Business Risk Management
Balfour Beatty Plc. is UK based multinational infrastructure company that provides different types of construction services, infrastructure investments, and support services. The company operates across the UK, the US, Ireland, and South East Asia. A risk register is prepared for the construction company to describe in details the risks faced by the company, along with the existing control process followed to achieve the operational vision.
Business risks are associated with the economic factors, community related, professional and environmental aspects. The risks are examined and attempted to be controlled through the ISO 31000 standards that outlines the framework to deal with the uncertain environmental aspects. Risk is analyzed in advanced and it is mitigated to control the threats and to reap maximum benefits.
With a detailed risk register, the company identifies the business opportunities and threats that could affect the operational goals. This process improves the possibilities to achieve the operational goals (Hermana, 2012).http://Business Risk Management Sample
Balfour Beatty Plc. is a reputed UK based company that provides services in design creation, construction management, and excels in the civil engineering and rail engineering works. Long term portfolio is created to acquire the Infrastructure investment process. Business objective is to provide high quality, reliable, and on-time services to the customers.
The company aims to provide quality, smart, and safe products to cater the requirements of the customers. Management adopts an innovative method to carry out the construction works to deal with the dynamic work related
|Proper plans for business development|
|Better business strategies|
Business objectives are clearly defined and communicated with the stakeholders and the employees. Risk register is maintained to minimize the impact of the occurrence of the uncertain incidences on the operations. The register is used as a reference source to develop plans to manage different events that has an impact on the operational works.
3.Risk scores and risk acceptable threshold
The risk register uses the score process mentioned below –
|3||Likely||Medium impact on the business|
|4||Very likely||Higher percentage of impact|
|5||Almost certain||major impact|
Concept of acceptable business risk threshold
The scores are associated with the risk rating method and actions taken to deal with the situations. A detailed analysis is conducted to list the risk action plan and defines the measures to be adopted to reduce the impact of the incidences on the operational works. Unacceptable business risks ranges between 16 and 25.
|1-9||Lower risks||Can be acceptable||None|
|10-15||Medium impact||Changes are monitored||No – the review is done to find the impact of the actions associated with the changes.|
|16-25||Has a higher risks||Quick mitigating actions are required.||Yes – The actions are immediately implemented as the intolerable levels are quite high due to the risks involved with the process.|
Likelihood and its impact matrix
The risk threshold matrix is included below –
|Impact||Rare||Unlikely||Likely||Very Likely||Almost certain|
|Impact||Rare||Unlikely||Likely||Very Likely||Almost Certain|
The opportunities in the risk analysis were not properly scored as it didn’t need an acceptable threshold method. An analysis was conducted to find whether mitigation was needed for the company to deal with the risks. Ana analysis was conducted to find the right opportunities on a regular basis (Wakeel & Saddle, 2007).http://Business Risk Management Sample
4. Risk Register
Goals and objectives
The goals and objectives to prepare the risk register is to examine the below mentioned points
|Goals and objectives||Purpose|
Threats for the company
|Risk Number||Risk Description||Existing controls||Likelihood (1-5)||Impact (1-5)||Risk Rating (Likelihood x Impact)||Mitigation actions
Information technology security
Cyber risks are become a serious issue for the companies. Information is unethically retrieved through a hacking process. Information about the financial performances, designs and others are quickly accessed by the intruders.
Quite recently, the product and service related information about the construction company was improper accessed and caused a heavy loss to the company.
The company follows a strict IT security and computer check and the deviations in case any are identified and it is rectified by the management instantly.
A standardized process is adopted and followed by the company. Any deviation from the stated rules is identified and it is immediately rectified by the management.
A survey is done to find the impact of the improper system and introduce a proper system to overcome the issues (Whipple, Pitblado, 2010).
Security configuration process is constantly monitored by the management, and the essential steps to deal with the challenges are introduced.
A good security system is implemented to avert the possibilities of challenge occurring or impacting the business activities.
