The report helps in understanding about the different kinds of operational risks that are involved in a company. The company that has been taken in this particular report is HG Metal Manufacturing Company that is situated in Singapore. An operations manager is appointed in the respective company as to properly assess the risk and suggest as well as implement different measures to reduce such operational risks from the company. The risk management approaches and framework of HG Metal Manufacturing Company has to be properly analyzed as well.
The main aim of the report is to understand as well as analyze the different incidents in the past that has occurred as the operational risks in the respective company as well as the industry. The main purpose of the report is to analyze the good practices of the safety technologies with proper tools and techniques as well. The impact of the hazardous substances treatment has to be implemented as this will help in treating the risk.
The structure of the report will include the proper process of treatment of the different kinds of risk and this will help in reviewing the good practices that will help in reducing such operational risks from the respective company. The impact has to be properly discussed that will affect the company and recommendation has to be properly implemented by the Operations Manager as this will help in assessing the risk that can be a danger to the entire company.
HG Metal Manufacturing Limited is a metal company that was founded in the year 1971 that is the retailer of steel as well as metal products. The respective company provides end to end solution to the customers that range from services relates to distribution to the downstream along with the value added services. The HG Metal Manufacturing Limited Company is properly equipped with different kinds of sourcing capability that is strong in nature and they have a huge network of suppliers from different countries namely Japan, Russia, Tokyo along with other European countries. The nature of the business is that the company has also offered steel and metal solutions that are customized in nature for different industries namely transportation, energy as well as electronics.
The main duty of the risk managers is to analyze the safety of the supervision along with proper handling of different claims. The operations manager has to report to the higher officials in the management regarding any kind of losses, other programs related to prevention of loss of the company as well as results of the insurance marketing. Proper identification of the exposures related to exposure has to be ascertained as this will help them in identification of the solutions of the insurance related products. The entire team will work effectively to minimize the payment of the loss for litigation as well as claims.
The operational management of risk has focused previously on the mitigation of the risks from the internal processes that are internal in nature but due to the increase in the regulatory requirements along with the requirement of the improvement in the performance of the business the scope of Operations Risk Management has been expanded. The ORM program of the respective company is based on framework of the sponsoring company and this will help their clients in reimagining the different risks as well as compliance process with internal control that will offer:
These are the different activities that have to be performed by the operations manager of the respective company HG Metal Manufacturing Limited wherein they have to handle and manage the raw materials as well as personnel. The proper oversight of the entire inventory along with supplies as well as purchasing has to be properly taken care by the operations manager. The operations manager has to analyze the kind of operational risk that is affecting the brand image of the company and in this particular scenario, the change in the organization can come in different forms that can affect the structure of the entire business.
In HG Metal Manufacturing Limited Company, there was a risk that has been faced by the respective company due to the low quality of the products that are produced by them. In the past, there was a risk related to the poor quality of the metal products that are sold by HG Metal Manufacturing Limited Company and the customers faced lot of difficulties as well. The proper quality assurance is essential for the company to provide to the customers as the customers trust the brands and they go ahead with the purchase of different goods as well as different services. HG Metal Manufacturing Limited Company supplied different metal and steel products that were sold to the customers but they were of low quality as the assurance of quality was not provided to the clients and this created bad reputation for the defective products that were sold by the company. There were different kind of defects in the steel and metal product and there is a policy of replacement that has been provided by the company to the customers when the problem is discovered (Aven 2016).
According to Farrell and Gallagher (2015), operations risk is the kind of issue that affects the internal ability of the company to supply as well as produce different goods as well as services. There can be different risks that can affect the reputation of the firm as well as the impression upon the customers as well. In the last few decades, Barakat and Hussainey (2013) commented that risk management in the supply chain management has properly developed but there are different operational risks in the different companies. Chiu and Choi (2016) outlined that the risk management is the area with different conflicting terms along with proper critical reflection on the principles as well as regulations (Chen, Sohal and Prajogo 2013).
The operational risks that has been faced by Reliance Company as the gap analysis was done with the help of proper vulnerability assessment. The root cause analysis was properly reviewed as this will help in resolving such issues with proper implementation of different strategies as shown in the picture below:
There are different methods of the identification of the risks by HG Metal Manufacturing Limited Company on the basis of the databases of the different events that has happened in the past as this will be helpful in nature to understand such issues that has occurred in the future and try to resolve such issues as this will help in understanding the potential risks that are involved in such kind of cases (Thomas, Crook and Edelman 2017).
HG Metal Manufacturing Limited Company has to identify the root causes of the different operational risks wherein proper identification of the undesirable events that has gone wrong and proper identification of the potential impacts is essential as well in such events. Secondly, it is essential for the company to identify the different functions that are essential in nature and possible modes have to be identified that are crucial for gaining success (Xu et al. 2014). The method of the qualitative risk assessment is essential to be done by HG Metal Manufacturing Limited Company wherein the following steps have to be followed:
There are two different tools and techniques that help in identification as well as analysis of the operational risks of HG Metal Manufacturing Limited Company are as follows:
There are different kinds of documentation required for the proper assessment of the risks in the workplace that are as follows:
These are the different kinds of tools and techniques as this will help them in understanding the level of risk and implement the safety technologies with the help of proper advancement of technologies.
There are different safety control technologies that will help HG Metal Manufacturing Limited Company in order to reduce the operational risks in the respective company. The analysis can be done with the help of the following the steps that are as follows:
The risk incidents as well as different activities those are remedial in nature for proper effectiveness in the entire organization. The strategies that are effective in nature will help in countering the future risks. The risk occurrences that has happened previously has to be properly analyzed by the company in order to make some amendments in the future as well as in the present as this will help in handling the current operating scenario at the workplace. The task in hand that is critical in nature is wherein the organization can implement different the steps in reducing such kinds of risk. Proper corporate governance as well as the compliance platform enabled proper advancement of technologies and this helped in effectively support the proper implementation of the 7 step approach to reduce the operational risk management (Hora and Klassen 2013). This will help the respective company HG Metal Manufacturing Limited Company in handling such risks and this helped them in maintaining and this will help in mitigating the operational risks and this helped the entire company along with the employees to support proper implementation of different technologies (Sturm 2013).
There are different advantages as well as disadvantages in the risk treatment of the operational risk in the respective company wherein the risks can be nurtured and with the proper handling of the previous risks, the future risks can be mitigated with proper implementation of technologies.
However, on the other hand, there are disadvantages as well wherein there can be unmanaged losses that can impact the entire business and the external entities along with ambiguity that is uncontrollable in nature (Wang and Hsu 2013). The potential threats cannot be managed properly as there are external uncertainties that cannot be controlled by the management.
Therefore, it can be recommended that the respective company has to adopt certain other strategies in mitigating the different kinds of operational risks and this will help in focusing properly on the assessment of the risks and this will help in understanding the impact of the risk on the entire business as well. This will help in promoting the culture of the entire organization as well. Lastly, the risks can be nurtured properly by compensating the risks within rigid comparisons along with different choices that will help in mitigating the risks as well from the entire business. These are the different process through the advancement in technologies that will help in mitigating the operational risks.
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