ACFI5065 Risk Management Assignment Sample
Module code and Title: ACFI5065 Risk Management Assignment Sample
Introduction
Risk management is the process of identifying, assessing and threats of controlling to an organization or the company or the industry. The risks are coming from the various sources such as uncertainty on financial, legal liabilities, issues in technology and strategic management errors in the company. Thus, risk management need to intertwine with organizational strategy.
Identification of three activities from the company report
Activity 1: Making transition by expanding into international market
The year 2020 was the unprecedented year for everyone (Wang et al. 2020). The company ASOS will going to enter into the business competition with the intention to get back on the track and for the next stage to reach the business at the top-level. Regaining back everything, before that ASOS company need to focus on the risk. Looking on company’s internal operations and on core element on the company (Willumsen et al. 2019).
Along with that ASOS company is having an constant engagement with the customers through social media channels and delivering content at a high scale (Dowling et al. 2019). Thus, in future the strategic priorities and some focus areas will help ASOS company to build market share and shift to online marketing.
Sustainable growth of the company signifies the financial growth of the company in the global market. Sustainable growth of the business refers to the progress of the workplace culture that also affects the performance of the organisation (Liu et al.2021). A healthy corporate growth ensures the improvement of the sales of the product. The company may achieve sales growth after sustainable development in the organisation. To proceed with the future sustainable growth the company has to set a strategic goal.
Activity 2: Bringing strategies for sustainable future growth
ASOS is one of the most important companies, which leads in the outstanding contribution to the fashion industry. In these difficult times, the company focuses on improving the fiscal performance and drives transparent, responsible and inclusive approaches to transform the impact on fashion and on people, community and society (Aziz et al. 2019).
This year 2022, ASOS company strengths the customer engagement (Dani et al. 2019). This year, they want to become a global leader through online fashion and ASOS company positions to capitalize the accelerate shift in on demand of shopping online.Covid-19 was the challenging year for ASOS on consumer demand and wider economy (Al Rahahleh et al. 2019).However, ASOS are in a strong position to any sort of challenges.
Activity 3: Technological innovation and social media engagement for better growth
ASOS ‘s inspirational product and relatable content remain at the heart of all customers and ensure a strong level of engagement across all social media channels such as Instagram where it proliferated to 10 million followers (Cheng et al. 2020). ASOS company demonstrated to resonate their over Black Friday period. (Baryannis et al. 2019). ASOS’s success driven a surprise and activation of delight that made customers to talk about the bargain purchases and increasing impressions of the ASOS product.
Selection of one activity and the reason
ASOS PLC is one of the best online retailers for fashion-loving people throughout the world. Their aim is to make truly frictionless experiences for the customers. The main activities that they are recently working on are- make a transition by expanding the international market and bringing new strategies and ideas for sustainable future growth last but the least is technological innovation and social media engagement for better growth (Babich and Kouvelis, 2018).
This study highlights the strategies and ideas for sustainable future growth. Its vision is to be the world’s leading business design destination. They bring their own market app and their own website to boost customers 100 times for their products. According to the view of Thöns (2018), they format their website in 10 different languages to get people closer to the brands.
Through smart software activities, they rapidly deliver and return possible. According to Willumsen (2019), They are applying further development of the unique styles of fashion, enhancing brands category, products, and flexibility of the product. They are improving the customer’s experiences to make the product personalized more than before, inspiring the customers,. These strategies make the product better and become acceptable more than before. These new personalized features can grow in the future smoothly.
Preparation of a risk registers
The risk management sectors of ASOS PLC are always present to look after to manage and identify the key risks that keep their sustainable growth.
| Risks | Description of Risks | Likelihood | Severity | Impact | Mitigation techniques |
| Strategic risks | In addition to Araz et al. (2021), Geographical uncertainty influences their business. It dimmest the customer’s thoughts about the brand that may cause an impact on financial services. | 1 | 3 | 8 | Supply chain methods allow the brand to utilize its extensive networks with all the changes. |
| Market ricks | Customers are getting swayed of competitors with the brands that could impact on the growth of the brand. | 2 | 2 | 4 | They are using their technology to improve their products. |
| Operational risk | The creating of declaration of product supply, business disruption, lost opportunities | 3 | 5 | 3 | In the study of American Diabetes Association( 2021), They ensure the customers internal and external way, They regularly update the progress of the delivery of the product |
| Cyber security risk | The cyber securities always faces the threats of coping the brands quality, the brand internal ideas, confidencial data loss and others | 4 | 8 | 4 | they are increasing the data security team on the behave of effectiveness and efficient work detail and the fraud operation techniques. |
In addition, to manage the risks the company increases its protection against all the technical and nontechnical issues. On the topic of cyber security, they are continually engaged in making cyber awareness. They work collaboratively to ensure the cross-functional alignment on the issues to spread the notice of intelligence and opportunities. The company is dreaming to rile on the fashion world.