A constant monitoring process is introduced to deal with the challenges as and when they occur
|2||Deal with the environmental related challenges –
The construction company has to follow the norms and conditions mentioned to take care of the environmental issues. Excessive construction causes damages to the environment and this poses a serious threat to the people and the community members.
|The plan includes developing strategies hat would analyze the impact of the designs created by the company (Royer, 2000).http://Business Risk Management Sample Through a planned and effective measure the management plans to reduce the challenges related to the environmental factors.||4||5||20||The designs would be examined, and green environmental aspects are used to indulge into the construction works. This has improved the quality of the works and the process followed to execute the construction works for the company.|
Finances are procedure by the company for carrying out the project work. While communicating the details about the project, the need to introduce the design and its benefits are discussed. The long and the short term benefits are also discussed with the investors and this helps in gathering the funds through the investment process. Funds are procured by the company on a short term basis, and the repayment plans are implemented accurately so as to secure the credit ratings (De Bakker et al., 2010).http://Business Risk Management Sample
|The company has issued shares to raise the funds needed for the conduct of the business. These funds are used for the restricting of the operational works and to create new business opportunities for the company.||4||4||16||
The company at present doesn’t have enough cash reserves and this has affected the overall performances of the construction works. High quality projects needs to be designed for the clients, at a considerable price, as it would assist in sustaining the tough competition in the market.
The risks can be transferred or controlled by creating a relevant process to control the business related losses arising due to the improper plans to increase the quality of the works.
A continuous monitoring process is adopted to implement the changes in the operational works. The analysis is done to implement the corrective action plans.
The construction works carried out at different places has to follow the international rules and policies that define the process to be followed for the work execution. The relevant details about the agreement and other aspects are readily discussed with the members or the parties so as to carry out the right works in an organized manner.
The company has successfully followed the rules and implemented the legal points so to avoid the mitigations that affect the business conduct. The rules for the taxation policies, strategies, and others are strictly followed so as to determine the accurate process that is followed for the improvement of the business activities.
The company policy is not to concentrate on a single market as it affects the operational works and the strategies determined by the management. A regularized policy to follow the pricing strategies and others are taken care of by the company. It enables the management overcome the business related challenges that affects the business conduct and the activities to be carried out by the management.
|The ISO standards and policies are followed by the management (Did raga, 2013).http://Business Risk Management Sample||4||4||16||Expert advice is gathered by the company, before implementing the terms and agreements. Through the defined process, the management could easily examine the associated challenges that could affect the business activities.
The legal proceedings are strictly followed by the management, as it assists in overcoming the hurdles involved with the business conduct and achieving the operational goals.
The company adopts a neutral competitive process as it enables the managers to deal with various operational challenges. With a defined process, the managers could deal with the associated challenges involved in the task execution, and allows the managers to overcome the business related challenges. The competitive factors in the industry are examined, and the relevant changes in the policy changes are introduced
A self-driving factor is used to increase the quality of the construction works. It allows the managers to introduce the right method to overcome the business related challenges that affects the business conduct process.
Risks with the projects are examined through the SWOT and PETSLE analyses. These external factors enable the managers to develop an accurate strategy that assists in increasing the operational works and in adopting the best policies to carry out the construction works (Champion, 2009).http://Business Risk Management Sample
A long term relationship with the suppliers is maintained by the management. It assists the managers to procure the best quality products and use it in the construction works. The strategies are developed and accurate measures are implemented to deal with the challenges that raise in the construction works.
|2||4||8||A strategic plan is prepared by the management to provide the best services to the clients. The international standards to maintain the relationship with the suppliers are maintained to improve the long term relationship with the clients.|
Opportunities for the company
The opportunities for the construction company are examined to identify the changes that can be implemented to benefit the organization. Through a developed process, the management can implement the changes that are being used to handle the challenges that arise while conducting the construction works.
|Opportunity Number||Opportunity Description||Actions to enhance risk opportunity|
The green products are used by the company to carry out the construction works. A planned strategy is adopted so as to implement the changes needed to meet the national and international rules for conducting the construction works. The policies to protect the environment have to be properly examined by the management and the process is followed by the managers.
