Recent orders
UniSuper Fund
`
UniSuper Fund
Name
Institution Affiliation
Executive Summary
According to the Australian legislative law, under the Corporations Act 2001, all businesses are required to be responsible for the interests of stakeholders and the community. The act requires that all the businesses, including financial firms, are required to adhere to the corporate social responsibility contained under the constitution. However, the recent outburst by the public concerning the use of their money in investing in coal industries and other polluting industries sparkled debate on how superannuation funds adhere to social responsibility. With such funds showing their irresponsibility and ignorance, UniSuper is a role model for the industry as it is dedicated to being corporate citizenship. UniSuper fund demonstrates its corporate citizenship through investing in eco-friendly sectors and having strategies aligned with its corporate social responsibility policies. Such actions by UniSuper is worth coping and is an example to other funds to demonstrate their corporate citizenship.
Table of Contents
TOC o “1-3” h z u 1.Introduction PAGEREF _Toc38628611 h 32.Background PAGEREF _Toc38628612 h 43.Methodology PAGEREF _Toc38628613 h 44.Findings PAGEREF _Toc38628614 h 54.1 UniSuper PAGEREF _Toc38628615 h 54.2 Corporate Social Responsibility PAGEREF _Toc38628616 h 74.3 UniSuper’s Corporate Social Responsibility PAGEREF _Toc38628617 h 84.4 UniSuper’s narrow view of CSR PAGEREF _Toc38628618 h 94.5 UniSuper’s Broad view of CSR PAGEREF _Toc38628619 h 95.Discussion PAGEREF _Toc38628620 h 106.Conclusion PAGEREF _Toc38628621 h 117.Recommendation PAGEREF _Toc38628622 h 11
IntroductionFor the past two decades, corporate social responsibility (CSR) has been and is still a subject of discourse in the global business environment. The majority of businesses across the world in the present day have existing strategies targeting corporate social responsibility. According to Anderson and Landau (2006), more than 70% of the leading corporations in Australia have CSR policies affirming how businesses are responding to the issue. Currently, businesses are focused on having CSR policies having witnessed their incredible benefits in brand recognition and societal progression. However, a study conducted by Elizabeth and Robinson (2018) revealed that the concept of CSR is complex and multi-dimensional.
In the Australian superannuation industry, significant investments exist in coal production as well as other polluting industries. The massive investments made in the companies has been triggered by the enormous profits generated by the industries which constantly pollute the environment. Recently, the coal industry was in the spotlight for its support and considerable investments in polluting industries. In response, the funds disclosed that their aim was to profoundly guarantee the best possible return on fund member investments regardless of the industry worthiness. The sentiments sparkled debates about CSR issues in the superannuation industry. Thus, the UniSuper investment company is an excellent investment solution, having its CSR policies that direct investments in eco-friendly, socially responsible industries. UniSuper plays a vital role in the Australian superannuation industry for its provision of alternative investments integrated with numerous CSR policies.
BackgroundRecently in Australia, the public came blazing at 22 companies for defying the call for climate action. The public took their uproar to social media and the streets, demonstrating their disappointment at the businesses, inclusive of financial corporations. The financial companies included Australian superannuation funds, which used the retirement savings of employees to invest in coal production and other industries associated with environmental pollution. The production of energy from coal is a significant contributor to environmental pollution that prompted the signing of the Paris Pact by different governments and stakeholders across the world (Gencsu, I. et al., 2019, p. 11). The agreement targets the mitigation of environmental pollution through the reduction of coal production. Among the details highlighted in the agreement is government funding in eco-friendly means of energy production. Therefore, the superannuation funds’ actions to invest in coal and other polluting industries contradicts with the Paris Agreement.
The outburst of the public sparkled debates on how the superannuation funds are using their retirement savings. Furthermore, the issue contributed to studies on the extent to which the companies’ strategies align with the corporate social responsibility and the Paris Agreement. According to research by Market Forces, the majority of Australian companies do not have their goals aligned with the Paris Agreement (Market Forces, 2020, p. 2). The findings reveal that much ought to be done for companies to adhere to the call for climate action. With the public concerned with how their saving is being used, UniSuper is having the keys to eco-friendly investments.
