Report On Risk Issues And Recommendations For BIZOPS Enterprise

Identify Risk Issues of BIZOPS Enterprise

Risk is a daily partner to an individual, the society and also the organization. Therefore, risk should be managed well through having a perfect and effective risk management plan. For the organization to develop and grow, is required to accept and take risk as the daily routine in the organizations activities (Wipplinger, 2015). In the business world, the risk is progressively evolving at a high rate therefore, requires to be managed effectively with available resources. However, the organization must develop and implement management risk plan after identifying the risk affecting and surrounding the organization. This will help the organization to minimize the threats from the risk and maximize their potentials (Wen, Lin & Wang, 2018).

As per the discussion in the introduction part, the management of an organization needs to develop and implement risk management plan for the organization. For this plan to be implemented successfully the organization must have to employ a risk management team which will take the study on the risk, understand, evaluate and address the risk accordingly aiming to achieve the organizational goals (Stulz, 2016). The first step required to be undertaken is identifying the risk issues first in the organization (BIZOPS). This is very important step in risk management. BIZOPS have been affected by organizational, national and international risk as a situational problem over several months in its operations. These risk are categorized as internal and external risk affecting the organization (Boehm, 2016). The following are identified issues which are the risk to the BIZOPS Enterprise.

International Risk

• Shortage of the supply. The main suppliers of BIZOPS Enterprise were being banned from performing their business activities. This is because the chemical used in production were harmful to the environment thus causing pollution. Other reason, is from the heavy flood which interrupted the transport of the suppliers. Shortage of resource in the enterprise have been a risk since, the enterprise is not able to meet customers need and this can lead to easy shut down of the business operation.

National Risks

• Economic risk. This affects the consumer buying decision thus spending less in the market. This is caused by high tax rate imposed by the government thus affecting consumer’s income negatively.
• Political risk. The corruption and other hidden risk from the leadership and management always act as a challenge to the business. This circumstances of political instability acts as risk since they discourages investors from doing their business with BIZOPS Enterprise.  

The following are the internal risk affecting BIZOPS Enterprise.

• Customer dissatisfaction. Customer negative complains are increasing in the business. This is due to the fault of online purchasing system. This has caused time wastage in delivering products on time.
• Linkage of enterprise information. Customers and enterprise information is linking to the competitors. This is a risk because this information is possible to be used by the competitor to overtake the market advantage the business have.
• Employees’ conflicts. The conflicts between employee’s and the management cause staff morale to reduce in the performance. In BIZOPS Enterprise is caused by management which is reducing the employee’s rewards.
• Use of outdate systems. BIZOPS Enterprise is using logistics and information system which are too old and have been in use for more than ten years. These old system are risk to the business since it can easily break down because of the over usage. Also, these system will not be able to deliver efficient services as new, innovative and technological systems in the business.
• Social media pressure from competitors is a risk to the BIZOPS Enterprise. This is the claim that BIZOPS suppliers are using child labor, sweatshop pollution chemicals in their manufacturing processes.

These are measures which BIZOPS Enterprise is required to put in place to prevent risks in the organization. In the risk management plan, after risk is identified and analyzed the next step is to discuss how the risk will be eliminated or minimized from the organization and increase the potential risk (Yao & Fan, 2018). The most recommended way to deal with the risk is to mitigate, avoid, accept or transfers the risk. The following is the recommended way in which BIZOPS Enterprise is required to perform in dealing with these risks.

• The company should have multiple alternative suppliers from different areas. Also, these suppliers must be using different ways as means of production. This will increase the chances of not having shortages in case of any risk raises and attacks the suppliers.
• The business policies and strategies must be flexible to the environmental changes like political and economic risks. BIZOPS Enterprise will have to practice being flexible and this will help easy change according to the risk influences and still achieve organizational goals. The enterprise will not feel the changes will be adaptable to the changes since is flexible in all situations (Paté?Cornell, Kuypers, Smith & Keller, 2018).
• The management of BIZOPS Enterprise is required to develop strong measures which will be used to protect and deal with risk when occurs. This measure will help to reduce risk like, employees and management conflicts, customers complains and linkage of organization information. These measures will equip the management to have the knowledge and skills to deal with internal risks of the organization (Nagendra & Sharan, 2018).
• BIZOPS Enterprise is required to employee a team of experts which will be dealing with risk management plan. This team will be handling risk matters only in the organization, since, will be assign there area of specialization. This will improve and reduce the influence of risk in the organization.
• BIZOPS Enterprise is recommended to use update systems according to the modern technology in the business field. This will help the organization to keep secure and update information of customers and employees. These new system will fill the loopholes which makes linkage of organization information to the intruders.
• Other means which the business is advised to take action on it, is to secure the organizations properties through insurance. Taking insurance cover is very important since this will help to cover the future uncertain risks which will be able attack the Enterprise (Stärk, 2018). This may include life or property insurance cover.

If BIZOPS Enterprise implement and put a clear measures on the above recommendation, the business will be able to run smoothly for a long time without or having minimal risk with less influence (Hopkin, 2018). This will improve the performance of the business now and in the future.

Conclusion

In summary, this report has provided Risk issues and recommendations for the BIZOPS Enterprise. The report has described the risk as common factor in the business organizations. Several risks have been identified which have been affecting BIZOPS Enterprise, these are economic and political factors among others. The risk is categorized to external or internal risk. Internal risk is the one which is directly from the organization like, the conflicts between the management, employees and customers. For the organization to prevent or reduce the influence of risk must put effective measure on place. Several recommendation have been discussed which will enable the BIZOPS Enterprise to survive over the risk situations.

References

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Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management, 10-15.

Nagendra, A., & Sharan, A. (2018). Risk Analysis for Project Management. Journal of Applied Management-Jidnyasa, 9(2), 22-31.

Paté?Cornell, M. E., Kuypers, M., Smith, M., & Keller, P. (2018). Cyber Risk management for critical infrastructure: a risk analysis model and three case studies. Risk Analysis, 38(2), 226-241.

Stärk, K. D. (2018). Improving the impact of disease control strategies with limited resources: where to invest? The Veterinary Record, 182(9), 255.

Stulz, R. M. (2016). Rethinking risk management. Journal of applied corporate finance, 9(3), 8-25.

Wen, M. M., Lin, H. A., & Wang, C. (2018). Cash Flow Risk Management in the Property/Liability Insurance Industry: A Dynamic Factor Modeling Approach. North American Actuarial Journal, 1-14.

Wipplinger, E. (2015). Philippe Jorion: Value at Risk-The New Benchmark for Managing Financial Risk. Financial Markets and Portfolio Management, 21(3), 397.

Yao, D., & Fan, K. (2018). Optimal risk control and dividend strategies in the presence of two reinsurers: Variance premium principle. Journal of Industrial & Management Optimization, 14(3), 1055-1083.