|The existing rules and policies for protecting the environment are followed by the management. AN analysis is done on the existing system followed by the management and to determine the type of changes that needs to be implemented for the execution of the tasks. The company with the help of the research and developmental process execute the plan to increase the quality of the constructing worse and cause no harm to the environment.|
The investor’s role in expanding the business activities is strictly analyzed by the management. Business changes are implemented by the management after consulting with the owners or the investors. This enables the managers to determine the type of changes that is implemented to achieve the targeted goals.
Business opportunities are created by exploring new means to earn more profit. Through a planned process, the associated risks with the existing system of ownership are examined. Investments are motivated from the investors, with a promise to pay better returns. Funds collected through the investment are used to expand the business activities and to generate new business opportunities.
The legislation policies and strategies are strictly followed by the company. Managers follow the ISO standards, health and safety measures, and other standards needed to carry out the business activities. The international policies and strategies are examined, and it is followed by the managers. Through a proper reporting process, the managers communicate the details about the performances or the profit earned by the management.
|The company actively participate in the international riles and policies followed in different companies. Various challenges faced while following the international standards for the construction works are examined by the managers and the changes are implemented to overcome the operational challenges.|
Control the process
- Plan and implement a contingency process
- Deal with the challenges in organizing the works and deal with the operational issues
- Improve the performances by introducing the plan to deal with the various issues involved with the risks. Priorities the risks The priority of the risks are identifyee The tasks are executed in accordance to the work execution
- Deal with the challenges involved with the task execution.
- Risk management and analysis carried out through the register evaluation process helps the company to identity the business related risks in advance. The construction company faces huge challenges in the conduct of the business activity. With risk register, the risks can be indemnified in advance and the relevant changes in the system are implemented by the managers. This assists in developing and retaining a positive relationship with the clients. Different risk opportunities are identified and the necessary steps or processes are implemented in accordance with the rules and policies that are followed by the company. The risk register provides the company with an opportunity to identify the risks and find the right solution to handle the business activities. With accurate information the challenges faced by the company due to the uncertain events are examined and accurate solutions are implemented. The company needs to have strategic plans that would be used to deal with the uncertain challenges that impact the business activities. Business processes and methods followed by the government needs to be followed so as to avoid any sort of uncertain issues that causes business losses.
Champion D., 2009. Managing risk in the New World, Harvard Business Review, October 2009
Did raga, O., 2013. The role and the effects of risks management in IT projects success, Informatica economical Vol. 17, no. 1/2013
De Bakker, K. A. & Bootstrap & Wortmann, H. , 2010. Does risk management contribute to IT project Success? A Meta Analysis of Empirical Evidence, International journal of project management, Vol. 28, No. 5, 2010.
Hermana Dolor, H., 2012. Understand impacts of time and cost related construction risks on operational performance of PPP projects, International journal of strategic property management, 2012 Volume 16(3)
Leva, M., Pirani, R., De Michaela, M., Clancy P., (2012). Human factors issues and the risk of high voltage equipment: are standards sufficient to ensure safety by design? Chem. Eng. Trans., 26 (2012), pp. 273-278
Mongering, A., Konstantinidis, M., Nicolaite, Z., Weber, S., Contagionist, T.,. Kafka, P., Leva, M., Demiclad, M (2014). A compound methodology to assess the impact of human and organizational factors impact on the risk level of hazardous industrial plants
Royer P. S., 2000. Risk management: The Undiscovered dimension of project management, PM Network, September 2000.
Whipple, T, Pitblado, R, (2010). Applied risk-based process safety: a consolidated risk register and focus on risk communication Process Safe. Prog., 29 (1) (2010), pp. 39-46
Zwickau O. & Saddle, A., 2007. Planning effort as an effective risk management tool, Journal of operation management, Vol. 25, pp. 755-767, 2007
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