Manage Risk

Assessment TASK 1:

KNOWLEDGE EVIDENCE APPLIED SHORT ANSWER QUESTIONS.

Q1. By referring to page 4 of the introduction to the document: 31000-2009 Risk Standards Australia Guidelines, outline 1 primary purpose of current risk management standard in Australia: AS/NZS ISO 31000:2009 Risk Management Standard.

Q2. By referring to the document: Art_RiskAnalysis_ISO31000, List 11 key principles of the current risk management standards in Australia.

Answer questions 3 - 12 with reference to the Adidas Case Study - by using the support material provided.

Q3. What key legislative and regulatory areas must Adidas management take into account when developing and implementing their Group Risk Management Policy?

Q4. How does Adidas define Risk and opportunity?

Q5. In what Report does Adidas summarise the most important of these risks and opportunities?

Q6. In what three main categories does Adidas management consider risk?

Q7. What is the primary purpose of the Adidas organisational policies, procedures and processes for risk management?

Q8. The policies and procedures designed by Adidas to facilitate effective risk and opportunity management is held in what business system?

Q9. What is the key objective of this system?

Q10. How does Adidas management make available to employees the Group Risk Management Policy?

Q11. What is the key purpose of the Group Risk Management Policy?

Q12. By referring to the Adidas Risk and Opportunity Report 2017,

Identify 1 key feature of system policies as they refer to: Responsibility and Risk and opportunity identification.

Assessment TASK 2: Performance Evidence

scenario

You work as a Business Manager at Adidas - NSW Head Office in the Public Relations Department.

This department is managed by the Public Relations Manager and you work in a team of 5 Business Managers

Your role as Business Manager in the Public Relations Department includes the requirement to identify and manage business risk that results from adverse public relations

Recently Oxfam (Australia) released an article over the internet - this article is re-produced below Oxfam Australia is an organisation that is reportedly dedicated to fighting social injustice around the world - especially social injustice which is created by businesses

Adidas: So what's the problem with adidas? July 2016

Thousands of workers endure poverty wages and harsh sweatshop-like conditions to make adidas their coveted sports shoes.

Adidas also don't have a good track record in relation to upholding trade union rights.

We have been in constant correspondence with adidas since 2006 asking that they uphold the rights of their workers.

So what's the solution?

Better wages

Workers require a living wage, which is one that allows them to meet the basic needs of a family after working a full-time working week without overtime. Adidas won't commit to a living wage for its workers.

But it will commit to paying already high earning sport stars millions of dollars to endorse their products.

The right to form trade unions

Adidas gets much of its gear made in countries and free trade zones where it is illegal or extremely difficult for workers to organise into unions. Without this united structure it is near impossible for individual workers to ask for improved conditions without fear of retribution.

Adidas has taken a positive step by signing onto the new Freedom of Association Protocol in Indonesia. Adidas was an active participant in negotiations with Indonesian unions and supplier factories to develop the Freedom of Association Protocol. The Protocol, which Adidas signed onto in June 2011, is already having positive impacts in a number of supplier factories. But Adidas must work hard to ensure that the Protocol is implemented at the factory level throughout its supply chain.

A confidential complaints structure

When workers suffer sexual harassment, intimidation, violence or other human rights violations they need to be able to access a confidential complaints mechanism, and they need those complaints to be taken seriously and handled sensitively. In response to public pressure, adidas has made some effort to establish complaint mechanisms in some factories, but most adidas workers don't have access to a complaint mechanism which they have reason to trust.

Ban short-term contracts

Adidas moves its production where it likes when it likes and does not ban or discourage short-term contracts for its workers. So when it leaves an area those workers on short-term contracts are left with nothing.

Incentives for respecting workers' rights

Adidas should offer meaningful incentives to factories that respect workers' rights, particularly workers' right to organise trade unions. Without genuine incentives human rights abuses will continueYour Department Manager has requested that you idenitfy and manage one of the possible buisness risks that might result from the release of this article - that is a drop in sales figures for Adidas shoes in NSW

Part A: Risk Management Plan

In the first instance you are reuired to undertake the required research and stakeholder analysis to determine the scoipe and context of the risk and to develop a Risk Management Plan - which includes a communication plan

Your Dapartment Manager has sent the team this email

ADIDAS

PUBLIC RELATIONS DEPARTMENT

Internal Email

Date: 20 July 2017

To: Business Managers - PUBLIC RELATIONS DEPARTMENT

RE: Possible business risks associated with the Oxfam release of article: ‘Adidas: So what's the problem with adidas?'

