Not For Profit Organisation

Project Proposal

TABLE OF CONTENTS

Topic page
1. Abstract 3
2. Introduction 3
3. Resource planning 5
4. Risk Analysis 5
5. Schedule analysis 7
6. Networking Diagram for the system 8
7. Statement of the Problem 9
8. References 16

ABSTRACT

This paper contains a proposal on risk management system which should be used by Australian companies. In order to have the best quality control standards in an organization, it is important to have a system that manages risks. Risk management helps employers to have effective plans which help them to control the policies and the procedures of the organizations. This proposal was drafted after surveys were carried on several companies in Australia. It was found out that many companies lack effective software which can enable them to manage the risks in the companies. The risk management system proposed will help organizations to have policies which would help in productivity of the organizations. Researchers have found that risk management is important for good governance of an organization and also to avoid risk litigation in an organization. The proposed system contains ethical standards which would help professionals to have a good conduct.

INTRODUCTION

The main aim of this proposal is to come up with a standard that professionals such as managers can use to control risks in an organization. The system is meant to increase the management's awareness regarding the ethical principles which should be applied at their place of work. It is assumed that when the management policy has been adopted, managers will be able to identify threats which expose practitioners to risks. After realizing these threats the management is able to use them as opportunities to achieve excellent management policies. The system also helps the top management to understand the potential risks which affect the profitability of the business (Spedding & Rose, 2008, p. 187).

The system is meant to manage incidents of conflict within employers and the management. This can prevent incidences of strikes and go slows which cause huge losses to the business. Through the insurance premiums, losses can be managed and reduced at a greater extend. Insurances help to cover the risks that might arise in the place of work. They mitigate risks which are prone to occur when managing issues in work environment. A professional service is provided to customers and clients and this can attract the customers to the job. It is important to note that the system is able to communicate the management problems and then coordinate the entire process to the stakeholders involved (Cameron & Raman, 2005, pp. 12-19).

Risks that involve time are also managed by the software, this means that more time will be saved by managers trying to identify and analyze risks which occur in a work environment. Moreover, the software is able to save costs which come into businesses through formulation of time wastage schedule. As an important input in the business, time resource will be accounted for through management of schedules and plans. The system will also be providing reports about the progress of plans and objectives of specific organizations it is used. The system will also be used to measure the probability of a plan being accomplished and also failing. This means that the software will allow operational realities in businesses (Yilmaz, 2009).

RESOURCE PLANNING

For effective running of this software system there has to be a clear resource plan that is intended to make sure that there is no waste of time and other resources due to scarcity and improper planning. The human labor has to be perfectly detrmi0ned by the system and the correct numbers hired by the start of any project. The project time line is projected by the system and the possible adjustment can be estimated. There can be a lot of time saved if the system is properly used. Raw materials used in the project are well estimated by the software system and the cost of transport is given according to the fed data. The system by itself is not resource demanding. It can be operated without any needed for employment of an extra worker as a specialist to operate it. The system is generally designed to make sure that the resources are efficiently and effectively utilized during the entire process.

RISK ANALYSIS

This system contains two kinds of risks. They include natural risks which exist due to natural circumstances and manmade risks. The steps usually involve identifying the possible risks that exist within a company; the possible risks are usually related to the company's objectives. By determining the company's objectives, it is possible to detect what likely risks the company is exposed to. The second step involves examining the possible effects of the existing risks, prioritizing the risks in order of the most hazardous to the least hazardous in order to know how best to solve or correct the effects when they occur.

Prioritizing usually involves arranging risks after consideration of the legal, financial and structural aspects. Legally, a company will look at how the effects of the risk will affect the company in the legal font, that is the law suits and litigation measures that the company will be exposed to .Financially, a company may choose to outsource so that it can be able to compensate its clients incase it runs bankrupt. It may also involve making adjustments on the resources used within the company such as in terms of human and financial resources so that the company is able to withstand any pressures (Emslie & Hancock, 2008, p. 234).

