Risk Management Assignment Report on Industrial Parks Risks Evaluation
Task: Write a research report on risk management assignment critically analyzing the topic “Risk management for industrial parks” using credible sources.
Chapter 1: Introduction
Research Background of Risk Management Assignment
Risk is pertinent in almost every field of operations. Without the inevitability of risks, no operations can be implemented with success. However, through this research, the risk evaluation or analysis of the industrial parks will be conducted. Industrial parks refer to those zones where large industrial operations take place. Since industrial operations are massive and extensive, there is a possibility that the industrial parks are expected to receive a huge jolt of threats and risks. As potential background information, it could be said that The United Nations Industrial Development Organization (UNIDO) has ordered a mandate in collaboration with the United Nations. The purpose of the mandate is to keep the industrial parks safe from the different types of risks and threats. Industrial hazards are extremely common in several areas. The risks are not only harmful or detrimental towards the growth of the organisation, but also, the risks have left a negative impact on the employees of the industrial parks. Through this, a detailed secondary analysis has been conducted. The secondary data analysis has helped in understanding different risks that are being faced by the industrial parks.
Significance of the Research
The research on risk management assignment is extremely significant because the research highlights the threats and risks towards the industrial parks. As mentioned earlier, industrial parks are the zones and areas where several industries operations take place. Therefore, this research will identify the types of risks that might be evident in industrial parks. The research is important because the scope of the research is wide enough to understand the variant risks that are involved within the industrial parks. The risk evaluation is not limited to physical threats. Rather, the threats include financial risks, operational risks, management risk, project risks, etc. Since the scope of the research is huge, the research is extremely significant. The research is important because often the scope of the study is huge. The research has also provided detailed background information about the existing literature that will help in reflecting on the existing theories of risks evaluation.
The problem deals with the risk evaluation of the industrial parks. Industrial parks face several kinds of threats and risks. The problem statement highlights how the industrial parks have been facing certain threats and risks. The problem deals with the risk evaluation of industrial parks. Through this research, the industrial parks risk evaluation will be carried out with the help of secondary data analysis.
Research Aims and Objective
The risk management assignmentaims to identify the threats and risks that are being faced by industrial parks. The research aims to make sure that how the risk evaluation will be carried out in the industrial parks. Through this research, the researchers will be able to identify variant risk and threats that are evident in the industrial parks.
The objectives of the research study are:
- To understand the concept of Industrial Risk
- To analyse the concept of Risk Management
- To identify the risks that are faced by the Industrial Parks
- To identify the impacts of risks on the industrial parks
- To evaluate the risks of industrial parks
The research questions are:
- What are industrial risks?
- What is the concept of risk management?
- What are the risks faced by industrial parks?
- What are the impacts of risks on the industrial parks?
- How to evaluate the risks of industrial parks?
Chapter 2: Literature Review
Concept of Industrial Park
In this research, an industrial park has been referred to as a portion of the city that has been primarily zoned for any industrial uses. It will be used apart from any other commercial or residential needs. It can be said in more a specific way, an industrial park is a bigger version of a business park or office. These industrial parts have been located outside the main residential edges of a city (Song, Geng, Dong & Chen, 2018). It is provided with good transportation services with railways and roadways so that workers can have easier access to the place for its eventual development.
Concept of Risk Management
This research has been shedding light on the concept of risk management which is none other than practising identification of potential risks. These risks have been managed with the help of an AI (artificial intelligence) system. This AI system helps in analyzing these harmful organisational risks and helps to take correct precautionary methods, to curb its ill effects which can harness business works. This risk management also saves organisation earnings and capitals (Samimi, 2020). It arises from many factors such as legal liabilities, uncertainties of finances; errors in management and any organisation inter environment disasters.
Types of Risks
The crux of the research has been highlighting the type of risks that have been involved in the industrial parks of various countries. The first risk which can approach the industry and make every business work upside down is financial risks. These risks which are caused by the finances are the problems with rates of exchanges (Valaskova, Kliestik&Kovacova, 2018). The sudden increase or the decrease of the exchange rates can make the business goers unable to carry forward important measures for the industrial development in the park. If the cash flow is very less, then the park will be lacking inadequate resources for the development of firms.
