WILMONT

Wilmont is a fictional top‐ranked U.K. retail pharmacy company based in Milton Keynes
with more than 1,000 stores nationwide and employing more than 4,000 people overall. The
company has engaged in several innovative business practices, and now they are once again
secretly considering breaking ground with an even newer concept—delivering prescriptions
and drugstore items by flying drones.The concept is not new, a small firm named DroneTech
in Cambridge announced the approach in March, and they are looking to develop a
relationship with pharmacies nationwide to launch the concept for real. Wilmot's may be the
big break they are looking for.
Project risk management is an unavoidable need since no effective component in a project
can be predicted in advance. When it comes to managing internal projects, managers often
overlook the need of risk management, which may lead to project delays and a higher overall
cost. Risk management is seen as a balancing effort between the loss of threats and the gain
from opportunities since not all risks are viewed as threats but as opportunities. Risk
management solutions for effective implementation in projects have also been addressed. The
most reasonable strategy in risk management is to control risk before taking a risk. The
likelihood of losing all or a portion of the profit or the investment is known as "risk" in this
context. In other words, the variability in the return on investment is risk (Rahnamaye
Roudposhti & Eftekhari Aliabadi, 2011). A more volatile investment's return suggests a
higher level of uncertainty (Abzari, Samadi, & Teimouri, 2008). Systematic and non-
systematic risk are the two main forms of risk that may be identified. Systematic risk is the
portion of overall risk that cannot be reduced by the investor, such as unforeseen occurrences,
war, and sanctions. Non-systematic risk also comprises the portion of overall risk that is
linked to capital market volatility and that the investor may reduce via meticulous
management and stock selection (Rahnamaye Roudposhti & Eftekhari Aliabadi, 2011). One
of the primary functions of an economic unit's board of directors, manager, and other
employees is managing risk; this includes identifying potential events that could have an
impact on the economic unit, as well as determining how much risk to take in order to ensure
that the economic unit's goals are achieved. An economic unit's risk management is a
continuous and progressive activity that occurs at all levels of the business and is used in the
strategic planning. As a result, it is implemented across the organisation at all levels and
across all departments, giving management a comprehensive picture of the company's
exposure to risk. In addition, it is aimed to detect possible events that might have a negative
impact on the economy. Aside from that, it's made to fit in with an organization's risk
tolerance and may be relied upon by its managers. This is also linked to attaining goals in a
number of other, but related, areas. Objectively, this definition encompasses a wide range of
principles that form the core of risk management in businesses and organisations.. These
principles also serve as a basis for risk management in companies, industries, and
departments. Defining the efficacy of risk management is based on the specified goals of an
economic unit, and this definition does just that. management creates strategic goals and
adopts tactics for an economic unit's vocation or future in the context of the institution's
mission or potential. An economic unit's goals are linked to this risk management framework.
Among these goals are those related to strategic, operational, reporting, and compliance. In
the context of strategic planning, operational planning, reporting, and compliance, high ideals
are aligned with and supportive of the vocation of objectives; reporting is concerned with
ensuring that the information provided is accurate; and compliance refers to adhering to rules
and regulations. This classification of economic unit goals allows for a focus on several
facets of risk management. Objectives might fall into more than one category if they pertain
to diverse aspects of an economic unit's operation. In addition, this area may be handled by a
variety of executive directors. This categorization also helps us better understand what we
may anticipate from each type of goals. In addition, several of the economic units have
developed resource preservation policies. Risk management is anticipated to play a role in
ensuring that these goals are met. However, external events (external-organization) may have
a significant impact on the economic unit's ability to achieve its strategic and operational
goals. Because of this, the manager and the board of directors, as observers, will be able to
see how far they've progressed toward the goals in the right time period thanks to risk
management.

COMPONENTS OF RISK MANAGEMENT:

The eight components of risk management are all interrelated. Based on how an
institution is managed, these components are compatible with management practises.
Components include a company's internal climate and goals, as well as its target setting,
detection of events, assessment of risk, and response to risk. the place inside an organisation
where workers of a particular economic unit may build a basis for dealing with risk, including
the philosophy of risk management and risk appetite, as well as morality and ethical
standards and a working environment
WALMONT’S RISKS INVOLVED:

and compact.

