Order Business

8/21/2019 Order Business

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Running head: RISK MANAGEMENT

Risk Management

Students Name

Institution

Part A



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RISK MANAGEMENTAccording to Australian legislation there are !arious "ro!isions that are considered ke#

$hen looking at risk management standards% Some o& the "ro!isions are e'"lain as "er the

&ollo$ing (usiness o"erations:

Anti)discrimination legislation "ro!ides &or "rotecting age discrimination disa(ilit#

discrimination Australian *uman Rights +ommission Se' ,iscrimination and Racial

,iscrimination% The management has to (e in&ormed on these areas to a!oid an# &inancial risk

that ma# (e &aced (# !iolation o& an# o& the "ro!isions%

Australian legislation "ro!ides &or e'"lanations o& "ro(it# and ethics in all areas such as

"u(lic ser!ice "rocurement an in accounting standards $hich an# management need to (e

ac-uainted $ith to manage "ossi(le risk resulting &rom !iolationAustralian legislation "ro!ides &or codes o& "ractice that $ork as guides in achie!ing

standards o& sa&et# $el&are and health% .oth "ro!ided as "er the /ork *ealth and Sa&et# 0/*S%

These codes o& "ractice a""l# to e!er#one $ho has the dut# to care as descri(ed (# the codes%

There are the guidelines "ro!ided &or (# the Australian legislation on ho$ to handle

"ersonal in&ormation a(out an indi!idual "o"ularl# kno$n as The Pri!ac# Act% Storage use

collection and disclosure o& an# "ersonal in&ormation and e!en the access to correction o& such

in&ormation are some o& the areas co!ered under this act%

The concern &or the increased climate change in Australia in the "re!ious decades and the

constant drought that has (een $itnessed has led to the adustment o& "ro!isions (# the countr#3s

legislation on en!ironmental issues% The "ro!isions "ro!ide &or "ro"er check on the use o&

greenhouses $hich has (een considered maor cause%

There are la$s that are used in harmoni4ing occu"ation health and sa&et# in Australia as

enshrined in the constitution% The main intention is to hel" in o&&ering e-ual standards and

"rotection to Australian $orkers in !arious urisdictions%

Risk Management Tools and 5rame$ork

Risk management tools and &rame$ork are those idea and things $hich are em"lo#ed to

control risk that com"anies &ace% Such tools and &rame$ork hel" the com"an# identi&# remo!e



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RISK MANAGEMENTor reduce !arious risks reducing their "otential e&&ects on organi4ations% Pur"ose &or risk

management tools and &rame$ork is to "ro!ide a good condition in creating management

strategies to an# organi4ation that uses them% Risk management is made much easier $hen such

tools and &rame$ork are "ut into a""ro"riate use% Some !er# im"ortant ste"s to (e &ollo$ed in

risk management &rame$ork $hich is in the se-uence o&7 categori4e select im"lement assess

authori4e and &inall# to monitor securit# controls that ha!e (een em"lo#ed% There are !arious

di&&erent t#"es o& risks management tools and &rame$ork and e'am"les o& such include

&lo$chart $hich is used in guiding the organi4ation% The other e'am"le is checklist it the

s#stematic guideline that is used to ensure that all rele!ant "rocedures are taken% The other

e'am"le is standards $hich are techni-ues that are &ormali4ed to hel" in managing risk and the

last tool is S/8T anal#sis%

Some "rocedures and tools (eing used (# the o"erating de"artment include "ro"er

screening $hen hiring em"lo#ees7 there are $ell)managed contingenc# "lans regular em"lo#ee

training and "ro&essionalism and ethics among all stakeholders% The de"artmental head has

designed $ell)designed "rocedures that ha!e to (e &ollo$ed $hen carr#ing out audits% To a!oid

con&lict o& interest inde"endent audits ha!e (een hired to do the audits as the# $ould (e dri!en

