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Risk review report is the report which includes various aspects which could be harmful for the organization’s current performance as well as for the future performance also. Those factors should be reviewed as fast as possible and within the possible time, it should be removed from the environment of the business. A2Z Solutions Pty. Ltd. is planning to open a new store and for the same they are bit curious to gather information in relevance to the risk factors available in the marketing environment of the particular place. A risk review report must consider the market trends; it’s primary and secondary competitor’s analysis in relevance to their adopted strategies, rough marketing plan, etc.
Risk review report is the evaluation of the all the risk factors which are present in the business environment of the particular place hence, to deal with that situation, all the activities should be performed as per the standards and benchmarks setup by the management of the A2Z Pty. Ltd. One of the major standards i.e. ISO 31000:2009 is the standard under which all principles and guidelines are provided for evaluating risk factors through risk assessment programs. Every organization performs this step to gather the required information in relevance to the risk assessment so that adequate research could be made for removing the effects of those risk factors (Lim, et. al., 2013).
Risk assessment includes the evaluation of internal as well as external factors of the organization as internal factors includes factory workers strikes, lack of administrative activities, etc. whereas external factors of risk management report includes the suppliers strike, economic conditions of the country’s market places, etc. These factors should be included in the risk review report for the better understanding of the business environment of the Toowoomba, Brisbane and it also helps in the formation of the policies and methodologies of working there.
While evaluating risk assessment procedure, all the relevant risk factors should be reviewed so that while submitting the report to the CEO and to the other board of directors of the organization, they could not get any chance to question the risk review report on the basis of standards and methods used for presenting and developing report. A2Z Pty. Ltd. has shown their trust on an existing assistant manager of their store for the position of manager as the first charging position of the store in Toowoomba, Brisbane. So keeping this thing in the mind, he should perform his best and extract every single aspect which is related with the risk factor and can harm the business (Li, 2014).
A2Z Pty. Ltd. is a company which deals in the retail stores and they have a number of the kind of stores and management along with the CEO is planning to take over another store in the Toowoomba, Brisbane, hence there are a lot of risk factors involved in the retail business such as large number of stores hence, the more occurring factor will be pricing of the products and the economic conditions also falls under the term risk factors for the retail store industry (Haimes, 2015).
This technique analyzes the political, economic, social and technical factors of environmental framework for describe the strategic management of the organization.
Political: Government policies, tax policies, etc. are included under political factor. Impact of these policies on the performance procedure of the organization is included under this technique.
Economic: General economic rate of the country, inflation, interest rates, etc. are the parts of this factors. The impact of these factors over the performance of the A2Z Pty. Ltd. will be such as increase in the inflation rate may decrease the sales of the organization.
Social: Age, sex, population, etc. are included under this factor and their impact over the A2Z Pty. Ltd. performance will be affected when these factors’ will rise up and vice versa.
Technical: Organization’s more than half activities are dependent on the technologies and these technologies also need to be amended timely to gain the adequate performance.
SWOT Analysis of A2Z Pty. Ltd.
Strengths · The strongest point of the A2Z Pty. Ltd. is that they are surviving in the retail store industry from a long run. · Adequate team members and other talented and experienced employees in all retail stores also form strength for the A2Z Pty. Ltd. · They provide lot of varieties of products under one roof due to which customer does not need to rush to other stores for purchasing other products (Tummala & Schoenherr, 2011). · Their pricing strategy also form strength for them as they purchase directly from the manufactures hence intermediates and their profit margin reduces. | Weaknesses · In Toowoomba, they do not have brand image, as setting up a good image will consume time. · Dealing with existing branded retail stores which have places their strong position in the retail industry. · Matching up with their pricing strategy and lack of knowledge in relevance to the economic conditions of the Brisbane market. · Lack of internal controls over the activities of the business and lack of adequate monitoring measures also forms weaknesses for the A2Z Pty. Ltd. |
Opportunities · New appointed manager could perform market research technique to perform better in the new marketing conditions. · Adequate promotional and advertisement measures could be adopted for the promotion of the retail store in the Brisbane. · An existing store is being taken over by the A2Z Pty. Ltd. in Toowoomba, Brisbane hence, their goodwill and their customers could be attracted easily for setting up the base model of developing goodwill. | Threats · Existing retail stores could be the biggest threats for the organization in settling down and maintaining their place in the competitive market. · A2Z have their own manufactured products too hence, development of their substitutes and their copying is also a threat for the organization. · If bargaining is supported by the other competitor then A2Z store should also need to evaluate this technique to match up their competitors’ level. |
