PART 1: ESTABLISH RISK CONTEXT: Your CEO advised you to go through your current workplace vision, mission, goals and/or values and various departmental objectives and tactics. Review your observation;...

PART 1: ESTABLISH RISK CONTEXT:
Your CEO advised you to go through your current workplace vision, mission, goals and/or values and various departmental objectives and tactics. Review your observation; you have identified the following key problems:
i. Lack of internal controls, particularly over cash handling, monitoring and recording.
ii. Failure to meet compliance standards in duty of care and WHS, Privacy and confidentiality, Freedom of Information, environment law, reasonable adjustment for newly appointed disable staff and Industrial relations law.
iii. Due to poor implementation of contract law, lack of written policy and procedures to guide staff in performing their job duties.
iv. Lack of a professional business culture in the family run business.
v. Failure of the business to monitor the external environment and align opportunities and threats to the business.
    A. Use any one of the above issues - review organizational processes, procedures and requirements for undertaking risk management. Identify whether your business has any relevant risk management plan to tackle this situation. Record your comments. (100 words)
Risk management is the systematic application of policies of management and its practices and procedures to deal with external and internal threats. Organization review is the process of collecting, organizing and analyzing the significant information in order to strengthen the organization. The company is facing the issue of inefficient internal control system especially in context of cash handling and its recording and monitoring. In order to tackle the situation, the organization establishes a risk management plan. The managers estimated the impact of failure in internal control and define response to the issue. They define the people who will be responsible for establishment of internal control system, carry out risk assessment and develop the ICS working tools (McNeil, et. al., 2015).
    B. Determine the scope for your risk management process and justify your previous response (100 words)
The scope of risk management process includes the definition of basic assumption for the internal and external environment of organization and the overall objective of activities of risk management and risk management process. In order to define the efficient risk management framework, the company evaluates the activities of risk management that has been undertaken by them so far and they develop a structure for initiatives and control of risk management. The approach of the organization helps them to gain common understanding of the objectives of organization. It helps in developing set criteria for risk measurement and defining the key elements for structuring the risks assessment and identification process.
    C. Identify internal/primary and external/secondary stakeholders and their issues. Express how you communicate (organizational communication channel such as email, newsletter, intranet, social sites, LinkedIn, mobile etc) and discuss with those relevant parties about the risk management process?
    Internal
    Preferred Communication Channel
    External
    Preferred Communication Channel
    Managers
    Conferences and presentations
    Customers
    Advertisement and marketing
    Employees
    Emails and electronic text and face to face communication
    Regulators
    Emails and formal letters
    Board of directors
    Open meetings
    Suppliers
    Direct marketing, open meetings
    Investors
    Direct communication
    Government
    Returns, filing and custom, excise and direct tax tools
*Organizational Communication methods
For internal communication
    D. Construct a PEST/PESTLE analysis based on that chosen issue in A and B.
    Political
    Stability of government, international influences, changes in legislation
    Economic
    High inflation rates, monetary policy, economic growth and employment rates.
    Social
    Taste and preference of customers, distribution of income of people and other lifestyle factors
    Technological
    Information technology changes, international influences and high rates.
    Legal
    Employment laws, taxation policies of government and other industry regulations
    Ecological/Natural
    Attitudes of customers and restrictions and regulations
    E. Based on your response in D, complete a SWOT analysis.
    Strength (Internal)
Skilled and knowledgeable person
Intellectual and capital property
    Weakness (Internal)
New arrivals of competitors
Price and volumn
Resource limitations
Unclear selling proposition
    Opportunities (External)
Growing demand of products
Underserved market potential products of company
    Threats (External)
Changes in regulatory environment
Changes in preference of customers
Emergence of competitors
    F. Examine your response in D and F; document at least two critical success factors, goals or objectives for area included in scope. (50 words)
The critical success factors are the key areas where the company focuses constantly to achieve its mission and vision (Olsson, 2008). The major critical success factors for areas which are included in scope are
Employees support in submitting their ideas and giving feedback
Use of multiple frameworks like SWOT analysis, pestle analysis, strategic plan and OAS statement to examine the elements of long term goals of the company
    G. Propose a way to obtain support for risk management activities. (50 words)
The support from the stakeholders and the team must be obtained for the risk management activities. In order to do that the company need to have good engagement with the employees and the management and establish a better communication process with the company’s stakeholders. Without the support of company’s stakeholder, it is impossible for the organization to carry out the activities of risk management (Wu, et. al., 2009).