Fixed asset risks are another risk that can create a problem in industrial parks. Such as whenever there is a lesser supply of energy, then the industrial parts run out of electricity to accomplish their tasks on time (Al Rahahleh, IshaqBhatti&NajunaMisman, 2019). Property damages are another cause that is often caused in the industrial parts in a varied way. For example, south well Business Park in the UK has been suffering from property risks due to poor management services. Serious actions have been planned to take to mitigate the risks for future success. Other risks are occupational risks such as accidents and the safety of operations.
Impacts of Risks
Due to lack of finances in the hands of the business goers, as the lands for the development of the industrial park was extravagant, it took a lot of time for the development of this park. Not only that, costs and maintenance of this park are beyond the capacity of maintenance of business goers (Xiao, Dong, Yan, Yang &Xiong, 2018). Therefore financial risk management tools like the Equifax Credit Risks Insights to save the situation.
The impacts of fixed assets risks are that the accounts which have been created for holding the assets may be misstated. There can be higher chances of depreciation of amounts which stands out to be incorrect. Therefore, the business goers will be misled for it. The value of money which is associated with resources and equipment in the industrial parks will be much lower. Thus, it can be seen that fixed assets can be managed with the help of the creation of assets with proper barcodes which will not lead the information of the park from getting leaked.
Theories of Risks Management
The concurrent problems with the risks can be evaded with the help of the stakeholder theory of risk management. This theory stresses the fact that industrial parks of any city will seek and involve risks stakeholders in the entire risks management procedures. With the help of this step, the proposed solutions, decision making and the apt way of risk management can be done more swiftly. The industrial parks involve the stakeholders like the boards of members, shareholders, representatives from the labour parties, government authorities (Jones, Harrison &Felps, 2018). They will develop communicative and cooperative measures for the development of risks.
Figure 1: Stakeholders theory of risk management
(Source: Jones, Harrison &Felps, 2018)
This theory includes that the stakeholders of the industrial parks will develop a work pattern for mitigation of the risks. These work patterns are: First, stakeholders should create a team where the flow of the communication will be from one line of the user to the other end. Second, stakeholders should identify a setup allocation where the risk mitigation strategies will be discussed thoroughly. Third, this theory proposes the use of technologies like risk dashboards, automated risk processes, which will stop the threats of risks touching the industrial parks. Fourth, design and outcomes can be decided depending on the risk of industrial parks, through the help of this theory.
Future Prospects of Risks in Industrial Parks
Today's risk assessment has been paving a way for successful hazards free industrial parks in the future in almost all cities. The risks will be evaded if the business follows these parameters. These parameters are abundant in the current modes of society. Business cases should be prepared and set up in a location, keeping in mind the opportunities that can be served from an industrial service area. There need to give a proper consecration regarding the positioning of the industrial park, it will decrease the risks (Deser et al. 2020). Note, improper use, and inappropriate location can increase risks of the business goers and project failures. Risks would be lesser in future in industrial parks if the location can serve higher competitive advantages, good inputs and outputs and potential investments and benchmarks.
Chapter 3: Data Methodology
The positivism research philosophy has been used in the management of the risks for the industrial parks. This is because positivism has been dealing with posterior knowledge. This posterior knowledge is highly beneficial in understanding what are the potential causes for the arousal of the risks in the industrial parks in the current scenario. The knowledge gathered will help the business goers to have a quick accuracy in the development of the mitigation of the risks for these industrial parks, which calls for business development (Ryan, 2018). For these reasons positivism, philosophy is used, apart from interpretivism which does not use knowledge domains for study.
The inductive research approach has been used for this research study. It provides more of a flexible study. This approach helps in determining quick logical solutions for risk management. This approach has been used because it takes into consideration the opinion and the generalizations of the society (Woiceshyn&Daellenbach, 2018). This will help in making proper hypotheses, whether the risks of the industrial parks can be lessened or not, or to what extent the risks are lesser. It equally focuses on the use of language which develops good communication among the participants. It increases the work fluency among the participants.
This research will use descriptive research designs. The benefit of using descriptive research design is that it will give an elaborate analysis. The appropriate elaboration will be seen majorly in defining the risks management of the industrial parks. The research will mainly get the help when this descriptive design will provide a knowledgeable description in the mitigations of the solutions of the risks management. All the interrogative parts of the topic will be addressed through the use of this research design effectively (Siedlecki, 2020). Thus, descriptive designs are helpful.