Dear Business Managers

No boubt you are aware of the release this year of the Oxfam Australia article

This type of adverse publicity can have serious effects on our sales - as you know the Australian population is severely affected by these types of allegations and our competitors will quickly put out advertising that assures consumers that they don't do what Adidas does - so buy their shoes not ours!!

As Business Managers I want you to undertake a Risk Managemnt Plan to reduce the impact of the Oxfam article on NSW sales by releasing an advertising campagn: ‘When you but Adidas shoes you are buying ethical shoes ‘ in the Sydney Morning Herald- 2 x full page, colour, graphics etc that assures the Australian Consumers that we are a very ‘community' conscious company - very ethical - and that our production processes and products refelcts these values- so when you but Adidas shoes you are buying ethical shoes

I require you to undertake a risk management strategy that involves:

1. Establishing the risk context: Adidas policies and procedures involved, risk management process, stakeholders, critical factors.

2. Communicating the risk plan to other Business Managers and your Department Head - have a meeting - get some feedback and amend the plan if necessary

3. Identifying the risk.

4. Analying the risk.

5. Selecting, implementing and evaluating your risk management process.

However I need you to take into account all of the following risk factors

1. To date (the article was released a year ago) there is no real evidence of a related drop in shoe sales in NSW as a result of the article.

2. However sales figures from past occurances such as this for other companies sahows that this type of bad publicity takes approximatey 2 years to impact on sales

3. The expected dop in shoe sales is expepected to be around 20% in NSW alone

4. The value of this is $1.9 million.

5. The type of advert I want will cost $2 milion to create and further costs to place in the Sydney Morning Herald.

6. There is no evidence that this advert will work.

You are required to compete the Adidas Risk Managemnt Pan using the standard Adidas Template which inlcudes provision for a Commuication Plan with stakeholders. You might identify as stakeholders the Public Relations Manager, Marketing Manager, Sales Manager, Finance Manager and externally a representitive from the Shaeholders Committee

Please hold a stakeholder meeting and invite the relevant parties to assist with the identification of risks that may apply to this scope. So in consultation with relevant parties

• generate a list of risks that apply to the scope,

• Assess likelihood of risks occurring.

• Assess impact or consequence if risks occur.

• Evaluate and prioritise risks for treatment.

You can document this meeitng using the Meeting Minutes Template . I have booked 21 July 2017 in the Meeting Room 1 Sydney Head Office - for you to hold the meeting. 9 am start.

Please refer to the folowing Adidas publicaitons for further information:

Adidas 2016 Report

Adidas Group Code of Conduct

Adidas POLICIES AND STANDARDS

Adidas Risk and Opportunity Report

Adidas Risk Management Pan Template

Adidas Records Management Policy and Procedure

Australian Risk Standard: Art_RiskAnalysis_ISO31000

Thnak you

Jan Peterson

Public Relations Manager

Part B: Implement and Monitor

By using the agreements from the Stakeholder Meeting and your own research (through the Risk Management Plan) you are required to determine and select the most appropriate options for treating the identified risks and subsequently Develop an action plan for implementing risk treatment

a. Use the Adidas Action Plan and Schedule Template to document your plan

b. Send an internal email to the Manager Public Relations explaining your decision

Part C: implement the action plan

Now that you have received management approval you are to implement the action plan to treat the risk of a sales fall in NS.

a. Send an email to the Advertising Department to design the advertisement.

b. Complete all required Sydney Morning Herald documentation to place the advert.

c. Lodge the documentation (using the portal provided by your trainer and assessor).

Part D: Monitoring

1 month after you placed the advert you send out a communication to your ‘customer group' asking them to provide feedback on the advert. You receive the following market feedback:

‘this advert is an obvious attempt to take away from the issue that Adidas is not ethical'

‘we know you use child labour ‘

‘we are now buying Ike shoes'

a. Send an email to your manager outlining your monitoring technique and evaluation of the action plan and risk management process to date.

b. Issue a letter to the stakeholders (as at your initial meeting) and inform them of the situation i.e. the feedback.

Part E: maintain documentation.

By creating an electronic folder manage and store correctly all documentation as per Adidas Records Management Policy and Procedure in the Adidas POLICIES AND STANDARDS document.

1500 words each assessment