PART 2: ANALYSE RISKS:
Your CEO advised you to go through your current workplace vision, mission, goals and/or values and various departmental objectives and tactics. Review your observation; you have identified the following key problems:
i. Lack of internal controls, particularly over cash handling, monitoring and recording.
ii. Failure to meet compliance standards in duty of care and WHS, Privacy and confidentiality, Freedom of Information, environment law, reasonable adjustment for newly appointed disable staff and Industrial relations law.
iii. Due to poor implementation of contract law, lack of written policy and procedures to guide staff in performing their job duties.
iv. Lack of a professional business culture in the family run business.
v. Failure of the business to monitor the external environment and align opportunities and threats to the business.
Use the similar context to answer this part:
Identify Risks and Analyze Risks
    Identify the relevant parties from three levels of management in your organisation or an imaginary workplace and define appropriate risks associated with the business. You further analyze and explain which specific tools and techniques you recommend is the most suitable for consultation engagement with relevant parties.
    Risk
    Relevant Parties
    Levels of Management
    Tools and Techniques for Risk Management
    Less coordination in management and employees
    Management and employees
    Executor level of management and operational level of management
    Conducting more workshops, seminars and office luncheons
    Misuse of authority
    Non executive and executive officers
    Administrative level of management
    Proper implementation of code of conduct
    Failure to grab potential opportunities
    Non executive and executive officers
    Administrative level of management
    Complete analysis of business environment
    Low productivity of workforce
    Employees and workers of company
    Supervisory or operational level of management
    Conducting seminars, training programs and other related activities
    Based on your previous responses, answer following questions:
        Various Risks
(1.1, 1.2)
    Likelihood
3.1
    Consequences
3.2
    Risk Priority as per matrix
3.3
    Less coordination in management and employees
    High
    Affects the functioning of business and result in delay organization target
    Third priority
    Misuse of authority
    Medium
    Lack of accountability
Leads to distrust and suspicion in business environment
    Second priority
    Failure to grab potential opportunities
    Medium
    Competitive disadvantages
Technological backwardness
Entry of new rivals
    Last priority
    Low productivity of workforce
    High
    Negative effect on profitability
Damage company reputation
Restrain growth
    First priority
PART C: SELECT AND IMPLEMENT TREATMENTS
Use the similar context to answer this part:
    Once again, use your previous responses - determine and select most appropriate options for treating risks and further create an action plan for implementation. (100 words)
Treatment of risk involved a range of options in order to mitigate the risk and further preparing and implementing the action plan (Kumar, et. al., 2009). The selection of most appropriate plan and option is a key factor in success of organization. Here the most appropriate plan indicates the risk treatment which balances the implementation cost of each activity with the benefits derived from it. The organization has four options for risk mitigation which includes; avoid, reduce, share or transfer and accept. The organization should implement a strategy which is designed to reduce the risk consequences and transfer the risk to the third party. The organization should implement the strategy that reduces the likelihood of risk to an acceptable level. They should transfer or outsourcing the risk regarding physical asset management by developing contracts with the service providers (Blos, et. al., 2010).
    Evaluate one example of your workplace risk context, analyse the use of specific legislative framework during communication to relevant parties, risk documentation and storing of risk information? Justify your judgment. (100 words)
The organization is facing the problem of inefficient coordination in the management and employees of the company which affects the functioning of the business and has a negative effect of the company’s profitability. This is due to the lack of proper internal control system and code of conduct in the organization (Sadiq, et. al., 2007). In order to reduce this risk the organization should establish proper communication framework between the employees and the organization by conducting several workshops, seminars, training programs, office luncheons and other related activities. The organization should also properly implement the code of conduct and define the roles and responsibility of both management and employees.
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References
Sadiq, S., Governatori, G., & Namiri, K. (2007, September). Modeling control objectives for business process compliance. In International conference on business process management(pp. 149-164). Springer, Berlin, Heidelberg.
Kumar, S., Kwong, A., & Misra, C. (2009). Risk mitigation in offshoring of business operations. Journal of Manufacturing Technology Management, 20(4), 442-459.
Wu, D. D., & Olson, D. L. (2009). Enterprise risk management: small business scorecard analysis. Production Planning and Control, 20(4), 362-369.
Blos, M., Wee, H. M., & Yang, J. (2010). Analysing the external supply chain risk driver competitiveness: a risk mitigation framework and business continuity plan. Journal of Business Continuity & Emergency Planning, 4(4), 368-374.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.
Olsson, R. (2008). Risk management in a multi-project environment: An approach to manage portfolio risks. International journal of quality & reliability management, 25(1), 60-71.