Manage Risk Essay

First of all, the aim of business is increasing of income. They should consider how to maintain existing regular income and to increase new revenue by the expansion. When the business is expanded, they should have enough research and money. The expand looks dangerous. For the safety, they need life guards who are strong swimmers and helpers to control houseboat in high winds. It has many interceptive problems for the expansion like climate and noise. For the success, they need equip tent, beach parasol and soundproof walls. Before making an investment in the expansion, they should consider with the profitability. ASSESSMENT TOOL 2 In Australia, federal and state laws protect you, your business and your customers from unfair trading practices and mishandling of personal information. These laws, together with industry codes of practice, help to ensure that your business operates fairly and competitively and that all consumers are adequately informed and protected. In tort law, a duty of care is a legal obligation imposed on an individual requiring that they adhere to a standard of reasonable care while performing any acts that could foreseeably harm others. It is the first element that must be established to proceed with an action in negligence. The claimant must be able to show a duty of care imposed by law which the defendant has breached. In turn, breaching a duty may subject an individual to liability. The duty of care may be imposed by operation of law between individuals with no current direct relationship (familial or contractual or otherwise), but eventually become related in some manner, as defined by common law (meaning case law). Duty of care may be considered a formalization of the social contract, the implicit responsibilities held by individuals towards others within society. It is not a requirement that a duty of care be defined by law, though it will often develop through the jurisprudence of common law. Assessment tool 3: project Part1 Current risk management These are the three ways to control the risk of any loss: Insurance Loss prevention Contingency planning Nearly every warehouse operator has insurance. You need to recognize the significant differences in liability among logistics service providers, common carriers and wholesale distributors scope The place where raw material and/or finished goods are stored is referred to as warehouse or store. Generally, warehouse is structure or building design keeping in mind raw material and finished goods it is going to store. Therefore, warehouse management should be able to: Receive the purchase goods and entered upon the stock register. Inventory Accounting of raw material, work-in-progress or finished goods. Preservation of the inventory Ability to access goods whenever called upon. Appropriate record keeping through coding as to preserve goods and reduce obsolescence. Proper stocking of goods as ensure smooth handling. Political environment The political environment is a key component of the business environment that dictates greatly on the success of your home business. What happens in the politics of your country as well as that of other countries influences a lot your home business. Usually, the term political environment is used to refer to the nature of the political situation in the country where you are doing business or where you intend to do business. Economic climate A general characterization of the overall mood of the global economy or of a regional economy, which captures the status of the stock market, the perception of the economy by consumers, and the availability of jobs and credit. Business decisions such as hiring, borrowing, lending, and investment in new initiatives are often strongly influenced by the overall economic climate. Social Factors We all live in either a multicultural or self society so this means there are many factors that affect or direct our lifestyle. These factors are called social factors. some important social actors are: 1. Religion 2. Ethnicity 3. Family 4. Physical attributes 5. Economic Status 6. Education 7. Locality( Location) 8. Life Partner and children 9. Political System Legal factors Legal factors relate to new laws or directives governing how businesses behave. This can be in relation to other businesses, customers or the environment. For example, it is essential that all agricultural products are used safely. Syngenta seeks to meet and exceed the requirements of local and international laws for all the countries within which it operates. Policy context Climate change is a complex issue and responding to it requires the planner to navigate the rapidly evolving landscape of information, advice, policy and legislation. By providing context and background, this section of the toolkit will help you make informed decisions about developing and implementing policy in this area. Critical success factor (CSF) is the term for an element that is necessary for an organization or project to achieve its mission. It is a critical factor or activity required for ensuring the success of a company or an organization. The term was initially used in the world of data analysis, and business analysis. For example, a CSF for a successful Information Technology (IT) project is user involvement. Stakeholder 1. Accountable – some stakeholders are accountable for the success of the entire project or a particular phase of the project, generally they are the departmental or divisional managers or; 2. Responsible – some stakeholders are responsible for the deliverables, generally they have been charged by management to provide a definitive outcome from the project; or 3. Consultation – some stakeholders are used as consultants like an Subject Matter Expert (SME); or 4. Informed – some stakeholders need to