Risk management refers to the recognition and evaluation of the risks that can impact an organisation and affects the future opportunities (The economic times. 2019). Forecasting of the risks and minimising the impact of uncertain events or situations is the risk management. This study aims at analysing an effective risk management plan for SmarTech. The risk management plan helps in availing beneficial opportunities even in the uncertain situations. Risk management plan of SmarTech includes continuous communication with the stakeholders, establishing a context for risk, identification of risk, analysing and evaluating the impact of risk, risk treatment and following an action plan to avoid the uncertainties in the business.
Risk context is the attitude, behaviour or environment which affects the risk and controls it to gain the opportunities (Apm. 2019). SmarTech is an Australian Company which works with the technology-based gadgets. Risk context is helpful in identifying the probability of uncertain events which can affect an organisation. Smartphones and tablets are very popular among individuals and require the need of new technological advancement. New idea of smartwatch and retail store contains different risks at different levels. These risks are identified with the study.
Scope of risk management plan
Risk management plan of SmarTech is applicable for the launching of retail store and new project of wearable device which is smartwatch. It can help in all stages of the business and how to present it for the consumers (Nawaz, Waqar, Shah, Sajid and Khalid. 2019). Risk management plan is bounded to the uncertain risks involved with the manufacturing, designing and selling smartwatch. It is a new project for the company with new technology and manufacturing at the same location.
Stakeholder analysis is the procedure of identification those people who seeks interest in the organisation or a project before initiating the project (Eskerod and Jepsen. 2016). It involves the communication with stakeholders and determining how to make them involved in the project by providing them certain powers. Stakeholders of a project are customers, employees, management, and project manager, board of directors, financer, society and government
Strengths and Weaknesses of existing arrangements
To gain competitive advantage, new product line of smartwatch requires methodology for managing risks. Five success factors are as follows:
High performance through operating activities
Organisational design and structuring
Communication (Zouaghi and Laghouag. 2016).
Initial meeting with the CEO
Risk breakdown structure
Risk treatment and action plan
The issues identified by the meeting reflected upon some more relevant issues and solutions with the new project of smart watch. The risk assessment sheet represents the idea of the impact of risk on the organisation. The changes are made according to the discussion.
The meeting with the CEO and stakeholders provided benefits in ascertaining various benefits and risk analysis. The risk management plan of SmarTech helps in assessing risk analysis and providing various strategies to take action and proceed with the evaluation by the management. All members presented in the meeting identified the risk management plan as useful and helpful in proceeding further for the project. Some key points majorly discussed with the stakeholders and board of directors. Risk identification tools, identified risks, impact of risks and treatment plan for identified risks.
Reactions arises with risk management plan
All members find the risk management plan as useful and happy with the discussion. They were satisfied with the identification of risks and the factors which can affect the future of SmarTech. Healthy discussion can only be preceded with an effective solution.
SmarTech’s organisational strategic initiatives
Strategic initiatives of SmarTech are aligned with the risk management process. The risk management plan identified the requirement of monitoring and providing responsibility to authoritative person with the action strategies. These strategies are aligned with the SmarTech’s organisational goals.
Area of risk management plan
Risk management plan is relevant for all areas related to the organisation. Financial, Operation, Schedule, External Environment, Technology, work health and safety and market related all areas are covered for the risk analysis. These areas helps in identifying relevant risks inherited with stakeholders and the recommendations to be provided for each area. SmarTech is a growing organisation which requires analysis on all the areas to work with a new project. Key stakeholders identified for the analysis are customers, employees, management, creditors and suppliers. All the stakeholders are necessary for an organisation to provide efficient solutions to the risk situation.
Major gap area is identified with the innovation and lack of security measures. SmarTech needs to identify the secured applications and password protection for the security of data. Protection from hackers and cyber-attacks provides confidentiality to the data and promotes the trustworthy information. The management needs effective planning for finances and controlling the expenses for financial risks. Management can control the movement of employees and create a positive work environment.
Risk management plan in real scenario
The risk management plan is efficient in reality as well for the operations of SmarTech. The environmental analysis of SmarTech is helpful in providing the factors which impact the organisation. Social, technological, economic, political and legal environment is helpful in understanding the impact of various factors on SmarTech organisation. Realities of the environment are easily understood with the basic concept and the needs of new project. The communication plan creates an opportunity to attain beneficial results with the risk management plan. This plan aligns with the strategic goals of the organisation and to attain beneficial solutions.
Evaluation Goal: To evaluate the risk of new project planned by SmarTech on varied risk areas and discussion with the stakeholders.
Project Background: The project of smart watch includes different risk aspects. SmarTech is a rapidly growing company which has established its name in smartphones and tablets. With the new technology, company is planning to launch smart watch as wearable device.
Apm. 2019. Risk context. [Online]. Available at: https://www.apm.org.uk/body-of-knowledge/delivery/risk-management/risk-context/ [Accessed on: 27 Nov 2019].
Australia bureau of statistics. 2019. Australian demographic statistics. [Online]. Available at: https://www.abs.gov.au/AUSSTATS/abs@.nsf/mf/3101.0 [Accessed on: 27 Nov 2019].
Eskerod, P. and Jepsen, A.L., 2016. Project stakeholder management. Routledge: London.
Nawaz, A., Waqar, A., Shah, S.A.R., Sajid, M. and Khalid, M.I., 2019. An Innovative Framework for Risk Management in Construction Projects in Developing Countries: Evidence from Pakistan. Risks, 7(1), p.24.
The economic times. 2019. Definition of risk management. [Online]. Available at: https://economictimes.indiatimes.com/definition/risk-management [Accessed on: 27 Nov 2019].
Zouaghi, I. and Laghouag, A., 2016. Aligning key success factors to ERP implementation strategy: learning from a case study. International Journal of Business Information Systems, 22(1), pp.100-115.
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