5.

Risk Management Plan

Scope of assessment: Establish retail outlets in Brisbane, Sydney and Melbourne

Critical success factors: Increase market share by 10%
Expand the existing product range to attract more customers
Increase in number and diversity of the customers
Provide the highest quality and better price of nature products
Sustain a customer satisfaction of 95%
Internal & external stakeholders: NatureCare managements and employees, customers, suppliers, shareholders.
Risk Consequences Severity Rating Likelihood Rating Treatment or control Priority rating (high, medium or low)
methods Order of priority
Inefficient Unnecessary Moderate Probable To maximize resource Moderate – 1
resource usage business expenses usage, always utilize a work
breakdown structure.
Project is broken down into
task and plan what
resources are needed at
the task level.
Low customers Reduction in Significant Occasional Provide customer service High – 1
satisfaction with customer numbers training to the staff. Use
customer service as well as the incentive schemes to
repeat business motivate the customer
from existing service representatives.
customers.
Inability to attract Reduction in Significant Remote Branding Moderate – 2
new customer company sales and Provide discounts or
revenue festival sales
Scope of assessment: Establish retail outlets in Brisbane, Sydney and Melbourne
Critical success factors: Increase market share by 10%
Expand the existing product range to attract more customers
Increase in number and diversity of the customers
Provide the highest quality and better price of nature products
Sustain a customer satisfaction of 95%
Internal & external stakeholders: NatureCare managements and employees, customers, suppliers, shareholders.
Risk Consequences Severity Rating Likelihood Rating Treatment or control Priority rating (high, medium or low)
methods Order of priority
Inability to find High turnover of Significant Occasional Keep database of staff High – 3
employees who staff Be an employer of choice
align with
company’s
objectives.
Poor response New sites closed Catastrophic Remote Sufficient market research High – 3
from the down and survey to identify
customers to Staff laid off expected number of
make new sites customers and the product
commercially interests.
viable Sell related products
specifically to the sites
Excessive Loss in revenue Significant Probable Intensifying our sales High – 2
competition in and promotional efforts,
the new markets  and offering discounted
prices to encourage
customers to try the
 Scope of assessment:
Critical success factors:
Internal & external stakeholders:
Risk Consequences
Risk Action Plan
Description of risk
Summary of recommended response and impact
Establish retail outlets in Brisbane, Sydney and Melbourne
Increase market share by 10%
Expand the existing product range to attract more customers
Increase in number and diversity of the customers
Provide the highest quality and better price of nature products
Sustain a customer satisfaction of 95%
NatureCare managements and employees, customers, suppliers, shareholders.
Severity Rating Likelihood Rating Treatment or control Priority rating (high, medium or low)
methods Order of priority
product
Inefficient resource usage
The recommended response is to maximize resource usage, always utilize a work breakdown
structure. Project is broken down into task and plan what resources are needed at the task level.
The details of the resources are specified.
Proposed actions Make a list of the resources available and create a calendar to track the resource availability.
Resource requirements Internal resources to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Within 1 month
Reporting/Monitoring Ongoing monitoring through business expenses on unnecessary resources.

Description of risk Low customers satisfaction with customer service

Summary of recommended response and impact The recommended response is to provide customer service training to the staff. Use incentive
schemes to motivate the customer service representatives.
Proposed actions Research and survey on which part that customers are not satisfied with, invite experienced
trainer to train the customer service representatives.
Resource requirements Internal resources and external resources to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Immediately
Reporting/Monitoring Ongoing through customer feedback and performance reviews to assess customer satisfaction

Description of risk Inability to attract new customer

Summary of recommended response and impact The recommended response is branding and provide discounts or festival sales.
Proposed actions Research and survey on the quality of the products and ensure we prove high quality products for
product branding. Plan massive sales with specific festivals once in a while to attract customers.
Resource requirements Internal resources and external resouces to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Within 6 months
Reporting/Monitoring Ongoing through customer survey

Description of risk Inability to find employees who align with company’s objectives.
Summary of recommended response and impact The recommended response is to implement initiatives to be an employer of choice, including
paying salaries of above award wages.
Proposed actions Research current award rates/industry standards for all positions and determine salaries that are
both above award/standards and are sustainable for NatureCare Products.
Resource requirements Internal resources to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Immediately
Reporting/Monitoring Ongoing through staff survey and performance reviews to assess employee satisfaction

Description of risk Poor response from the customers to make new sites commercially viable
Summary of recommended response and impact The recommended response is to have sufficient market research and survey to identify expected
number of customers and the product interests.
Proposed actions Research on the market at the sites and survey the expected amount of customers and their
products interest. Sell related products specifically to the sites.
Resource requirements Internal resources and external resources to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Within 3 months
Reporting/Monitoring Ongoing the site sales and revenue.

Description of risk Excessive competition in the new markets 

Summary of recommended response and impact The recommended response is to intensifying our sales and promotional efforts, and offering
discounted prices to encourage customers to try the product.
Proposed actions Research on the sales and customer preferences.
Resource requirements Internal resources and external resources to conduct research and finances to sustain
Responsibilities Operations Manager
Timing Within 3 months
Reporting/Monitoring Ongoing the site sales and revenue.
6. Send an Email to CEO
Dear Sir,
I hope this email finds you well. Please refer the attached for risk
management plan.
Based on the research and brainstorming session with the team, we identify
the risks the NatureCare Products is likely to encounter as a result of its
planned expansion, the likelihood of the risk occurring and and its impact. The
project also provides a solution for each of the risk.
Here is the summary of the risks that most likely to occur in relation to the
business expansion project.
 Inefficient resource usage
 Low customers satisfaction with customer service
 Inability to attract new customer
 Inability to find employees who align with company’s objectives.
 Poor response from the customers to make new sites commercially
viable
 Excessive competition in the new markets 
Appreciate your kind advice.

Best Regards,
Operations Manager