be kept informed, generally management who needs to know where their investment dollars have ended up or external parties. Stakeholder Internal Stakeholders Board members Former board members Staff members Former staff members Volunteers Former Volunteers Donors External Stakeholders Clients Community partners Members of groups served by our organization who are not accessing our services Leaders of color from nonprofit, public, or private sectors Stakeholders do not need to know everything about the technology or even the application. A high level overview with the understanding of what is being  delivered is sufficient. What stakeholders need to provide is a positive energy charge to lead the organisation through this project. Working with such stakeholders will provide the project with a boost of confidence knowing that the stakeholders are enthusiastic about this project. Given the right stakeholders in any given project, the success rate of the project will be much better than having stakeholders with judgemental bias whereby these stakeholders will reflect inappropriate reasoning compared with best practises as provided by the implementation team. This is a crucial step in applying the risk management process. Like many aspects of risk management, the identification of significant risks is often subjective and reliant on personal experience and judgement. For this reason, several heads will be found to be better than one during this phase of the process. It is therefore important that relevant operational staff be closely involved in identifying and/or confirming significant risks under each source category. PART 2 STRENGTHS The strengths listed below were identified in the business: The managing member of the business is committed, dedicated and passionate about providing warehousing and distribution services. The creditworthiness of the business owner The knowledge and skills demonstrated by the member The business has done a study of the market and identified potential customers for their business WEAKNESSES The identified weaknesses for ExpressX Warehousing and Distribution (Transportation) Services are as follows: The lack of highly specialized warehousing and distribution expertise within the business The lack of funding to source highly specialized technology is a weakness for the business The lack of a comprehensive marketing plan and strategy is another weakness The small workforce capacity may result in the business loosing out on lucrative warehousing and distribution opportunities OPPORTUNITIES There are numerous opportunities for the business in terms of Government assistance. The business is open to assistance from agencies such as Small Enterprise Development Agency, The National Youth Development Agency and many others Broad Based Black Economic Empowerment presents great opportunities for ExpressX Warehousing and Distribution Services There are opportunities for South Africans to export products. This may bring about a market for warehousing services as some goods need to be stored in a reliable warehouse prior to being exported The opportunity presented by SETA could open better avenues for learnership and development in the business Other opportunities include the growth in middle income groups as well as the increase in double income families THREATS There is a threat from well established competitors that have a solid goodwill The threat attributable to changes in the preferences and tastes of consumers The threat from substitute services The threat from new entrants as the barriers of entry are not too cumbersome Risks Description Mitigation of risks Finance risk The financial risk is observed from the fact that the contribution to be made the owner is considerably less as compared to the required outside borrowings that are to be sourced from banks in form of a loan. The business owner will retain at least 60% of the profits into the business. This will be done in the first year of operations so as to mitigate the risk within the short term. Market risk The market features well established competitors and therefore ExpressX Warehousing and Distribution (Transportation) Services will have to compete for market share. The market risk may also surface from the fact that most manufacturers, wholesalers, retailers and other parties likely to utilize warehousing services already have in house warehouses and handle their own distribution. The business will seek assistance from small business support agencies such as the National Youth Development Agency for assistance with a comprehensive marketing plan and strategy. The marketing plan and strategy will help the business compete with greater strength and position it to attain a greater customer satisfaction rate. Human resource risk In terms of human resource, the risk may be a result of the business not being able to recruit the right employees and retain quality employees. High quality employees may prove to be costly to retain. The human resource risk will be mitigated by actively pursuing learnership and development activities. The business will seek assistance from SEDA for skills development. Operational risk The business might have capacity and equipment constraints as some goods for storage require special storage facilities. There may also be a risk of not being as efficient and effective due to lack of advanced logistics software and other technologies. The business will in the initial stages focus on storing merchandise that does not require specials storage facilities and then pursue advanced storage facilities at a later stage. The business will strive to source affordable support technologies. Part 3 What are the hazards? Who might be harmed and how? What are you already doing? What further action is necessary? Slips, trips