1.

Risk assessment is a process of evaluating potential risks or hazards associated with a particular
activity, process, or situation. It involves identifying potential risks, analyzing their likelihood
and potential consequences, and then determining ways to mitigate or manage them.

The importance of risk assessment lies in the fact that it allows individuals and organizations to
identify and understand potential risks before they become actual problems. This, in turn, enables
them to take proactive measures to prevent or mitigate risks, reducing the likelihood of harm to
people, the environment, and property. Risk assessment is also an important tool for compliance
with legal and regulatory requirements, as well as for demonstrating due diligence and
responsible management practices. Additionally, risk assessment can help to optimize decision-
making, as it provides a structured framework for weighing the potential risks and benefits of
different options.

2. SWOT analysis: SWOT analysis is a strategic planning tool used to identify an organization's
strengths, weaknesses, opportunities, and threats. It helps identify potential risks and
opportunities and develop effective risk management strategies.
Checklists: A checklist is a simple and straightforward tool used to identify potential risks. It
involves creating a list of possible hazards and evaluating the likelihood and severity of each one.
Questionnaires: Use of questionnaires to collect information that will assist with the recognition
of the significant risks.
Workshops and brainstorming: collection and sharing of ideas at workshops to discuss the events
that could impact the objectives, core processes or key dependencies
Inspection and audits: physical inspections of premises and activities and audits of compliance
with established systems and procedures.
Flow charts and dependency analysis: analysis of the processes and operations within the
organization to identify critical components that are key to success.
3. Advantages:
Questionnaires and checklists: consistent structure guarantees consistency and there is greater
involvement than in a workshop.
Workshops and brainstorming: there are consolidated opinions from all interested parties and
greater interaction produces more ideas.
Inspections and audits: physical evidence forms the basis of opinion and audit approach results in
good structure
Flow charts and dependency analysis: useful output that may be used elsewhere and analysis
produces better understanding of processes.
Disadvantages:
Questionnaires and checklists: rigid approach may result in some risks being missed and
questions will be

based on historical knowledge.

Workshops and brainstorming: senior management tends to dominate and issues will br missed if
incorrect people involve.
Inspection and audits: Inspections are most suitable for hazard risks and audit approach tends to
focus on historical experience.
Flow charts and dependency analysis: difficult to use for strategic risks and may be very detailed
and time consuming.
SWOT advantage: it is simple and easy to understand which can be used by anyone with basic
knowledge of the organization and its environment, it is comprehensive that covers both internal
and external factors that affect the organization, it helps in identifying potential risks and
 opportunities that may arise in the future and lastly, it provides a basis for decision-making,
especially in strategic planning.
SWOT disadvantage: it is subjective in nature as it is based on perception and opinions of the
individuals involved in the analysis, it does not prioritize the factors identified which makes it
difficult to determine which factors should be given importance, it only considers the internal nad
external factors that are known to the organization, which may result in missing out on potential
risks and opportunities that are not yet known, and lastly it only identifies the factors that need to
be addressed, but it does not provide solutions to the identified risks and opportunities.
4. PESTLE is most relevant to the analysis of external risks.
P - Political it includes tax policy, employment laws, environmental regulations, trade restrictions
and reform, tariffs, and political stability.
E - Economic it includes economic growth/decline, interest rates, exchange rates and inflation
rate, wage rates, minimum wage, working hours, unemployment (local and national), credit
availability, cost of living, etc.
S - Sociological it includes cultural norms and expectations, health consciousness, population
growth rate, age distribution, cover attitudes, emphasis on safety, global warming.
T - Technological it includes technology changes that impact your products or services, new
technologies, barriers to entry in given markets, financial decisions like outsourcing and supply
chain.
L - Legal it includes changes to legislation that may impact employment, access to materials,
quotas, resources, imports/exports, taxation, etc.
E - Ethical or Environment it includes ethical and environmental aspects, although many of these
factors will be economic or social in nature.

FIRM reflects the idea that every organization should be concerned about its finances,
infrastructure, reputation, and marketplace success.
F - Financial it includes risk that can impact the way in which money is managed and profitability
is achieved.
I - Infrastructure these are risks that will impact the level of efficiency and dysfunction within the
core processes.
R - Reputational these are risks that will impact desire of customers to deal or trade and level of
customer retention.
M - Marketplace these are risks that will impact the level of customer trade or expenditure.

4P's are the components of the organization that is impacted by any hazard events that may occur.
It is also considered as risk classification system. 4P's are People, Premises, Processes, and
Products.

5. The long-term attitude of an organization towards risk is crucial because it shapes its risk culture,
which in turn influences the perception of risk. Risk culture refers to the shared values, beliefs,
and attitudes that shape how an organization approaches and manages risk. If an organization has
a risk-averse culture, it will be more cautious and conservative in its decision-making, preferring
to avoid risks altogether. On the other hand, if an organization has a risk-tolerant culture, it will
be more willing to take on risks in pursuit of potential rewards. A long-term attitude towards risk
helps an organization to create a consistent and stable risk culture over time. This means that the
organization can develop risk management processes and practices that are tailored to its specific
needs and risk appetite. Such processes can help the organization to identify, assess, and respond
to risks in a more effective and efficient manner. Moreover, a long-term attitude towards risk can
also affect how stakeholders perceive risk. For example, if an organization has a track record of
taking on risky projects and delivering successful outcomes, its stakeholders are more likely to
view risk as a positive force that can lead to innovation and growth. Conversely, if an
 organization has a history of poor risk management and adverse outcomes, stakeholders may
view risk as a negative force that should be avoided.

Part II.
1. Some of the risk sources that emerged repeatedly in evaluating the risks included:
Supply chain disruptions: As the company sources its products from multiple suppliers, any
disruption in the supply chain can have a significant impact on the business's operations.
Dependence on key customers: The company relies heavily on a few key customers for the
majority of its sales. If these customers were to leave, it could have a significant impact on the
company's revenue.
Dependence on key employees: The company's success is heavily dependent on the expertise and
knowledge of a few key employees. If these employees were to leave, it could be difficult for the
company to maintain its operations.
Cybersecurity threats: The company's online sales channel is vulnerable to cyber attacks, which
could result in the loss of customer data and damage to the company's reputation.
Market competition: The company operates in a highly competitive market, and there is a risk
that it may lose market share to its competitors.

Identifying these risk sources is helpful because it allows the company to proactively implement
risk management strategies to mitigate the potential impact of these risks. For example, the
company could implement supply chain diversification strategies, develop contingency plans for
key customers and employees, and invest in cybersecurity measures to reduce the risk of cyber
attacks. By identifying and addressing potential risks, the company can reduce its overall risk
exposure and increase its resilience to potential threats.

2. By conducting a risk assessment, the company can identify potential risks such as legal
compliance, financial risk, operational risk, and reputational risk, among others. Once identified,
the risks can be evaluated based on their likelihood and potential impact. This information can
then be used to determine the overall level of risk associated with the new HR strategy. Based on
the results of the risk assessment, the company can make an informed decision on whether or not
to proceed with the new HR strategy, and if so, what measures need to be taken to mitigate the
identified risks.