ASSIGNMENT A

608 -MANA GI NG R ISK IN B US INE S S

Submitted to

London Regal College

For

As Part of Partial Fulfillment for the award of degree

Level-6 Extended Diploma in Business and

Administrative Management

OCTOBER 2013

Word Count: 3,483

E X E C U T I V E S U M M A R Y :

Business and risk are very closely related and the successes of Abingdon and Witney

College organization usually depend on the proper management of the risk. The strong

framework regarding the risk of the organization can provide a systematic procedure of

success. The process of risk has strong impacts on Abingdon and Witney College

function and the elements of Abingdon and Witney College functions are very much

influenced by it. A proper evaluation approach of the risk management of the

organization provides a clear concept about the future of Abingdon and Witney College.

From the research, it was found that the drivers of the risk are elements of our life or

environment. The impact of the different types of risk is very much co-related with the

performance of Abingdon and Witney College. Risk can be converting in both positive

as well negative. For the negative impact, the organization needs to implement a strong

process of management of risk.

TABLE OF CONTENTS

1.0 Introduction: ........................................................................................................................1

2.0 Risk management of Abingdon and Witney College ........................................................1

3.0 Framework of risk management of Abingdon and Witney College .................................2

4.0 The procedure of affecting to functions of Abingdon and Witney College in risk

management:.............................................................................................................................4

5.0 Evaluation of Methods of assessing risk in of Abingdon and Witney College ...............5

6.0 Drivers of business risk at Abingdon and Witney College ...............................................5

6.2 Analysis of impacts of the different types of risk at Abingdon and Witney College .......................... 6

6.3 Analysis of severity of risk at of Abingdon and Witney College........................................................ 8

7.0 The responsibility for the mangement of risks sits within Abingdon and Witney

College :.....................................................................................................................................8

7.1 The Role of Contigency Planning for managing the risks ................................................................. 9

8.0 Approaches to crisis management of Abingdon and Witney College ...........................10

9.0 Analysis the impacts of business breaks at Abingdon and Witney College.................11

10.0 Conclusion: .....................................................................................................................12

References: .............................................................................................................................13

Bibliography: ...........................................................................................................................14

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1.0 INTRODUCTION:

The report has been prepared by an Administrative Manager of a new faculty for a large

further Education College. For this report the further education college is Abingdon and

Witney College. Abingdon and Witney College is based in Abingdon, Oxfordshire,

England. It was formed in 2001 after the mergers of Abingdon College and West

Oxfordshire College.

Risk management process of the organization includes a systematic way to manage its

risk and reach the apex of the success (Haddow,2009) . In this part of report, the author

has discussed the risk management process of the organization and framework of the

risk management. Moreover the author mentions the various approaches of the risk

management in the organization and its impact of activates of Abingdon and Witney

College. At the last stage of the assignment, the author has insured the approaches of

the evaluation process of risk management process.

Business environment has changed in a very rapid speed and the element of the

environment has also changed according with the time. The process of risk is rising

from those processes. In this part of the report, the author has discussed the drivers of

Abingdon and Witney College risk and impacts of those to Abingdon and Witney

College performance. Moreover crisis management strategies of Abingdon and Witney

College organization has discussed in the next art of the report. In the final part of the

report, business breaks in discussed.

2.0 RISK MANAGEMENT OF ABINGDON AND WITNEY COLLEGE

Risk management is a process of identification, analysis, assessment, minimize

unacceptable risk of Abingdon and Witney College (Kendrick,T., 2010). The process of

the risk management is s systematic way of managing risk of Abingdon and Witney

College organization according to the capability of taking risk of Abingdon and Witney

College. The success of Abingdon and Witney College depends on the risk

management capability of the management of that particular business. It is very

common matter that risk is associated with the profit. The management process of risk

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provides importance on the acceptable risk of Abingdon and Witney College and

minimizes risk of the organization.

