- As a workplace activity (or simulated workplace activity) review your current risk management policy to ensure it is appropriate to your current organization’s risk management needs. As part of your review, you should:
Identify the main aspects and how this is used within procedures
How others follow current policy and procedures and how easy/applicable this is to needs
Write a report to show your findings and/or conclusions.
Boral Limited is manufacturing the construction material. This organization serves 25000 employees and contractors. An organization faces the number of risk at the time of building their reputation in the market or in the industry. They must follow risk management procedures to make them safe from internal or external risk. These are some methods:
Prepare for a long time: Organization faces the number of issues throughout the time. Maybe the possible case an organization found the losses. That time they change their strategies or mould in the path where some costiveness are there. Boral’s faces number of issue in their journey but they were never let them down.
The good relationship with the investor: Boral Limited having their good relations with their investor. As they display their investor’s information on their website by which any issue faced by the customer they directly contact the investors as well.
Protect company assets, employee, reputation, knowledge: This is a large resource-based organization. They work for their reputation and providing well service globally. Maintain their strong relationship with the customer by which they provide their services to life-long.
Other organizations have some different policies which create for competes in the market with other organization. A company makes their strategies for avoiding risk by the other organization or some other market issue. Risk Management is the need of any organization to overcome future risk. Boral Limited has good strategies which are applied from so many years and these strategies easy to access for standing in the front of the competitor organization.
Conclusion: As from the above study, this study concludes that Boral Limited having good policies of risk management. It improves their strategies, policies, and regulations throughout the time According to the time need will change, Boral makes their product on the basis of requirement. This is the reason Boral Limited stand in the market with their 700 operating sites.
2) Following on from question 1, perform an analysis of the risk assessment tools and technologies available for use by those in your organization and produce a second report to show your findings
Boral Limited executed a framework to evaluate the risk management of their company. In this framework, all the product risk can be evaluated and assessed. The natural change also identified the risk also in this organization they identified the geographic condition which applies to the risk management approach.
Under the member of board directory and superior management, these tools will use because they are responsible for their future risk in material, employee issues or investors. Annual report of the organization also become a tool of risk management analysis of company because it displays the effects of current if it is properly working or the organization was not facing any issue in the last year. Those strategies are in the list of risk management of the organization but if there are some negative, that time organization should change their strategies for improving the quality of the organization. Risk management will be operated by review and report. This organization gives assurance to execute management, investors group. In the time of technology, Boral used technology method to take their review and report by the surveying from the customers. Nowadays, the survey does not need to take from door to door By the help of online they survey what the issues are facing by their customers and work on to resolve on the basis of the problem.
Boral’s methods are effective risk management and it meets from the Global Risk Management Standard ISO31000. These effective strategies make a successful organization in the industry who achieves their goal in the proper manner.
3) Consult with your relevant manager/stakeholder to discuss your reports in order to confirm understanding and to discuss the need for any changes (if applicable).
Risk management strategies will not do by a single individual. It works when the manager or the investor will allow making them a strategy for their organization. The organization runs by the investors and customers. So, every strategy should discuss with the manager first and then with the investors. When the report will generate it will be confirmed with the same people again because they are the one who needs to answer if there any risk will be faced by the organization. Risk management strategies and their resolving tools are mentioned in the correct manner. Boral’s Limited generates their report after a specific interval of time. This report shows that current issues, rules, turnover or gross profit of the organization.
If the respective reports of the organization need some changes or something which missed in the report. They will add on the list and update accordingly. Stakeholders recheck the report again and analyze their information are properly mentioned or not. The rules or regulations are mentioned truly which really followed by the organization because the report is the written document published by the organization. If there are some untrue facts, that will be a part of the legal document to prove them wrong. So, any report will be finalized when the relevant manager or stakeholder will analyze that.
- What are risk management standards and what are the key elements of these?
Risk management standards mean it is set of specific strategic processes to begin with objectives and hopes of an organization, it works is identify the risks and reduce these risks with the help of methods, techniques, solutions. The Boral limited company find out many risks are arising they are Boral material business risks, and also find out decision-making process is reduced when task are comings.
So the company decides to make standards designed it with the help of numbers of agencies, who are working with each other’s to promote the goals, it will help to the organization to manage high-quality risk.
The standards help and guide to the organization with the help of risk management is carried out in a proper systematic way, it is easy for Boral organization to comply. The company purpose for the risk management standards is to provide an international consensus on how to deal with others, and also helps to implement the strategies which are tested, practiced for decide to work. Risks faced by the Boral limited company managed on an enterprise-wide basis. Boral improves their ability to meet with their objectives, organization apply risk management so that all material risks can be identified, assess then reduce relevant facts and figures.