MethodologyThe research used quantitative and qualitative methods of research. To find out more information on UniSUper and its importance in the Australian superannuation industry, the research employed the use of internet sources and previous researches conducted on the industry. The research focused on the information available on UniSuper’s website. With technological advancement, websites are proving to be beneficial and resourceful in the access of critical information regarding the company. The information is reliable as the fund keeps updating their website with the latest information about the fund. Therefore, the information about the fund’s operations, management, and corporate social responsibility is obtained from the fund’s website. Previous research about the Superannuation industry and corporate social responsibility in Australia was correspondingly used. Previous studies on the subject equally helped to investigate the importance of UniSuper in the Australian superannuation industry alongside the corporate social responsibility trends in the industry.
Nonetheless, since the research is founded on the existing case studies and research, there might be a challenge because only a limited number of studies are centered on superannuation funds and its corporate social responsibility. The few studies linked to superannuation’s corporate social responsibility are seemingly an obstacle to acquiring more information on the subject hence a primary challenge.
Findings4.1 UniSuperUniSuper is a superannuation fund in Australia targetting employees of higher learning and the research sectors. As outlined in UniSuper’s website, the fund is devoted to providing superior retirement outcomes to various categories of employees (UniSuper, 2020). UniSuper is committed to rendering the best services to employees, whether they have recently been employed or when they have changed employers. The fund, which has more than 400,000 registered members, recorded a 7% increase in membership in 2019. The fund currently has more than $85 billion in assets (UniSuper, 2020). Consequential to the Australian government’s directive that all employees ought to have superannuation, UniSuper is among several super funds in Australia and also among the largest. However, unlike other super funds, UniSuper targets Australian higher education and sectors.
UniSuper, just comparable to other funds, operates through contributions from members which they will obtain upon retirement. The fund protects the members’ funds and boosts them through investments. According to the Superannuation Guarantee (SG) legislation, the members’ employers ought to contribute up to 9.5% of the total earnings (UniSuper, 2020). Afterwards, the money is managed by UniSuper, which is then returned along with the returns made to the employees upon retirement. The final balance upon retirement is dependent on the amount of contributions made, investment returns, and additional fees paid. In summary, the fund works by investing members’ contributions and repaying them back with the profits generated.
Conversely, the fund allows one to choose where their contribution will be invested in. There are several investment options that members can choose from, with the default investment option being the Balanced option or MySuper (UniSuper, 2020). Furthermore, the fund has insurance policies such as disability cover, death cover, and income protection cover. The fund offers the insurance covers by acquiring the covers from an insurance company. The obtaining of an insurance cover via the UniSuper fund is, however, affordable compared to acquiring a separate individual policy. Distinct from other superannuation funds, UniSuper is a profit-for-members fund, implying that all profits are directed to the members. Consequently, there are several benefits associated with being a member at UniSuper.
In terms of the administration, the fund is owned by the 37 Australian universities and is managed by UniSuper Limited, a corporate Trustee. The fund believes that to realize an effective superannuation system, there ought to be good governance in the management of funds. Thus, the fund is managed by a board comprising of 3 directors, four representative directors from the universities, and four representatives (UniSuper, 2014, p. 3). The management is aimed at protecting the interests of its members. Alongside the board is the Consultative Committee that plays a crucial role in the governance of the fund while also taking part in the decision-making process (UniSuper, 2014, p. 4). Therefore, the structure of the fund’s management is aimed at achieving the best control of the superannuation of the employees of higher education and the research sector.
Being a profit-for-members fund, the fund is of significance hence a role model to other funds. The mainstream superannuation funds are focused on generating high returns from which the gains only benefit other involved parties ahead of the investor. An excellent example is the funds investing in coal production and other polluting industries. Such investments led to criticism and public outburst as to how their investments are being misused. However, UniSuper is an excellent example of a fund that exhibits its corporate citizenship to the community. According to the fund’s website, the fund has its strategies aligned with its corporate social, economic responsibility (UniSuper, 2020). UniSuper is, for that reason, a role model to other funds as it is a responsible investor.
4.2 Corporate Social ResponsibilityBusinesses today, including financial firms, are aligning their strategies with corporate social responsibility. Corporate Social Responsibility is a model that guides businesses to be socially accountable and be responsible for the environment. Another acceptable definition of CSR is the lengths beyond just the legal business requirements to the broader perspective of responsibility towards the community and environment (Anderson, H. and Landau, I., 2006, p. 4). Over the years, the business world has evolved with more emphasis directed towards CSR policies. In Australia, the majority of companies have their activities and strategies that purport to reflect their dedication to being responsible to society and the environment. Through businesses’ policies aligned with CSR, these firms display their corporate citizenship.