Data Collection Methods
The data will be collected through the use of interview methods. The interview will be done with the 7 business managers. These business managers are the ones who have been currently focused on developing a firm in one of the industrial parks of the United Kingdom. The benefits of the interview methods which this research will receive are that the individual mindsets regarding the approaches of the risks will be sought. According to that, proper risks management strategies will be used for further improvements (Murto et al. 2020). Interview methods help in giving correct exploration and analysis of the areas which will be kept in focus.
Data Analysis and Sampling Methods
Secondary data analysis with qualitative study has been addressed in this research study. A thematic analysis will be drawn based on the assumptions and the opinion of the participants. The advantage of the secondary data analysis is that it requires very little time. Therefore, research can be accomplished much faster, which is essential in the case of risk management (Cole & Trinh, 2017). The sampling methods used are Simple Random Non-probability Sampling. The advantages of this method are that it can give logical subjective judgments, which makes the risk management appropriate for saving the industrial parks.
Chapter 4: Secondary Data Analysis
In this section, 10 scholarly articles will be undertaken to analyse and evaluate the risk factors that are being faced by industrial parks. These scholarly articles have helped the researchers in gaining an in-depth analysis of the subject matter.
Risk Management in Motorway PPP Projects
Through this article, the risk management in the PPP has been analysed effectively. Through this article, the researchers have tried to understand how motorway PPP projects have evaluated the risks and threats. Through this article, the researchers have identified that risk evaluation will be based on the context-specific approach. A context-specific approach helps the management to analyse the situations (Carbonara et al., 2015).
Analysis of the situation helps in the identification of the upcoming threats and risks. The management can avert any types of threats with the help of the context-specific approach because the background information about the risks can be identified easily. In this article, it can be found that researchers have conducted a detailed Delphi survey to evaluate the range of risks that are pertinent in the PPP motorway projects. The findings of the article reveal that the use of the context-specific approach has been proven effective and suitable for the mitigation of the risks.
Analysis and Characterization of Risk Methodologies Applied to Industrial Parks
This article reflects on the fact that analysis of risk evaluation has to carry out effectively within the industries parks. The article states that every industrial park needs to assess the process of consequences of the risks. Since an industrial park possessed several financial and operational threats, these threats can be identified and analysed with the analysis of the characterisation of the risks (Folch-Calvo, Brocal-Fernández, González-Gaya &Sebastián, 2020). The findings of the article state, that once the characteristics of the threats can be identified, mitigation of risks becomes easier. Through the article, it could be seen that the researchers have used six different modes that help in easier access and analysis of the characters of the risks and threats. These six models of risk evaluation are standards, preventive, probabilistic, traditional, modern, and dynamic evaluation. The study in the article reveals that no distinct or specific model can be specifically applied to the case of industrial parks. However, the above-mentioned models are deemed to be the most appropriate models for the analysis of the characteristics of the risks that might be faced by the industrial park.
Input and Output Inoperability
Through this article, the researchers have tried to understand the models that could be used as a potential tool to identify mitigate the risks in the industrial parks. In this article, the researchers have put forward the model of input and output inoperability. Input and Output Inoperability helps in the identification of the disruptive event's propagation to understand and identify the upcoming risks (Kuznetsova, Louhichi, Zio&Farel, 2017). The article revealed that different approaches and models are existent to evaluate the disruptive vents propagation and propose mitigation solutions. The industrial analysis of input and output will help the management of the industries with the help of analysis of the input and output.
Safety and Security Approaches of Risk Management
This article highlights the man-made domino that is being responsible for the risks pertinent to the risks, which are upcoming to the industrial parks. The entire purpose of the article was to identify the resources that can be utilised to mitigate the risks and threats. As mentioned earlier, industrial parks have several risks that can pose threats. These threats can be operational, financial or physical. However, these threats and risks can be mitigated with the help of sources. Through this article, the researchers have highlighted the need and importance of safety and security resources that could be optimally useful for addressing the threats. According to the article, the risks of industrial parks can only be averted if the organisational resources can be kept safe (Chen, Reniers&Khakzad, 2019). For example, the infrastructure of an entire industrial park can be kept safe only if the information is kept safe and sound through a cloud computing system. On the other hand, operational risks can be averted if the human resources can be channelled effectively through motivation and encouragement.
