Date: 12-13-2023 Submitted By: Baldeep Kaur

Submitted To: Hamath A. SY Risk Assessment Student ID: 00000177488

Risk assessment is a systematic process of identifying, analyzing, and evaluating potential
risks or uncertainties that Risk
could Management
affect the achievement of objectives
Strategic Planin a project, process, or
organization. The primary goal of risk assessment is to provide a structured approach to
understanding and managing risks, allowing decision-makers to make informed choices about
RISK
how to deal with potential threats and opportunities.
ID RiskDescription
Risk refers to the potential Owner
Category for harm or loss arising from uncertainty or variability in

1 outcomes.
Supply ChainIt is Operations
the chance Supply
of an Chain
event occurring that could have an impact on the
Disruption Manager
achievement of objectives, whether positively or negatively. In various contexts, risk can be
associated with financial losses, damage to reputation, operational disruptions, safety hazards,
2 Cybersecurity
or other adverse Information
consequences.IT Security
Threats Technology Manager

3 Regulatory Legal Risk Identification

Legal
Compliance
ID Compliance
Risk Description Category Owner
Changes Officer
1 Supply Chain Disruption Operations Supply Chain
4 Product Recall Operations Quality Manager
or2 CybersecurityAssurance
Threats Information IT Security
Contamination Manager Technology Manager
5 3
Economic Regulatory Compliance
Financial CFO Changes Legal Legal Compliance
Downturn Officer
6 4
Brand Product Recall
Marketing or Contamination Operations
Marketing Quality Assurance
Reputation Manager Manager
5
Damage Economic Downturn Financial CFO
6 Brand Reputation Damage Marketing Marketing Manager
Risk identification is the process of identifying, documenting, and understanding potential
risks that could affect an organization's ability to achieve its objectives. It is a crucial step in
the overall risk management process, allowing organizations to proactively recognize and
assess potential threats and opportunities that may impact their operations, projects, or
strategic goals. Here, I will discuss the risk management plan of Real Canadian superstore.
 ID Likelihood Severity Impact
1 Moderate High High

2 High Critical High

Risk Response 3 Moderate High Moderate

Risk response refers to the actions and strategies
that an organization employs to manage and 4 Low High Moderate
address identified risks. After conducting a risk
5 Moderate High High
assessment and evaluating potential threats and
opportunities, organizations develop risk
6 Low High Moderate
responses to either mitigate the impact of negative
risks (threats) or enhance the likelihood and
impact of positive risks (opportunities).

The goal is to minimize the impact and maximize the opportunities to achieve project or
organizational objectives. Risk minimization is a critical aspect of effective risk management
for businesses like the Real Canadian Superstore. Various methods can be employed to
minimize or mitigate risks. Here, I'll discuss the viability of different risk minimization
methods, including the transfer of risk, for a large retail entity like the Real Canadian
Superstore:
1. Risk Transfer:
Insurance Policies: The Real Canadian Superstore can transfer certain risks by investing
in comprehensive insurance policies. This can include coverage for property damage,
business interruption, liability claims, and other specific risks associated with the
retail industry.
Supply Chain Contracts: Contractual agreements with suppliers can be structured to
transfer certain risks related to supply chain disruptions, price fluctuations, and
quality issues. Clear terms in contracts can outline responsibilities and liabilities.
2. Diversification:
Product and Service Diversification: The Real Canadian Superstore can minimize risks by
diversifying its product and service offerings. This can help mitigate the impact of
changing consumer preferences or economic downturns in specific sectors.
Geographic Diversification: Operating in various regions can spread the risk associated
with localized economic challenges, regulatory changes, or other factors affecting
specific markets.
3. Operational Controls:
Robust Inventory Management: Implementing efficient inventory management systems
helps mitigate risks associated with overstocking or stock outs. This minimizes the
impact of changes in demand or supply chain disruptions.
Quality Control Measures: Implementing stringent quality control measures helps
minimize risks related to product defects, recalls, and customer dissatisfaction.
4. Strategic Partnerships:
Collaboration with Key Suppliers: Establishing strong relationships and strategic
partnerships with key suppliers can help the Real Canadian Superstore gain better
visibility into the supply chain, negotiate favorable terms, and collaboratively address
potential challenges.
Technology Partnerships: Collaborating with technology partners can enhance
cybersecurity measures, protecting against data breaches and other cyber threats.
5. Financial Strategies:
Risk Hedging: Utilizing financial instruments such as futures contracts or options can
help hedge against price volatility in commodities, currencies, or other financial
instruments affecting the business.
Financial Reserves: Maintaining financial reserves provides a buffer against unexpected
financial shocks, helping the organization weather economic downturns or unforeseen
events.
6. Regulatory Compliance and Legal Strategies:
Legal Counsel: Engaging legal counsel can help the Real Canadian Superstore navigate
complex regulatory environments, ensuring compliance and minimizing legal risks.
Proactive Compliance Programs: Implementing proactive compliance programs and
regularly auditing internal processes can reduce the risk of legal and regulatory issues.
7. Employee Training and Safety Measures:
Comprehensive Training Programs: Investing in comprehensive training programs for
employees can mitigate risks associated with human error, accidents, and workplace
safety.
Safety Protocols: Implementing strict safety protocols and procedures reduces the risk of
accidents, injuries, and potential legal liabilities.
8. Technology Adoption:
Cybersecurity Measures: Investing in robust cybersecurity measures helps protect against
data breaches and cyber threats, reducing the risk of financial losses and reputational
damage.
Data Analytics for Fraud Detection: Utilizing data analytics can enhance fraud detection
capabilities, minimizing the risk of financial fraud within the organization.
ID Likelihood Severity Impact Risk Response Strategy and
Comments