Project Name:
Wilmont’s Drone Project

Date:
15th August, 2021
Risk Identified Risk Description Risk Owner Probability Impact Risk Score
ID. Risks
1 Incorrect Cost Incorrect cost Financial 5 4 20
Estimation estimation leads to Manager
failure of
managing the
project budget
which will
overbudget the
project.
2 Data/ Loss of data or IT/Security 3 5 15
information loss information may Risk
lead to wrong
deliveries which
will lose the
customers.
3 Changing cost Changing costs of Purchase 1 4 4
of required required items Manager
items may lead to mis
management of
the budget which
will affect the
project cash flow.
4 Material Quality Due to the poor Suppliers 2 3 6
quality of
materials the end
product might
affect which will
lower the
company’s
reputation and
customer’s trust.
5 Government Any changes in Legal 3 3 9
Policies and government laws Advisor
Laws and policies may
affect the
strategies or
processes of the
project which will
 result in delay or
over budgeting of
the project.
6 Cash flow Because of poor Financial 3 2 6
cash flow, Manager
suppliers may get
affect hence
delaying the
project required
items.
7 Cyberattacks Due to IT Manager 4 3 12
cyberattacks on
the system privacy
of the customers
or suppliers will
be disturbed hence
it will affect their
trust.
8 Improper Any improper IT Manager 4 3 12
connection of connection of the
the drone tech drone tech
interface interface will lose
the control of
drone which may
damage the drone
and cost the
company for its
repairing.
9 Changing cost Changing costs of Legal 1 2 2
of required required licenses Advisor
licenses may lead to mis
management of
the budget which
will affect the
project cash flow.
10 Low battery Lower battery Drone 1 3 3
lives of drones Designer
will affect in late
deliveries which
will disturb the
number of
customers.
11 Leak of Leak of secret Project 2 4 8
information information of the Manager
from the project from
employees employees may
lead the
competitors to
take the
company’s
 reputation on
stake.
12 Drone failed to Drone designer Drone 2 1 2
operate should make Designer
proper drone
designs to operate.
Table 10: Risk Register

We can see that risks have been identified and their impacts have been described as well.
We need to study Study the risk and the complexity in order to solve them and find a possible
way to make this project a success.

In the chart given above, we can see that the risks have been aligned in order to see which
one has the highest risk. We can see that the financial manager error risk is among the highest
risks involved. Financial risks have the rating of five and it has the highest probability to
occur. In order to make this project a success we need to find a possible solution for these
risks.

RISK RESPONSE:
FINANCIAL RISK:
 Risk transfer can be used in order to reduce this risk. Transferring risk ownership and/or
accountability from one party to another is the goal of this method. Many organisations find it
appealing to shift accountability for risk exposure, and many try to employ this method
whenever feasible. Although it is conceivable to have another party pay money in the case of
a risk, it is impossible to improve performance deficits and it is never possible to recoup lost
time with this method, therefore its primary usage is confined to financial risk exposure.
Remind yourself that risk transfer usually requires the payment of risk premium, and that the
expense must be assessed against the advantage of shifting responsibility for the risk to
another party. Financial risks of this company can be eliminated by using an external
company that manages the finances of the company. Using an external financial company
would eliminate this risk as they have the money insured and in case of any error by the
company the money would be insured and we will not be using any money.this risk has the
highest impact so distress needs a fallback plan.
● Fall back plan: in case if the insurance company and the financial company fails to
reimburse the amount that has been lost then there must be a plan in order to recover
as we know that this risk has the highest impact of five. The fallback plan would be to
have secondary insurance. The secondary insurance will only work if the primary
insurance company fails to deliver the recovered amount and the financial company
fails to deliver the amount then the secondary insurance company would be there to
help us in the time of financial loss.

IT SECURITY RISK:
This risk is having the impact of three which is high enough to leave a damaging impact
on the company. This risk cannot be eliminated yet it can be reduced. The company can
install the latest technology and those of computers and their servers, their software and
computer managers should be very trained and their skills should be up to par in order to
maintain the system. The server room shall be locked and secure and no one except a few
people who are authorised to enter the server room.

PURCHASING MANAGER:
 This risk has the rating of one, this means that the impact of this risk is very low yet still
has an impact. This usually involves the cost of the required equipment increasing or the cost
of raw materials increasing which would interfere with the project. Avoidance of this risk is
only possible if the company requires the required materials for making the financial budget
of the project. All of the materials need to be produced while making the plan of the project.
One more thing that can be done is to make a contract with the supplier regarding the prices
this might result in a bit last yet it would serve as a safe way of doing this so this would result
in reducing the risk of fluctuating prices

SUPPLIERS:
Maintaining the quality of products that are being produced by the company is in a
sensual part to take care of. For this the company needs to source the best materials possible,
suppliers are the ones who provide the materials required for the production. Whenever the
company receives product from the supplier they should check the quality of the material
whether it’s good or not.

LEGAL ADVISOR: