Running head: RISK MANAGEMENT 1

Risk Management

Student’s Name:

Institution:

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 RISK MANAGEMENT 2

Risk Management

Financial risk, strategic risk, operational-technical risk, and operational-safety risk that

the Cooper manufacturing Company is likely to encounter

Cooper Manufacturing Company is likely to face the financial risk that is sourced from

borrowings from the financial institution. It may face the risk of repaying the borrowed money.

Additionally, Cooper manufacturing company is likely to face strategic risks due to an

overwhelming number of companies that deal with a similar line of products. From the case

study, the Company ventured in global expansion in the year 2003, where it planned to acquire

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five to six Companies in the year. The Cooper manufacturing Company will possibly encounter

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operational-technical risk because much of the manufacturing processes are labor-intensive (it

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employ lots of human labor). Labor management will impose serious risks to the company
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because of the huge amount of salaries to be paid out, employee training costs, and other issues

associated with human resource management (Diewald, 2016). Moreover, the Company may
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encounter operation-safety risk. This is apparent because we have mentioned that the
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manufacturing process is labor intensive. This calls for the company to observe employee safety

standards through life insurance.

Evaluation of the above with which Cooper Manufacturing is involved

The risks in which the Cooper Manufacturing Company is involved are operational-
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technical risks and operational-safety risks. This is because most of the production processes
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employ a great deal of human labor. Labor management is best known in many organization to

being the contributor to a large number of risks. Manufacturing companies that are labor
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intensive are associated with injuries and unhealthy working conditions. The company will be

track up and down by labor organizations that advocates for better and health working

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 RISK MANAGEMENT 3

environment for the employees. As a result, this kind of risk will contribute to a significantly

large portion of the total operating risks in the company

The scheduling techniques that Cooper Manufacturing might use to mitigate its risks

Scheduling is one of the techniques that help an organization mitigating the risks that can

impact business operations. Task list and the Gantt chart are two important scheduling techniques

that Coopers Manufacturing might use to reduce risks. Task list reduces operational risks an

employee is assigned to the task in which he or she is experienced and knowable in it. It will also

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reduce the risk of not meeting the targeted time because the workers will work on their best to

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make sure that they complete the task on the allocated time. On the other hand, Gantt char

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mitigates nearly all aspects of risks associated with the operation (Bi, Jia, Lu, & Huang, 2017).
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With the Gantt chart, the managers of various production projects will be able to see where and

when the risks are likely to occur. Additionally, the Gantt chart will give management of Coopers
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Manufacturing Company an insight into priorities activities in order to avoid the possible
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occurrence of the risks.

Specific tasks that Cooper Manufacturing should use to manage its project risks
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Coopers Manufacturing Company should use risk management tasks when managing its

project risks. The tasks include; (a) Risk identification. This is the initial task in which the
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potential risks impacting the project are identified, (b) Risk assessment. This is the second step in
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risk management where the identified risks are analyzed, and (c) Risk control. Here, the already

analyzed risks are managed, mitigated, and controlled on the basis of their priority determined by
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the impact on the project (Hopkin, 2018).

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 RISK MANAGEMENT 4

References

Bi, H. L., Jia, X., Lu, F. Q., & Huang, M. (2017). Schedule risk management of it outsourcing

project using negotiation mechanism. In Proceedings of the 23rd International

Conference on Industrial Engineering and Engineering Management 2016 (pp. 29-33).

Atlantis Press, Paris.

Diewald, M. (2016). Life course risks and welfare states’ risk management. In Handbook of the

life course (pp. 677-687). Springer, Cham.

Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and

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implementing effective risk management. Kogan Page Publishers.

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