rahman, A., Hasan, R.M., Agarwala, R., Martin, C., Day, A.G. and Heyland, D.K., 2016. Identifying critically-ill patients who will benefit most from nutritional therapy: further validation of the “modified NUTRIC” nutritional risk assessment tool. Clinical nutrition, 35(1), pp.158-162.

Suter II, G.W., 2016. Ecological risk assessment. CRC press.

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