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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

1.

Bizop’s enterprises are one of the foremost merchandising business selling a wide range of the products
across Australia. It has been operating above one hundred fifty shop and also it is selling their product
though e-commerce. Even though it is large company, business operation is large and complex with lots
of leadership position. Company is facing risk. Due to which company reputation, sales are declining day
by day so This report addresses the different the risk which Bizop’s enterprises is currently facing. This
report summarizes the different classification of the risk and its associated risk on the Bizop’s
enterprises. And it also addresses the different list of legislation, regulation, and codes of the risks

Risk Scope Why it is a risk


1. Global condemnation Economic Lose customer
2. Government taxation Legal It increases cost
3. Political uncertainty Political risk Political uncertainty of a country affects it
economic setting
4. Confidential consumer Technology risk People may not be willing to buy product
information online.
5. Child labor Social Customer may boycott buying products made
by child labor
6. Poor Technology risk Deliver the goods or service late. People may
warehousing/logistics not be willing to buy next time.
system
7. Budgetary cuts Policy It results in staff turnover.

8. Unsustainable method Policy It creates hazard, may pose threat environment


and create pollution
9. Leadership challenge Political risk may change business management style
10. Federal consumer Political risk If fail to comply, fine applies
legislation

2. Here are the list of sources of data that may apply to the scope of this project

 Sales reports
 Customer complaints
 Online survey
 Information from the competitor.
 Suggestion from staff
 Customer feedback
 Market research

3 here are the list of legislation, regulation and standards and codes that are relevant to the current
situations to Bizops enterprises.

 Work health and safety act 2012

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

 Privacy act 1998


 Environmental management and pollution control Act 1994
 Association incorporation Act 1991
 Food Act 2001
 Human rights commission Act 2005
 Consumer law

d.
Bizops risk management procedure As/NZS 3100:2009
Risk identification Communication and consultation
Risk rating Establishing context
Risk control Risk assessment
Risk monitoring and reporting Risk treatment
Monitoring and review
Recording the risk management process

e.
Risks Ethos
Toxic , contamination Clean/ green products.
Customer complaints Meeting the needs of customers.
Goods not delivering in time Delivering speedy and personalized service.
Conflicts and complaints Teamwork
Poor market image Market identity
Budgetary cuts Business growth
Staff moral Teamwork
Glitchy system Meeting customer needs.
Unsustainable method Sustainable work practice
Polluting environment Continuous improvement practices
e. Here are following and critical success factor for risk management at Bizops

Objective Critical success


Control the risk Proper analysis
Avoid privacy leak Clearly identify risk
Treat the risk Options
Avoid global condemnation H R Available/engagement of your employee
Child labor Report the supplier

g.

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

Stakeholder Communication What to communicate


HR Email, face to face Staff turnover
IT department Email, meeting System problem/disconnection
Supplier Email, Skype conference Interrupted system
Employee Group meeting Conflict
Warehouse Email Delay product
Logistics Email, Skype Delay service
Tax office Email New tax rule

Hence the risk management of Bizop’s enterprise can by resolved by making risk management action
plan.

Task two

Background:

Bizop’s enterprises despite of having great sales in the past, have been facing risk ranging from mild to
extreme. It has large network across Australia having many shops in different place. Online purchase has
been causing of many customer complaints. Not being able to deliver the products on time and also the
customer personal information has been leaked through internet which is serious problem. Some
leadership changes in the country is seeming to be big threat for the company. Child labour and
unhygienic production process have been main target for the media for the criticism. Tax increases
probability has been the main concern for threat.

Context:

Bizop’s is planning to manage risk; there are different types of risk such as economic, legal, political,
technological risk, social risk, and policies. And it includes risk for example global condemnation,
government taxation, child labour, poor warehousing/ logistics, budgetary cuts. Categorisation of risk
and action plan have been advised for the risk treatment in the Bizop’s corporation.

