1) a) Regularly reviewing risk management policy is essential so that all the hidden risks can be identified and it can be monitored at the earliest before the organization have to face any consequences of it.
b) Importance of reviewing risk management policies
c) Benefits of reviewing risk management policies
2) A) Three scopes of the risk management frameworks are following.
B) The risk covered in the scope is explained below:
Whether keeps on changing, it may get hot or get breezy anytime. The organization must thus prepare for it in advance.
There are different occupational hazards that the company might have to face. Some of these may include staffing and scheduling.
The worker may get an injury during work. The international labour organization reveal that it is the duty of the organization to protect the workers from injuries (Berry‐Stölzle & Xu, 2018). Their health safety must be the primary concern of the organization.
3) A) Eight principles of risk management are the following.
An organization must integrate risk management with all the activities and efforts taken in the firm.
The organization must have a structured risk management approach so that it can provide the most desirable risk management outcomes.
The risk management of the company must be customized according to the needs of the company that is it must be based on the internal and external context in which it operates.
The most effective risk management will be the one which involves all its stakeholders on time.
As the organization internal and external context changes similarly it must also change its risk management program (Giannakis & Papadopoulos, 2016).
The organization must use both past and present information to anticipate future risks and must be prepared to mitigate them.
The organization must be aware of the human and cultural factor in which the risk takes place so that it can minimize the risks.
The organization must continually strive to improve and put efforts to reduce risks.
B) Here are some benefits of risk management.
4) Practical example and a quick explanation of the legislation is given below.
It states that the company must ensure the safety of its workers as well as of the clients.
Practical example- The Company can achieve it by signing every hazard and try to mitigate them.
This law gives the detail of how the company is organized and what are its duties of work.
Practical example- To check whether the company is formed as per the law or not.
It checks that the company must ensure that the agreement between the company and it's suppler and company and its customer is done from both the sides (Hopkin, 2018).
Practical example- To check the agreement of contract law properly.
It ensures that the company will not try to pollute the environment rather it will try to minimize the pollution caused.
Practical example- To use solar panels, recycled water and reduce the waste generated in the company.
It states that some of the information is released into the public as they have the right to know.
Practical example- The company must inform the customers about the ingredients used for manufacturing the product.
The industrial law suggests that the company must keep the information of its customers as well as of its employees confidential.
Practical example- The company must come forward to talk about how it is maintaining and protecting important information from getting leaked.
This law states that confidential information must be protected so that it does not get leaked out.
Practical example- The company must use methods of cryptography to protect the information from getting leaked.
This law covers most part of the market. The purpose of this law is to promote fair trading and competition through consumer protection.
Practical example- The company must have a fair completion in the market and must try to protect the consumers from fraud.
This law states that a company cannot refuse to hire any disabled person. They must get an equal opportunity to fight for the seat available.
Practical example- It should hire people having a disability and must treat them with respect.
5) A) Here is an example of risk management activity.
The most important activity in risk management is to find a strategy to minimize the risks that are identified in the organization. This strategy will have the following steps.
Accept- The very first method is to accept that there is a risk. After accepting the try to identify a solution to mitigate it.
Reduce- Try to minimize the effect of the risk in the organization.
Transfer the risk- Transfer it to someone who has the expertise to manage the risk.
Avoid – Eliminate the risk somehow by taking a certain action.
B) It is very important to gain the support of the stakeholders because engaging them with the problem will help in finding a better solution. Moreover, Stakeholders will also feel that organization take their help in the decision-making process. It will make them feel that their interest is taken into consideration in the organization even when the organization has risks (Wiengarten, Humphreys, Gimenez & McIvor, 2016). It also generates a mutual understanding between the company and its stakeholders. It allows them to share their view and opinion on the risk.
C) One of the most important methods which can be used by the company to take the support of the stakeholder is through communication. The company must communicate about the risk to the stakeholders and try to establish their interest so that they start brainstorming to get an idea to mitigate risk. The company must also follow-up to find whether the stakeholders have found a way to manage the risk which can be applied in the organization.
D) This particular method is appropriate than the others because risk communication is to share opinions and disseminate information about the risk to the stakeholders. It can be done through any form that is through public or private communication. This method is important because risk management will become futile if internal stakeholders do not put their share in managing the risk.
6) A) Here are three ways to communicate with stakeholders of the organization.
The company must utilize technology and can send an email to all the stakeholders regarding the risk so that if they have any opinion of how to manage the risk they can share it within the same mail thread.
The organization must also regularly report about the project and ask them to find potential issues and submit them to the project managers so that they can work on managing the risk.
If the stakeholders are not geographically apart, the organization must conduct a meeting where the manager can make all the stakeholder aware of the risk. The meeting will help to resolve the issue by taking into account different opinions and perceptions.
B) All the above three methods can prove to be effective in communicating with stakeholders. Since many times it is not possible to conduct a meeting as all the stakeholders and not present at the same location. Moreover, it may be time-consuming in such cases using technology will help. Besides, regular reporting and sending alerts will help the stakeholder to know what all things are going in the project. Conducting a face to face meeting can also help solve the issue as it will help in overcoming the risks that are identified in the organization.
7) A) Encouraging stakeholder in taking part in risk management is very important. It is because, at times, the team involved in the project may be unable to find a solution to the risks. In such cases, support from stakeholder can prove to be beneficial. A solution which cannot be found but the manager can be gained through the stakeholders moreover it will also increase their credibility and trust towards the organization. they may help in taking the correct decision in favour of the organization.
B) This approach will benefit the organization in minimizing the risk which is most important otherwise the company may have to face the consequences of the risk that has been identified (Almeida, Hankins & Williams, 2017). Stakeholders can make or break the success of the organization thus if they feel their interest is not taken into consideration then the organization may also have to resolve conflict. This is why the company must ensure that its stakeholder interests are maintained and they are satisfied with the company's policies and procedures.
Almeida, H., Hankins, K. W., & Williams, R. (2017). Risk management with supply contracts. The Review of Financial Studies, 30(12), 4179-4215.
Berry‐Stölzle, T. R., & Xu, J. (2018). Enterprise risk management and the cost of capital. Journal of Risk and Insurance, 85(1), 159-201.
DuHadway, S., Carnovale, S., & Hazen, B. (2019). Understanding risk management for intentional supply chain disruptions: Risk detection, risk mitigation, and risk recovery. Annals of Operations Research, 283(1), 179-198.
Giannakis, M., & Papadopoulos, T. (2016). Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, 455-470.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Hubbard, D. W. (2020). The failure of risk management: Why it's broken and how to fix it. John Wiley & Sons.
Wiengarten, F., Humphreys, P., Gimenez, C., & McIvor, R. (2016). Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171, 361-370.
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