Category: Risk Assessment

Introduction

Digital shops have become extremely popular now, making these platforms potentially profitable, but, like any other business, it requires careful planning and risk assessment. Simons Inc. (SIM) is one of the leading online stores in the United States that offers customers office supplies, electronics, tools, appliances, and other items. This company’s supply chain and financing are managed from its headquarters in Detroit, Michigan. Since weak auditing and insufficient financial strength may bring operational damage to an organization, evaluation and design of controls and processes are essential (Wang et al. 1). Therefore, SIM’s engagement team conducted an assessment of risks related to material misstatement. The three identified risks are not documenting shipped orders as revenue, fictitious sales, and incorrect pricing (Simons Handout #1 1-3). The engagement team’s evaluation allowed to identify that the Control’s measures to mitigate these risks were effective.

Risk 1

Assessment of the Evaluation of the Design of Each Control

The first risk was that the shipped orders might not be registered and counted as revenue. Although it is an insignificant danger for the company, it still should be addressed. The Control responded that all sales are registered, and invoices are automatically generated in its SELLANDSHIP system (Simons Handout #1 1). Para. 5 states that items are not shipped until the order is confirmed by the system (Simons Handout #1 1). The examination of the design of each Control was appropriate since the risk of product misstatement or incomplete recording was identified.

Assessment of the Risk Associated with Each Control

The risk assessment was adequate because all the relevant documentation was thoroughly examined. It showed that the associated risks were not higher in this particular case. Moreover, para. 10 states that the system’s design enables automatic invoicing and prevents errors in registration and transactions (Simons Handout #1 1).

Interim Planned Procedures to Test the Operating Effectiveness of Each Control

The engagement team’s interim testing, which incorporated checking the general IT controls and standard sample testing of low-risk program changes, was appropriate because the central operating platform’s functionality should be assessed regularly.

Roll-Forward Planned Procedures to Test the Operating Effectiveness of Each Control

The roll-forward planned procedures to determine events that may impact operation were not essential since this particular risk was insignificant.

Risk 2

Assessment of the Evaluation of the Design of Each Control

The second potential danger was that the revenue might be recorded for unshipped orders, resulting in fictitious sales and material misstatements. The assessment demonstrated that the control of this risk was done correctly. The system is designed the way that orders, invoices, and shipping notes are checked daily; however, this process is not automated (Simons Handout #1 2, para. 5). The lack of automation increases the chances of accidental errors; thus, the engagement team’s evaluation of the design was appropriate.

Assessment of the Risk Associated with Each Control

The assessment showed that the risk associated with the Control was higher. It was relevant, in this case, since this task was directly linked to the Control’s duties to monitor the order registration process and shipping of items.

Interim Planned Procedures to Test the Operating Effectiveness of Each Control

The interim testing included report checking for thirty days randomly selected over the year. The team evaluated the firm’s documentation for unusual transactions, invoices, and the warehouse director’s measures taken in response to these violations (Simons Handout #1 2, para. 12). Notably, selecting random periods for checking was a proper decision since it creates an objective overview of the Control’s work at different times.

Roll-Forward Planned Procedures to Test the Operating Effectiveness of Each Control

It was wise to eliminate the roll-forward procedures to test the operating effectiveness of the Control, in this case, because the interval evaluation would be performed continuously throughout the year.

Risk 3

Assessment of the Evaluation of the Design of Each Control

The third risk was that the shipped orders might be documented inaccurately, leading to the erroneous pricing or incorrect number of items sent to clients. The engagement team’s assessment of the design was appropriate because it stated that the risk of material misstatement is low since the Control team evaluates reports each month (Simons Handout #1 3, para. 5).

Assessment of the Risk Associated with Each Control

It was determined that the risk associated was not higher, which is an appropriate assessment since the Control would provide a monthly documentation package to examine the budget and revenue. The engagement team identified that the monitoring process for this risk is accurate and precise.

Interim Planned Procedures to Test the Operating Effectiveness of Each Control

Although this particular threat was not critically high, the interim tests and roll-forward procedures were necessary. These processes were supposed to incorporate a detailed explanation of steps, data inspection, appraising all methods, and investigation of every implemented change (Simons Handout #1 3, para. 12). Furthermore, the engagement team suggested organizing meetings to discuss if monthly assessments were performed correctly.

