Business Report on AVI TECH ELECTRONICS LIMITED

Question: Prepare a buisness report on AVI-TECH ELECTRONICS LIMITED, singapore also mention its Risk management plan. Answer: Overview of Case and Business Objectives Background of the Case: The management of risks is essential in respect to every kinds of business and this business case is especially focused towards analysing the business case of Avi-Tech Electronics Limited with respect to the risk profile and the risk management as currently managed by organisation. An analysis of Avi-Tech Electronics Limited indicates that it is a Singapore based company that provides a range of specialised solutions and services requiring highly advanced level of technological expertise (Asveld and Roeser, 2012). Avi-Tech Electronic Ltd offers services aimed at meeting out the needs and requirements of certain specific industries including semiconductor, electronics and life sciences industry. The electronic products and equipments as designed by the company are therefore aimed at meeting out the needs and expectations of different industries as identified above. This project is mainly focused towards performing a risk assessment analysis whereby risk assessm ent and risk management framework would be devised for Avi-Tech in detail (Avi-Tech Electronics Ltd, 2015). Organisational Structure: The management of an organisation is usually carried out by way of having a specific organisational structure whereby different functional departments operate in order to carry out the organisational processes, and thereby in achieving the main organisational goals for which it is operating. An analysis of the given case of Avi-Tech Electronics Ltd also indicates that the company has specific organisational structure that positively supports the performance of the company in a positive manner. An analysis of the organisational structure of Avi-Tech Electronics indicate that the organisational structure that has been followed within the company is centralised organisational structure whereby the centralised control has been exerted in performing the management of different important functional areas within it. The centralised organisational structure requires the management under each major department to perform the reporting of their performance to the senio r level people such as CEO and the board of directors. This is evident from the organisational reporting chart as indicated below: The reporting structure as indicated above clarifies that there has been centralised organisational structure being followed and CEO is responsible for taking the important organisational decisions aimed at leading the entire organisation to higher level of success (Avi-Tech Electronics Ltd, 2015). Mission of Business: An analysis of the mission of Avi Tech Electronics indicates that the company has the mission of becoming a total solutions service provider for Burn-In, engineering and manufacturing services. This mission of the company is indicated as We aim to excel as the Best Service Provider for the electronics and Life Science Industry with faster turnaround time, reliability, quality, optimum production cost and an extension of our facilities to meet any upsurge in capacity from our customers.(Avi-Tech Limited, 2015). Business Objectives: The analysis of the business objectives of Avi-Tech Ltd indicates that the organisation has certain specific objectives aimed at achieving its mission. The important objectives of the company are indicated as follows: To achieve the leading position in the entire industry of producing electronics products. To efficiently meet out the specific requirements for semiconductor industry by providing them all the necessary equipments. To achieve quality with respect to the products that is offered to its wide range of customers across different industry. To meet out the diverse needs of customers across different industry segment which are being served by its products (Avi Tech Electronic Ltd Annual Report, 2014). Key Business Strategies: The key business strategies that are applied by Avi Tech Ltd indicates that it aims at developing positive relations within its customers because they account for continued supply of products and services to its customers. As a result, the development of positive relationship is considered as important business strategy that allows Avi Tech Ltd in achieving higher level of growth in its operations (Avi-Tech Electronics Ltd, 2015). Identify Stakeholders: This section of analysis is now focused towards the identification of important stakeholders of the organisation. Stakeholders are mainly those parties that have a direct level of impact from the performance of an organisation. They are affected by the activities and decisions that are undertaken within the organisation. An analysis of the case of Avi Tech Electronics Ltd indicates that the company has both the internal and external stakeholders. The analysis of important aspects in relation to organisations stakeholders is performed as follows: Internal Stakeholders: There are relevant internal stakeholders of an organisation and they are responsible for achieving highly efficient performance of the organisation through the application of their higher level of efforts. The important internal stakeholders as identified in respect to Avi-Tech Electronic Ltd indicates that it mainly include employees, management team, and audit committee that is operational within the organisation. As Avi Tech Electronic Ltd is known for meeting out the electronic needs of its diverse range of customers, this has been positively addressed by the company by way of