Nature care products

Risk Management Policy and Procedure

1. Purpose

To provide information and guidance on Risk Management.

2. Scope

The scope of this report is to review the risks that have been occurring in the Nature care
products.

3. Recognition of the need for risk management

Nature Care Products recognizes the need for risk management to feature as a consideration in
strategic and operational planning, day-to-day management and decision making at all levels
in the organization.

4. Risk Management Principles

The following principles form the foundation of the Nature Care Products Risk Management
Policy and Procedures.

 A commitment to implement risk management effectively:

Nature Care Products is committed to managing and minimizing risk by identifying, analyzing,
evaluating and treating exposures that may impact on the Nature Care Products achieving its
objectives and/or the continued efficiency and effectiveness of its operations. Nature Care
Products will incorporate risk management into its planning and decision-making processes.
Risk management must also be included as a consideration in operational planning as a
delegated line management responsibility. Nature Care 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:

Nature Care 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:

Nature Care Products will regularly monitor and review the progress being made in developing
an appropriate culture of risk management and the effective implementation of risk
management strategies throughout the organization as a basis for continuous improvement.

5. Responsibility for Risk Management

Risk must first and foremost be managed at the corporate level as part of the Nature Care
Products good governance and corporate management processes. Risk management is
considered an integral part of all management and decision-making functions within Nature
Care 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.

6. Objectives of and Rationale for Risk Management

Nature Care Products in its need for risk management, aims to:

 integrate risk management into the management culture of the Nature Care Products; and
 foster an environment where staff assume responsibility for managing risks.

1. To secure its commitment to implement risk management effectively, Nature Care

Products aims to:

 implement risk management across all aspects of Nature Care Products in accordance with
best practice guidelines.
 2. To secure its commitment to training and knowledge development in the area of risk
management, Nature Care Products aims to:

 ensure that performance in risk management is a consideration in the Nature Care Products
‘s performance management systems; and
 ensure that staff and other stakeholders have access to appropriate information, training
and other development opportunities in the area of risk management.

3. To secure its commitment to monitoring performance and reviewing progress, Nature

Care Products aims to:

 ensure that appropriate monitoring, review and reporting processes are in place in the area
of risk management.

4. The objectives of risk management are to:

 provide a structured basis for strategic, tactical and operational planning across Nature Care
Products;
 enhance Nature Care Products’ governance and corporate management processes;
 enable Nature Care Products to effectively discharge its statutory and legislative financial
management responsibilities;
 provide a practical framework for managers to assess risks inherent in the decisions they
take;
 assist and motivate decision makers, at all levels, to make good and proactive management
decisions that do not expose Nature Care Products to unacceptable levels of risk of
unfavorable events occurring which adversely impact on the attainment of organizational
goals; encourage and commit decision makers to identify sound business opportunities that
will benefit Nature Care Products without exposing the company to unacceptable levels of
risk;
 minimize the risks of not identifying sound business opportunities;
 protect Nature Care Products from unacceptable costs or losses associated with its
operations;
 safeguarding of Nature Care Products ‘s resources – its people, finance, property and
reputation;
 assist Nature Care Products in achieving its strategic objectives; and
 create an environment where all staff assume responsibility for risk management

Principles to be applied

The principles of risk management shall be applied to all areas of risk exposure, insurable and
non-insurable, and shall include, but not be limited to the following areas:

Insurable Risks Non-Insurable Risks

 Non-insurable workplace health

and safety risks

 Insurable workplace health and  Non-insurable fraud and corruption

safety risks prevention activities

 Insurable fraud and corruption  Unauthorized use of resources

prevention activities which represent a non-insurable

 Unauthorized use of resources risk

which represent an insurable risk  Reputation and image as a non-

 Reputation and image as an insurable risk

insurable risk  Crisis contingency planning and

 Fire prevention measures and disaster recovery

security precautions  Accounting controls that are not

 Property loss and damage cost effective

 Computer security  Loss of key staff and intellectual

property
 Professional negligence
 Management system inadequacies
 Other liability exposures
and poor work quality
 Legal liability
 Failure or disruption of a major
income source or investment

