Risk management plan template

RISK MANAGEMENT PLAN

By: Geovana Sant’ana

Background:

BizOps began as a small company and has since grown to become a national store. It now
has over 150 retail outlets around Australia. It sells a wide range of products in Australia
under the BizOps moniker. BizOps is known for its friendly and energetic culture. Customers
benefit from the company's high-quality, innovative products and services.

Despite the fact that business has been well, management is always on the lookout for
potential threats, especially in light of the situation over the last three months. During this
time, the firm has been touched by significant global, national, and organizational events.

Context:

Five major suppliers of our best-selling product line have been punished on an international
level for using dangerous or prohibited ingredients in their products and damaging the
environment through unsustainable manufacturing techniques. Certain Asian suppliers have
been disrupted by floods, causing the manufacture and delivery of a number of top-selling
lines to be halted for the past three months. This has a bearing on online sales.

Consumers in Australia are spending less as a result of the uncertain global financial
situation and speculations of government tax increases that will diminish their disposable
earnings. In addition, current political uncertainty has arisen as a result of leadership issues
and allegations of corruption. As a result of these issues and the next federal election,
customers, businesses, and investors are taking a wait-and-see strategy. Because federal
consumer protections went into effect in 2011, all states must catch up, especially as
consumer awareness of rights like the product safety legislation expands.

© Aspire Training & Consulting

Document date: April 2015
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Risk management plan template

Identification and analysis

Grade Level of likelihood

A Expected (will occur regularly)

B Probable (will occur at some stage)

Risk likelihood legend

C Possible (could occur)

D Improbable (could occur but unlikely)

E Rare (may occur but in limited situations)

Grade Level of impact

1 Insignificant

2 Minor
Risk impact/
consequence legend
3 Moderate

4 Major

5 Catastrophic

© Aspire Training & Consulting

Document date: April 2015
Page 2 of 5

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Risk management plan template

Risk categorisation matrix

Level of Level of impact

likelihood
1 2 3 4 5
(Insignificant) (Minor) (Moderate) (Major) (Catastrophic)
A (Expected)
Medium Medium High Extreme Extreme
B (Probable)
Medium Medium Medium High Extreme
C (Possible)
Low Medium Medium High High
D (Improbable)
Low Low Medium Medium High
E (Rare)
Low Low Low High Medium

Risk categorisation table

Priority Risk Likelihood Impact Level of risk

1 Corruption allegation Possible High Major

2 Uncertainty regarding questions of leadership Possible High Major

3 Hazardous or illegal substances are Possible High Major

employed in the products of suppliers.

4 In the past, there were information and Possible High Major

warehousing/logistics systems.

5 Uncertainty regarding the state of the global Possible High Major

economy

© Aspire Training & Consulting

Document date: April 2015
Page 3 of 5

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Risk management plan template

Risk control/treatment

Activity: Risk Control

Risks
Allegation of corruption;

Uncertainty over questions of leadership;

Hazardous or illegal substances are used in the products of suppliers;

In the past, there were information and warehousing/logistics systems;

Uncertainty over the state of the global economy.

Control measures/ Control measure Strength Weakness
treatments
Look for new supplies and Improve the company's Expenses incurred as a
make a comparison of public image result of contract
three different offers. negotiations and the
logistical process

Purchase of a new Improve the company's There is a lack of trust in

supplier public image new partners due to the
short-term nature of the
connection.

A more environmentally Boosting customer When it comes to

friendly product option satisfaction deploying ecologically
tested things, time is of the
essential.

New technology systems Boosting customer Costs associated with

include information and satisfaction software/hardware, and so
warehousing/logistics forth.
systems.

Establish guidelines with Improve team confidence Reduced time to

leaders with the board implement the measure
Impact of risk/s on
These risks can have a major impact on the company's reputation as well as
areas outside your
customer satisfaction with its products.
responsibility
Personnel involved
Risk management is the responsibility of everyone on the BizOps team, including
directors, managers, employees, and suppliers.
Expected outcomes of
Improve the online purchasing system at BizOps.
risk treatment plan

© Aspire Training & Consulting

Document date: April 2015
Page 4 of 5

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Risk management plan template

Implementation plan:

1. Make necessary changes to the structure and procedures.

2. Employ proper risk assessment tools and a risk classification system that everyone
understands.

3. Conduct risk assessments and set risk guidelines.

4. Determine risk likelihood and risk tolerance levels by evaluating existing controls.

5. Make a list of all processes and document them.

6. Train your personnel on a regular basis.

7. Internal auditing should be a part of the process to ensure that the management system is
correctly implemented and maintained and that it satisfies the demands of the organization.

8. Hold follow-up meetings and offer process improvement suggestions.

© Aspire Training & Consulting

Document date: April 2015
Page 5 of 5

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[student name].......................................................... [id].................................... [date]..................