Woollen Blanket
Under ISO 31000, the risk management process involves five steps: establishing the context, risk assessment, risk treatment, communication and consultation, monitoring and review.
Establish the context
A couple, Roger and Leslie, started woollen blanket business four years ago, is looking for 130000 pounds investments to cut down the waste cost during manufactory. Due to the popularity of other similar products in the market, it is a challenge for the company to convince their customer back to using an old product such as woollen blanket.
Risk identification
Before going to Dragons Den show and asking investment, company should think about the risk they are currently facing. Increased waste occurring from old machine and high labour fees is a significant risk. The risk of conversing customer is also relevant.
Risk analysis
The risk of old machine and labour fees could hinder the potentially fast growth rate of the company. On the other hand, if the company fail to converse their customer taste, then the product will not be sold and the company could go bankrupt.
Risk evaluation
Both of these risks are very likely to occur if the company do not have any treatment plan to mitigate it. Once it happened, the company would suffer heavy loss of revenue and effort.
Risk treatment
It is essential for all organisations to have some plan to mitigate the impact of risk on their business. The company should estimate how much cost company could cut down if they use the investment from the Dragon to upgrade their machinery and how much profit the company could generate from that upgrade in the future. As for the risk of conversing customer, a detailed plan of how the company going to advertise the product and the estimated cost for that campaign should also included.
Monitoring and review
Additionally, the company should also have a monitoring and