Roll-Forward Planned Procedures to Test the Operating Effectiveness of Each Control

The additional roll-forward procedure during the first month of every quarter was an essential supplement since it would help to confirm information accuracy.

Conclusion

In summary, Simons’ engagement team conducted a risk assessment to identify issues that might affect the company’s revenue. The three risks were not completing order registration, fictitious sales, and shipping incorrect quantities according to unapproved prices. The first and third issues were not significant, while the second was crucial because recording shipments that did not occur damaged the firm’s actual profit. Although the last two processes were not automated, the engagement team confirmed that the data presented by the Control was accurate because the experienced workers regularly perform the documentation check. Lastly, the interim and roll-forward testing of operating effectiveness in each of the three cases was appropriate. The former included a thorough examination of the completion of tasks and system performance, and the latter was introduced only when necessary, eliminating wasteful processes.

Work Cited

Wang, Keyu, et al. “Supply Chain Financial Risk Evaluation of Small-and Medium-Sized Enterprises Under Smart City.” Journal of Advanced Transportation, 2020, pp. 1-14.

Executive Summary

The given case is concerned with Solvay Green River’s mine, where occupational hazards manifested in major worker injuries. The risk assessment was conducted by identifying the key risk factors with the use of PESTLE. The goal of Solvay is to ensure operational safety, without which workers’ health and well-being are put in great danger. Major risk factors were identified, which range from occupational fatality to the government’s regulatory intervention. The core recommendation is to establish a worker safety culture where risks are perceived objectively and with caution.

Introduction

It is important to note that the given qualitative risk assessment will be based on the definition of risk as a combination of event probabilities and corresponding consequences. It is stated that “risk assessment is a process used to gather knowledge and information around a specific health threat or safety hazard” (Haas et al., 2017, p. 23). When it comes to the theoretical framework of the risk assessment process, there are six major steps. These include the following:

• Hazard identification
• Risk stakeholders and objectives
• Risk analysis, implications, and impact
• Risk control measures and solutions
• Recording the findings
• Evaluation and review of the controls (Rausand and Haugen, 2020).

The primary focus of the risk assessment evaluations is centered around Solvay Green River’s mine located in Wyoming’s southwest region. It is reported that “in 2009, Solvay experienced a sharp increase in incidents in its more-than-450-employee operation. Although no fatalities occurred, there were three major amputations and injury frequencies that were increasing steadily” (Haas et al., 2017, p. 26). In other words, understanding the risks in a mining operation and implementing effective risk control measures are vital in order to minimize the occupational hazard imposed on the workers.

Objectives and Uncertainty

Objectives

The key and central objective of Solvay Green River is to minimize the occupation hazard risks for miners. The Annual Report of Solvay states the following as their key goals and points of interest for operational safety:

• Occupational safety
• Industrial hygiene
• Process safety
• Transport safety
• Environment
• Occupational health (Solvay, 2021, p. 133).

It should be noted that an inability to properly manage and reduce these threats “caused frustration and disappointment among the workforce” (Haas et al., 2017, p. 26). The key objective of the management is to obtain a comprehensive understanding of what constitutes the risk and risk perception among workers and determine the acceptable degree of risk. Since mining workers operate differentially and possess divergent levels of risk tolerance based on their experience and personal perception of danger, the management is required to know the commonly held limits. In other words, the key stakeholders are workers themselves, who have different opinions on the subject.

Knowledge and Uncertainty

The current knowledge and uncertainty clearly show that the consequences are dire, such as “torn ligaments/tendons/muscles requiring surgical repair or restricted duty; lacerations requiring sutures; and fractures” (Haas et al., 2017, p. 26). Not only do these issues cause workforce distress, but they additionally impact the operational effectiveness and incur major costs on the mining company since the latter is responsible for ensuring occupational safety. The Knowledge Model Matrix can be accessed in Table 1 below.

Table 1: Knowledge Model Matrix

List of Risks

The team working on the project combined the efforts put in by each team member in order to compile and combine the individual risk identification lists. The different categories of the risks were divided in accordance with PESTLE, such as political, environmental, social, technological, legal, and environmental (The University of Sydney, 2022). The risks identified were not highly technical, but the same observation can be made in regard to the case source. In total, the team identified 20 unique risks when repetitive or similar ones were eliminated and shared between each team member. Due to the lack of technical expertise, each team member is expected to identify at least ten risks. As non-specialists, it was possible to observe a broader risk range without being excessively focused on mining-related specifics. Risk personality plays a part in risk identification because some perceive workers empathetically, whereas others view them as a business aspect. The final list of risks was completed through a thorough discussion of the final list of risks presented in Table 2 below in the form of a PESTLE analysis.