3.0 FRAMEWORK OF RISK MANAGEMENT OF ABINGDON AND WITNEY

COLLEGE

The process of risk managing within Abingdon and Witney College and systematic

approaches of the process is called risk management (Rejda, E., 2010). The way of risk

management certainly follows some specific process and those are given below:

Figure: Risk Management Framework of Abingdon and Witney College

Source: Linkedin.com/blog

3.2.1Categorize: The stage of the categories includes the systematic categories of the

information for the risk analysis. The process of the categorical information includes

various categories of those information.

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3.2.2 Selection: The selection process of the security control of the system of risk

management frame work provides importance on the security of the risk. The high class

of risk is required high return security.

3.2.3 Implement: The process of implement of the risk management process includes

the controlling as well as manages within the operational activities of Abingdon and

Witney College. The system of risk management provides enough important on this

area.

3.2.4 Access: The system of the organization includes the system to introduce

appropriate system to the risk management system for the management of the risk

project.

Authorize: The process includes the measurement of the impact of the risk on the

asset of the organization (Haddow, G., 2009). It will determine its ultimate effect on the

activities of the organization and its related matter.

3.2.5 Monitor: Monitor system of the risk management framework includes monitoring

of the security system on the basis of the various aspects of the organization as well as

its operational categories.

A proper evaluation approach of the risk management of the organization provides a

clear concept about the future of Abingdon and Witney College. From the research, it

was found that the drivers of the risk are elements of our life or environment. The

impact of the different types of risk is very much co-related with the performance of

Abingdon and Witney College. Risk can be converting in both positive as well negative.

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4.0 THE PROCEDURE OF AFF ECTING TO FUNCTIONS OF ABINGDON AND

WITNEY COLLEGE IN RISK MANAGEMENT:

The activities of business functions include routine work of the organization to achieve

organizational goals (Bernstein, L., 1998). Here the activities of Abingdon and Witney

College functions are always influencing by the risk management process. The

procedure of affecting of Abingdon and Witney College function is given below:

4.3.1 Profit variation: The process of risk management insures the variation of the

profit of Abingdon and Witney College organization in business (Hubbard and Douglas,

2009). The profitability of Abingdon and Witney College depends on the risk taking

ability of it. The actual scenario of Abingdon and Witney College insures either higher

profit or lower profit.

4.3.2 Changing working plan: The process of risk management can change working

plan of Abingdon and Witney College. According to the organizational capability in the

risk management process, it differs from organization to organization. So the plan of

Abingdon and Witney College can change by risk management process.

4.3.3 Effect on market position: The process of risk management has a great effect

on market position of Abingdon and Witney College. The process can make either

higher position of Abingdon and Witney College in the market or very law position of the

market. The process of risk management has influenced business activities in different

ways.

4.3.4 Risk management effects on operational approaches: The process of risk

management has affected the operational procedure of Abingdon and Witney College

organization (Bernstein, L., 1998). Here the process indicates that Abingdon and Witney

College will manage its risk. Actually the process can reduce the production of the

organization. The usual activities of Abingdon and Witney College organization can be

hampered in great way.

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5.0 EVALUATION OF METHODS OF ASSESSING RISK IN OF ABINGDON

AND WITNEY COLLEGE

The evaluation of methods of the risk assessing of Abingdon and Witney College

provides a clear indicators of the methods process result (Kotler, P., et al, 2012). The

evaluations of the methods of Abingdon and Witney College risk are given below:

Usually there are various categorical risk related with different dimension of

Abingdon and Witney College organization like industry risk, financial risk,

sustainable risk and so on. As a result, Abingdon and Witney College

organization can identify it's all risk.

The evaluations of the methods of the assessing risk in Abingdon and Witney

College organization insure problem identification of Abingdon and Witney

College problem.

The process of evaluations minimizes business risk and insures the growth of

Abingdon and Witney College.

Evaluation process helps Abingdon and Witney College to gather its position in

the market place.

