Risk Management Process, Stakeholder Analysis, SWOT Analysis, And Scenario Planning

Steps in the Risk Management Process of GSE

Ans 1.  The steps involved in the risk management process of the GSE in the context of AS/NZ ISO 31000:2009 Standard are as follows (McNeil, Frey & Embrechts, 2015):

1. Establishing the goal and context: In GSE, it is developed with the help of reviewing the organisation’s corporate documents and the risk management plans and stakeholder analysis.
2. Risk Identification: In GSE, it is identified by analysing the problems as they arise and using the feed forward control method to evade the problems.
3. Risk Analysis: In GSE, the risk is registered on a template, which is used for administering and surveillance purpose.
4. Risk Evaluation: In GSE, the possibility of risk and its effect is contemplated, thereby analysing the prime concern of risk and their treatment.
5. Risk Treatment: In GSE, a combination of various methods for risk treatment is adopted according to the cost benefit analysis.
6. Risk Monitoring and Review: In GSE, it is included in all the policies and action plans of the company and they are reviewed on regular basis for their successful implementation.
7. Communicating and Consulting: In GSE, the focus is on the objectives relating to managing the risks, setting manageable targets and collection of useful data to ascertain actual performance. (Economic Times, 2017).

Ans 2. The GSE’s values are (Mathooko, 2013):

1. The employees must not use their status and details acquired as a result of their designation  to mistreat the organisation and must adhere to all the laws and regulations both in letter and spirit.
2. The employees should safeguard the estate and make sure that it is utilized in an effective way.

The GSE’s ethics are (Kumasey, Bawole, Hossain & Ibrahim, 2016):

1. All the employees should follow the principles of righteousness and honestywhile performing their duties and responsibilities in the organisation.
2. The environment within the organisation is healthy and of mutual faith .It acknowledges the integrity of the personnel and right to a workplace free from exploitation.
3. The policy of whistle blowing is adopted and the misconduct and the frauds are reported to the CEO.

The GSE’s mission is (Papulova, 2014, pp .12):

All its employees should be environmentally aware and economically feasible while supplying goods and amenities to the customers which satisfy their needs fully.

Ans3. The company aims at expanding its market into South East Asia and product and showroom expansion strategy and  installation, for which, the  new project team is proposed to be established in Singapore, where there is an opportunity to target the budget  sensitive companies. If the reserves used for expansion are inadequate, then it shall be opting for its listing on the Australian stock exchange, which is a time consuming process. So, in this context, it has to implement the plan comprising of risk arising from budget constraints, i.e. risk identification, analysis, treatment, monitoring, review, communication and consulting (OECD, 2014).

Ans4.  As the risk management process defines the identification of risk at its initial stage and strategizes its response and supervises its execution. (Pritchard, PMP, PMI-RMP & EVP, 2014).As the Sales Manager at the GSE South Australian branch, I would implement the risk management plan by identifying the risk posed by new competitor in the market. The fact that in South Australia, there are many competitors who sell similar products at low prices and better quality can pose a threat to the firm. So a risk management plan comprising of processes which would minimize the cost of production and increase the sales thereby protecting the interests of the company (“The National Archives .Risk Assessment Handbook,”2014).

Ans 5. (Schmeer, 2017)      

Our Goal: To be a preferable organization for all and to be economically feasible while supplying goods and amenities to the customers which satisfy their needs fully.

Stakeholder	Stakeholder’s agenda for Agency	Strengths in meeting agenda	Vulnerability resulting from the agenda
Managers	Innovation and growth of the company.	Expansion of the business internationally.	The political and legal policies of the client country along with technological
Shareholders	Good Capital growth, regular flow of income and the continuity of the business.	Increased profitability of the company.	If the capital growth increases, the shareholders will anticipate better returns from the business.
Suppliers	The suppliers should be paid timely.	Timely payment to the creditors will result in undisturbed distribution of goods.	The postponement in the payment to increase the liquidity may result in disruption in the supply of goods.
Customers	The organization is expected to be customer centric.	Customer satisfaction is achieved through supply of value for products.	Any effort to deliver best quality products may result in increased prices leading to consumer discontentment.

Ans. 6. (Bonnici,S.,T. 2015)  Political impact:

1. There can be constraints on doing trade with some nations which should be included in the plan.
2. The taxation policy of the government can also be explained in the plan.

Economic impact:

1. The organisations prefer to deal with those of developing countries due to low labour costs.
2. The world economy is coming out of recession, so the market is insecure for international trade.

Social impact:

1. Healthy Workplaces are important for long term accomplishment of the organisation.
2. The society has become more aware of the environment and prefers the products manufactured out of renewable energy sources.

Legal impact:

1. There are strict provisions for violating the safety measures.
2. There are strict penalties for violating the environmental policies.

Technological Impact:

1. The increased use of renewable energy sources to lessen the use of fossil fuels.
2. The government is providing subsidies for using renewable energy sources.

Ans 7. (Insurance Commission of Western Australia, 2016)

SWOT Analysis: Global Star Enterprises

Strengths	Weaknesses
Reliable Quality Experienced Executive Board. Low labour cost as compared to competitors. Outstanding hand carving skills of the workforce.	Lack of accessibility to the customers. Lack of funds. High import duty on timber and import of wood. Insufficient wood seasoning arrangement.
Opportunities	Threats
Growth in the market. Customer Reliability. Expansion of products. Elevation of terrestrial markets.	Competitors in the market. Change in the policies of the government. Change in the taste of the customers. New distribution channels.

Ans 8. (Cooper, 2013, pp. 5) The company aims at making consumer centric policies and supplies economically feasible yet best quality products to the customer’s .It should endeavour to outperform as the foremost authorization over its area of operation in spite of the competition. In spite of the competition, customers will demand best solutions for their certain necessities. So, it should manufacture USP to attract  its customers.

Ans 9. (University of Turku, 2016)

1. For proper execution of the action plan, a team of professionals should be formed to supervise   its implementation.
2. The cost and benefits associated with the implementation of the plan should be strictly monitored.
3. Proper treatment strategies of the risk implement plan should be executed.

Ans .10 (Australian Government .Department of Finance, 2016)

1. The middle level management can be communicated through meetings and e-mails about the expansion strategy and the risks associated with it
2. The shareholders should be invited to discuss about the plan and their suggestions should be implemented for its better performance, through conference calls and informal means of communications.
3. The risk and management committee should be invited for reviews pertaining to the plan, through voice –mails and electronic communication.
4. The employees should be invited for participation through formal means like meetings ,conference calls and informal means like lunch meetings and voice mails for the execution of the plan as human resources are a crucial part of the organisation

Ans 11

Name of the party	Methods for their invitation	Reasons for their invitation
Marketing Manager	Through electronic communication	He will explain the threats related to introduction of new competitors in the market.
Finance  Manager	Through electronic communication	He will explain the dangers related to maintaining the appropriate debt equity ratio.
I.T.  Manager	Through electronic communication	He will explain the threats related to the technology obsolescence.
Sales  Manager	Through electronic communication	He will explain the danger posed by competitors resulting in decreased volume of sales.
Administration  Manager	Through electronic communication	He will explain the threats related to the internal mismanagement.

Ans12. The four research methods used for risk identification are as follows:

1. By conducting the Brainstorming and workshop sessions, the potential risk can be identified.
2. The analysis of the relevant past research reports are of great help in identifying the risk.
3. By applying a fish bone or Ishikawa diagram, the risks can be identified.
4. Scenario planning helps to analyse the future risks for a specific plan in accordance to different situations (The Society of Actuaries in Ireland [IE], 2015).

Ans 13.  The four parties that can be consulted with reference to ‘scenario planning’ technique is:

1. The Risk Management Committee can be consulted for assessing the probable risks on the organisation.
2. The Information Technology Expert can be consulted for analysing the risks relating to technological obsolescence.
3. The Sales department should be consulted regarding the emergence of the new competitors and risk posed by them with regards to decreased sales and low productivity of the company.
4. The Marketing department should be consulted regarding the publicity and marketing of the company’s products and organising events to make it known to the general public.

1. As an Information Technology Expert to of the firm, I would review the current technologies used by the company in manufacturing the products. Out-dated technology can lead to less production thereby posing a threat to the firm’s survival in the market.
2. Also, as the Marketing Expert, I would review the company’s policies regarding the marketing strategies adopted by the organisation. Arising of new competitors can affect the sales of the firm, so the policies should be designed accordingly to neutralize the effect of competitors on the firm.

Ans 14.

Nature of Risk	Probability of risk	Level of risk
Reduction of Sales due to competition.	5	extreme
Introduction of a new competitor in the market.	3	high
Critical system failure.	3	high
Death or severe injuries to the labour due to accidents.	5	extreme
Change in the political policies.	3	high

Ans 15

Nature of Risk	Consequence of risk	Probability of risk	Level of risk
Reduction of Sales due to competition.	The profit and revenue would be decreased.	5	extreme
Introduction of a new competitor in the market.	Reduction in sales and hence the decrease in revenue and profit margin.	3	high
Critical system failure.	It would result in the disruption of the operations.	3	high
Death or severe injuries to the labour due to accidents.	Labour aggression and strike.	5	extreme
Change in the political policies.	Increase in the tax rate or import duty.	3	high

Nature of Risk	Consequence of risk	Priority of risk
Reduction of Sales due to competition.	The profit and revenue would be decreased.	Major
Introduction of a new competitor in the market.	Reduction in sales and hence the decrease in revenue and profit margin.	Moderate
Critical system failure.	It would result in the disruption of the operations.	Major
Death or severe injuries to the labour due to accidents.	Labour aggression and strike.	Catastrophic
Change in the political policies.	Increase in the tax rate or import duty.	Minor

Nature of Risk	Consequence of risk	Treatment of  Risk
Reduction of Sales due to competition.	The profit and revenue would be decreased.	Manufacturing of USP to attract its customers.
Introduction of a new competitor in the market.	Reduction in sales and hence the decrease in revenue and profit margin.	It should distinguish its product so that it meets the specific needs of its customers.
Critical system failure.	It would result in the disruption of the operations.	It requires consideration of the senior management.
Death or severe injuries to the labour due to accidents.	Labour aggression and strike.	workmen compensation insurance
Change in the political policies.	Increase in the tax rate or import duty.	The tax expenses can be mitigated by adapting cost effective strategies.

Risk Reference	Potential Treatment Options	Impacts Issues and risks of implementing the treatment on operations	Is the Treatment to be Implemented (Y/N)	Risk Assessment	Responsible Person	Timetable for implementation	Monitoring strategies to measure effectiveness of Risk Treatments	Reporting Strategies to report on key aspects of risk and the impact to GSE
Probability	Severity	Impact
Reduction of Sales due to competition.	Manufacturing of USP to attract its customers.	Training of the staff and cash outflow.	Y	5	Major	The profit and revenue would be decreased.	Sales Department	2 months	timely check on the production and sales mechanism	The Sales Department will convey the strategies to the board.
Introduction of a new competitor in the market.	It should distinguish its product so that it meets the specific needs of its customers.	Adopting new technologies to develop its product.	Y	3	Moderate	Reduction in sales and hence the decrease in revenue and profit margin.	Marketing Department	15 days	Strict procedures would be adopted in context of developing the new product.	The  Marketing Department will report to the board.
Critical system failure.	It requires consideration of the senior management.	Purchase of alternative equipment  resulting in cash outflow	Y	3	Major	It would result in the disruption of the operations.	Administrative head	3 months	Substitutes for the failed processes /people.	The admin head will report to the board.
Death or severe injuries to the labour due to accidents.	workmen compensation insurance	Heavy cash outflow and training of the staff to minimize the accidents.	Y	5	Catastrophic	Labour aggression and strike.	Administrative head	7 days	Proper training of the staff.	The admin head will report to the board.
Change in the political policies.	The tax expenses can be mitigated by adapting cost effective strategies.	Training of the staff to adopt cost effective strategies.	Y	3	Minor	Increase in the tax rate or import duty.	Finance Head	7 days	Strict vigilance to check if the policies are implemented.	The Finance  head will report to the board

PROJECT COMMUNICATIONS MANAGEMENT PLAN TEMPLATE

Project title	Version	Date	File name
Project sponsor	Project manager	Project client

1. STAKEHOLDER COMMUNICATION REQUIREMENTS

To inform all the stakeholders regarding the policies and the procedures related to risk management, adopted by the organization.

1. COMMUNICATIONS SUMMARY

Stakeholder	What information?	When?	How? (format/medium)	Who is responsible?
Shareholders	Growth of the company	Annual general meeting	Annual report	The Board
Customers	Value for money goods	While dealing with them	Advertisement	The Sales department
Government	Compliance with the rules and regulations	At the time of compliance	electronic communication	The Board
Employees	Risk prevention plans and their methods	Through trainings	electronic communication	The middle management
Managers	Monitoring of their implementation	Through workshops	electronic communication	The higher management

1. COMMENTS/GUIDELINES/COMMUNICATION STANDARDS

Through newsletters, trainings, workshops and electronic communications.

1. ESCALATION PROCEDURES FOR RESOLVING ISSUES

Through monitoring and continuous communication with the stakeholders.

1. GLOSSARY OF PROJECT TERMINOLOGY

Word	Definition/interpretation
Risk Prevention Plans	Plans implemented for prevention of risk
Compliance	The execution of the rules made by the government.

