I have assignment from case study provided, They have 3 sections that need to be answered.

Flinders International College V.1 BSBOPS504 Manage business risk | 1
Case Study – NatureCare
NatureCare Products is an Australian company based in Brisbane. The company commenced
usiness in 1996 and manufactures and eco-friendly, high quality beauty skin care products. The
usiness was established to cater for a growing demand for skin products that contain eco-friendly
and natural ingredients. There is also an emphasis on eco-friendly packaging.
The company sells its products in health food shops across the country, as well as on-line through its
own web site. The company targets customers that want high quality, eco-friendly products. Market
esearch and NatureCare’s basic customer database has identified that around 70% of customers are
professional women aged 25 to 55.
The company cu
ently has a small range of products that include:
 Cleansing creams to soothe skin during make-up removal. Primary ingredients include Shea
utter to nourish the skin and plants extracts that are also rich in essential oils with regenerating
and anti-inflammatory properties. This product will be for delicate and mature skins and could
also be used as a baby cream.
 Multi Protection Day Moisturizing Creams for dry to normal skin types that help protect the
skin during the day and includes Shea butter and extracts from fragile green algae that provides
hydrating and protective properties.
 Regenerating facial scrub to clean off dead skin cells to promote regeneration of healthy new
cells. This product will be used for most skin types.
The strategic objectives of the company are to increase market share by 20% At a recent board
meeting the two company shareholders and the CEO discussed options for expanding the business
and have decided to establish a chain of retail outlets in central Sydney, Brisbane and Melbourne
within the next six months. The CEO has confirmed that the banks are willing to loan 70% of the
capital required and the shareholders have committed to finding the remaining 30%.
The company is also cu
ently developing more products focusing on a range of products to meet
particular skin needs rather than a one-size fits all. The new products are timed to be ready for sale at
the same time as the opening of the new retail outlets. Suppliers (based in China, Philippines and
New Zealand) have all indicated their ability to supply and fill additional orders.
Cu
ently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing
Assistant, Sales Manager, four customer service representatives, Office Manager, Administration
Assistant, Operations Manager, Financial manager, Payroll administrator, Finance assistant
(accounts payable and receivable etc.) as well as the CEO and two shareholders as indicated above.
As the Finance manager, the CEO has asked you to investigate the risks associated with this venture,
with a particular focus on financial activities performed by the finance team. General activities and
esponsibilities of the finance team include payroll, banking, accounts payable (supplier payments),
account receivable (customer receipts) and statutory compliance. Cu
ently, due to the small size of
the business, IT falls within the responsibility of the finance team but does not need to be assessed
for risk.
Due to the quick timeframe allocated to establish the retail outlets, the CEO has asked all managers
and the administration assistant to prioritise any requests you (Financial manager) make regarding
the risk management task. The risk management process budget has made a $20 000 provision for a
Flinders International College V.1 BSBOPS504 Manage business risk | 2
technology advancement (e.g. RPA) but any other spending should be kept to a minimum. The
customer service representatives frequently move on to other opportunities and need to be recruited
and replaced on a regular basis.
The company cu
ently has a Risk Management Policy and Procedures in place that incorporates the
AS/NZS ISO31000:2018 Risk Management Principles and Guidelines.
Information relevant to identify risks
At a team meeting, the Finance manager met with the payroll officer and finance administrator.
Together they identified risks and associated outcomes.
The finance administrator was concerned that the theft of stock or cash from retail outlets would result
in cashflow problems and criminal charges (negative publicity). A few of the treatment alternatives
discussed included security cameras, using well referenced staff, doing frequent audits of the storage
oom and taking out insurance.
The payroll officer was mostly wo
ied about an increase in the workload and wandered whether more
staff should be employed.
The Finance manager had recently attended a professional development training session about using
automated processes to do mundane finance related tasks (RPA). As such, he mentioned that due to
an increased workload and demand on the finance staff, there would be inco
ect invoicing of
suppliers. This would result in delayed payment and weakening of the supplier relationship and may
affect staff retention and work performance. Treatment alternatives that were discussed included to
train and reward staff and to automate processes where necessary.
The payroll officer and finance administrator requested that priority be given to the increased work
load on the finance team.