6.0 DRIVERS OF BUSINESS RISK AT ABINGDON AND WITNEY COLLEGE

Business risk arises from some drivers which are intimately related with Abingdon and

Witney College activates. The pattern of Abingdon and Witney College as well as

success of Abingdon and Witney College organization depends on the risk

management process of Abingdon and Witney College. Business success depends on

the risk management ability of Abingdon and Witney College (Bernstein, 1998). Here

the most successful business will insure proper management of the risk in the activities

of it. Here I have described the drivers of Abingdon and Witney College risk of Apple

Inc.

6.1.1 Technological factors as risk driver: Technological elements create great risk

for the activities of the organization. Actually the products list of the Apple Inc mainly

includes technological base products. The change of the technological elements can

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make Abingdon and Witney College very out dated. The main driver of the risk of this

organization is technological instrument and innovation.

6.1.2 Human factor as risk driver: Human factor is a very crucial element of the risk

drivers of Abingdon and Witney College organization. The nature of the human is very

much changing in every moment. They change products very frequently and test of

them are changing rapidly also (Bernstein, 1998).. As a result, Apple Inc faces the

human factor base risk in the organization.

6.1.3 Economical factor as risk driver: The capital of Abingdon and Witney College

organization creates a great risk for that particular organization. Here the risk of the

capital factor base of Apple Inc includes risks which are generated from economic factor

of organization. Apple Inc is a multinational organization but sometimes it also faces the

economic factor risk in the market place.

6.1.4 Marketing factor as risk driver: Marketing factors of Abingdon and Witney

College organization includes introducing ways of the products to the people. It process

of Abingdon and Witney College organization can create a problem for Abingdon and

Witney College organization (Bernstein, 1998). Mainly it is very acute in the

technological base organization like Apple Inc. Proper ways of marketing of the

products of the organization has mentioned it position in the height position. But at the

same way, failure in the proper marketing activities can damage Abingdon and Witney

College success in the lowest position.

6.2 ANALYSIS OF IMPACTS OF THE DIFFERENT TYPES OF RISK AT ABINGDON AND

WITNEY COLLEGE

The impacts of the different types of risk to Abingdon and Witney College organization

are huge. Mainly those processes of the risk can insure their impact on the different

aspects of Abingdon and Witney College organization. Moreover risk of Abingdon and

Witney College to the organization to its culture is very high. Those impacts are given

below:

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6.2.1 Reduce profit: Business loss its profitability for the risk and usually sales revenue

of Abingdon and Witney College also decrease for it (Dorfman and Mark, 2007).

Moreover the profit of Abingdon and Witney College depends on the various factors and

those factors are highly related to the risk. Apple Inc has also these types of risk in the

matter of profitability of this organization. In the most time, the organization manages a

format approach to manage its risk.

6.2.2 Increase employees' turnover: The risk of Abingdon and Witney College

organization increase employees' turnover of the organization. Actually the employees

of the organization want a safe place where they get the safety of their jobs. But in the

time of Abingdon and Witney College risk, the employees of Abingdon and Witney

College like Apple Inc suffer from job safety. As a result turnover rates among them

increase in a great number.

6.2.3 Decrease business growth: Abingdon and Witney College growth of the

organization is highly affected by the risk process of the organization. Usually business

growth depends on the risk management ability of the organization. But the more and

more of Abingdon and Witney College risk greatly reduce the organizational high

growth. Apple also faced those problems in some years ago.

6.2.4 Hamper business position: Business position in the customers mind is very

important for Abingdon and Witney College organization. The process of risk in

Abingdon and Witney College organization certainly will reduce its position in the

consumers mind. Actually they may loss the loyalty of them to the consumers. So the

position of Abingdon and Witney College organization is greatly hampered by the risk

process.