1 Moderate High High Implement a Identify

diversified alternative
supplier suppliers,
strategy. establish
communication
protocols for
quick response,
and maintain a
robust inventory
buffer.

2 High Critical High Strengthen Regularly

cybersecurity update security
measures systems,
conduct
employee
training, and
invest in
advanced
cybersecurity
technologies.

3 Moderate High Moderate Continuous Establish a

monitoring and regulatory
adaptation. monitoring
system, update
compliance
protocols, and
engage legal
counsel for
guidance.

4 Low High Moderate Implement Enhance quality

rigorous quality control
control processes,
measures. conduct regular
inspections, and
maintain
effective
communication
channels with
suppliers.
Risk Monitoring
Risk monitoring procedures involve systematic processes and activities to observe, track, and
assess identified risks over time. These procedures are crucial for ensuring that the
organization remains vigilant and responsive to changes in the risk landscape.
Monitoring Procedures Frequency
Conduct quarterly supplier performance Quarterly supplier performance reviews.
reviews.

Implement continuous monitoring of network Continuous monitoring of network activities.

activities.

Conduct bi-annual compliance reviews. Bi-annual compliance reviews

Implement monthly quality control checks. Monthly quality control checks.

Monitor economic indicators and financial Continuous monitoring with quarterly

performance quarterly. financial reviews.

Conduct real-time social media monitoring Real-time social media monitoring

and monthly sentiment analysis.

The role of reporting in the risk monitoring plan of the Real Canadian Superstore is critical
for maintaining a proactive and effective approach to risk management. Reporting serves
various purposes in this context, providing insights into potential risks, monitoring key
performance indicators (KPIs), and facilitating informed decision-making. Here are key
aspects of the role of reporting in the risk monitoring plan:

1. Supply Chain and Operational Reporting:

For a retail business, supply chain disruptions and operational inefficiencies are
significant risks. Reporting on supply chain metrics, such as lead times, supplier
performance, and inventory levels, helps in identifying vulnerabilities and
implementing proactive measures.
Operational reports can highlight issues related to staffing, equipment, and processes that
may pose risks to the business.
2. Financial Reporting: Financial reports play a crucial role in risk management by
providing insights into the economic health of the business. This includes profit and
loss statements, balance sheets, and cash flow reports.
Financial reporting helps in identifying financial risks such as liquidity problems, credit
risks, and market volatility.
3. Compliance and Regulatory Reporting: Businesses, especially in the retail sector,
are subject to various regulations. Reporting helps in ensuring compliance with these
regulations. Regular reports on regulatory changes, adherence to industry standards,
and compliance status help the Real Canadian Superstore avoid legal issues and
Conclusion: This risk management plan provides a comprehensive framework for Real
Canadian Superstore to identify, assess, and manage risks effectively. By following the key
principles of the risk management process and integrating strategies for avoidance, transfer,
mitigation, and acceptance, the organization can enhance its resilience and maintain
sustainable operations in a dynamic retail environment. Regular monitoring and reassessment
will ensure the ongoing relevance and effectiveness of the risk management strategies.

References:

Hamath A Sy, 2023, class lecture

https://mylearning.mitt.ca/d2l/le/content/24815/Home