Stakeholder | Internal/External | Role in Process | Stake in Process |
Government Agencies | External | Government agencies develop the policies, legislation, according to which all the activities of the organization should be performed to avoid interruption in the performance of the organization. Hence new appointed manager needs to consider these legislation and policies while confuting business activities in the Toowoomba’s store. | Government agencies of certain places help the new and existing business entities in terms of giving guidance of rules and regulations of the country. They also support financially to the industries and business enterprises for their expansion as well as for their better growth. |
Directors | Internal | Directors are responsible for taking decisions on behalf of the organization. Directors along with the CEO of the A2Z Pty. Ltd. have chosen to promote the assistant manager of other store for the position of the manager for the new Toowoomba store. | Directors play the role of government internally as they also set rules, regulations and they also set benchmarks for the organization for performing the activities under control. |
CEO | Internal | CEO will be the responsible party of the store’s activities and final decision taking authority also lies with him. Achievements or unethical practices, for all the practices of the retail stores under the name of A2Z Pty. Ltd., CEO will be held as responsible. | CEO will review the risk assessment report prepares by the new manager appointed for the new store in Toowoomba to evaluate his and organization’s decision of moving towards Brisbane for the expansion of the business. |
Suppliers | External | Suppliers are the people who deliver the stocks to the organization and relationship with the supplier and the organization should be maintained good so that they never misrepresent or never delay in delivery of the goods. | They are responsible for sending goods to the store and they should be treated adequately in terms of making their payments so that they could not perform any kind of misconduct with the organization. |
Please accept kind greetings from new appointed Manager for the A2Z Pty. Ltd. Toowoomba, Brisbane store.
I have developed the risk assessment report for the new store through evaluating all the risk factors present there in terms of competitors, their strategies, etc. Risk assessment report is developed considering the requirements of all directors and yours. This report will help the organization to develop a great image in the public of the Toowoomba and in terms of completion also, A2Z Pty. Ltd. will achieve its desired objectives and goals. This also concludes the growth opportunities for the retail industry in the new place and as per the conditions of the market there, it is the best time to set up a store as other retail stores are not able to fulfill the demands of the consumers.
All the relevant details along with the risk review report, table of stakeholders are sent to the directors and to the all stakeholders through email. Your reviews regarding the report will be acceptable.
Thank you for the greatest opportunity.
With the concentration of the decision taken by the CEO and by the mutual consent of all the directors, assistant manager of one of the stores has been decided to promote at the place of manager for the new store that is soon initiated at Toowoomba. Manager of the new Toowoomba store was asked to prepare risk review report to evaluate the risk factors present in the new place where A2Z Pty. Ltd. is planning for its business expansion. Hence, he has completed his assessment so you all are cordially invited for reviewing this report to undermine the decision taken for the promotion of the assistant manager is up to the mark or not. |
Risks are the major threat for every organization and to overcome from this situation, organization along with its experienced employees prepares a report in the name of risk assessment or risk analysis report. Under this report all kinds of risk occurrence factors and other probabilities are evaluated. As per these occurrences, risk management plan is prepared in which all the possible methods and procedures are included to face the risk and their effects (Chang, et. al., 2010).
As per the Porter’s model of risk evaluation, in every industry these certain risk factors are available especially for a new store or business which is about to be initiated in the place other than its native place. These are:
In a business environment, all of risk factors or say risks are present which could affect the performance of the business and due to which businesses may need to face loss or probability of shut of business enterprise also rises in those situations. All these risks factors discussed above could affect the profitability of the organization as well as it could also affect the overall performances of the business. Likelihood determines the occurrence of the risk in the business environment. If it is applied in the scenario of the A2Z Pty. Ltd. for assessing the risks for the Toowoomba store then the threat of new entry of organizations as well as the threat of producing substitutes constitutes great and high level of occurrence which could affect the performance of the business to the large extent. Whereas bargaining power of consumers and suppliers are the traditional approaches of risk evaluation because consumers also prefer the store from where they could get the products at fixed and fare price as this is a time consuming policy as well as customer relationship with store also builds up due to this action. Suppliers bargaining power exists where limited number of sellers of raw materials, labors, etc. are available and Toowoomba is big place where number of sellers for everything exists. Hence, the occurrences of these two risk factors are quite low.