Explanation of derivation of the risk register
A risk register simply registered the risk that the company may face during doing throne business. The risk register includes all the information related to the risk and the risk management plan to mitigate the issue in the management (Kudszus et al. 2020). The company has to appoint a risk manager who will identify the risks and generate a register to make further planning related to the possible and present risks in management.
A risk register must include the risk description and evaluate the impact of the risk on the management. The manager identifies the risks and prioritizes them according to their impact on the performance of the organisation. The risk manager has to identify the roots of issues that will also enlighten the possible solution (Niemi et al. 2021). The risk management register also mentioned the person who is responsible for the risk. Risk is inevitable and avoiding it could harm the reputation of the company so, the managers look for those triggers that cause the risk in an organisation.
The risk register also includes the category of the risk that helps to find the possible solution to the risk. The register also rates the risk to prioritize risk in the company. The risk rating helps the manager to predict the consequence and the severity of the impact. The risk score is calculated by multiplying the risk probability and the impact of the risk on organizational performance. The risk response strategy includes the plan that the manager follows to respond to the risk. The manager can justify which risk is to avoid, enhance or accept.
The risk manager has to make a plan to mitigate the risks. The fallback plan is also part of the risk register as the previous plan may fail during the progression. The risk owner may reduce the maximum risks by implementing the risk management strategy. The manager also has to monitor the implementation so that new risks may not occur and can complicate the situation effectively.
Recommendation
The company may appoint a risk manager who will help the company to mitigate the issues that are harming the performance of the company. The company has to prioritize every vissue irrespective of its size. The manager can use risk management tools to identify the risks and rate the risks (Curry et al. 2018). The company also can transfer the risk to the other company for finding a possible solution to the risk. The company can transfer the project to the other company on the contractual term.
Conclusion
ASOS Company is the one-stop shop for the fashion world and their target is to become a brand fashion in the world. Some necessary points which made them successful to navigate an unprecedented year where they faced a tough challenge however; this becomes the transformation for the company. In order to, look forward for the future sustainable growth for the future of the company. ASOS Company focuses on the risk and manage it strategically. ASOS Company on fashion model along with that well-being. Thus, these are thing that help in future to manage risk.
References
Baryannis, G., Validi, S., Dani, S. and Antoniou, G., 2019. Supply chain risk management and artificial intelligence: state of the art and future research directions. International Journal of Production Research, 57(7), pp.2179-2202.
Curry, S.J., Krist, A.H., Owens, D.K., Barry, M.J., Caughey, A.B., Davidson, K.W., Doubeni, C.A., Epling, J.W., Kemper, A.R., Kubik, M. and Landefeld, C.S., 2018. Screening for cardiovascular disease risk with electrocardiography: US Preventive Services Task Force recommendation statement. Jama, 319(22), pp.2308-2314.
Kudszus, R., Klemencic, R. and Spyridis, P., 2020. Basic Concepts of Engineering Risk Management for Fastenings and Risk Register Based on Industry Survey. CivilEng, 1(3), pp.275-290.
Liu, B., Sjölander, A., Pedersen, N.L., Ludvigsson, J.F., Chen, H., Fang, F. and Wirdefeldt, K., 2021. Irritable bowel syndrome and Parkinson’s disease risk: Register-based studies. NPJ Parkinson’s disease, 7(1), pp.1-7.
Niemi, A.T.O., Höbbel, T. and Sill Torres, F., 2021. Risk register database to improve organizational resilience and knowledge management. Risk Register Database to Improve Organizational Resilience and Knowledge Management, p.1943.
Thöns, S., 2018. On the value of monitoring information for the structural integrity and risk management. Computer‐Aided Civil and Infrastructure Engineering, 33(1), pp.79-94.
Willumsen, P., Oehmen, J., Stingl, V. and Geraldi, J., 2019. Value creation through project risk management. International Journal of Project Management, 37(5), pp.731-749.
Araz, O.M., Choi, T.M., Olson, D.L. and Salman, F.S., 2020. Data Analytics for Operational Risk Management. Decis. Sci., 51(6), pp.1316-1319.\
Gasmi, A., Noor, S., Tippairote, T., Dadar, M., Menzel, A. and Bjørklund, G., 2020. Individual risk management strategy and potential therapeutic options for the COVID-19 pandemic. Clinical Immunology, 215, p.108409.
Babich, V. and Kouvelis, P., 2018. Introduction to the special issue on research at the interface of finance, operations, and risk management (iFORM): Recent contributions and future directions. Manufacturing & Service Operations Management, 20(1), pp.1-18.
American Diabetes Association, 2021. 10. Cardiovascular disease and risk management: standards of medical care in diabetes-2021. Diabetes Care, 44(Suppl 1), pp.S125-S150.
Wang, C., Cheng, Z., Yue, X.G. and McAleer, M., 2020. Risk management of COVID-19 by universities in China. Journal of Risk and Financial Management, 13(2), p.36.
Willumsen, P., Oehmen, J., Stingl, V. and Geraldi, J., 2019. Value creation through project risk management. International Journal of Project Management, 37(5), pp.731-749.
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