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6.3 ANALYSIS OF SEVERITY OF RISK AT OF ABINGDON AND WITNEY COLLEGE

The process of risk has great severity of Abingdon and Witney College organization

(Haddow, 2009). Severity usually reduces business profit as well as business position in

the market. Moreover Abingdon and Witney College organization can be totally

bankrupt for this process. The authority of the organization can insure from this ways of

risk.

6.3.2 Likelihood of the risk: The process of risk can be a very positive for Abingdon

and Witney College organization in usual ways. The organization can use risk as a

positive chance to gain the top position in the market. Usually it is very important for

Abingdon and Witney College organization to takes this types of step to insure the

position in market place.

7.0 THE RESPONSIBILITY F OR THE MANGEMENT OF RISKS SITS WITHIN

ABINGDON AND WITNEY COLLEGE :

Risk management approaches of Abingdon and Witney College can evaluate from

different outlooks and those are:

This process of the risk management insures the identification of Abingdon and

Witney College risk of the organization to solve Abingdon and Witney College

risk in the particular situation.

In the risk management approaches, the manager of the organization can easily

identify Abingdon and Witney College risk, and insure possible solutions for the

process. As a result the problem of the organization solves with proper care of

the process.

The weakness of Abingdon and Witney College can identify and become solve

which can insure business success.

The risk of Abingdon and Witney College organization must be solving by the

process.

The organization can minimize its risk by the process of risk management of the

organization.

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7.1 THE ROLE OF CONTIGENCY PLANNING FOR MANAGING THE RISKS

Risk management strategies of Abingdon and Witney College organization can reduce

risk of Abingdon and Witney College and insure Abingdon and Witney College profit.

Here every organization can takes their proposal strategies according to their own

management decision. Here I have suggested a strategy for the risk management

process. Those strategies are given below:

7.1.1 Identify the risk of business organization: The first and foremost approach of

the risk management of Abingdon and Witney College is to identify the risk of the

organization. Abingdon and Witney College can have different types of risk and the

identification process will insure the risk of the organization. Apple Inc will identify their

risk in the market place.

Figure: Risk Management Process at Abingdon and Witney College

7.1.2 Analysis of the risk: The n Abingdon and Witney College organization will

analysis the risk related with various department of Abingdon and Witney College

organization. The level of the risk gets importance in the time of the management of the

organization.

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7.1.3 Map of the risk of the organization: In the process of the risk management,

organization will insure a map of the risk and the related sectors of the risk. Actually

depth of the risk largely depends on the length of the risk process. The process of

solutions must map the risk.

7.1.4 Resolve the risk: At this stage of the risk management, the organization will

determine the risk in the basis of his organization. The risk without profit will not allow in

the time. Basically Apple Inc has taken various risks in different time. But the return of

the risk was very high.

7.1.5 Monitor the risk: Abingdon and Witney College organization will should monitor

the risk of it and insure its impact in the organization. Basically the organization will take

risk only it will insure that there can be a very good outcome and will insure business

position.

The process of risk has great severity of Abingdon and Witney College organization

(Haddow, G., 2009). Severity usually reduces business profit as well as business

position in the market. Moreover Abingdon and Witney College organization can be

totally bankrupt for this process. The authority of the organization can insure from this

ways of risk.

8.0 APPROACHES TO CRISIS MANAGEMENT OF ABINGDON AND WITNEY

COLLEGE

Crisis management is a process of identifying of Abingdon and Witney College threats

and essential process of managing of those threats of the organization (Haddow, G.,

2009). There are several ways to manage crisis management of Abingdon and Witney

College organization. Those ways are given below:

8.1.1 Identify the potential threats of Abingdon and Witney College: The first and

foremost step of the crisis management is identifying the potential threats of Abingdon

and Witney College organization. The authority of Abingdon and Witney College will be

prepared for any situation in any time. Like other organizations, Apple has a crisis

management team

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8.1.2 Clear the principle for crisis management: The organization will insure some

certain principle for the crisis management. Actually the process of Abingdon and

Witney College is called principle managing approach. It must insure some principle for

crisis management.