PESLTE Analysis

Table 2: Pestle Analysis

Likelihood and Impacts

The final risk register with likelihoods and impacts is shown in Table 3 of the Appendix below, whereas an example of an individual risk register can be accessed in Table 4 of the Appendix below. The measure is higharely subjective, even in the team context. Predictive smaller and short-term events can be done with better precision than large forces. In addition, one needs to be technically and managerially proficient to properly implement such an analysis.

Conclusions and Recommendations

The purpose of the risk assessment is to increase awareness of potential risk points by identifying them and analyzing their criticality. The expected benefit is more effective and comprehensive prevention of possible ramifications (Thompson and Hopkin, 2021). The final outcome of the exercise is that occupational hazard requires an immediate form of intervention, such as establishing a workplace safety culture. In other words, the risk assessment was useful due to the systematic understanding of the implications of occupational hazards.

The case of Solvay requires the identification of all risks because workers’ lives and health are in danger. The likelihood and impact factors must be estimated accurately to ensure the prioritization of preventative efforts. The content of the risk register determines the most urgent measures to be integrated before proceeding with secondary tasks. The practical use of risk management shows that it is effective at outlining the critical points of concern, but it does not provide information about the appropriateness of risk treatment.

The key recommendation is to establish a worker safety culture which is not only based on rules and protocols but additionally on workers’ perception of risk. The major lesson is that risks can be pervasive and broad in scale because they can have a multitude of implications. Different risk assessments emphasize divergent aspects of the hazards, and thus, they are not the same (Thompson and Hopkin, 2021). A safety officer with technical knowledge and skills in mining operations must be involved in designing proper treatment measures. A sole measure to address different personalities or group cultures is establishing one safety culture backed by company requirements, rules, and policies.

Reference List

Haas, E. J. et al. (2017) ‘A case study exploring field-level risk assessments as a leading safety indicator’, Transactions, 342(1), pp. 22–28. Web.

Rausand, M. and Haugen, S. (2020) Risk assessment: theory, methods, and applications. New Jersey: John Wiley & Sons, Inc.

Solvay. (2021) Annual integrated report. Web.

The University of Sydney. (2022) Marketing: PESTLE analysis. Web.

Thompson, C. and Hopkin, P. (2021) Fundamentals of risk management: understanding, evaluating and implementing effective enterprise risk management. London: Kogan Page.

Appendix

Likelihood/Impact Scale

Hazard Rating = Likelihood * Impact

Hazard Rating Scale

Table 3. Final Risk Register

Likelihood/Impact Scale

Hazard Rating = Likelihood * Impact

Hazard Rating Scale

Table 4: Student #’s Risk Register

Introduction

External and internal factors have a significant impact on the efficacy of risk assessment planning for various organizations and communities in regard to threat and vulnerability in emergency management. Communities can benefit much from well-thought-out plans for risk assessment if they can identify the threats facing them and the vulnerabilities. Identifying and understanding the specific threats that could arise is a crucial first step in emergency preparedness (Madhav et al., 2017). Local, state, and federal governments can all work together for the common good with the help of these mitigation plans. This essay will evaluate the risk assessment planning associated with a pandemic event scenario in New Jersey State and the effectiveness of the threat, vulnerability, and consequence of the assessments done.

Identification of the Risk

The first step is to identify the risks, and in this case, it is the risk of an influenza pandemic in New Jersey. A pandemic is an epidemic that affects a vast number of people and which covers a wide global area. An imminent and potentially catastrophic pandemic is a serious worry (New Jersey, 2019). The lack of human immunity to the virus poses a threat of a global pandemic. This viral disease is transmitted from one person to another. The New Jersey Race Migration Plan identifies foodborne diseases, Mumps, coronavirus, West Nile virus, and Zika virus as potential sources of disease epidemics (New Jersey, 2019).

