Evaluation of the Strengths and Weaknesses of the Risk Management Planning Process in Tesco PLC - Case Study Example

ntеrрrisе Risk Маnagеmеnt Name Institution Course Tutor Date A reflective evaluation of the strengths and weaknesses of the risk management planning process: Description I was involved in a group that had the responsibility of risk management of Tesco PLC, which had issues associated with profit decline and poor financial performance. I worked with four men in a group of five where I was the only woman. We begun by making a list of all the risks for the Tesco where we categorized those risks according to how they relate with each other. We then divided those risks into five area and everyone had the responsibility to make analysis of the risks. We identify that the risks of this supermarket are identified through PEST and SWOT analysis, which is the ‘Economic, Financial, Information technology (IT), Operational, Political & Legislation, and Strategic risks’. In the team, we also noticed that quantification of these risks depends with the occurrence likelihood and the effects they have to the supermarket. Later we combined all the risks in a single register table, wrote an introduction to the report, and rated the risks from the table. Rating of the risks was done by assigning scores to every risk, its likelihood to occur, its impact to the supermarket, and the related mitigation strategy. We worked together as a team from the beginning to the end of the project. After the project, I had some time to put together all the findings and come up with a concise and clear presentation. Word count: 229 Feelings When we were beginning, I felt it being odd to work among four men and I was the only female. I was also worried because this was a practice that I had never conducted and working with experienced people made me to be tensed. I was aware of how the supermarket was operating and this enabled me strongly participate in the group. Being selected by the group to make the final analysis and provide the findings to the Tesco management made me feel nervous, but the team members were supportive and encouraging throughout the process. The team concentrated on the strictness of the penalties and policies set in reduction of risks associated with fraud and emphasized on reviving the methods we used to perform our tasks, thus making me gain more skills. I was very happy because of the experience I gained by engaging in research, which strengthened the process of risk management planning since we would be able to understand the direct problems and ways to deal with them effectively. The fact that we required covering three areas by the Tesco’s risk appetite, I gained more confidence because these were areas I knew better. We managed to use a different strategy to do global business, which enabled us to deal with risks associated with capital investment. This made me feel appreciated because the team recognized my effort of ensuring that the supermarket met all the authority requirements and rules of running global business. We divided the surveillance activities and since the supermarket uses CCTV to conduct its theft, fraud investigations, we were able to conduct the practice at all corners of the supermarket, thus making me feel relaxed. When we were finalizing the risk management planning process, I felt satisfied because I had gained enough experience and it was possible for me to provide the findings. The findings were effective in making the supermarket change its performance positively and this made me have more confidence with my ability and knowledge. My confidence and belief in my capability made me benefit from a job opportunity from the supermarket because I was efficient to their success. Word count: 355 Evaluation Majority of the workers who has some attitude towards us did not appreciate us being involved in risk management planning process of Tesco Supermarket. We had to take some time in the supermarket because improvement of the risk management planning process would enable the supermarket to improve its business. It was challenging to deal with all the encountered risks at the same time, but as a risk management team, we require being dedicated to our work in order to have some improvements. When we were conducting investigations and research concerning the sources of the risks, I faced hostility from the staff. Going through every risk at a time and interacting with members of staff made us to have hard time in some departments. In this team, applying advanced technology in various activities would allow the supermarket to realise success in its risk management process, but we faced problem of shortage of time Lack of enough and experienced personnel in the ream and shortage of time made the effort of dealing with the supermarket’s risks fruitless in some departments. We worked even late hours as a team and with some management team members because some financial problems required being solved through collaboration with other departments because all departments have connections with the finances of the supermarket, but not only the accounts department. In addition, our relaxation as the risk management team would result into more problems and the effort of reducing the risks faced by the supermarket might not be effective. The risk management planning process was effective because we worked together as a team and we were able to identify upcoming problems and solve them on time. We could make investigations to the source of the problems we encountered and this made our effort successful. Word count: 295 Analysis When conducting the risk management we were engaging in a timely research and could understand the major source of the risks faced by the supermarket. When conducting the risk management planning process, we were careful because it is aimed at allowing the supermarket to improve its operations and to have a better reputation, as well as improving its financial performance. To my team’s opinion, the experience of risk management is efficient because it enhanced me to understand some of the issues faced by supermarkets and the ways of dealing with them for effective business. The process improved my ability to treat customers well in a way that would retain them into the supermarket and how to handle the suppliers. Undertaking of an effective process of risk management planning would allow the supermarket to improve its business globally. This process enabled us in the risk management team of the supermarket to have easier and manageable time when conducting different operations. The risk management process revealed that, the supermarket requires more expertise in managing all the risks because the supermarket is big and run at many places. We understood that the handling of finances and attachment of prices on products required the management of Tesco supermarket to consider the opinions of the customers and other stakeholders because they are very essential in its operations. It is clear that running global business have to involve diverse employees, customers, and suppliers, thus the need of being very considerate when setting the interest rates and the profit margin of the financial activities. The risk management planning process required us to involve strict understanding of the tax planning because tax risk is among the major risks faced by the supermarket and assets require being safety and care when being handled by many people. Word count: 297 Conclusion Our aim was to have effective risk management planning process at the Tesco Supermarket. It would have been better if we considered the opinions gotten from the stakeholders. I was motivated by the fact that the supermarket was cooperative in its conduct of activities and this did not give us hard time when conducting its investigations. I am certain sure, that it would have been more effective if we dealt with each risk at a time and if we conducted the risk management planning process from the headquarters of the supermarket. Maybe it would have been better if we prioritised at conducting a research from the new markets where a survey is done to enhance proper understanding of the market and following up of all the investments done by the supermarket. It would have been better if we considered the culture of the supermarket and the methods used by the competitors to run their business because of the strength of the risks faced by the supermarket. Consideration of the consumer behaviour would also be very important for us in understanding the performance of various products before putting them into the shop. Consideration of the technology used to run the business of the supermarket would also be very important to enhance final decision regarding the risks. Word count: 215 Action plan Despite the flourishing of the risk management planning process, we were not very efficient in conducting the research. If we were given more opportunity, I would suggest; Conducting of thorough research from all the branches of the supermarket where experts would be involved. Engaging of all the stakeholders in understanding the major source of the risks and how they are likely to be solved. Conducting research even from the competitors to understand what should be done differently to be more competitive in the market Considering all the views of the stakeholders, such as the workers, suppliers, and the customers Word count: 99 Read More