Explain the process you will use to identify potential hazards, threats, and risks of the company’s current business

Question

Tessile, S. A., a company based in Turin, Italy, is a medium-size company that manufactures, sells, and exports textiles. An

increased demand for the company’s high-quality textiles has led to the approval by its CEO, Giuseppe Franco, to

implement a major expansion to other markets. Mr. Franco is seen as a visionary leader in the textile industry as he

transformed a cotton plantation company into one of the major textiles companies in northern Italy.

Mr. Franco recently led an aggressive and successful series of acquisitions of wineries in southern and central Italy. Mr.

Franco wants to follow these acquisitions by purchasing and introducing Tessile S.A. to the tourist and cheese industries.

However, these last winery acquisitions left the company in serious debt and with its shares losing value due to the

perceived negative view of Mr. Franco’s strategy by its shareholders moving away from their core textile business.

You have been assigned to advise Tessile, S.A. board of directors on identifying potential hazards, threats, and risks of

Tessile’s business strategies.

Create a PowerPoint presentation that consists of at least 10 slides with a separate title slide and reference slide (not

included in your number count). Be sure to include the following information in your presentation:

Explain the process you will use to identify potential hazards, threats, and risks of the company’s current business

strategies.

Identify the potential hazards, threats, and risks that you discovered when using your process.

Sample paper

Risk management

Speaker notes

  • Risk can be identified as any probability or threat or any other form of a negative occurrence caused by external or internal vulnerabilities. To be in a position to identify, evaluate and mitigate or treat these liabilities, a company needs to design and adopt risk management programs.
  • Risk management should entirely focus on establishing the treats that are likely to affect the business, assess the risk, prioritize them and apply resources to minimize their effects on the business(Bessis, 2015).
  • Under the stewardship of a risk manager, an organization can identify, prioritize and treat hazards and threats with the help of the management, shareholders and other business stakeholders.

Risk identification process

  • The investor or a business owner has a sole responsibility of ensuring that adequate and timely risks identification is performed considering that he or she is the first participant in the projects.
  • The risk identification process is solely focused on establishing potential hazards or threats to a business by evaluating the root cause of problems in a project.
  • Appropriate training programs should be designed to train and develop the risk management team on how to establish and identify potential hazards and the best way to treat them. The training should also cover the managerial skills necessary to interpret risk assessment.
  • Risk identification should be explicit and comprehensive to cover all the potential threats to the business.
  • A comprehensive database of events can be either stored in the minds of the project teams of the companies or stored in writing both electronically or in a paper.
  • The events buried in the minds of the people can be assessed through brainstorming sessions where business stakeholders come together to discuss the potential threats to their business.
  • Historical data of similar or closely connected projects can be used to forecast potential threats that can affect the project. Additionally, the current business trends and the environment can be useful in identifying external threats that can affect a project.
  • Communication is one of the important tools in the risk identification and management process. Risk communication enables the risk management team to identify potential hazards while at the same time share their concerns with other stakeholders.
  • Open communication enhances trust which is essential to effective risk identification thus encouraging team members to raise their risks in an open forum where the probability and the impact of hazards identified (Bessis, 2015).
  • Risk identification process requires input from the entire project team and other stakeholders as opposed to specialized groups
  • The project team should focus on identifying the root cause of risk by establishing the undesirable events that can go wrong as well as identifying their effects on the business project.
  • However, the risk management team should also identify the goals that must be achieved by the project for it to be considered as a success as this gives the team the standards and scale to which they can grade the performance of the project.
  • Risk identification should be performed and conducted early in the project and should continue until the project is completed.
  • Despite the fact that Mr. Frank has a reputation of leading aggressive and successful acquisitions and business changes, he should have informed all the business stakeholders of his intentions and plans to reduce change resistance in the company.
  • As stated, shareholders are unwilling to move away from their core textile business, and this can adversely affect the operations of the business especially without the backing of the business owners(Leahy, 2016).
  • He should focus on change management strategies to make sure that he convinces the shareholders that this is the right decision and plan for the business.
  • Every investor has a dream of making a profit from his or her investment. However, after the aggressive acquisition, Mr. Franco is left with a huge debt to pay which puts the future of the company in jeopardy.
  • There are high chances that the shareholders of the company will not enjoy any profits in the near future as they try to pay the debt incurred in the acquisition process (Biagini, Richter, & Schlesinger, 2013).
  • The profit risk is one of the major risks an organization can face considering that it is through profit that the company can grow and expand.
  • For years, the company has been trading in textile products, but with the introduction, the Tessile S.A. to the tourist and cheese industry means that the company has to develop new products in the market.
  • Considering that this is entirely a new market, it may become hard for the company to win over new customers as well as create a new brand for its new products and services as well as losing the old and loyal customers.
  • The company is set to face the threat of developing a new product as well as venturing into a new market.
  • From time to time companies and businesses often suffer from business failures especially in situations where the products are new and do not meet the expectations of the customers.
  • The company faces the threat of product failure considering that it introduces new products in the market in the form of cheese and tourism industries.
  • However, to mitigate this risk, the company should assess the performance of the product in the market long before it can be introduced in the market.

Conclusion

  • The identification and treatment of potential risk and hazards are important to the management of a project as they reduce if not eliminating adverse impacts of these threats.
  • All risk identification and management processes should be explicit and comprehensive to identify and treat all potential threats.

References

}Bessis, J. (2015). Risk Management in Banking. New York, NY: John Wiley & Sons.

}Biagini, F., Richter, A., & Schlesinger, H. (2013). Risk measures and attitudes. London: Springer.

}Leahy, P. P. (2016). Natural Hazards Identification and Hazard Management Systems. Oxford Research Encyclopedia of Natural Hazard Science. doi:10.1093/acrefore/9780199389407.013.167

}Valsamakis, A. C., Vivian, R. W., & Du, T. G. (2010). Risk management. Sandton: Heinemann.

}

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