Managing the Risks of Organizational-Free-Samples -Myassignment

Question: Prepare a report that Identifies four risks faced by SSL. Explain why each is a risk, that is, what is the Potential Negative outcome that could occur? Answer: Introduction Suite Success Private Limited is regarded as a company in Canada having its headquarters at Winnipeg. SSL construct and design MRI suites but the company consists of a team of designers and engineers, who would create a functional space where the clients would deal with these MRI machines. However, the company is facing certain risks in terms of its business level operations. Therefore, it is important to identify the risks involved and repair them accordingly. Risks involved Strategic Risk: The business in Suite Success Private Limited initially made a business plan and it did not come to use. It involves Strategic Risk, where the strategy of the company is becoming less effective as the company depends upon the testimonials from the customers and its cost for designing the MRI suites is high (Pritchard et al 2015;Reason 2016). Therefore, the company is not following strategic business plan, which might led to its failure in a long run. Compliance risk: The businesses of Suite Success also involved compliance risk such as, the MRIs of the company are sold all over the world, however, the risk involved here is that the company has not properly judged the changing rules and regulations of the other countries. For example: Europe might have adopted stringent rules, the company did not comply with the rules of tax and local accounting. This also is anyway increasing the cost for the business. Financial risk: Financial risk is considered one of the important risks in terms of extra costs involved. The state of financial risk is referred particularly to the flow of money out and in business and the sudden possibility of the loss in finance. SSL accordingly, is not having enough capital to maintain its present level of operations due to the cost increase in the designing customs. This has lead to the reduction in the companys sales. This financial risk, if it continues, can take a dangerous shape in future and might lead to the fall of the company. Reputational Risk: If the reputation of the company is damaged then the firm would witness a huge loss of revenue. The employees working in the company become demoralized and this increases the rate of turnovers. The company might find hard to hire potential candidates as good replacements (Hull 2012). Reputational risk involved the embarrassing recall of the products. Therefore, the company accordingly needs to function properly to retain its global reputation. Managing risks It is significant for the company to identify the risk in the beginning by creating the recovery plan, which incorporates back up, as well as the plans, which involves to give alerts to the employees of the company about what is going on. Accepting the risk: The SSL must accept the risk that the company has identified and decide to deal with the risks. Avoiding the risk: The company can also change plans to avoid risks. The company can welcome good investors across the world to invest in their company and accordingly it can well attract the media. The company can also participate in the trade shows for the media attraction. Therefore, the company can better avoid testimonials from the customers. Transfer of risk: The company is spending too much for the custom design and this in turn increasing its cost, which is affecting the cost of operations of the company. In order to avoid this, the company can hire the designers from the third party in order to reduce cost (Reason 2016). Mitigating the Risk: The sales person of the company needs to understand the product and need to give demonstrations. The sales people are needed to have idea about the product that the Canadian company looks forward to sale (Sadgrove 2016). Therefore, in order to increase the sale, the company can arrange training session for the sales person in order to make them effective. Exploiting the Risk: As the financial crisis in the company can bring down the business, it is important for the business to accept, avoid, transfer and mitigate the risk as the risks can have a negative impact on the future project of the company. Conclusions It is significant to have a risk management plan in order to frame out the objectives that the company must achieve in order to secure their position. It is important for the organization to take into account not only the testimonials of the customers, it is rather important for the organization to increase the participation of mass media. The company must employ potential employees for the better servicing and must follow the strategic objectives to make its financial base stronger. For these the five options are seem to be logical, as it is a systematic control of the risks that are being recommended to the company. Strategic and financial risks are the main components of the business and they are necessary to be mitigated properly before the risks take a dangerous shape References Hull, J., 2012.Risk management and financial institutions,+ Web Site(Vol. 733). John Wiley Sons. Pritchard, C.L. and PMP, P.R., 2014.Risk management: concepts and guidance. CRC Press. Reason, J., 2016.Managing the risks of organizational accidents. Routledge. Sadgrove, K., 2016.The complete guide to business risk management. Routledge.