There are various legislative laws aimed at regulating CSR in Australia. The regulation stipulates the responsibility of business management in recognizing the interests of stakeholders. Additionally, the statute permits firms to voluntarily participate in numerous social and environmental initiatives (Anderson, H. and Landau, I., 2006, p. 8). In Australia, the regulation laws are contained in the Corporations Act 2001 (Anderson, H. and Landau, I., 2006, p. 8). Furthermore, the legislative law also entails obligations on superannuation, which is contained in section 1013D (1) of the Corporations Act. The sections unveil the extent to which superannuation funds can be responsible to the society, environment, and ethical standards during investments. Moreover, there exists another section, Section 299(1)(f), containing the requirement that financial firms ought to attach information of breaches of environmental regulations. Therefore, there are questions of the extent to which the government ensures corporate citizenship since some superannuation funds are breaching the act and investing in polluting industries.
4.3 UniSuper’s Corporate Social ResponsibilityUnlike other superannuation funds, UniSuper is aware of its broader responsibility to the environment and the community. The fund has its corporate social responsibility that aims to align with its investments. Being an investor, the fund first examines the environmental, social, and governance issues before making investments. Through such responsible investments, the fund, therefore, aligns its investments with its corporate social responsibility policies. In the recent past, there has been an intensification of the environment, social, and corporate governance (ESG) within the fund. Climate is another issue that the fund is keen on, having its portfolio aligned with issues surrounding climate action.
4.4 UniSuper’s narrow view of CSRThe narrow view of CSR is the corporate responsibility of a company by making contributions to society. Under the narrow view, companies can show their corporate responsibility by using their profits to support employment, wages, and investments. Therefore, the social responsibility of a firm is to grow its earnings provided that it remains responsive to the community and environment. Through generating profits, companies like UniSuper can show their corporate citizenship through improving society.
In UniSuper, the narrow view of CSR involves investment activities that would, in return, generate profits from their members’ contributions. The fund invests in various mix of assets from where the member chooses where their contributions would be directed to. Among the options offered by the fund are the pre-mixed options and sector options. Under the pre-mixed options, the fund chooses and manages the investments on the members’ behalf. The options under pre-mixed include conservative, balanced, and growth. On the sector options, the investments are rather diversified in different variants. The options that members’ investments are spread includes Australian bond, Australian shares, global companies in Asia, and international shares (UniSuper, 2020). Therefore, UniSuper displays its narrow view of social responsibility through investing members’ contributions in diverse sectors to generate profits for the members.
4.5 UniSuper’s Broad view of CSRThe broader view of CSR is the action by corporations that display their accountability in caring for the environment. Furthermore, the more comprehensive view of CSR entails a firm’s efforts to show support for the improvement of the neighboring society. Through such measures, a company can have the opportunity to create a positive image for its members and community.
UniSuper shows their corporate responsibility for the broader view of CSR through directing their investments in ecofriendly industries. Before investments, the fund first considers several issues, including climate risk management, human rights, and the ESG disclosure and transparency of the sector (UniSuper, 2020). Moreover, the fund assesses the management’s ESG capabilities before agreeing to invest. Notably, the fund reviews the industry’s ESG approaches, ensuring that its investments uphold high standards.
DiscussionFrom the findings, superannuation funds, identical to other financial firms, ought to display their corporate citizenship as per the Corporations Act of 2001. With superannuation being compulsory in Australia, the government must ensure that the funds comply with the Corporations Act. The funds ought to show that their corporate citizenship through various policies that align with the CSR. UniSuper is an excellent example of a fund that has its strategies aligned with the CSR. UniSuper is a superannuation fund that offers retirement benefits to employees of higher learning and research sectors. UniSuper plays a vital role in the superannuation industry as being the role model of how corporate citizenship is aligned with investments.