It is not entirely possible to eliminate risks; therefore some strategies are incorporated to at least aid in controlling the hazards. Risk avoidance is one way, this entails that a company creates policies, codes of conduct as well as financial and structural changes which will assist inn risk management. By building the company in a stable area that is not prone to earthquakes and landslides, by creating codes of conduct that guide the behavior of all the persons within the company to avoid cases of lawsuits (Woods, 2008).

Reducing the negative effects of the risk usually involves installing proper mitigation measures that will help reduce the negative effects incase a risk occurs. For example in most Australian companies, security and fire alarm systems have been placed incase there is a fire or a break -in. Another strategy is the use of risk transfer whereby the company can take upon insurance so that it is able to get back on its feet incase there comes a risk.

The system is designed to provide managers with sound procedure of making risk proof decisions. The system provides criteria where managers can implement their decisions through early detection of losses. Additionally, uncertainties are also reduced through implementation of policies which control their occurrence. The risk decision software is designed in such a way that managers can analyze and prioritize a decision. When risk is taken in a business, it can either cause a loss or even profits to the business. In order to avoid losses, the decisions which are made by the candidates designed in such a manner that they are cost effective and they are also calculated. The fundamental basis for introduction of the software is to manage risks which occur in organizations.

According to research, the best software for managing risks is the one which does involve efforts of the top management and the one which is flexible in that it can be used by different data managers. The system can manage both qualitative and quantitative data making it to be the best risk system manager. The management software is also important in merging and dissecting databases in an organization. As a matter of fact, the system can display the uncertainty in terms of time and cost wasted in organizations. This can help businesses to define reports and generate tools to be used by managers when making their decisions.

SCHEDULE ANALYSIS

Delaying or compressing the system causes some changes in the cost of the entire project. Schedule analysis is important for the estimation of these costs so as to make the proper project plan. In the project the collection of data refers to the process the data is fed in to the system for processing. This can be made possible for every person in the firm as long as the data is relevant. It saves time and extra manpower for the firm. Different departments can be allowed to input data for processing at all time without necessarily asking for permission from the main center.

This software is designed to save time for the entire and also cut down the cost of operation. Time between the different tasks that the project performs is very minimal. Immediately data has been fed into the system changes are made throughout the system, updating the operating costs, cash flows and every other statement or document that has been affected. The processing is immediate giving immediate results thus immediate action can be taken (Spedding, 2008).

NETWORKING DIAGRAM FOR THE SYSTEM

A

Explanation

The collection center is used for collection of data which is required to be processed by the system. The collection center carries the inventory charts, the plans, the risk analysis diagrams and also other relevant data to be processed into final information. This data is sent to the collection center where it is processed analyzed and arranged in categories which are needed to be taken care of. The report center carried the reports of the progress in the specific company which is being used. In addition, the system contains a terminal center which contains a system that has the timing controls, the inventories, the journals and information about the progress of the employees. This information is also sent to the processor to be analyzed. It also acts as the main link between the inputs and outputs. It has an analysis center which is mainly controls the functions of the administration from these of the employees.

STATEMENT OF THE PROBLEM

The system is designed to many problems and defects which occur during management of data within an organization. Due to its accuracy in elimination of defects and uncertainties, the system is able to solve unrealistic and unarticulated goals and ambition in organizations. The system eliminates unrealistic objectives and plans which slow down the functioning of operations, Secondly, estimates which are inaccurate can easily be identified using the software without any efforts from auditors and other external auditors. It is thus very difficult to have a poor project status when one is using the system. Risks which are unmanaged are solved in the management process.

One of the beneficiaries of the system is that it provides the management with efficient communication channels where employees and managers can communicate the problems which affect them. Communication is important for many operations within an organization. For example, communication helps in handling complexity of problems and issues within an organization. Communication also helps in delegation of duties within an organization. Through the system it is easier to prepare documentation and prioritize on the needs of the organization. The system is also helpful in planning of projects. This is because it provides history of past and present projects. It also defines the plans and the inputs which are essential in the management of projects within an organization (Jorion, 2007).