Assessing and Analysis of the Risk

The second step is to assess and analyze the risk, which involves taking into consideration all the factors that could be affected by the risk. All 21 counties of New Jersey were hit by the pandemic. The dense population concentrations in New Jersey are a major factor for the rapid spread of the pandemic (New Jersey, 2019). Mosquitoes thrive in this area due to the huge body’s conducive nesting environment. The large water bodies also prompt the spread of West Nile Virus. The 46 positive West Nile virus test findings provided credence for the spread of the virus.

Strategies to mitigate the risk

The developed methods are the result of a thorough examination of the threats presented by the prior trademark. The New Jersey Mitigation Plan took into account at-risk areas and the potential scale of an outbreak in order to develop strategies to mitigate the risks. Another strategy used to mitigate risks was the tracking down of prior incidents related to pandemics. As of 2014, three global influenza pandemics had already occurred, each with far-reaching consequences for New Jersey. Nearly 50,000 deaths have been predicted as a result of another influenza pandemic (New Jersey, 2019). One strategy for reducing future risk and severity involved figuring this out.

Evaluation of the Strategies

The fourth step involves evaluating the strategies employed to curb the epidemic and determining their efficacy. When evaluating the efficacy of the developed plans, it is important to take into account not only the original threat but also the potential for future attacks. The presence of secondary and tertiary dangers, and the length of time the public has to prepare for them should also be evaluated (Madhav et al., 2017). Examples of the strategies include mandatory mask use and isolating the person in question from the rest of society. The success of the mandate will be assessed after it has been put into place through a series of questions.

Implementation and monitoring

The final phase, implementation and monitoring, begins now that the strategies are in motion. In this way, they could track the development of new threats, new variations, new outbreaks, and new vaccinations, and assess their efficacy (New Jersey, 2019). All of this is an ongoing process that does not end there. The implementation procedures will still be in place, and monitored for effectiveness. These plans will be regularly assessed, and revised as necessary in response to changing risk conditions (Madhav et al., 2017). This will require them to monitor the proper execution of the plan. Decisions about the success of a strategic plan can be difficult to make during pandemics. Infections evolve and adapt in a constant cycle. One clearly defined strategy may not be adequate in the event of another pandemic.

Threat and Vulnerability

The potential implications of a pandemic incident were discovered by a comprehensive and efficient threat vulnerability assessment conducted as part of the New Jersey Hazard Mitigation Plan. This was done by evaluating the vulnerability and threat by location within different states by including the various state facilities at risk and an estimate of the loss incurred (New Jersey, 2019). The entire state’s population was said to be at risk, no matter where they lived. As a result of these analyses, the mitigation plan can be relied upon to be consistent in its approach because of the variety of solutions considered in its creation. The validity can be accepted as legitimate because of the extensive research used to back up its conclusions.

Conclusion

Finally, the 2014 New Jersey Hazard Mitigation Strategy is thorough and comprehensive in its planning approach for a pandemic emergency, despite the lack of supporting activities to validate the plan. It is an updated version of the original plan from 2011, incorporating what was learnt and what worked well from that year, and it is meant to increase predictability by making better use of the data at hand. It detects potential threats and weaknesses in the event of a pandemic emergency and possesses all five qualities of an effective risk assessment plan. This plan helps New Jersey’s municipalities get ready for a disaster by outlining the state’s mitigation limitations and strengths.

References

Madhav, N., Oppenheim, B., Gallivan, M., Prime Mulembakani, Rubin, E., & Wolfe, N. (2017). Pandemics: Risks, Impacts, and Mitigation. Nih.gov. Web.

New Jersey State Hazard Mitigation Plan. Executive Summary. State of New Jersey 2014 Hazard Mitigation Plan. Web.

Over the past three decades, the religious ministry has transitioned to become an integral aspect among most individuals worldwide. More specifically, many people, irrespective of their differences, including age, race, and social status, view the global sports ministry as a crucial societal aspect. It causes several governments and private entities tend to recognize the importance and utilize the sports ministry to advance positive societal components in respective governments and religions. Nonetheless, taking part in the global sports ministry presents significant risks that ought to be addressed with practical strategies.

One essential risk involved with global sports ministry is cross-cultural problems in the host country. According to Plueddemann (2012), cross-cultural risk is a notable aspect that could potentially arise as a result of differences in lifestyles, languages, habits, and customs. This crucial risk can significantly affect the global sports ministry process, particularly in the international environment. The risk could come up because different international countries have different practices that might affect it in general.

