Maryam Aman

[TYPE THE COMPANY NAME] Manage Risk Risk Assessment ABC [Pick the date] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Table of Contents Identifying Risks Relevant to Fresh Style Fashion ................................................................................. 2 SWOT Analysis .................................................................................................................................. 2 Rate Risks on Risk Severity Matrix .................................................................................................... 2 Categorising Risks to acceptable and Unacceptable categories based on SWOT analysis................. 3 Prioritising the Risks ........................................................................................................................... 3 Bibliography ............................................................................................................................................ 5 Identifying Risks Relevant to Fresh Style Fashion SWOT Analysis Strengths Weaknesses  Fresh Style Fashion provides latest  Organic growth of customer base is accessories to men and women alike slow.  All the latest clothes and other  Latest fashion trend is followed in accessories are readily available to Fresh Style Fashion which may not be people who are fashion conscious the first choice of every customer  Staff is trained in customer service  The company aims to produce 10% market share which is quite low.  Staff of Fresh Style Fashion provides a luxurious fashion experience for its customers Opportunities Threats  Grow as an organization and expand  Competition from other organizations the business in the market. may result in lesser customer base.  Create a higher market share,  Market share may not increase and currently the company aims to gain may need to come up with new 10% market share which is quite low. strategies  Create customer base by providing  Security of employees and customers safe place for shopping might be a concern. Rate Risks on Risk Severity Matrix Severity Category 1- Catastrophic Description of Category Might result in or loss of possessions. One such experience can threaten the entire company. (Value=1) 2- Critical Might result in very severe damage to customer or employee or may be cause grave damage to property. One such experience is most likely to impact the total budget of the company. (Value=2) 3- Serious Might result in moderate to serious damage or enough damage to property of the organization. One such experience is most likely to have an intense impact budget of the organization. (Value=3) 4- Marginal Might result in a minor damage/grievance or damage to property. Such Individual losses would not expressively upset the budget of the organization. (Value=4) 5- Negligible Likely to not cause an injury or significant damage to property. (Value=5) (Reason, 2016). Categorising Risks to acceptable and Unacceptable categories based on SWOT analysis Most of the risks are related to health, safety and security of employees and customers in the organization. Catastrophic risks can result from hazards like fire and short circuit of electricity which can result in severe property damage and may cause injury to staff or customers. This would put stress on the budget of the organization if the catastrophe is not controlled on time. If such a thing were to happen in the storage area and cause irreparable damage to clothing items, the organization may never recover from the damage. Critical risks would involve the same hazards if they can be controlled and dealt with on time and damage is contained quickly. Serious damage would ensue if case of natural disaster like earthquake or fire on small scale. Marginal damage would be in the form of theft or minor damage to property. Negligible damage would be theft or electricity shortfall (Reason, 2016). Prioritising the Risks Risk treatment encompasses a procedure to transform a risk by altering the outcome that could happen or their probability. This procedure necessitates creative deliberation of choices and a comprehensive design, both contributions being essential to find and choose the most suitable risk treatment. In the proactive situation, where an establishment has effectively incorporated risk management in a structure of management, risk handling is fundamental to and efficiently indistinguishable from the process of decision-making. For that reason, when a conclusion is decided the risk produced by the choice will be in the company’s risk principles. In a reactive situation, the establishment is looking in retrospect at risk generated by choices taken and applied formerly, and any risk behaviours found essential will be helpful in nature. In both situations, those risks that establishment managers are unacceptable must be treated accordingly (Reason, 2016). Most of the risks are related to health, safety and security of employees and customers in the organization. Risks that are categorised as catastrophic and critical should be categorised as unacceptable and risks that are categorised as negligible, marginal or serious should be categorised as acceptable as these risks do not put as much burden on the company as the ones that are categorised as catastrophic or critical. The risks categorised as acceptable are the ones that do not affect the budget of the company on a large scale and the company can recover from them in due course (Reason, 2016). Serious damage would ensue if case of natural disaster like earthquake or fire on small scale. Marginal damage would be in the form of theft or minor damage to property. Negligible damage would be theft or electricity shortfall. These are the risks that can be termed as acceptable as they can be mitigated with some resources like capital, man power and capacity building of the organization. Thus, the company need to form a committee for risk assessment and management so that health, safety and security of the employees and customers can be assured (Reason, 2016). Bibliography Reason, J. (2016). Managing the Risks of Organizational Accidents. 1st ed. London: Routledge.