(# "ro&essionalism rather than "ersonal interest% Em"lo#ee3s health and sa&et# ha!e (een taken

care o& $ith !arious im"ortant $arning signs erected or mounted in !arious risk# grounds% Risk

management register that is regularl# u"dated is used $ithin the de"artment to track "otential

risk and hel" check im"ro!ements on risk management% The common risk in the o"erational

de"artment includes the risk mo!a(le machines used in the "roduction and the "ossi(le accidents

that ma# result &rom de&ault electricit# de!ices%

8ne o& the man# risks in a "artnershi" (usiness is contractual risk $hich ma# occur

$hen either o& the "art# de&ault% The other risk includes negligence that ma# result to



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RISK MANAGEMENTmanu&acturing de&ecti!e "roducts $hich is unla$&ul% Pro&essional lia(ilit# is another im"ortant

as &ailure (# either "art# to act "ro&essionall# ma# lead to the organi4ation (eing sued%

There are multi"le &inancial risks that the "artnershi" ma# &ace $hich include changes in

interest rate resulting to the high cost o& (orro$ing high ta'ation (# go!ernment reducing

income le!el the the &luctuation rate $hich ma# result to domestic !alue o& domestic mone#%

In the e!ent that the countr# e'"erience !iolence the (usiness ma# lose its "ro"ert# to

rioters strikes can also limit "roduction and sale lo$ering the re!enue% The (usiness ma# as $ell

su&&er &rom sa(otage &rom clients or e!en "artners $hich ma# result to &inancial loses%Im"ro"er management and control strategies (# management "artner ma# result to "oor

"roduction and lo$ -ualit# o& ser!ices $hich $ill lead to dissatis&action (# customers $hich i&

not controlled in time leads lose o& good$ill &rom "otential customers%

There are also natural &actors that "ose risks to the (usiness and some o& $hich include

&ire earth-uake and e!en $ater damage% .usiness has to "ut necessar# measure to ensure that

such risks are either reduced or a!oided%Among other things that ma# also (e risk# to the "artnershi" are the "olicies (# the

go!ernment that ma# in&luence negati!el# on the (usiness and the introduction o& !arious

technologies that ma# (e !er# e'"ensi!e to the (usiness% /hen there is constant change in the

technolog# (eing used the (usiness is likel# to su&&er its technolog# going o(solete%PART .% n% 1%

;ason (eing a "artner in the (usiness can result into !arious risks to the (usiness% /hile

&orming "artnershi" there are !arious conditions that are signed $hen the construct is entered

some o& $hich include the roles to (e "la#ed (# the "artner and the duration &or $hich

"artnershi" should take% /hen ;ason is likel# to "er&orm his dut# as agreed u"on or e!en decide

to "ull out o& the "artnershi" (e&ore the set time $hich is !er# risk# to the (usiness%The other area o& concern that needs anal#sis is the (anks% /ith the current economic

situation the (anking rates can easil# go u" $hich means higher cost o& mone#% The cost to (e

used in doing (usiness $ill (e so high leading to highl# reduced re!enue%



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RISK MANAGEMENT,e"ending on the rate and the num(er at $hich the risk occurs insurance &irms usuall#

increase "remium (eing "aid &or similar risks% Getting chea"er insurance &irm es"eciall# those

that can co!er "u(lic lia(ilit# (ecomes di&&icult and e'"ensi!e to the &irm%

Partnershi" also &aces the risk that come &rom su""liers7 $here there are &e$ "o$er&ul

su""liers the (usiness $ill (e &orced to com"l# to their high rates as a (usiness $ill (eha!e no

o"tion le&t% Such risk leads to a reduction in the "ro&ita(ilit# o& the &irm%Part .% n% 2%

Going (# the a(o!e anal#sis the likelihood o& ;ason "ulling out o& the "artnershi" is

"ossi(le as it can ha""en% *o$e!er $hen it ha""ens it can ha!e a "rimar# in&luence on the

&inancial state o& the (usiness% Increase in the (ank rates is !er# likel# going (# economic status

and since its im"act ma# (e catastro"hic "ro"er care need to (e taken% As &or the raising

"remium (# insurance &irms it is unlikel# to ha""en as there are onl# a &e$ "artnershi" taking

similar insurance co!er its im"act is also minor% It is unlikel# that su""liers increase cost as there

is multi"le su""liers and7 there&ore the im"act is !er# negligence%

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