Scope of risk
Discuss about the Scope Of The Risk In Internal Operation.
The main scope of the risk is related to the aspect of the internal operation in the store. The main problem which can be seen is the distance factor from Taralgon to Melbourne which makes attending of the meeting a problematic process. Most of the meeting did not finish on time due to the aspect of time problem involved into the aspect. The problem relating to the scope of the stock and the inventory can be sometimes a problem due to the factor of long distance travel. The working has no specific pattern or manner as they are propagated verbally which does not involve any type of official documentation.
There are different risk factor which were involved into the scenario most importantly into the sector of customer involvement. Most of the time this leads to major problem which directly emphasis on the sector of interaction which is created towards the customers. It can be stated here that in most of the cases customer interaction can be one of the most important factor which can help in the increase of the business. The factors of risk are generally involved into the internal working of the organisation. Point of emphasis should be given into minimizing the problem which is related to the distance which alters the interaction face. Most of the failure of the business of the business is initiated by a means of removal of the ERP system which acts as a basic framework of working of the organisation.
The banking of the organisation is not done on a daily basis which directly mean that it would be including a risk orientation which would be affected in a manner of breakthrough. It could directly affected the financial condition of the organisation. In most of the organisation important documents pertain, so it can be stated here that the security of the document can be one of the factors of security. As it is stated in the case study the computer system are not password protected which would directly mean that there are no safety prospective involved into the working. This would directly mean that anyone could directly access the data which is stored in the system.
Goal
The main goal of the approach of the risk management strategy is to provide a security means which would be protecting the overall internal as well as external working of the organisation. The access of the data to the organisation should be given only to the authorised people which would be directly safeguarding the data. The protection of the cash can be stated to be another important point as if there are any type of financial loss it would be directly affecting the financial sector of the organisation. The main goal would be achieve a standard of working which would involve proper orientation of working.
Critical success factor
Objective
The main objective which can be stated here is that enhancement of the security policy should be one of the most primary factors. If the security level is maintained it would be directly enhancing the overall working of the organisation. The main setting would be to include a framework which would be cover up all the aspects of the working which does not involve primary focus. There are many other factors which are included into the process with affect the working, primary objective would be involve different sectors of security implementation which would be affecting the area. Most of the organisation tend to include security policies which enhance the security as well as the policy of the organisation.
The stakeholders may be directly affected by the working of the organisation. In most of the cases it can be stated that the stakeholders tend to indulge into the overall working of the organisation. They may be also involved in the formation of the policy according to which the employee would be abide to follow. This eventually forms a basic guideline of operation which focus on the aspect of working. Basically it can be stated here that in any organisation the stakeholders are very much important as they directly aim at convincing the customers and create a sense of relationship which would be directly enhancing the loop hole of the organisation. The role of the stakeholders play a very important role in the internal working of the organisation.
Internal stakeholders: The internal stakeholders affect the internal working of the organisation. They basically form the identification of the problem which forms the execution phase of any process within the organisation.
External Stakeholders: They basically support the internal stakeholders in a collaborative manner which forms a support of the working of the organisation. Most of the time the factors of risk are judged more properly by the external stakeholders than the internal stakeholders.
SWOT: SWOT analysis can be stated as a proper kind of framework which can be used for evaluation of competitive strength of Price beat. It mainly works on identifying various strength, weakness, opportunities and lastly various threats in Price beat.
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Strength |
Pricebeat store is located on the corner of the two main roads which creates a platform for easy access to customers. This departmental store comes up with parking space of 1000 cars. |
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Weakness |
There are separate employees which are responsible for various things like payment, deliveries and inventory management |
|
Opportunities |
Brand awareness of Price beat can be easily improved by proper kind of marketing and various advertisement. Expansion of Pricebeat to various global market platform. Innovation in the domain of product can be done to attract large number of customers. |
|
Threats |
At Pricebeat the banking is not done on everyday basis. And many times 10 thousand dollars are kept on premises on the various cash register. Change in economic condition can easily impose some kinds of restriction on the spending of various customers. Local market can result in some kind of risk for this organization that is Pricebeat. |
PEST: PEST analysis can be considered to be measurement tool which is used for assessing a product or market at a particular time. PEST stands for Political, Economic, Social and technological factors. With the help of this factors, Pricebeat can easily make better decision for its business.
Goal and objective of risk management
Political factors like various government policies can affect the revenue and profit of Pricebeat industry. Political factor can easily affect various kinds of parameters like SCM (supply chain management) of Pricebeat. Proper political stability is required because it can provide better business which can easily affect the supply chain and sales of Pricebeat.
Economic factor can be considered to be an important factor for this Pricebeat organization. World economy have considered economic factor to be an important parameter. Economic growth merely focuses on the fact people round the globe are more interested on shopping. With the help of better economy there will be chances of higher revenue and profit for Pricebeat organization. Better economic condition merely focuses on the fact that there is growth in sales and overall improvement of Pricebeat organization.
Social trend can be considered to be a vital factor on Pricebeat and its profitability. Any kind of demographic changes and consumer preference can have a deep effect on Pricebeat. Demographic changes can easily effect the popularity of the product at Pricebeat.
Technological factors are considered to be a vital factor in terms of supply chain, service and sales of customers. The growth of digital technology has increased the number of players in the market. So this can be challenging for Pricebeat organization.