The key elements of Boral’s portfolio of their businesses are:
The Boral company objectives to reduce the risks and managed with systematic and proper way, they are as follows:
– Identify the risk and aware about it which is supported by standards of accountability.
– Achieve integrated risk management approach
– Safety, security, of company assets like property, reputation, information.
– Building the organization sustainable for the long term.
– Enhancements of shareholders values, improving their confidence as well as their trust.
– Built organization efficiencies, empower the board to fulfill its governance and also what are their requirements.
2) For your organization, describe the legislative and regulatory needs to fulfill risk management
Boral company limited describes the legislative and regulatory needs to fulfill risk management decision to focus on their stakeholders that must be taken into the risk management process. This is essential and special to the environment or human’s life is at risk. Boral company describes the legislative and regulatory requirements they are as follows:
-The environment, disasters, and emergencies, health and safety, privacy, employment opportunity, legislation dealing with all these factors. So the company decides to focus on these factors and evaluate the regulations and follow legislative norms.
The other factors included in Boral company legislative and regulatory requirements are:
Business permits, land planning, traffic management, safety standards, community interaction, operating procedures, management procedures of Boral industry. Key business risk will be identified and give ranked in a consistent manner by divisions and the corporate-wide basis by Regular methodology is used. The previous year shows some scenario of legislative and regulations of these factors are:
– The Boral limited needs to focus on their sustainability governance so they know how they govern, their approach by effective governance structure, constructive with their stakeholders and show pure, accurate report on their material issues. The company board maintains external issues as well as their internal issues by focusing on these topic reports. HSE committee (health, safety, and environment) focuses on leadership, and give their support of the project of their management.
– The managing director and CEO are accountable for the management of sustainability issues, mistakes, and the responsibility is under Boral’s executive committee.
– Every Day-to-day responsibility for sustainability rests with line managers and fix by Boral’s Group and business-level strategies.
– Company assurance there functions which included some factors they are: internet audit, security, the safety of their information it plays an important role in the effectiveness of Boral’s compliance and maintains, control systems with risk management.
– Boral’s assurance function, including Internal Audit, plays a key role in reviewing the effectiveness of Boral’s compliance and control systems, including risk management.
3) What do organizational policies and procedures for risk management provide
The policy is a course of action, guidelines to be followed and the other hand procedures are the essence of the policy which outlines what is done to complete the policy. Policies establish guidelines, best practices, and boundaries at the business. There are many policies of Boral limited organization they are as follows:
Code of business conduct, health and safety policy, quality policy, risk management policy, environmental policy, diversity policy, stakeholders’ communications, continuous disclosure policy, and share trending policy. Organization policy guidelines formulated or adopted by an organization to reach its long term goals and achieve the objectives which are beneficial to the organization. Policies allow communicating to their employees the way the organization expects them according to their job position. Procedure for risk management is defined by these following points they are mentioned in below:
-The company identifies what are their risk factors which are created in their organization then analysis it and give ranked in a consistent manner by divisions and prioritize bases.
-when identifying the problems then find out what major key factors which increase the level of risk problems and fix these issues.
– The risk analysis is done by the board directly and via the audit committee, and managing directors.
Other steps are an evaluation, implementation of the risk of external as well as an internal control system to manage the Boral’s compliance.
The last step is to risk treatment then monitoring, controlling and take actions towards the risk reduction and provide safety for the organization.
Figure: Risk Analysis
Source: By Author
1. As a workplace activity (or a simulated workplace activity) perform a risk assessment of one area/aspect in the workplace, this should include:
- Using a risk management process
- Identifying the objectives of managing the risk area
- Gathering information from a variety of sources
- Considering any political, economic, social, legal, policy, technological factors applicable
- An analysis of the relevant stakeholders involved
- Determining the risks
- A look at current treatments/processes in place
- The critical success factors that can help achieve objectives.
The risk assessment of the organization will be done by evaluating if they are following risk management steps in the sequence.
These steps are the following:
- Context establishment
- Find out the risks
- Evaluate the risks
- Estimate the risks
- Work on the risks
- Resolve and review
Risk assessment main objective is to analyse the area where these risk factors affect. The area will be the reputation of the organization if risk affects that and company not resolve on the time. It affects the quality of material if the suppliers take risks from the supplier and sale to their customer. It affects the employees of the organization if the organization takes that risk and not getting the estimated rate of profit. It will be directly affected on the employee of the organization in their salary their work hours will increase. Boral’s collects the relevant information from the number of sources and take reviews from it. The sources are like a newspaper, online assessment, survey, questionnaire, customer reviews or their feedback.
Risk assessment of Boral’s Limited considers all the political, social, legal, technologies factors. This factor may be the increase or decrease the risk as well. In this assessment, the risk will be analysed by the relevant stakeholders or the investor who verify the details mentioned. The risk not only affects the organization reputation also affects the investor in terms of money. They invest their capital in the respective organization by concluding their previous records. The focus of this evaluation is to look at the current resolving tools or technology. These tools resolve the current risk or will be work on future risks.
