BSBRSK501 Manage Risk Assessment 2

The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of their customers are professional women aged 25 to 55.

NatureCare Products’ strategic priorities focus on business diversification and growth. They aim to increase their market share by 10%, and to expand the existing product range to attract more customers.

At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail outlets. The idea is to initially set up one retail outlet in central Sydney, Brisbane and Melbourne. Products will continue to be made in the company’s factory and shipped to the retail outlets.

The CEO has asked you to investigate this, undertaking a risk analysis on establishing a chain of retail outlets. The CEO and shareholders are keen to get the business expansion started as soon as possible, so you need to get your risk management plan in place immediately.

Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.

The company currently has a Risk Management Policy and Procedures in place that incorporates the AS/NZS ISO31000:2009 Risk Management Principles and Guidelines.

Complete the following activities:

1. Develop a risk briefing report.

Review the case study information provided to you, as well as the company’s risk management policy and procedures to determine the scope of the risk management process required.

Use the internet to search for relevant information on risk management standards.

You should also review the recent Team Meeting Minutes on the business expansion project to inform your report.

Use the Risk Briefing Report Template to guide your work.

Your report will be sent to the CEO for initial feedback and then you will meet with your team to brainstorm further risks associated with the business expansion project.

Your report should include the following:

• Introduction, including the purpose of the risk analysis
• The scope of the risk management process, any risks that may apply to the scope, and objectives and critical success factors for the area included in the scope
• An outline of the risk management process as per the organisation’s policy and procedures, as well as how the organisation’s process aligns with the risk management standards as identified in the link provided to you.
• A PESTLE analysis identifying the key factors that impact on the environment in which NatureCare Products operates and their relevance to the risk management process. You should also use this analysis to identify important factors that may influence consumer needs and desires as part of analysis of external stakeholders, as well as to inform the key risks you identify below.
• You are also required to identify at least five risks identified with the expansion, and at least one potential risk treatment option for each of the risks you identify.
• Identification and analysis of internal and external stakeholders and the issues they may have that are likely to impact on the risk management process.
• An analysis of the strengths and weaknesses of the company’s existing retail approach namely, online and through health food shops.
• Analysis of critical success factors, goals or objectives for the business expansion project.

2. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should provide a brief overview of the risk management project, introduce and summarise the contents of the attachment, and seek their feedback and approval to move forward with the project.

Attach your risk briefing report to the email.

Your assessor will send you an email in the role of the CEO, providing you with feedback and approval to proceed.

3. Send an email to your team (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should invite the team to participate in a meeting to brainstorm risks associated with the company’s proposed expansion.

Your email should briefly explain the purpose of the meeting and advise of the date and time for the meeting (your assessor will advise you of the date and time and also provide you with the email addresses of the two students who will be your team).

The meeting is to run for approximately 30 minutes.

4. Conduct team meeting

After giving a short introduction, present to your team the risks that you have identified, as well as the treatment measures you have selected. Refer to your Risk Briefing Report and share your ideas, encouraging the meeting attendees to share theirs.

Steer this discussion into a brainstorming session.

Take paper and pen with you, or use a whiteboard, to jot down ideas as they are given.

At the meeting, you are required to:

• Clearly explain the risk management process as per the organisation’s policy and procedure.
• Discuss the risks you have identified and potential risk treatments
• Seek ideas from the team about risks involved in the business expansion, as well as treatment measures.
• Agree on the most important risks that should be included in the risk management plan, as well as suitable risk treatments. At least five must be identified.

During the meeting, you will need to demonstrate effective communication skills including:

• Speaking clearly and concisely
• Using non-verbal communication to assist with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding

Close the meeting by thanking the participants for attending.

5. Develop a Risk Management Plan

The final part of the assessment task requires you to develop a risk management plan using the Risk Management Plan Template.

Your risk management action plan needs to include the following two risks:

• Inefficient resource usage
• Low customer satisfaction with customer service.

You will be implementing treatments for these two risks in the following task, so make sure that the treatments you recommend are practical and that you can actually complete them in the simulated business environment within the classroom.

Your risk management plan should include:

• The risks you have identified based on your research and brainstorming session. You must include at least four risks of your own, and the two risks that have been provided above.
• An assessment of the likelihood of the risk occurring, as well as the severity of the risk should it occur.
• Identification of at least one suitable treatment measure for each of the six risks. Priority rating (high, medium or low) to show the order in which risks must be treated.
• A risk action plan that sets out for each risk including:
• Risk description
• Impact of risk
• Recommended actions
• Resource requirements
• Timelines
• Responsibilities
• Monitoring processes

6. Send an email to the CEO (your assessor).

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

The email text should include the following:

• Summary of the purpose of the Risk Management Plan
• An outline of the risks most likely to occur in relation to the business expansion project.
• Why you believe the identified treatment strategies for each of the risks will be effective in ensuring risks are minimised or do not occur.