Symbiosis Network in Risk Management
In this article, the researchers have highlighted the physical or chemical threats that are evident within an industrial forefront. It goes without saying that an industry manufacturing unit emits severe harmful chemical gases. These gases are extremely unhealthy and risky for the employees working within the organisation. In an industrial park, several manufacturing units operate simultaneously. Thus, it is evident that the emissions of harmful gases lead to the rise of other physical and chemical hazards in the organisation. This article highlights the concepts of waste symbiosis networking systems. The article proposes that the emission of the wastes and the chances of risks can be mitigated to a large level if the industrial parks follow the symbiosis networking system (Wu, Guo, Li & Qi, 2017). It is a networking system where the products are being constantly recycled and reused. This process not only helps in reducing the physical or chemical threats but also makes sure that the operational risks are also lessened.
Environmental Risk Analysis
Through this article, the researchers have proposed that energy consumption can be a way of mitigating the risks of industrial parks. Industrial parks contain several risks and threats. Therefore, this article gives a completely different perspective which identifies the use of energy conversation as mitigation to threats and risks that are being faced by the industrial parks. Energy conservation means consuming the maximum amount of resources possible by making sure that energy is being conserved (Han, Sun &Feng, 2019). The purpose of the article is to make sure that the industrial parks keep the energy consumption and emission to a static level. The researchers in these articles propose that energy conservation can be attained successfully if the industrial parks cater to external factors. In other words, the article states that the industrial parks would be able to mitigate the potential risks and threats if they conduct varied research on the market or environmental conditions. The study on the market condition will allow the industrial parks to keep their operational strategies under the regime. On the other hand, the reach on environmental issues will help in mitigating the physical risks.
Sustainability in Risk Management
In this research, the researchers have opted for a sustainable approach to evaluate the risks of the industrial parks. The industrial parks have been carrying out manufacturing operations extensively. These operations deplete the resources, which gives rise to the chances of risks and threats. In this article, it could be seen that the researchers have proposed the ideas of sustainability. Sustainability assures that the industrial parks are using the natural resources on a recyclable basis to render the most harmless impact on society. Sustainability in risk management helps in understanding the importance of natural resources in maintaining a healthy operational structure in the market (Valenzuela-Venegas, Vera-Hofmann &Díaz-Alvarado, 2020). Industrial parks use several products and raw materials. The depletion of these products and raw materials might hamper the sustainability of the marker. Therefore, in this research, the researchers have made sure that industrial parks follow the steps of the sustainability approach to avoid any kinds of risks or threats.
Holistic Approach of Risk Evaluation in Industrial Parks
This article gives completely different perspectives on risk evaluation. Through this article, the researchers have tried to present a holistic approach in mitigation of the risk in the industrial parks. The holistic approach does not dissect the pertaining risks based on their types or sizes (Aravossis, Kapsalis, Kyriakopoulos& Coulis, 2019). Rather, the holistic approach states that the industrial parks should take account of the entire peripherals of risks at a single time. This article conducts a detailed meta-analytical survey. The meta-analytical survey reveals that a holistic approach to risk assessment gives a wide-angle view of the threats and the management can undertake steps as significant perspectives.
Chapter 5: Conclusion
In conclusion, it could be said that this research has conducted a detailed secondary analysis on the subject matter of risk evaluation in industrial parks. Industrial parks contain severe threats and risks which often hinder the growth of operations for the industrial parks. To understand the concepts of risk evaluation in industrial parks and meet the research objectives, the researchers have analysed eight peer-reviewed scholarly journals that provided an idea on the subject matter.
The findings of the analysis are in perfect sync or linked with the research objectives. In the previous, the research objective was to identify the potential risks of industrial parks. The objective of the research was also to identify possible solutions to the risks of industrial parks. The findings have met the objectives because the findings provide an in-depth analysis of the risk. The findings also lay down certain solutions which can be adopted by the industrial parks to minimize the risk. Thus, it could be said that the findings are completely linked with the objectives.
Chapter 6: Recommendation
From the above-mentioned analysis of the threats and risks, it could be recommended that industrial parks need to follow certain basic rules and regulations for extreme mitigation of the threats. Although the detailed idealisation of the secondary data analysis, it could be seen that the industrial parks have been provided with various lenient suggestions to overcome their threats and risks. However, it could be recommended that the industrial parks must provide extra credentials towards the concepts of sustainability.
From the critical analysis of every suggestions and steps, it could be seen that the sustainability approach in industrial parks is the most suitable. The industrial parks must use renewable resources because the optimal utilisation leads to less amount of waste and leads to fewer risks. Industrial parks can avert their risks and threats with the pursuance of a sustainability approach.
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