Response to the following with ,200 words APA style
Risk register for a food manufacturing company
Risk Index
Risk Description
Current Level
Control measures in place
Action to be taken
Likelihood
Magnitude
Overall Rating
1.
Delay in delivery of raw materials thus disrupting production process which could adversely affect sales and company reputation.
High
High
High
Keeping buffer stock of raw materials for use in case of delays.
Make use of alternative suppliers while clearing up the delay.
2.
Work stoppage or delay due to employee turnover.
Medium
Medium
Medium
Proper training of all employees to handle tasks
Outsourcing expertise when necessary.
The above is a sample risk register for a food manufacturing company. It records two risks that have been identified during risk assessment. The risk index numbers the risks as they are listed. The second part is the risk description which details the actual event that causes risk for the company. The next three columns cover the assessment of the risk level for the company detailing the chance of occurrence, the extent or magnitude of the risk and its overall rating. (Hopkin, 2017)
Risk management includes putting in place controls to prevent or mitigate the identified risk. It also records specific additional actions to be carried out in control of the risk. (Hopkin, 2017)
For the Small food manufacturing company above, the risks cited are delay in supply chain of raw materials. A report by professional services firm BDO on risks in the manufacturing sector found supply chain risks as the most cited risk by manufacturers. This can be attributed to the globalization of manufacturing and the complex supply chains involved today. (BDO LLP, 2017)
The second risk is disruption or delay of production cycle due to changes in the employee structure due to high turnover of staff. The BDO Report also cited attracting and maintaining talent in manufacturing as a risk (BDO LLP, 2017)
Reference
BDO LLP. (2017). BDO 2017 Manufactruring Risk factor Report. BDO LLP.
Hopkin, P. (2017). Fundamentals of Risk Management. Philadelphia: Kogan Page.
Expert Solution Preview
Introduction:
The given content presents a risk register for a food manufacturing company, which records two identified risks during a risk assessment. This risk register includes various components such as risk index, risk description, current level, control measures in place, action to be taken, likelihood, magnitude, and overall rating. The purpose of this risk register is to identify potential risks faced by the company and develop strategies to prevent or mitigate them. This answer will discuss the significance of risk management and analyze the risks mentioned in the risk register.
Answer:
Risk management is a critical aspect of any business or organization as it allows for the identification, assessment, and mitigation of potential risks that may impact its operations, reputation, and financial stability. The risk register provided for a food manufacturing company serves as a valuable tool for documenting and managing risks effectively.
The first risk mentioned in the register pertains to the delay in the delivery of raw materials, which could disrupt the production process, leading to adverse effects on sales and the company’s reputation. This risk is categorized as high in both likelihood and magnitude, indicating a higher probability of occurrence and significant consequences if it does happen. To control this risk, the company has implemented control measures such as keeping buffer stock of raw materials and making use of alternative suppliers during delays. These actions aim to ensure a continuous supply chain and minimize the impact of any potential delays.
The second risk identified is work stoppage or delay due to employee turnover. While this risk is categorized as medium in terms of likelihood and magnitude, it still poses significant challenges to the company’s operations. To address this risk, the company has implemented measures such as proper training of employees to handle tasks and outsourcing expertise when necessary. These actions aim to minimize the impact of employee turnover on the production cycle and ensure the availability of skilled labor.
The risks mentioned in the risk register align with the findings of the BDO 2017 Manufacturing Risk Factor Report, which identified supply chain risks and attracting/maintaining talent as significant concerns in the manufacturing sector. The globalization of manufacturing and complex supply chains have increased the likelihood of delays in the supply chain of raw materials, making it a prominent risk. Additionally, high turnover of staff can disrupt the production cycle and hamper productivity, necessitating the need to attract and retain skilled employees.
In conclusion, the risk register serves as a valuable tool for the food manufacturing company to identify and manage potential risks effectively. By implementing control measures and specific actions, the company can mitigate the identified risks and ensure smooth operations. The alignment of the identified risks with the findings of the BDO report highlights the relevance and significance of proactive risk management in the manufacturing industry.