Another essential threat involved in taking part in the global sports ministry is political challenges. In most cases, this political concern occurs when the government of a nation unexpectedly alters its primary policies. The changes in policies could negatively affect the global sports ministry as a foreign entity. The changes may adopt different instances such as religious or sports barriers that could serve to either prevent or limit the sports ministry’s global activities in a given host country. This risk is made more complex by different countries opting to consider the removal of free-trade agreements in the sports sector. Therefore, this demonstrates that political risk is a notable concern in the global sports ministry that should be considered.

One strategy to lessen the risks involved with taking part in the global sports ministry is having diverse knowledge of all the customs and cultures of the potential host country. When entering new regions in the global sports ministry, it could be effective to learn the target nation’s leading business and cultural elements in advance. Plueddemann (2012) points out that this ought to be considered in conventions of interpersonal interactions among the locals.

For example, consultant experts of the sports ministry could be utilized to review the primary features of the nation’s culture. Consultant experts would address cultural risks since the sports ministry will have a good understanding of the culture and how it could potentially risk the process. As a result, consulting an intercultural coach in advance will lessen the risk and provide a good idea of the business to reduce cultural barriers.

Another strategy to lessen the risks, especially the political risk, is considering legal and religious regulations. Since most countries across the world have countless political particularities in the form of legal regulations, it is essential to scrutinize the regulations at all times.

Taking time to consider these legal regulations would help to prevent and minimize the political risks linked to the sports ministry. For example, the global sports ministry leaders could research contemporary situations of scale, relevant legal frameworks, and customs regulations in the sports, religious, and commerce sectors to understand all the risks that might present themselves. It is essential to consider all the details at all phases before drawing up contracts and scheming the hedging instruments involved. Therefore, this strategy presents the global sports ministry with a practical solution to address the issues associated with political and customs regulation.

Reference

Plueddemann, J. E. (2012). Leading across cultures: Effective ministry and mission in the global church. InterVarsity Press.

Figure 1. Risk Sensitivity Matrix.

Risk assessment is an inseparable part of any business plan since a company has to be prepared for negative factors that it may face in a target market. Therefore, defining the issues that a business venture such as a juice bar may face in the selected market is critical for its further success. Due to the challenges associated with the production quality and the durability of the raw materials, it is necessary to focus on the risks related to quality and technical requirements.

For the same reason, the issue of schedule will have to be addressed to minimize the procurement and production time, thus reducing the threat of spoilage (Snyder and Worobo 145). Finally, budgetary considerations should be taken into account to minimize financial risks and create the setting in which the company will thrive.

It is worth noting that the issues of staffing and workplace environment, while seemingly insignificant at present, are going to play a large part in the risk management process in the future. To satisfy the demands of customers and meet the set quality requirements, the firm will need a devoted staff and an atmosphere in which employees will be willing to excel in their performance (Bromiley et al. 268). For this reason, one will need to invest in the creation of an environment in which employees will develop loyalty to the organization.

The issues of management and customer relationships also have to be deemed as crucial factors in drafting a risk management plan. Marketing a juice bar may be rather difficult given the current competitive rates in the food and beverage industry, which means that the company will have to invest a substantial amount of money into the management of the specified concerns. Creating a competitive advantage that will keep the juice bar a recognizable service will demand significant financial investments, which, in turn, will entail certain risks.

The problem of design and contractors falls under a category of comparatively insignificant factors, yet they also have to be addressed as possible risks. Specifically, the design may fail to convey the required message or can be misinterpreted by the target audience. Misunderstandings between the company and its contractors, in turn, will entail minor issues, yet is quite unlikely to happen. Similarly, the testing risks are not quite likely to occur and comparatively easy to resolve with the integration of innovative technology.

Figure 2. Risk Analysis Worksheet.

The results of the risk analysis shown in Figure 2 above indicate that the process of opening a juice bar is fraught with significant expenditures and demand taking moderate risks. To build a sustainable environment for the organization, one will have to develop the responses that allow maximizing the utility of the company’s current performance and reducing the negative effects of a possible threat.

Specifically, the issue of quality management has to be addressed by upgrading the current information management strategies and integrating innovative approaches into the Supply Chain Management (SCM) processes. Thus, the threat of spoilage will be reduced, with the quality levels rising. Similarly, the issue of budgetary constraints and the problem of expenses can be managed by introducing an improved model for waste management and resource allocation. Thus, the project is likely to become a success.