7. Procedures

Whole of Organization Risk Management Process

Risk must first and foremost be managed at the corporate level as part of Nature Care Products’
good governance and corporate management processes. This process, coordinated and
facilitated by the CEO will involve the following key steps:

 an annual risk identification exercise undertaken by the CEO which involves assessment
of the consequence and likelihood of risk, the development and/or review of individual risk
management plans for the risks identified which exceed the Nature Care Products ‘s
defined acceptable risks;
 wherever practicable the inclusion of a Risk Management Assessment for all business
activities;
 the incorporation of risk management into strategic planning, and operational and resource
management planning processes;
 ensure risk management processes are incorporated into the quality assurance and
improvement systems of Nature Care Products;
 clearly define and document escalation procedures for risk management;
 ensure a consistency in approach of responses to the same risk by different sections of
Nature Care Products;
 document all risks with a potentially high impact, as assessed on the basis of their likely
occurrence or impact; and
 test documented risk management procedures at appropriate intervals.

PESTLE Analysis
POLITICAL
The political factors include the rules and regulations of the country in which
the company is working. As the company is established in Australia, it has to
abide by the political laws of Australia.
The political factors in Australia would have a positive impact on the nature
care products as the government is committed for the sustainability of the
companies and the environment. The most recent elections resulted the
Liberal Government which is very much for the business growth and had
been facilitating the small to large enterprises by tax cuts and other
facilities. The bill presented in 2016 progressively reduces the corporate tax
rate from 30% to 25% for all corporate entities. The recent news polls are
indicating another win of Liberal Government which would be encouraging
for the nature care future investment of $150,000.
ECONOMICAL
The economical factors include the exchange rates in the state where the
company is working. Australia has a large economy with a per capita GDP
on par compared to other western European countries.
Australia has high natural resources and also encourages foreign
investments.
The Australian economy grew for 17 consecutive years before the global
financial crisis.
LABOUR LAST REFERENCE PREVIOUS
Unemployment
6.3% Dec 2017 6.1%
rate
Employment rate 11 million Dec 2017 10.5 million
Full time
6 million Dec 2017 6.2 million
employment
Wages 1129/week Dec 2107 1008/week
Population 26 million Dec 2017 25.5 million
Minimum wage 640AUD Dec 2017 610AUD
Wage growth 2.5% Dec 2017 2%

