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BSBRSK401 Identify risk and apply risk management process Assessment Task 2 – Project Questions 1.Prepare a summary of the risk management context for this project. You will need to refer to the executive assessments and the briefing papers provided in the previous section. There may be additional points that you feel need to be added to the context, based on you experience. There are various causes of stock losses that has been occurred in the BizOps business, therefore the organization needs to consider on issues to identify risks and apply risks management process Assessment within the firm to achieve its business goal. Business should deal with the security of the warehouse and floor. This is because stock security in storage provides scope for losses due to the following observed practices. For instance, deliveries require staff to unlock the delivery bay door when deliveries are expected. It is common practice for delivery doors to be left unlocked for long periods of time. Delivery personnel have been known to open the doors, make the delivery and shut the doors without having any contact with BizOps staff and all staff have access to the stock area and the keys to the delivery doors. Dealing with deliveries is usually left to the staff member who is free at the time of delivery. Business should reduce the level of stock losses because stocktake reports generally indicate that 98% of all stock losses are due to customer theft. This is unlikely to be true as some stores can account for significant stock losses through other factors such as damaged stock returned to suppliers, faulty goods replaced through warranty, old stock sold at less than stock value andincorrect stock reconciliations at receival Business should use some new technological innovations in order to improve its data system. According tothe Executive assessment report, when systems data communication problems exist, the sales registers require manual operation. An audit of manual data entry
of stock codes indicates a 40% error level by the operator during times of manual operation. Business must provide the better process to reduce the loss of stock in the distribution, there were some situations occurred in the business due to the distribution process. For example, an audit has revealed that 6% of stock receival reconciliation forms contain errors. That is, the stock received does not match the quantities on the delivery docket. Moreover, similar audit has revealed that stock is often taken from the storage area to the retail shelves without any documentation being completed. There are problems which associated with in store shop lifting that business needs to consider on the inspection of customer bags signage is in place in all stores, but evidence of the level of inspection of customer bags is not available. It appears to be a policy that is not well implemented across the organisation, mostly because staff are too busy performing other duties. Bag searching also receives a high level of customer complaints.