1. REVISION PROCEDURES FOR THIS DOCUMENT

Through the communication with the stakeholders, any changes if required will be implementing

PROJECT RISK REGISTER
Project Title:		Project ID:		Project Dates:
Project Sponsor:		Project Manager:		Project Client:
Risk ID	Risk Details	Category	Root Cause/s	Triggers	Severity	Probability	Impact	Potential Responses	Status	Responsible Person
1	Reduction of Sales due to competition.	Strategic Risks	Change in the technology which is cost effective.	Introduction of new technology in the market.	extreme	5	The profit and revenue would be decreased.	timely check on the production mechanism	In surveillance	Sales Department
2	Introduction of a new competitor in the market.	Strategic Risks	Use of new equipments which are cost effective and produce more products by the competitor.	Competitor uses more innovative products.	Moderate	3	Reduction in sales and hence the decrease in revenue and profit margin.	Strict procedures would be adopted in context of developing the new product.	Active	Marketing Department
3	Critical system failure.	Procedural Risks	Lack of maintenance of machinery.	Poor management.	Moderate	3	It would result in the disruption of the operations.	Substitutes for the failed processes /people.	Active	Administrative Depart ment.
4	Death or severe injuries to the labour due to accidents.	Other Risks	negligence of the management	Lack of awareness amon g the labors regarding the safety procedures.	Catastrophic	5	Labor aggression and strike	Proper training of the staff.	Active	Administrative Department
5	Change in the political policies.	Other Risks	Change in the government policies	Imposing of more taxes by the government.	Minor	3	Increase in the tax rate or import duty	Strict vigilance to check if the policies are implemented.	Active	Finance Department

The action plan can be implemented by (The Official Website for the State of New Jersy, 2015):

1. By  conducting trainings  and workshops
2. Covering the information in the company’s newsletter and website.

The plan can be monitored by:

1. Through whistle blowing mechanism.
2. Continuous reporting of its implementation to the board.

The risk can be evaluated by ensuring that:

1. The implementation plan is supervised regularly by the risk management team.
2. Implementing the strategies to measure efficiency of risk treatment.
3. The plan should be in continuous surveillance regarding its execution within the deadline.
4. Through daily reporting by the departments

References

Australian Government .Department of Finance (2016).Communicating Risk .Retrieved from https://www.finance.gov.au/sites/default/files/Communicating-Risk.pdf.

 Bonnici,S.,T (2015). PEST analysis. Wiley Encyclopedia of Management. John Wiley & Sons,Ltd.

Cooper, R. G. (2013). PDMA handbook of new product development. third edition.Hoboken ,New Jersy ,John Wiley & Sons,Inc.5.

Economic times (2017).Steps involved in the risk management process. Retrieved from https://economictimes.indiatimes.com/definition/risk-management

Insurance Commission of Western Australia(2016),Risk Cover. Retreived from https://www.icwa.wa.gov.au/__data/assets/pdf_file/0016/7117/Risk-Management-Strategic-Management-Framework.pdf

Kumasey, A. S., Bawole, J. N., Hossain, F., & Ibrahim, M. (2016). 3Ethics, values and development management. Development Management: Theory and Practice.

Mathooko, J. M. (2013). Leadership and organizational ethics: the three dimensional African perspectives. BMC medical ethics, 14(1), S2.

McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. revised edition. Princeton, New Jersey:  Princeton university press.

OECD(2014). Corporate Governance Risk Management and Corporate Governance. OECD Publishing. Retrieved from https://www.oecd.org/daf/ca/risk-management-corporate-governance.pdf.

Papulova, J.(2014). The Significance of Vision and Mission Development for Enterprises in Slovak Republic. Journal of Economics, Business and Management,2(1),12.

Pritchard, C. L., PMI-RMP & EVP. (2014). Risk management: concepts and guidance .fifth edition. Boca Raton: CRC Press

Schmeer,K.(2017) .Stakeholder Analysis Guidelines. Retrieved from  https://www.who.int/workforcealliance/knowledge/toolkit/33.pdf

The National Archives .Risk Assessment Handbook. (2014).Retrieved from    https://www.nationalarchives.gov.uk/documents/information-management/risk-assessment-handbook.pdf.

The Official Website for the State of New Jersy (2015). Risk Management Implementation Plan. Retrieved from https://www.state.nj.us/transportation/capital/pd/documents/RiskManagementImplementationPlan.pdf

The Society of Actuaries  in Ireland [IE](2015).Risk Identification. Retrieved from https://web.actuaries.ie/press/erm-resource-database/risk-identification-0

University of Turku (2016). Risk Management in Projects. Project Management and Leadership –2016.Retrieved from https://www.utu.fi/fi/yksikot/med/opiskelu/Jatkotutkinto/PGE/Documents/2016/kurssimateriaali/PML16_2016_L09_Risk_management_20160321.pdf.