Works Cited

Bromiley, Philip, et al. “Enterprise Risk Management: Review, Critique, and Research Directions.” Long Range Planning, vol. 48, no. 4, 2015, pp. 265-276.

Snyder, Abigail B., and Randy W. Worobo. “The Incidence and Impact of Microbial Spoilage in the Production of Fruit and Vegetable Juices as Reported by Juice Manufacturers.” Food Control, vol. 85, 2018, pp. 144-150.

Projects vary in cost and resources involved; some are more routine while others are more innovative. Moreover, some new strategies promise quick significant wins, while others only have negligible long-term benefits. The scale of the risks they involve is also different, not requiring similar attention. Therefore, it is essential to differentiate between small, medium, and large projects while conducting a risk assessment.

Although the standard ATOM procedure is directed at medium-size projects, with several adjustments, this approach can also be applied to large and small ones. These alterations typically include either simplification or amplification of the standard methodology. For instance, dangers involved in small projects do not demand having special meetings and can be addressed on a day-to-day basis (Hillson & Simon, 2020). In the case of large projects, managers should, on the contrary, dedicate more time and attention to evaluating risks before proceeding to implement the activity. For instance, a quantitative risk assessment (not necessary for medium-size projects) and a more meticulous review cycle should be used (Hillson & Simon, 2020). In some situations, for projects of particular importance, it might even be useful to divide them into several smaller ones and approach the risks involved in their implementation separately. Overall, all decision-making during the application of the ATOM approach should be driven by the particular needs of a company and a project.

Answer to Leroy

Hello, Leroy! I agree that since the ATOM approach is scalable, it can be successfully used for all kinds of projects. I also believe that you are right about the key reason why it is essential to make a distinction between activities of different sizes. Making the process of project implementation cost-effective is hugely important, and it would be unwise to dedicate extra time and resources to small projects of little importance. Which steps do you think can be reduced and how?

References

Hillson, D., & Simon, P. (2020). Practical project risk management: The ATOM methodology (3^rd ed.). Berrett-Koehler Publishers.

Acknowledgment

The concept of risk assessment seeks to identify possible hazards and define the level of threat and vulnerability of a specific location or enterprise. For public locations, risk assessment is a critical management aspect that ensures the safety of visitors, patrons, staff, and physical assets within the premises. This report will define fundamental risk assessment principles, provide reasons for carrying out assessments, and provide a practical analysis of the Villaggio Mall following basic guidelines.

Report Questions

1. What are the basic principles of risk assessment?
2. What are the reasons for risk assessment?
3. What are the steps of risk assessment performance?
4. How could the risk be mitigated?

Risk Assessment Principles

Risk assessment and management are used by organizations to control losses. It consists of identifying hazards or potential causes of dangerous situations in the environment, assessing the risks, and attempting to mitigate them to minimize consequences. Hazards are defined as any situation with potentially damaging outcomes, especially ones that might harm a human being. Examples include fires, smoke, chemicals, and electricity. A risk is a negative consequence associated with the situation (Safe Work Australia 2011).

Reasons to Carry out Risk Assessment and Safety Management

There are several benefits of carrying out risk assessments that justify the time and costs invested. They assist in recognizing hazards in the workplace and controlling for adverse outcomes, which significantly reduces their risk of occurring and protects against damages. A risk assessment and subsequent training can help in the prevention of injuries and protect the safety of employees and patrons alike. It is the ethical duty of employers and organizations to create measures that protect people from preventable accidents. With proper assessment, risk management standards can be raised to meet regulations and legal requirements for safe practices. Management control is more effective at controlling health and safety measures, avoiding easily preventable errors of negligence. The implementation of proactive risk management systems is necessary to reduce the likelihood of a safety-related incident (Weekes 2017).

Targeted Place of Risk Assessment

Villaggio Mall, one of the largest shopping centers in Doha, Qatar, is located in the west end of the city. It has the highest mall foot traffic in the region with 50,000 daily visitors and up to 1.5 million monthly (Villaggio Mall n.d.). Shopping malls are inherently vulnerable to numerous hazards and threats due to the large congregation of businesses and people in a relatively limited indoor area. Security and safety have become a significant priority in the retail industry in light of shopping malls becoming highly hazardous public locations.