Consequences of risks could bring negative as well as positive situation, generally it brings only negative situation. Impact of risk could be brought down but it cannot be reduced from the root. For instance, consequences of risk related to the economic as well as environmental conditions of the market of the Toowoomba will be discussed. Unfortunately after setting up the store by A2Z Pty. Ltd., with the great impact of earthquake in the Brisbane destroys most of the markets as well as new settled store was also destroyed. Due to this organization needs to face a great loss and that loss was reduced with the claim received from the insurance company (Azfar, et. al., 2012).
Another instance could be downfall in the economic conditions of the Brisbane results in the inflation and due to which people were avoiding sending on excessive products and they were saving for meeting with future expenses. This situation also reduces the business of the new store settled recently by A2Z Pty. Ltd.
Type of Risk | Grade | Effect |
Threat of new entries | A | Extreme |
Threat of substitutes | A | High |
Economic Conditions | A | High |
Environmental Conditions | A | Extreme |
Goodwill | B | Medium |
Financial | C | Low |
Technology | C | Low |
Customer’s tastes & Preferences | B | Medium |
These are the certain risk factors evaluated as per the analysis performed by the new manager appointed a due to which these risks have been given certain ratings. This is performed for measuring the affectivity of the different types of risks. As per their severity, adequate measures will be included in the risk management plan to control the risk’s effects in the organization.
Risk | Assess Risk | Controls | Monitoring | Timelines | Responsible |
Banking risk (theft of cash left in the premises) | Medium | Transferred to the insurance company if theft is of huge amount otherwise investigation will be performed to determine the culprit. | CCTV cameras and other advanced techniques could be used for monitoring these kinds of risks. | On urgent basis. | Initially financial controller will be responsible because keeping the cash in the premises is not acceptable. |
Manager’s travel risk (physical injury) | High | Adequate safety measures and proper care should be taken while travelling as whole work will be stopped in the absence of the manager. | Assistant and other supporters should be given to the manager for the performance of the irrelevant and unimportant and small tasks. | On urgent basis | A2Z Solutions Pty. Ltd. board and CEO are also responsible. |
Law Compliance Risk (reputation/brand loss and fines). | High | Adequate measures such as promotional techniques, distribution of free samples, etc. could be used for controlling this kind of risk factors. Adequate policies should be made so that performance of the organization could meet the legal as well as ethical considerations of the particular place. | For building customer relationship, attractive offers that could attract the consumers should be adopted. Along with this pricing strategy should also be adopted with an adequate rate of profit so that customer’s trust could be build up towards the organization. | Within 3 months of commencement of business. | Goldsmith Partners, CEO. |
Following are the ways through which research for the risk related issues could be conducted:
Following are the five stages of risk likelihood:
Consequences of risks are:
In a risk action plan, risk factors, methods to reduce the effects of risk, methods for removing the occurrence of the factors of other relevant factors of risks should be included.
Description of the risk factors are the key elements of the risk action plan along with the methods for removing the effects of those risks factors. The methods through risks implications could be reduced should also be reduced. Factors of treating the risk as per the severity should also be included in the risk action plan. These factors are ignorance of the risk, acceptance of the risk and the transfer of the risk. In all of these factors of treatment of the risk are implied with the help of assessing the severity of the risk. Firstly risk should be ignored and then it should be treated to avoid the glitches in the performance of the organization (Kotzab, et. al., 2011).
This standard implies the procedure through which the risk assessment and risk review report is prepared. This standard also determines the internal policies regarding the decisions taken for the treatment of the risk. All the procedure of the risk should be properly examined and the methods through which the risks are treated should be recorded systematically and structured of them should be adequate as per the policies and rules of the organization. ISO 3100:2009 states the principles regarding the principles and guidelines of implementation of the methods for reducing the impacts of the risk and risk management techniques are included (Purdy, 2010).
Impact of the privacy law on the impact of managing risk determines the evaluation of the risk factors through the guidelines and the policies of the legal aspects of the particular place. This technique also determines the activities performed under the evaluation of the risk assessment should be in consideration towards the privacy law.
Work health and safety regulations determine the codes of conduct of working procedure in the Australia. Under this act, every organization registered under this act needs to be following all the guidelines issues by this law for commencement of the working activities in health and safety organization.
Contract law determines the features of the different situation that may arise in the contract between two parties for performing a certain activity, it includes:
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