Identification and analysis

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

Grade Level of likelihood

A Expected (will occur regularly)

B Probable (will occur at some stage)

Risk likelihood legend


C Possible (could occur)

D Improbable (could occur but unlikely)

E Rare (may occur but in limited situations)

Grade Level of impact

1 Insignificant

2 Minor
Risk impact/
consequence legend
3 Moderate

4 Major

5 Catastrophic

Risk categorisation matrix

Level of Level of impact

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

likelihood 1 2 3 4 5
(Insignificant) (Minor) (Moderate) (Major) (Catastrophic)
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

B Major High
1 Global condemnation

2 Poor logistics B Major High

3 Confidential consumer information C Catastrophic High

4 Child labour A Major Extreme

5 Budgetary cut D Major medium

6 Tax increase C Major High

7 Political uncertainty C Catastrophic High

8 Flooding D Catastrophic High

9 Customer complaint A Moderate High

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

10 Poor staff morale C Moderate Medium

Risk control/treatment

Activity:
Risks global condemnation, government taxation, child labour, poor
warehousing/ logistics, budgetary cuts

Control measures/ Control measure Strength Weakness


treatments
Change supplier Clean/green product May cost more and
longer time

Using new machines No pollution More cost that affect


the budget

Training Motivated results in Cost time and money


better outcome and may not be suitable
for everyone.

System and access Privacy issue can be Cost more and need
resolved new experienced
employee

Using latest technology Faster online selling Costly.


and more secure

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

Impact of risk/s on Political uncertainty/ change of leadership may impact the business
areas outside your
increasing more tax, increasing personal tax which may change consumer
responsibility
buying/ purchasing power. Social behaviour of certain community may
change buying habit of customer

Personnel involved CEO Sean Bamford, Business operations manager Chang Lin, Fred Diallo IT
manager, Gina Harris Human resource manager, Nancy Tooket Managing
director, Mike Booth managing director, financial operation.

Expected outcomes Solved customer privacy issue, better online purchasing system. No conflict
of risk treatment
between staff and management. Improved logistics system. Goods delivery
plan
on time. Good public picture. Motivated staffs.

Implementation plan:

For the implementation plan. This involves the following steps.

 Issue a risk management statement

 Training

 Establishing and documenting process

 Allocating specific responsibilities.

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

Risk Treatment Actions Responsibilities Timelines Monitoring


option process
Banned toxic Avoid risk Stop Rose Next three Taking
chemical using/change Hargreaves months sample
supplier
Polluting Avoid risk Use new Mike booth Next four Taking
environment machines months samples
Privacy issue avoid poor Use new Sara Voss Next two Issue filing
online system information months report
technology
Child labor Avoid risk Change the Sean Benford Next three Labor age
supplier month sample
Flooding Expert Cope with the Sean Benford Next two Regular
issue with consultation concerned month update
supplier parties that
relate to the
transportation
Poor logistics Avoid risk Change Nancy Tooket Next two Checking log
system logistic system months book
Staff turnover Motivation Training, Gina Harris Next five No of staff
evaluation months leaving
Glitch Avoid Consult with Gina Harris Next three Feedback
company technical the IT months
website problem department

Customer Avoid Action plan is Sara Voss Next two No. of calls
complaint through required to months from
customer cope with customer
feedback increasing
complaint
Poor staff Motivation Training and Sara Voss Next four Employee
morale recreation months feedback
activities

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

Task four

Bizop’s enterprises operates its business across Australia having more than 150 store and online sale has
provided customer to get their products. It is large corporation with many key personnel holding their
own responsibility to contribute the organization. But probably lack of communication with each other
or weak leadership inside the organization, currently Company is facing risk. Due to which company
reputation, sales are declining day by day, it has been hot topic for many media, publication for the
criticism so This report addresses the different strategy in managing the risk which Bizop’s enterprises is
currently facing.

implementation strategy:

any action plans or plans associated with risk management is useful when employee, associates and
stakeholder come together and work on it and should be aware of what is needed to implement.
Communication play vital role for exchanging of information about implementation plan and
responsibilities of different personnel. Effective communication is key to make everyone to take action
of process. Effective communication can be done through the following steps.