Organization Name: Villaggio Mall

Address: Al Waab St, Doha, Qatar

Activity: Retail shopping center

Capacity: 50,000 daily visitors

Total Floor Area: 125, 000 square meters

Years operational: 12 years. 6 years after the renovation

Steps of Risk Assessment Performance

The principles of risk assessment include recognition that the problem exists and definition of the nature of the issue. This is followed by identifying alternative solutions and assessing the chosen action. Implementing the chosen action and evaluating its effectiveness is also necessary. Risk management encompasses aspects of problem solving and decision-making that are used in a business context. It is an ongoing process, but six total steps exist that allow an organization to meet its health and safety obligations (University of Southern Queensland n.d.).

Identifying Risks and Analyzing Consequences

The Villaggio Mall faces both internal and external threats. Internal threats consist of violations of security standards, safety hazards, and potential structural issues. External threats are much rarer but could include acts of terrorism or natural disasters (Prosek Security n.d.). Shopping malls are vulnerable to security threats due to many entrances with a limited number of checkpoints such as metal detectors, cameras, or bag checkers. The most common safety hazards include injury due to falls on a wet floor (cleaning or spill), malfunctioning equipment such as escalators, sprinkler systems, and fire alarms, and crowd control measures that result in injury in cases of panic (Department of Labour Republic of South Africa n.d.).

Structural issues that overlap with safety hazards can vary in nature. One of the most common safety concerns and one that caused the fire at Villaggio is electrical wiring. Outdated or damaged wiring in combination with the use of highly flammable materials in the construction of the building can cause fires or accidents. Piping issues can cause flooding, and outdated infrastructure that might lead to collapsed ceiling tiles are also structural hazards in a shopping mall complex.

Assessing Risks

Each hazard should be evaluated to determine the level of risk. Assessment can be based on a variety of factors ranging from experience to industry practices and information available from regulators and experts. Risks should be ranked, which helps to determine prioritizing which ones to control. The risk matrix such as the one below is used to categorize hazards based on either severity or probability of occurrence.

Implementing Control

Control measures for internal and external threats are similar regarding the security and structural integrity of the building, with protection from elements such as fire or flooding. Security threats can be mitigated by introducing checkpoints at every entrance, each equipped with a metal detector and baggage scanning equipment. Routine patrols should be implemented both inside and outside the building, as well as provided with adequate training to respond to changing security conditions and crowd control. Fall hazards are unpredictable but can be improved through changes to the cleaning procedures of the mall staff. Malfunctioning equipment, particularly critical safety-focused systems (such as fire alarms) should be checked monthly by regulation and provider recommendations. Structural parameters and infrastructure such as wiring can be controlled by conducting routine pre-checks on cables and switches. Electrical installations should be tested and maintained by competent utility companies, and staff should be provided with training on electrical safety. Employees must be provided with adequate equipment and resources to administer safety precautions throughout the building. Measures such as rotational schedules and checks with managerial oversight are conducive to creating a hazardless environment.

Evaluation of Controls

The assessment should be completed with a feedback and evaluation stage. Relevant process mapping, documentation, audit reports, and program evaluations should be included. Furthermore, regulatory standards and organizational experience support are vital for the evaluation stage. The assessment is completed by creating a list of relevant hazards, identifying who may be harmed, what measures are being taken, and any necessary further actions. The accuracy of documentation is paramount to maintain responsibility as well as for legal and regulatory purposes if any issues arise

Recommendations for Safety Officers

Villaggio Mall is vulnerable to public security and fire hazard risks. It is recommended that all fire protection systems be checked monthly, while structural and electrical aspects must be monitored continuously. Another recommendation is that identified hazards should be implemented into staff training on emergency preparedness. Communication is key with relevant stakeholders including owners, management, employees, and customers. Therefore, if a hazard is preventable or avoidable, proper measures of communication will be introduced so that the public is aware.

Risk Assessment Form

Reference List

Department of Labour Republic of South Africa n.d., Occupational health and safety in shopping centers, Web.

Prosek Security n.d., Risk assessment in shopping centres: what it is and why it is needed, Web.

Safe Work Australia 2011,How to manage work health and safety risks: code of practice, Web.

University of Southern Queensland n.d. Risk management in work health and safety, Web.

Villaggio Mall n.d. About Villaggio, Web.