A recent survey on many risk management systems found out that many risk management systems fail because of control of top management. The system is designed in such a manner that it tries to solve all the problems which occur in management. The system is designed in such a manner that it does not require control of any person within an organization. Once it has been adopted, it evaluates the risks involved, calculates them and delivers reports to the management. The system also provides a framework to users to differentiate risks from problem and then manage them separately. This is successful through implementation of a technique which differentiates risks occurring in different stages of management. The system also provides a time domain, information domain and reporting domain which work together to solve all the problems occurring within an organization (Gorrod, 2004).

Risk management software

Riskdecision is risk management software that allows the management to evaluate the processes of the business for any risks involved and make the right decision for the activities in the work place. This software helps the management make some of the most important choices in the work place without the fear of making the unnecessary mistakes made by the workers. The system does not help the management in the implementation of the chosen course of action but can help the management in the detection of these risks (Dubrin, 2009).

Identified risk circumstances

There are four key decisions the the software can help the individual make. Some times the activities in the work place have a lot of priorities of unidentified circumstances. The software helps the management discover them early in time. Resources are scarce and that's why the manager allocates resources to the most the important tasks in the business. The risk management software assists in making the decision on which tasks should be concentrated with the highest number of resources. After identifying the risks, the software comes up with preventive solutions just for the management to make the final decision. The software prioritizes the tasks that deserve to be given the first attention according to the risk they bear to the entire project (Zelkowitz, 1997.)

Candidate action

After the management has made the decision concerning the right course of action it comes to the time of deciding the right person who should complete the action. The software can help the management to decide who is appropriate for the tasks, what resources and factors of production will be cost effective for the work and the time span the entire project should take so that other field may not be affected. The risk decision software helps the management make this decision in terms of cost efficiency. The software helps the management come up with the most cost efficient course of action.

Effectiveness of the planned action

Even though the future is always uncertain the management can determine the effectiveness of the chosen courses of action. The software has the dice program in it which stands for the duration, integrity, commitment, effort. This program makes sure that the course of action and the activities that the management has put in place and the entire work force are putting the necessary effort for the success of the program. The detection of the risks and the scores from the dice program help in the evaluation of the planned action giving the management the chance to make any corrections if any for the best of the organization.

Total cost of risks

For many organizations, every managerial step taken is to reduce cost and increase productivity. Risk management done with the trial to reduce risk and in turn reduce the overall cost of the program. Riskdecision makes it possible for the management to come up with the most cost effective courses of action and thus save the organization some resources. It can graphically display the reduced cost of risks with the use of the Monte Carlo-analysis. With such display the management is even able to see the places in the entire management where further management risk reduction techniques can be applied (Smith, 1998).

Resource plan of the software

Resource plan simply points out at the necessary resources that are important for the achievement of the set objectives. The software has a resource planning template that helps the management identify the resources that should be implemented in a particular course of activity and that which is most cost effective. The Riskdecision software helps the management identify the types of labor that are necessary for the project. It helps the management come with the most effective labor force hence observes the cost of the labor needed. The roles of each labor type are well highlighted by the software to avoid any confusion ad assure that the entire projected has been well covered. This helps the management from the start to make sure that all the necessary resources are available for the project (Culp, 2001).

The software also gives clear details on the number of people required to fill each role in the project. This way the management can get ready on the techniques to compensate the workers on time. This is very positive as in some cases a project is succumbed to failure due to the lack of human labor who quit due to compensation. According to the project, the equipments necessary are well showed in the template and the cost of buying and running each one of the machines per hour is shown in the template too. The most important aspect of the Riskdecision management software is the reduction of the risks that the project can have (Dubrin, 2009).

With the total cost needed for the project, total cost for the entire project and the total labor necessary of the running of the project the software makes it possible for the management to know even the date particular equipment will be used. This detail makes it possible for the management to plan for the project in a network diagram. This diagram shows the time taken to completion of the project, and the necessary steps, costs and resources taken to the completion of the project. With this diagram it becomes very easy for the management to make decision and control the overall run of the activities throughout the entire project.