8.1.3 Mention the key process of management: The management of Abingdon and

Witney College organizations will mention some key process of the crisis management

in the organization. Here the process of crisis management of Apple Inc insures

different types of system.

8.1.4 Team for the procedure: At this stage of the crisis management, the authority will

insure a team who will face the problem. The special skilled people will get importance

for the team.

8.1.5 Insure possible action and solve crisis: At the last stage of the crisis

management process, essential steps will insure to solve crisis of the organization.

There are different ways to meet crisis of Abingdon and Witney College organization

and the organization will must chose best possible options for them like Apple Inc.

9.0 ANALYSIS THE IMPACTS OF BUSINESS BREAKS AT ABINGDON AND

WITNEY COLLEGE

Business break has negative impacts on Abingdon and Witney College performance

(Crockford and Neil, 1986). Actually the process of Abingdon and Witney College

breaks of any particular organization like Apple Inc or others face unadjusted problem

with market. The organization cannot insure proper communication with the consumers

of the organization. Moreover the customers of the organization move to another

organization. Abingdon and Witney College loss its usual position in Abingdon and

Witney College market and the brand value of Abingdon and Witney College decrease

to a great extent. So the breaks of business organization minimize it potentialities in the

market place.

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10.0 CONCLUSION:

Business can faces risk from the different reasons and the different drivers of Abingdon

and Witney College influence the risk process of it. Risk has great impact to the

organization growth. But the process of management of risk can insure Abingdon and

Witney College development from the risk process of it. Sometimes business faces

crisis and a proper ways of the crisis management can reduce Abingdon and Witney

College conflict about the future risk of it.

The strong framework regarding the risk of the organization can provide a systematic

procedure of success. The process of risk has strong impacts on Abingdon and Witney

College function and the elements of Abingdon and Witney College functions are very

much influenced by it. A proper evaluation approach of the risk management of the

organization provides a clear concept about the future of Abingdon and Witney College.

The drivers of the risk are elements of our life or environment.

13

REFERENCES:

Allbusiness, (2009). Crisis management, [Online] Available At :<

http://bf.memphis.edu/crisis/crisis_mgmt_plan.pdf > [Accessed on 10 May,

2013].

Bernstein, L., 1998). Remarkable story of risk. 7th Edition. Washington . Quality

publications limited.

Businessline, 2009. Develop Crisis management strategy, [Online] Available At :<

http://www.ntaonline.com/includes/media/docs/crisis-mgm-plan-020703.pdf >

[Accessed on 05-10-13].

Entarga, 2009. Risk management, [Online] Available At :<

http://www.businessdictionary.com/definition/risk-

management.html#ixzz2ThA6mikh > [Accessed on 05-10-13].

Shoppers.com, 2012. Crisis in business organization, [Online] Available At :<

http://www.brighthubpm.com/risk-management/104970-tips-and-template-for-

developing-a-crisi.> [Accessed on 05-10-13].

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BIBLIOGRAPHY:

Crockford, Neil (1986). An Introduction to Risk Management (2 ed.). Cambridge, UK:

Woodhead-Faulkner. p. 18. ISBN 0-85941-332-2.

Dorfman, Mark S. (2007). Introduction to Risk Management and Insurance (9 ed.).

Englewood Cliffs, N.J: Prentice Hall. ISBN 0-13-224227-3.

Haddow, G.,2009. Emergency management. 4th Edition. New Work. Sage international

publication.

Hubbard, Douglas (2009). The Failure of Risk Management: Why It's Broken and How

to Fix It. John Wiley & Sons. p. 46.

Kendrick, T., 2009. Indentifying project risk. 4th Edition. London. Pitman Publishing.

Kotler, P, Armostron, G, Agnihotri,Y, Huque,E., (2012). Principles of Marketing. 13th

European Edition.Prentice Hall. Person education.

Rejda, E.,2010. Principle of risk management. 7th Edition. London. Person international

Publishing.