and falls All staff may suffer sprains or fractures if they trip over debris or slip on spillages. Flooring kept dry and quality maintained. All staff trained to maintain good housekeeping standards and ensure stock does not project into gangways. Cleaner empties bins and removes loose debris daily. Pallets stored safely in designated area. Protective non-slip footwear supplied and worn. Suitable absorber to be made available for liquid spills. Staff to be trained to clean and dry any spillages immediately. Extra bins to be provided for waste material near loading bays. Operation of lift trucks Injuries such as fractures or, at worst, fatalities can be caused as a result of: the vehicle crashing into other vehicles and/or other objects; staff and visitors being hit by lift trucks; objects falling from lift trucks onto staff and visitors; lift trucks toppling over; people falling from the vehicle or parts of the vehicle; and being crushed by the mast All operators trained and competent for use of the lift truck. Trucks serviced regularly and examined by suppliers every six months. Drivers instructed to keep keys with them at all times System in place for refresher training of drivers. Gangways and aisles of sufficient space to enable lift trucks to load and unload from the racking safely. System in place to keep vehicles and pedestrians separated. Access to warehouse restricted to staff. Floor condition maintained on a regular basis, housekeeping standards maintained by cleaner and workforce. Warning signs located around the traffic route. Trucks have seat belts and roll cages. Supervisor to ensure truck drivers check trucks each day before starting. Separate pedestrian entrance(s) with protective barrier rail to be provided next to roller-shutter doors. Housekeeping standards and floor condition to be covered by a monthly inspection by manager and brief record kept. Strict requirement that only competent drivers may operate lift trucks to be explained to all staff. Disciplinary action to be taken against anyone involved in breaking this rule. Falling objects From racking and during movement A member of staff or any other person in the warehouse may suffer serious injury if struck by a falling object Racking is designed to be suitable for the loads carried and has not been modified. Staff report any damage to racking immediately. System in place to make sure defective pallets withdrawn from use immediately. Protective footwear used by all entering warehouse. Protective gloves provided to handle pallets. Sign fixed to racking stating maximum loads/configuration. Hazardous substances Vehicle exhaust fumes The fumes may cause staff eye irritation and respiratory irritation. Number of vehicles delivering materials is relatively low and exposure very limited; this prevents build-up of fumes. Drivers not allowed to leave vehicles’ engines running in warehouse. Roller shutter doors and warehouse windows open, where practicable, to assist ventilation. No further action required. Bleach and cleaning fluids Direct skin contact could lead to the cleaner getting skin irritation. The vapour may cause the cleaner to have eye irritation or breathing difficulties Cleaner made aware of safe procedures. Rubber gloves used. First-aid facilities (including eye wash) are readily available. Investigate availability of safer alternatives for cleaner. Recharging of forklift truck batteries – potential explosion by release of hydrogen, spillage of acid Burns or fractures from material ejected could affect any worker nearby at the time Batteries charged in designated bay that is well ventilated. Safe system of work used which includes provision and use of goggles and gloves. Potential sources of ignition controlled. Supervisor to monitor and ensure protective equipment is being worn. Falls from height Staff could suffer severe or even fatal injuries if they fell whilst climbing racking All staff are given strict instructions never to climb racking – monitored by supervisors Part 4 Suitable absorber to be made available for liquid spills. Staff to be trained to clean and dry any spillages immediately. Extra bins to be provided for waste material near loading bays. Supervisor to ensure truck drivers check trucks each day before starting. Separate pedestrian entrance(s) with protective barrier rail to be provided next to roller-shutter doors. Housekeeping standards and floor condition to be covered by a monthly inspection by manager and brief record kept. Strict requirement that only competent drivers may operate lift trucks to be explained to all staff. Disciplinary action to be taken against anyone involved in breaking this rule. Sign fixed to racking stating maximum loads/configuration To identify the hazards The manager then wrote down who could be harmed by the hazards and how. For each hazard identified, the manager recorded what controls, if any, were in place to manage these. She then compared these controls to the good practice guidance laid out in Warehousing and storage: A guide to health and safety and Essentials of health and safety at work publications. Where existing controls did not meet good practice, the manager wrote down what further actions were needed to manage the risk. Putting the findings of the risk assessment into practice, the warehouse manager decided who was responsible for implementing the further actions and when it should be done. She wrote this down and when each action was completed it was ticked off and the date recorded. The warehouse manager discussed the findings with the safety representative. They decided to review and update the assessment at least annually, or at any time when major changes to the workplace occurred. The warehouse manager gave out copies of the risk assessment to all members of staff.