The risk management strategy forms the basic working in the aspect of the working of the organisation. In most of the cases it should be taken into consideration that risk mitigation should be one of the most important aspect and it should be taken care that the factor of risk of risk may include into the process. The role of the manager can be very much important in this sector due to the factor that the mitigation of the risk strategy is directly incorporated by the manager in the possession of the other employee.
The main aspect which can be taken regarding the regulatory and legislative part is the introduction of the law relating to legislative and regulatory requirement. This majorly include different sector of laws which the organisation has to abide. If there are any type of failure to abide to the compliance to the standard in the OHS, privacy and the relation law of the industry and is required to form a legislative and regulatory standard. Sometimes it can be stated that law forms the basic guidelines which puts the working of the organisation in a proper manner. These laws should always be abided by the employee and the higher officials. Sometimes there can be few internal laws of the organisation which aim at working of the organisation towards a predefined goal.
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Board Policy |
Management Policy |
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The board policy directly relate to the organization governance. They do not take into consideration the day to day policy |
The management policy are created by the management policy |
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Main policy · Should be abiding by the rules of the government · Policy should focus on the view point of the customers · They are related to mission, external communication and code of ethics, issue for staff and the compliance with the sector of legislation. |
Main policy · The policy mainly involve internal working of the organization. · They are basically related to admin, finance, PR, confidentiality and ethics. |
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Risk |
Likelihood of risk |
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Theft |
Severe |
|
Data Breach |
Moderate |
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Damage to inventory |
Severe |
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Injury of customer |
Minor |
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Competition from big store |
Severe |
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Risk |
Consequence of risk |
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Theft |
Theft in Pricebeat can easily result in large number of problems like ü Shirking of product inventory ü Divides the attention of various employs. ü Theft issues with employee. |
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Data Breach |
Data breach can large number of effects like ü Security and data breach ü Compromise with the consumer data ü It can keep the employee data at risk. ü One can easily suffer from various kinds of DDoS attack. ü |
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Damage to inventory |
Damage to inventory can have large number of issues like ü Damage of documentation ü Time ü Cost and capital ü Not understanding the value ü Choosing of costing method in proper way. |
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Injury of customer |
Injury to customer can have large number of effect like ü Cost of salary ü Loss of productivity ü Medical and travel expense |
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Competition from big store |
Competition from big stores can easily result in loss of profit for Pricebeat organization. |
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Risk |
Impact of risk |
Treatment |
|
Theft |
high |
Theft in Pricebeat can be tackled by providing training to employees, spot check on regular basis and posting signs can be easily considered to be effective way for prevention from any loss. |
|
Data Breach |
low |
Data breach can easily result in legal obligation, theft of customer identity. Damage to the POS system of Pricebeat |
|
Damage to inventory |
Medium |
Property insurance can be easily used for better protection for various retailers. Traditional coverage can easily reimburse various from various losses like fire, robbery and environmental damage . |
|
Injury of customer |
Low |
Various insurance policies can be considered to be well known store policy which covers various legal costs when customers and third parties sue the employees over these accidents. |
|
Competition from big store |
The top level management of Price beat should stay in current with various changes in the retail industry. By this they can easily have an idea about the liabilities. |
|
Risk |
Impact of risk |
Treatment |
Stakeholders |
|
Theft |
high |
Theft in Pricebeat can be tackled by providing training to employees, spot check on regular basis and posting signs can be easily considered to be effective way for prevention from any loss. |
IT manager |
|
Data Breach |
low |
Data breach can easily result in legal obligation, theft of customer identity. Damage to the POS system of Pricebeat |
IT professional |
|
Damage to inventory |
Medium |
Property insurance can be easily used for better protection for various retailers. Traditional coverage can easily reimburse various from various losses like fire, robbery and environmental damage. |
Inventory manager |
|
Injury of customer |
Low |
Various insurance policies can be considered to be well known store policy which covers various legal costs when customers and third parties sue the employees over these accidents. |
Security in charge |
|
Competition from big store |
High |
The top level management of Price beat should stay in current with various changes in the retail industry. By this they can easily have an idea about the liabilities. |
Revenue manager |
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Information |
Receiver |
Timing of communication |
Mode of communication |
Sender |
|
Status Report |
Sponsor Manager Committee |
Monthly |
Paper |
Project manager |
|
Local awareness building session |
Local user community |
Schedule for twice daily |
Stand up – presentation |
Lead analyst |
|
Remote awareness |
Remote user community |
Three times in a week |
Web cast presentation. |
Lead analyst |
References
Aven, Terje. “Risk assessment and risk management: Review of recent advances on their foundation.” European Journal of Operational Research 253.1 (2016): 1-13.
Bromiley, Philip, et al. “Enterprise risk management: Review, critique, and research directions.” Long range planning 48.4 (2015): 265-276.
de Groot, Nynke, et al. “Vulnerable pregnant women in antenatal practice: Caregiver’s perception of workload, associated burden and agreement with objective caseload, and the influence of a structured organisation of antenatal risk management.” Midwifery 40 (2016): 153-161.
Honey, Garry. A short guide to reputation risk. Routledge, 2017.
Hopkinson, Martin. The project risk maturity model: Measuring and improving risk management capability. Routledge, 2017.
Renz, David O. The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons, 2016.
Sweeting, Paul. Financial enterprise risk management. Cambridge University Press, 2017.
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