Risk Management (Case Study: Develop A Risk Management System For A Furnishing Company)

3012 words - 13 pages

INTRODUCTIONWhen managing a business, hazards and threats, which will become risks and cause losses or damages to businesses, are always what business person care. Resulting damage of hazards and threats, which became risks, could be to the health and safety of employees, to plant, equipment or an entire installation, to the environment, to products, or to financial assets (Waring, 2001).For those effects of risks to business, this report suggests you ways to avoid/transfer; reduce/control or treat them in case they happen to your business. The report completed upon the guidance of Mr Dennis, Master of Marketing.PURPOSE OF THE REPORTThe report is about the proposed procedure for risks ...view middle of the document...

(SGA847 Management of Risk, Learning Unit Profile, Case Study 6).B. RISK MANAGEMENT FOR FIFESHIRE FURNISHINGSI. RISK MANAGEMENT CONCEPTS1. The Purpose of Risk ManagementRisk management is a field of activity seeking to eliminate, reduce and generally control pure risks (such as from safety, fire, major hazards, security lapse, environmental hazards) and to increase the benefits and avoid damage from speculative risks (such as financial investment, marketing, human resources, IT Strategy, commercial and business risks) (Waring, 2001)2. The scope of Risk ManagementThe scope of Risk Management is extensive. Here are basic key dimensions of Risk Management:(Source: Waring, 2001)3. Steps in developing and implementing a risk management programmeThere are four steps to develop and implement a risk management programme. They are:Step 1: Support of senior managementDevelop an organisational risk management philosophy and awareness of 'risk' at senior management levels. This could be facilitated by training, educational and briefing of executive management (Standards Australia 1999).Step 2: Develop the organisational policyDevelop and document a corporate policy and framework for managing risks, to be improved by the organisation's executive and implemented throughout the organisation (Standards Australia 1999).Step 3: Communicate the policyDevelop, establish and implement an infrastructure or arrangements to ensure that managing risk becomes an integral part of the planning management processes and the general culture of the organisation (Standards Australia 1999).Step 4: Manage risks at organisational levelDevelop and establish a programme for managing risks at the organisational level through the application of the risk management system. The process for managing risks should be integrated with the strategic planning and management processes for the organisation. (Standards Australia 1999).Step 5: Manage risks at the programme, project and team levelDevelop and establish a programme to manage the risks for each sub-organisational area, programme, project, or team activity through the application of the risk management process. The process for managing risks should be integrated with other planning and management activities. The process followed, the decisions taken, and the actions planned, should be documented (Standards Australia 1999).Step 6: Monitor and reviewDevelop and apply mechanisms to ensure ongoing review of the risks. This will ensure that the implementation and the risk management policy remain relevant, as circumstances are changing all the time, so the review of previous decisions is important. Risks are not static. The effectiveness of the risk management process should also be monitored and reviewed (Standards Australia 1999).II. RISK MANAGEMENT FOR FIFESHIRE FURNISHINGS1. Identification of the risk management context and potential areas of riskTo identify the risk management context, we should conference to the inner, outer contexts...

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