SOCIAL
The social factors emphasize the technical trends in the society. The modern
society is more into the skin care eco-friendly products to maintain their skin
with a good hygiene. The society tends to use the best and natural ways to
protect their skin in this atmosphere. The company nature care produces
products that are highly sustainable and natural. Based on the view and
thinking of today’s generation towards the skin care, nature care products
have a higher demand comparatively to other products in the market. Mostly
the women ageing 25-55 years are likely to be the most interested.
TECHNOLOGICAL
Technology has its own influence in today’s world in all the sectors of life.
In a company like nature care trust and recognition play a major role in the
progress and development of the company. The company is always looking
forward to develop its products and rather introduce new products to meet
the requirements of the customer and satisfy them accordingly. With the help
of technology, it is quite easier to develop a good relationship with the
customers. Technology provides a basic mean in between the company and
the customers making it easy for them to access all the newer products and
upgraded information of the products. The company’s website is easily
accessible by any individual and the technical team of the company always
strives forward to keep it up to date with no errors and defects. Customer
Relation Management
A customer relationship management (CRM) system is an integral part of
every marketing, sales, and business development department as well as
CRM companies. Organizing and maintaining relationships with clients and
maintaining a fantastic customer relationship management system is
extremely important from small business CRM to big business CRM. A
CRM system, in the form of top CRM software, helps users organize,
categorize, and prioritize contacts, as well as monitor relationships with
previous, current, and prospective clients and customers. The address books
and rolodexes of the past have transformed into the CRMs of today. The “R”
in CRM does exactly what you think it does: helps you keep a track of your
relationships. It helps you keep a focus on customer relationship
management.
A good business, whatever that may be, especially those that are CRM
companies are overly reliant on well-formed and cultivated customer
relationships. When a product is purchased, a lot more happens than a simple
credit-debit transaction. Where did the customer find information about the
product? How much time did it take for the customer to make the purchase?
When was the last time the customer made a purchase? Answers to questions
like this lay the foundation of the data that is stored in the CRM.
LEGAL
Nature care company has grown big very fast and also has developed a few
competitors in the process. So in order to stay in the market and maintain its
profits and not lose their customers, it needs to follow all the legal
legislations of the country in which it is established. The people of today’s
generation are very much aware of the legal aspects. As the company is
bound by a few rules and regulations, it’s very important to meet all the
requirements and thereby develop their products satisfying all the legal
legislations.
Product safety in Australia is governed by the Australian Consumer Law
(ACL). The ACL is contained in a schedule to the Competition and
Consumer Act 2010 (CCA). Relevant provisions can also be found in state
and territory fair trading legislation.
ENVIRONMENTAL
The environmental factors lead to various global environment safety laws
that must abide by the global standards. The World has now taken pledge to
make the planet beautiful and pollution free. In this way, all the international
brands are playing their role in showing their support to the world. So Nature
Care can also play its part by supporting such campaigns and following the
norms of the world. The company has been one of the leading skin care
brands in Queensland, Australia. It is always best to understand the external
as well as the internal factors that affect the company on the whole. The
factors that are mentioned before depict the analysis done for the brand.
 Therefore, it is always a good strategy to consider these factors while
determining the policies for the company. In the same way, the future
policies of the company could also be made as per the on-going trends.
Risk Management as a Delegated Line Management Responsibility

Risk management is a delegated line management responsibility. It is the responsibility of all

line managers to continually monitor their areas of responsibility to ensure that risks are
identified and managed. Line managers should ensure that a contribution is made to Nature
Care Products risk management process, on behalf of their areas of responsibility, that
identifies risks at all levels.

The sharing of documented responses to risks and knowledge of risk management principles
and procedures will be fostered between line managers to ensure consistency across the Nature
Care Products.

On an annual basis, line managers should review all activities to ensure that any unacceptable
risk exposures are identified and managed at an appropriate level. All operational sections will
be required to report on risk management as part of the Nature Care Products’ annual
operational and resource management process.

Individual

Each employee or other stakeholder throughout Nature Care Products has a role in the risk
management process and is responsible for actively participating in the risk management
process as appropriate to their position within the company.

Management of Risks Associated with New Opportunities

In addition to the risks that already exist, Nature Care Products is continually exposed to new
risks particularly from the introduction of new activities. The new risks should be incorporated
into the initial planning and assessment processes conducted prior to undertaking the activity
and, subsequently, into the annual risk management assessment at the appropriate level(s) of
activity and management. A risk management plan must be developed.

Review
The CEO will regularly monitor and review the progress being made in developing an
appropriate culture of risk management and the effective implementation of risk management
strategies throughout the organization.

Guidance on Acceptable Risk

Through its monitoring, review and reporting functions, the CEO will ensure that Nature Care
Products maintains a consistent approach to its assessment of acceptable risk.

Documentation

Each stage of the risk management process shall be appropriately documented. The extent of
documentation required is dependent on the nature of the risk. Documentation will be
controlled so as to inform part of an auditable quality management process.

Compliance

A representation and compliance statement should be provided by each manager as formal

acknowledgement of their responsibility to comply with risk management policies and
procedures. Each employee should have included in his/her Position Description a
responsibility for risk management, and Annual Performance Appraisals should include an
appropriate assessment thereof.

Staff Development

Management shall ensure that staff have available to them appropriate information and training
opportunities in risk management as appropriate to their position and role within Nature Care
Products.