 Risk management committee or team: systematic, through progress conference


 Senior management, financiers, shareholders, insurers, presentations: websites, targeted briefings,
corporate action plans
 , information sessions, newsletters, flyers or posters, intranets articles and periodicals, Staff
workshops, staff information booklets

When action plan is being implemented, many difficulties arises so we should take necessary steps to
eliminate difficulties.

Following methods can be the solutions.

 Confirm sufficient financial resource are accessible to implement the plan in case of expense for
hiring for more extra employee, adjust budgets or higher than expected.
 Safeguard everyone knows process of risk management process by doing question answer.
 Confirm adequate protection cover is available to meet the emergencies and events that is not
expected.
 Provide a diversity of risk choices in case the anticipated one is not positive.

Following the above strategy, implementing action plan in Bizop’s enterprises will be successful in
managing risk.

Monitoring strategy:

One of the most important steps for the successful implementation of risk management action plan is
monitoring strategy. It can be defined as on continuing process which tell that you can manage any

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PRADIP CHAUDHARY GT05614 (DIPLOMA OF LEADERSHIPAND MANAGEMENT)

control measures effectively. Risk monitoring process identifies where action is to be taken so that risk
can be managed effectively. It also helps to record the track of identified risks and residual risk and risk.
It is life time process of any project. Bizop’s risk monitoring process should include all the aspects of risk
management process. Effective risk monitoring process helps in the better risk management process.
Such as installing new system in Bizop’s need be monitored in during timeline of the project. By this way
risk can be monitored. The person should be responsible for respective job. Manager, customer, CEO,
participants can help whether implementing action plan is useful or not.

It can be done by

 observation and physical inspections


 customer feedback
 self-assessments
 audit and reassessment of risk
 review of policies, strategies and documentation.

Evaluation strategy:

Evaluating any risk management action plan provide the chance to review the performance and
continuously improve your business process through over all approach guideline through systems,
process and procedures. Outcome based, process based and goal based are three kinds of evaluation
strategies. Three types of approaches are used in different situations by different companies for
different purposes. Such outcome-based evaluation is being used by the organizations whose main
purpose is to find whether company is to reduce the loss or reduce risk. While looking at the Bizop’s
enterprise, three approach of evaluation strategy should be used to evaluate the risk management
process.

But in case of Bizop’s enterprise, goal-based evaluation is valid with improvement of online service,
customer is getting their product in the time without any privacy issue.

Hence following three strategy and making risk management plan, Bizop’s enterprise can manage risk
and make profitable business. Bizop’s any risk management action plan should follow these steps to
eliminate the risk.

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References

 Business Queensland: retrieved from https://www.business.qld.gov.au/running-


business/protecting-business/risk-management/preparing-plan (Accessed: 11/12/2018).
 20 types of business risk. (n.d.). Retrieved from https://simplicable.com/new/business-
risk (Accessed: 11/12/2018).
 Monitor and Review of Risk Management Process. (2014, December 11). Retrieved from
https://paladinrisk.com.au/monitor-and-review-of-risk-management-process/(Accessed:
11/12/2018).
 Risk Mitigation Planning, Implementation, and Progress Monitoring. (2015, April 10).
Retrieved from https://www.mitre.org/publications/systems-engineering-
guide/acquisition-systems-engineering/risk-management/risk-mitigation-planning-
implementation-and-progress-monitoring. (Accessed: 11/12/2018).
 Implementing your risk management plan | QCOSS Community Door. (n.d.). Retrieved
from https://communitydoor.org.au/risk-management-and-insurance/implementing-your-
risk-management-plan(Accessed: 11/12/2018).
 Prepare a risk management plan. (n.d.). Retrieved from
http://www.business.vic.gov.au/disputes-disasters-and-succession-planning/how-to-
manage-risk-in-your-business/prepare-a-risk-management-plan(Accessed: 11/12/2018).

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