Question

MANAGE RISK

A.8.1

The organisation for which you work is planning an extension to the premises and an increase in staff numbers with a view to expanding into new markets. You have been asked to conduct research that will identify any risks or contingency requirements for the department that you head. What stakeholders or parties might be invited to assist with the risk identification and what contribution could they make? (150 words)

Answer in your words

Answer 1

These are the following risk associated with increasing in staff number with a view to expanding into new market:-

1. Human Resource Risk :- Skilled manpower is required to handle the extra wok and the expansion of business. It is better to have skilled people rather than randomly filling up position and expecting result from them. Hence filling up to position with qualified people will be a major risk for my department. We can plan to train existing resource for higher position, for that detailed training programme needs to be worked out with Human Resource team.

2. Compliance and Legal Risk :- The documentation and Government approvals should be obtained before the deployment of extension. If work gets stuck in middle because of unapproved paper work then it is a huge financial risk to the company. This may further affect the investment plan and the project might be delayed resulting in opportunity losses.

3. Product Risk :- The decision to expand into new market should be taken after doing sufficient research, as going into new market unplanned might be bad for company and it will affect the performance of the organization. It should be estimated correctly if the market is suitable for the product or not and what what changes should be done in the product to make it a success.