The effective risk management assessments are creating the correct thing with respect of related process. The Critical risk assessment reduces the effect of risk on the organization. There are some critical success factors into leadership, culture, structure, roles, and responsibilities. These factors are evaluating the success of risk management. It helps in achieving the respective goal of the organization.
- Following on from your initial information gathering and analysis, consult with the relevant stakeholders to discuss and determine the risks, the likelihood of these occurring, the consequences of these, and to formulate risk treatment plans. You should also inform them of the risk management process.
After gathering or collecting information and evaluation, discuss with their respective investor to determine the risk and also analyse the cases or the issues they might face in the future. The consult investor tells the manager is the information is correct or not. The organization will always discuss their approaches with the investors because they are who invest in the organization material in the form of product or capital. It can also be said they help the company in terms of economic, socially or political terms.
What the possibilities of risk they may are arises like in the Boral’s Limited investors invest in the raw material of construction so they will analyse the climatic condition, market situation, and political issue. By the help of these strategies, the stakeholder will invest their capital. Everybody wants to earn a profit in the industry. If some risk will find out or they analyse at the time of assessment they will keep the resolving tool as well. Risk assessment by the investor is valuable for the organization for building their future projects. Every organization will need to make relation with their investors or stakeholders.
Boral’s investor work with them from years, not because they are having a good reputation in the market. It is because they maintain their loyalty and trust with them.
Stakeholder will analyse the process from the very depth. This knowledge will not come automatically this information or relatable knowledge comes from their past experiences, the steps of any particular concepts, survey etc. After following the risk management process and finding the risk in the following management strategies. It needs a tool or treatment plan which formulates the risk. The effect will need to be reducing or resolve the risk completely. This is not possible to change all the strategies after finding some risk. The better option is to create treatment plans according to the risk. Treatment plan includes additional strategy or reducing current strategy that will create some mismanagement in the risk management.
- From questions 1 and 2, develop an action plan to treat the risks and implement this. You should monitor and evaluate this over a period of time (as decided with your trainer/assessor) and complete your reporting and recording requirements to document your work to organisational requirements.
Boral limited identify their risks by the sample of various activities and location they find that which areas are highly affected and which areas are low affected, the chart shows there wider image mentioned in below:
|Routine plan operations||2||Low|
– The above chart shows what actions are required to reduce the risk of issues, in the transport roads and unseal haul roads require to decrease the risk of what issues are affected to these locations and what are the major issues are coming to fix it as soon as possible.
-The other action done by the organization is on the crashing/grinding operations area because its risk shows higher in a risk management scenario. The company identifies and focuses on those machines that create problems, and those parts that is damaged, stand on risk and adopt effective techniques who do work with full efficiency with their great efforts.
-The actions done by the organization with focusing on the safe environment is reducing the wastage in all forms like conservation of water, effective use of electricity, prevention of pollution, appropriate use of fuels, increase the use of the greenhouse, protect and enhance biodiversity values which are surrounded the facilities.
-Boral also monitors and evaluate that with their stakeholders problems, issues, health and safety solutions and do implementations with discussing and communicate shareholders and the financial community so the Boral successful achieve their goals and objectives.
-Boral controls their risk management system by the use of effective techniques, unique features of the mechanism will be applied on their rules and regulations and implement the risk factors and fix it. Ensuring employees are informed in advance of events that will impact them directly and the company as a whole.
- Wissem, E., 2013, RISKS MANAGEMENT:NEW LITERATURE REVIEW, POLISH JOURNAL OF MANAGEMENT STUDIES vol.8
- Aven, T., 2015, Risk assessment and risk management: Review of recent advances on their foundation [Online]https://www.researchgate.net/publication/290010068_Risk_assessment_and_risk_management_Review_of_recent_advances_on_their_foundationresearch gate [Accessed on: 29january2019]
- Jovanović,F., Milijić,N., Dimitrova,M., Mihajlović,I., 2016, Risk Management Impact Assessment on the Success of Strategic Investment Projects: Benchmarking Among Different Sector Companies, Vol. 13, No. 5, 2016
- 4.Koloosterman,V.,2018, [Online]What are the 5 Risk Management? ,Availabale at: https://continuingprofessionaldevelopment.org/risk-management-steps-in-risk-management-process/ [Accessed on:29 January 2019]
- Boral,2018 [Online] Media and Investors Contact, Available at: https://www.boral.com/media-and-investor-contacts [Accessed on:29 January 2019]
- 6)Park,K., Lee,S., and Ahn,Y.,2016, Construction Management Risk System (CMRS) for Construction Management (CM) Firms, future internet, pp-2 to 5