Information relevant to assessing the risks
At the same meeting (to identify risks), the finance manager asked the team to estimate the likelihood
and impact (severity) of each risk:
Risk Potential
outcome
Finance
Manage
Payroll officer Finance
assistant
Likelihood Impact Likelihood Impact Likelihood Impact
Theft of stock or
cash from retail
outlets
cashflow
problems
XXXXXXXXXX
criminal
charges
XXXXXXXXXX
Inco
ect invoicing
of new suppliers
delayed
payment
XXXXXXXXXX
weakening of
the supplier
elationship
XXXXXXXXXX
Increased staff retention XXXXXXXXXX
Flinders International College V.1 BSBOPS504 Manage business risk | 3
demand on payroll
and accounts
eceivable/payabl
e staff
issues
work
performance
XXXXXXXXXX
Information relevant to monitoring and evaluating the risk management
process/project
NatureCare stores were opened in Sydney, Brisbane and Melbourne within the six months requested
y the CEO and the stores have been operating for three months.
An invoicing RPA system was implemented in the finance department one month after stores opened.
There have been no invoicing issues since it was implemented. Implementation of the system cost
$25 000.
After stores have opened and have been operating for three months, incidents recorded showed that
there had been three instances of store room theft across three stores. The CEO has raised concerns
that the risk management process did not adequately control this risk.
The finance administrator had taken seven days of sick leave since the implementation of RPA 2
months before (as opposed to an average of 1 per month in the past). When questioned about the
leave, the finance administrator admitted to feeling overwhelmed by the new technology.
The operations manager mentioned at a recent executive team meeting that one of the regular
container suppliers had merged with another company and would no longer be producing the
containers NatureCare ordered.
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Risk Management Policy and Procedures
Purpose
To provide information and guidance on Risk Management. This Policy applies to all NatureCare
Products employees.
Principles
The following principles form the foundation of the NatureCare Products Risk Management Policy and
Procedures:
 A commitment to implement risk management effectively:
o NatureCare Products is committed to managing and minimising risk. This will be done by
identifying, analysing, evaluating and treating risk exposure that may impact on NatureCare
Products achieving its objectives and/or the efficiency and effectiveness of its operations.
o NatureCare Products will incorporate risk management into its planning and decision-
making processes and it must also be included as a consideration in operational planning as
a delegated line management responsibility.
o NatureCare Products staff must implement risk management according to relevant
legislative requirements and appropriate risk management standards.
 A commitment to training and knowledge development in the area of risk management:
o NatureCare Products is committed to ensuring that all staff, particularly those with
management, advisory and decision-making responsibilities, obtain a sound understanding
of the principles of risk management and the requisite skills to implement risk management
effectively.
 A commitment to monitor performance and review progress in risk management:
o NatureCare Products will regularly monitor and review the progress being made in
developing an appropriate culture of risk management and the effective implementation of
isk management strategies throughout the organisation as a basis for continuous
improvement.
Responsibilities
Risk must first and foremost be managed at the corporate level as part of the NatureCare Products
good governance and corporate management processes. Risk management is considered an integral
part of all management and decision-making functions within NatureCare Products. The responsibility
for the identification of risk and the implementation of control strategies and follow up remains a
delegated line management responsibility. All stakeholders have a significant role in the management
of risk. This role may range from initially identifying and reporting risks associated with their own jobs
to participation in the risk management process.
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Aims and Objectives
 NatureCare Products aims to integrate risk management into the management culture of
NatureCare Products and foster an environment where staff assume responsibility for managing
isks.
 To secure its commitment to implement risk management effectively, NatureCare Products aims
to implement risk management across all aspects of NatureCare Products in accordance with
est practice guidelines.
 To secure its commitment to training and knowledge development in the area of risk
management, NatureCare Products aims to ensure that performance in risk management is a
consideration in the NatureCare Products' performance management systems and other
stakeholders have access to appropriate information, training and other development
opportunities in the area of risk management.
 To secure its commitment to monitoring performance and reviewing progress, NatureCare
Products aims to ensure that appropriate monitoring, review and reporting processes are in place
in the area of risk management.
 The objectives of risk management are to:
o provide a structured basis for strategic, tactical and operational planning across NatureCare
Products, enhancing its governance and corporate management processes;
o enable NatureCare Products to effectively discharge its statutory and legislative financial
management responsibilities;
o provide a practical framework for managers to assess risks inherent in the decisions they
take;
o assist and motivate decision makers, at all levels, to make good and proactive management
decisions that do not expose NatureCare Products to unacceptable levels of risk of
unfavourable events occu
ing which adversely impact on the attainment of organisational
goals
o encourage and commit decision makers to identify sound business opportunities that will
enefit NatureCare Products without exposing the company to unacceptable levels of risk;
o minimise the risks of not