From previous studies and research, CSR is an evolving concept, gaining attention in the business environment. In Australia, the government, under the Corporations Act, requires financial corporations to be responsible corporates to both society and the environment. UniSuper, being among the financial corporations mentioned in the act, aligns its strategies with the CSR policies. UniSuper is a responsible investor through its measures of first assessing environmental, social, and governance factors before making its investments. The fund has both a narrow view and a broader view of CSR. The fund generates revenue by investing in ecofriendly sectors.
ConclusionConclusively, UniSuper is a corporate citizen as it possesses CSR policies that guide the fund to make sustainable and socially responsible investments. Through its wide variety of investment options, members can choose how their contributions can be invested in sustainable industries while essentially creating returns. UniSuper is among other financial firms that are aware of their corporate citizenship to the community and the environment. Therefore, with the criticism of superannuation funds investing in polluting industries, UniSuper acts as a role model of how members’ funds can be invested in eco-friendly industries while still generating profits for their members. The assessments of industries by UniSuper before investing in them make the fund stand out as a superannuation fund dedicated to responsible investments.
RecommendationThe research recommends that the steps taken by UniSuper are essential in generating returns for members while contributing to environmental initiatives. Furthermore, the study also commends UniSuper for their strategies and efforts for displaying their corporate citizenship as being socially and environmentally responsible.
References
Anderson, H. L., and Landau, I., (2006). Corporate social responsibility in Australia: A review. Monash U. Department of Business Law & Taxation Research Paper, (5).
Elizabeth, A. F., & Robinson, G. M., (2018). Mapping meanings of corporate social responsibility – an Australian case study. International Journal of Corporate Social Responsibility, 3(1), p. 14.
Gencsu, I., Whitley, S., Roberts, L., Beaton, C., Chen, H., Doukas, A., Geddes, A., Gerasimchuk, I., Sanchez, L. and Suharsono, A., (2019). G20 coal subsides: Tracking government support to a fading industry. ODI Report.
Market Forces, (2020). Out of line out of time. Retrieved from https://www.marketforces.org.au/wp-content/uploads/2020/03/Out-of-line-out-of-time-2020.pdf
UniSuper, (2014). Better regulation and governance, enhance transparency and improved competition in superannuation. Retrieved from https://treasury.gov.au/sites/default/files/2019-03/UniSuper.pdfUniSuper, (2020). How super works. Retrieved from https://www.unisuper.com.au/your-super/introduction-to-unisuper/how-super-worksUniSuper, (2020). Introduction to UniSuper. Retrieved from https://www.unisuper.com.au/your-super/introduction-to-unisuperUniSuper, (2020). Responsible investing. Retrieved from https://www.unisuper.com.au/investments/responsible-investing/our-approach-to-responsible-investingUniSuper, 2020. About our investment option. Retrieved from https://www.unisuper.com.au/investments/investment-options-and-performance/about-our-investment-options
Vulnerability
[Year]
Your Details
Date
[ Vulnerability Analysis]
Certification and Accreditation of Information Systems
Vulnerability: – Vulnerability is a weakness of a system which allows the intruders to reduce a systems information assurance. It includes three parts first is flaw, intruder’s access to the flaws, and intruder’s capability to exploit the flaw. An intruder to be vulnerable should have at least one technique which connects to the systems weakness. They are classified according to the asset class which are
Hardware
Software
Network
Personnel
Site
Organizational
As a part of a formal risk assessment of desktop systems in a small accounting firm with limited IT Support, you have identified the asset “integrity of customer and financial data files on desktop systems” and the threat “corruption of these files due to import of a worm/virus onto system.” Suggest reasonable values for the items in the risk register for this asset and threat, and provide justifications for your choices
The Risk Register is shown below
Assets Threat Controls Likelihood Consequences
Level of Risk Risk Priority
Integrity of customer and financial data files on desktop systems Corruption of these files due to import of a worm/virus onto system Firewall, Antivirus, e-mails, downloading files Almost Certain Major Extreme 2
The three strategies of managing risk are:
(1) Reduce the probability of an unfavourable event: – These can be accomplished by effective strategic planning. Management skills and knowledge of managers can be developed either directly through self improvement or indirectly by outside advisors.
(2) Self-insure and accept the impact if an unfavourable event occurs: – Following options are included:
Modification of revenue-related risks by diversifying the enterprise mix. The outcome can be lower average revenue or added costs in the course of a loss of efficiency.
Reduction of production risk due to spread of production geographically. This can result in increase of cost of production.
Building net worth will help a business to survive in adverse events.
Building excess production capacity which will reduce the likelihood of delay of production-related activities
(3) Reduce the impact on the business if an unfavourable event occurs by shifting risk to others: – Costs are incurred in the form of Insurance premiums.
Qualitative risk analysis: – An analysis that adjudicators an organization’s risks to pressure, which is based on decision, perception, and the knowledge versus transmission real numbers to this possible risks and their potentials loss margins.
Quantitative risk analysis: – A process that attempts to allocate real numbers to the costs of countermeasures and the quantity of harm that can take place.
Differences between these two are
S No. Quantitative Risk Analysis Qualitative Risk Analysis
1. Results are expressed in management specific terminology They do not determine financial values of assets.
2. Risks are analyzed in financial terms Risks are analyzed in terms of quality of risk that is ranking the risks.
Quantitative Risk Analysis is more effective as it tells the monetary value of the Risk.
The two models are
Security Steering Group (Leverage Model)
Maintaining the information of the industry, sustaining technology, and security model is not a part-time plan. Developing an useful security architecture that is built on the inclusive familiarity of the business is a non-trivial activity that requires active advertising to multiple resources that can sufficiently characterize the business objectives and/or needs of the organization. The organization of an Internal Security Steering Group will help ease the measures necessary to design, build, implement and maintain a pragmatic security architecture model.
This leverage model can successfully decrease the overall level of effort in scheming, implementing, and managing all of the serious mechanism that an venture security architecture is comprised of thus increasing the Return On Investment (ROI), reducing the Total Cost of Ownership (TCO), and effectively managing risks.
Basic Security Requirement Model
An incorporated risk management program is serious in securing business objectives requiring the enforcement of secrecy, reliability, accessibility, and liability.
Secrecy
Secrecy ensures the safety of data from illegal access throughout an organization’s information planning, which extends to all data directly linked with the architecture’s applications, data stores, communication links and/or processes.
Reliability
Reliability ensures that data, services, and other restricted resources are not altered and/or destroyed in an unlawful manner. Reliability based controls provide safeguards against unplanned, unlawful, or nasty actions that could result in the change of security defense mechanisms, security sorting levels, addressing or steering information, and/or audit information.
Accessibility
Accessibility ensures the trustworthy and right process of information and system capital for which the loss of information and/or resource access would cause unfavorable results. Accessibility based security necessities include controls to stop, sense, and/or monitor unintended, unlawful, and/or nasty activities that could negatively impact the accessibility of serious information.
Liability
Liability requirements ensure that events can be linked to exact users and/or processes accountable for those actions. The largely goal is to be able to confirm, with 100% certainty, that a picky electronic message can be associated with a particular individual, just as a handwritten signature on a blank check is tied back to the account owner. Liability based controls include detection and validation mechanisms, and access control.
The steps are:-
Knowledge base: A good tool will come with letter templates, appeals strategies, and other content to arm providers with the information that only experience can provide.
Workflows: MAC appeals can involve many departments and individuals collaborating to meet deadlines. Look for tools that have both prebuilt workflows as well as the flexibility to modify or design processes to fit an organization’s specific needs.
Hosted software-as-a-service model: Keeping up with changing requirements and incorporating new best practices is difficult with software that arrives on CD. Hosted applications offer frequent content and functionality updates as well as fully functional remote access.
Easy-to-use streamlined interface: Good tools must be fast and easy to use, with controls that are intuitive enough that even the technologically handicapped can use them.
The three steps in the security process are:
Plan: – The first step is to plan the whole structure of the requirements. Nothing can be done without planning so the first step is to plan what all is there and how to work on the security of the required data. Security process is to be followed according to the plan made.
Delegate: – This is the step which lets the plan made to be followed in reality. Implementation of the security plan is done in this step.
Audit: – This is the step in which all the security measures are tested and if any loop wholes are found they are rectified to provide the correct security measures.
The steps involved in conducting an assessment are
Define Extent of the Change: – The assessment being done is laid down in detail and all the procedure required are defined in this step.
Determine Key Differences: – All the key differences are determined in this step, where all the requirements are laid down and separated from each other.
Focus on Effects: – This step lays down the processes and main focus is laid down in implementing them.
Sort and Prioritize: – The main processes are first listed and all those who have higher priorities are dealt first.
Make a Decision: – This is the step which lets the user make the effective decision of his assessment.
Mobile devices though being portable and have the dual facility to access calls and e-mails (internet) have some risks which are as follows.
Due to their small sizes they can be easily stolen or lost which leads to loss of the complete data.
The files still exist on the cells memory which can be misused.
If the mobile software’s or any download is virus stuck, they can harm the handset itself.
The handsets are prone to many malwares which come due to different downloads being done over the mobiles.
There can be excessive spams which come in the mobile devices.
Thus using official information over mobile phones should be minimized only when its actually and increasing necessary as this can lead to leakage and misuse of information of the organization which can be a risk factor for them.
The main benefits associated with the approach to IT planning are
Releasing the possessions for improved operation
The capability to nurture the business devoid of considerable increase to workforce all the way through improved and large efficiency and output
Concentrated delays in vocation stream process
Concentrated delivery rejoinder instance
Concentrated records
A risk is any happening and occurrence of actions, which can be internally or externally generated, which prevents an association from achieving its objectives and goals. Risk assessment will aid in planning decisions such as:
The character, degree, and timing of review measures
The business functions to be audited.
The quantity of time and capital to be owed to a review
With the information Eric Raffin had at that time, the other alternatives could he have considered are
Developing a database to record the actions which can be referred to at the time of need
Taking timely backup which can help store the data which can be useful in days to come
Forming a system which stores every minute details so that without any missing information the process can be followed.
Taking into account the possible system working time which would have increased its working and efficiency.
The bowtie analysis is a popular structured method which helps in assessing risk, in this methodology qualitative approach is not enviable. The achievement and accomplishment of using the diagram is its uncomplicated and trouble-free method for any non- expert to comprehend. The design is an easy one to combine the reason (fault tree) and the result (event tree). The fault tree is wan on the left side and the event tree is wan on the right side and the risk is wan as a “knot” in the centre, the diagram appears like a bowtie. An example of the same is shown below:
Consequence 2
Consequence 1
Mitigation 2
Mitigation 1
Incident
Prevention 2
Prevention 1
Hazard 2
Hazard 1
To create a bowtie diagram following needs to be defined:
Events which needs to be prevented.
Threats that might root the event to take place.
Consequences which occur due to the event.
Controls required avoiding the event from being occurred.
Controls to moderate alongside the consequences.
The bowtie methodology is used for every kind of risk examination and investigation, from major accidents, all the way through work-related and ecological to industry, IT and safety risks.
Using web as a medium of exchange either associated with buying or selling of goods and services involve transactions of money from an account to the other. The customers are on a very high risk undertaking these shopping’s over net, the risks are
The customer is not sure whether the web page which he is trying to do over net shopping is a valid one or not. Generally people make fake web pages and just try to cheat on general public and take lots of money from them and don’t deliver the products.
They can risk their money which they are giving in exchange of the commodity.
They can risk their bank account details or their credit card details.
They are not sure of even getting their desired product which they have purchased over net.
They cannot fight for the quality of product which was sent to them or if a product is broken.
So there are various risks involved in shopping over net, thus it should be avoided to a great extent.
Outsourcing is forming a contract with another company or person to do a particular task or provide some service. Naturally, the purpose being outsourced is measured non-core to the business. Today almost every organization outsources in some way or the other.
Following are some positive effects of outsourcing on an organization are
Growth
Offshore Expansion
Variety of Options
Reduced Risks
Competitive Spirit
Fulfill Business Objectives
Better Results
Resource Utilization
Flexibility
Share Business Risks
Fast Turnaround Time
Following are some negative effects of outsourcing on an organization
Loss of jobs in developed counties
Huge lay-offs by companies
Risk of heavy losses to companies who outsource without proper planning
Rise of fear and dissatisfaction among employees in companies that outsource
Risk of the outsourcing company stopping its operations
The project may not be completed well in time. As the whole group has not worked over this technology and we have no documentation to refer for this technology we face real difficulties in estimating the time required to complete the project. We can even go wrong in the people required for completing this project. Doing this project is like “Aiming in the Dark”. We are in this situation that we have put our foot forward without even know where is our goal and how much time we need to reach our goal. There is the biggest problem here that will be deliver the project well in time because the organization is waiting for the new deliverable and things and the processes currently in the organization are being done hoping of getting the deliverable well in time. As we know every step undertaken within an organization are interdependent, so the dependency of work on this new technology is also expected.
The development of this technology may lead to losses in shares of the company for which the technology is being made. Now when the organizations is expecting a new technology after six months they might have started managing their work in the hope to get the new technology well in time but if this does not happen obviously the company is going to be struck hard in losses and if a company goes in loss it for sure to have a depreciation in the shares. The probability of this risk is very high it’s like more than 50%. The risk exposure is high because it directly affects the stake of the company. The best way to avoid this risk is to take as long time period for its completion but it should be adequate and within reach.
Another risk is will the deliverable be efficient enough to provide what’s required out of it. Here is the biggest risk, whether we will be able to provide the project in the way it’s required. Even if we take long time to do the project we are not sure of its success as the system takes data from three systems which no one is aware of except one of the team members. This situation is like being lead by one who is also not sure about the things. We are just doing a process of hit and try. If it works out its well and good, else all in vain.
The risk here is very high as taking this technology for development we are not sure to give the desired deliverable because it’s a new technology and new systems are involved which has no reference to be taken help from. Now if this thing happens the company can face a situation to stop its work because they might have started their processing according to the new technology hoping to let it work fine. The probability to this risk is maximum because it’s what the exact system is all about. The best way to avoid or risk this down is to do a thorough study and analysis of the systems required. Every possible data and information should be gathered and should be considered to help make a productive deliverable.
The next risk is about the inflow required in this project. As I told you that we are working on the bases of hit and try we may require more inflow in the project as what was planned or estimated. This is really a thing to worry because an organization can only spent a particular amount on a project. And here is the case that even if they spent more they are not sure of the final deliverable.
If this is the thing it’s for sure that the company can go in losses. The risk exposure is high because if the company will utilize its funds here and that also without even having a budget for that they will go in huge losses which might create a situation for the company to shut down its business. The best way to avoid this risk is to first clearly discuss with the developers how much capital is required and will they be able to give the desired deliverable within that budget. And what will be the maximum expenditure for this. A through planning should be done and only then the decision should be taken for undertaking such a new project.
The risks involved in this project are high and it’s really not feasible and ethical to undertake such a project because it do not gives a desired deliverable, it also harms the managers/ companies goodwill. It can make the company a loss too, which is not right. If the company goes in loss it will affect the market of the company, which will lead to fall in the share rates, loss of customers of the company which is not good at all. On the part of the organization they should also take care of what they are expecting from a project is approachable and valid.
References
Academic
Journal
http://www.drj.com/new2dr/w3_030.htm
Journal
http://www.blackwellpublishing.com/journal.asp?ref=0272-4332
eBookhttp://www.acrobatplanet.com/non-fictions-ebook/ebook-risk-assessment-models-establishment-exotic-vertebrates-australia-and-new-z
ebookFIRE SAFETY RISK ASSESSMENT http://www.communities.gov.uk/documents/fire/pdf/151102.pdf
Website
http://www.mindtools.com/pages/article/newTMC_07.htm
RPTM 300Y Fall 2022
[STUDENT NAME]
RPTM 300Y Fall 2022
L02 WEEKLY WRITTEN REFLECTION – THE TOURISM SYSTEM
Think About This (see CANVAS for further details and rubric)
This is an individual activity. Your overall answer to the questions below must be 500-700 words. The word requirement will be strictly enforced in accordance with the grading rubric. Make sure to number your answers based on the questions.
1. In this week’s lecture, Dr. Hunt referenced four key stakeholder groups in the tourism system: tourists, businesses, host governments, and local communities. How does Doug Lansky describe each of these stakeholder groups in his TEDx talk? (approximately 100 words)
2. At one point, Lansky say, “they took their eye off the ball.” To what and to whom is he referring? (approximately 100 words)
3. Later, Lansky refers to growing tourism by limiting it. What is he referring to with that expression? (approximately 100 words)
4. Lansky concludes by referring to DMOs. The article linked above also refers to DMOs. Explain the two meanting of DMO and then provide three (3) key takeaways or lessons you learned about DMOs from this TEDx talk and article? You must consider key takeaways and lessons learned from the perspective of at least 2 of the key stakeholder groups. (approximately 300 words)