Features of the Riskdecision software

The risk management software has a flexible managerial risks solution that enables the management to make decisions at any time of the project outline. This means that the results that the software gives are not rigid and chances as more information is being fed into the system. This makes it possible for the software to conquer the uncertain future which is the biggest challenge to any business organization. The decision made from the results given by the software can also be fed into the system to come up with the possible results that the particular course of action will yield. This makes it almost impossible for the risks that can be prevented to destroy the operations of the project.

The software offers qualitative and quantitative risk management solutions for the management. The impacts of the different types of risks that are subject to the operations of the firm are well highlighted. This feature gives the management the freedom of choice and shows the management the real pint of impact by the risk. It makes it even possible for the risk to be avoided. The spreadsheets and other softwares merged in the system helps the Riskdecision make the important mathematical solutions for the company. This is the reason for its cost effectiveness which is the main target for the management.

The software has a report generator, an application which brings together the data from the dice scores, spreadsheets and every other processor in the system together, composes the information into understandable report and makes it possible for the management to understand the final report very easily. The software is therefore easy to use and needs no expert to translate the final report for the management. The system is user friendly and all what is needed is computer literacy to operate it.

The network analysis of the software makes it possible to control the staff and the rest of the team in such a way that there is no or minimal waste of time. The network diagram is divided in section which clearly shows the targeted mark of the company every day. If an employer wastes time in any work unrelated activity like smoking, drinking tea then the management can make identify the wasted time and the victim to make the necessary amendments. Incases where the project needs to be rushed such that it may take less time than planned the software with these network application can determine how possible this rush can be done. It determines the number of extra employees needed to save the needed time, cost incurred and the efficiency of rushing the time taken. The Riskdecision software is a very good application for helping the management make the necessary decisions in the work place and has been in operation for 40b years completely eliminating the element of disappointment (Hiles, 2010).

In conclusion risk management software should be by it self cost effective and should aim at creating efficiency and cost effectiveness for the firm. The software should be easy to use and manipulate according to the current business environment. This makes it very effective and necessary for the entire management. Cost control is the most important quality of the software. Software that does not give any solutions on the best opportunities for the cost control is not very good for business purpose. The software should give straight and open end results for the management. It should not call for the management to employ an extra expert to translate the information for the management.

This software should control every aspect of the business activities. This means that the management should be able to incorporate every activity that is going on in the business environment so that it can be possible for it track any miscellaneous cost and other costs which the management does not bother making records for. This makes it even more efficient. This software should be assessable and controllable only by the management as it is the backbone of the company. The information can however be input by any official as long as he/she is allowed to.

References

Gorrod, M., 2004. Risk management systems: process, technology and trends. Basingstoke: Palgrave Macmillan.

Woods, M., 2008. International risk management. Oxford: Cima Publishers.

Cameron, I., & Raman, R., 2005. Process Systems Risk Management. Burlington: Elsevier.

Yilmaz, K., 2009. Manual for a Risk Management System for a company Risk and Contract Management. München: GRIN Verlag.

Spedding, L., & Rose, A., 2008. Business risk management handbook: a sustainable approach. Amsterdam: CIMA Publishers.

Emslie, S., & Hancock, C. P., 2008. Issues in healthcare risk management. Oxford: Healthcare Governance Ltd.

Christoffersen, P. F., 2003. Elements of financial risk management. Amsterdam: Academic Press.

Jorion, P., 2007. Value at risk the new benchmark for managing financial risk. Part IV, Applications of risk management systems. New York: McGraw-Hill.

Dubrin, A. J., 2009. Essentials of management. Mason OH: Thomson Business & Economics.

Zelkowitz, M. V., 1997. Advances in computers. Volume 44. San Diego: Academic Press.

Smith, N. J., 1998. Managing risk in construction projects. Oxford: Blackwell Science.

Culp, C. L., 2001. The risk management process: business strategy and tactics. New York: Wiley.

International workshop on software measurement, & abran, a., 2009. Software process and product measurement: international conferences IWSM 2009 and Mensura 2009 Amsterdam, the Netherlands, November: proceedings. Berlin: Springer.

Hiles, A., 2010. The definitive handbook of business continuity management. Chichester: Wiley.

Leitgeb, N., 2010. Safety of electromedical devices law, risk and opportunities. Wien: Springer