its employees that are responsible for the production of electronic products. Apart from this, management team at Avi Tech Electronic Ltd is responsible for the entire management of organisations operations including the management of employees within it. Their management is carried out with a view to accomplish organisational goals in a positive way (Avi Tech Electronic Ltd Annual Re port, 2014). External Stakeholders: The external stakeholders are also the important stakeholders of an organisation and there are various such stakeholders that are comprised of within the external stakeholder lists of the company. An analysis of the annual report of Avi Tech Electronics Ltd indicates that the company is also engaged positively with large number of external stakeholders. The most significant is its customers which comprises of groups and companies from different sectors and industries. The customers of the company include industries from semiconductor, electronics and life sciences industries. The customers are mainly the businesses from these specific industries that purchase their electronic requirements from Avi-Tech Electronics industry. The customer of the company spans across Asia-Pacific, Europe and US. Apart from customers, another important external stakeholder of the company is regarded as government. The government is directly influenced by the performance of Avi-Tech in the sense that it receives direct revenue in the form of taxation liability on the profitability as earned by the organisation. Apart from these above external stakeholders of the organisation, the other major stakeholders include the suppliers and the competitors of the company. Both these stakeholders have a direct level of impact over the performance of company, as they can affect its performance in a direct way. These are the important internal and external stakeholders of the company (Avi Tech Electronic Ltd Annual Report, 2014). Relationship between Business and Environment: Businesses are largely affected by the environment in which they operate and similar is the case with respect to Avi-Tech Electronics Ltd. It is also faced by the external environment conditions in which it operates and the strategies of the company are mostly driven by such external environment conditions. An analysis of the business case of Avi Tech Electronics Ltd indicates that the company is mainly engaged in the production of electronic products for its customers. As a result, it has direct level of impact over the environment in which operates. This is mainly because of the electronics production process involves the impact over the environmental conditions as a result of consumption of resources. In order to ensure that Avi-Tech Electronics have completely efficient performance with regard to environment, it has specific strategies aimed at ensuring positive impact from the activities that it carried out as a part of its business process. The strategy of Avi-Tech includes preservation and protection of the environment from all the major initiatives that it undertakes as a part of performing its business functions. The company has specific environment management system which is aimed at achieving higher level of effectiveness with respect to the overall environmental performance of the company. This system allows the company in protecting the environment in a positive way. Corporate Social Responsibility (CSR) is undertaken as a positive move by the company aimed at achieving improvement over its environmental performance. This suggests that there has been positive relation between identified in respect to the business and the environment (Avi Tech CSR, 2015). Context of Risk Management Framework: Businesses are faced with significant level of risks in carrying out their operations in a highly efficient way. It is therefore essential that there should be appropriate measures that should be considered by them with a view to achieve higher level of effectiveness in managing risks within organisation. The context of risk management framework in the given case of Avi Tech Electronics Ltd indicate that the organisation is exposed to higher level of risks in the form of manufacturing electronic products and its impact over the environment conditions, risk of meeting out the needs of semiconductor industry, higher level of customer dependence and many more. The context of risk management therefore indicates that there has been higher level of risks to which the organisation is exposed (Avi Tech Electronic Ltd Annual Report, 2014). Development of Internal Risk Environment: The internal risk environment needs to be developed in order to ensure that there can be appropriate management of risks that could be performed. As in respect to Avi-Tech Electronics, the implication of risks inherent to organisational processes is significantly higher because of its involvement in the production of electronics items for its customers. The internal risk management environment can therefore be developed by way of providing sufficient level of training and development to employees responsible for the manufacturing of electronic items, and also by developing rules, policies and procedures guiding the actions of employees (Avi Tech Electronic Ltd Annual Report, 2014). Development of External Risk Environment: An appropriate external risk environment development is also essential in ensuring that the organisation is protected from the threats in the external environment condition. This can be ensured in a positive way by way of considering the implication of risk management systems within workplace that protects the employees of the organisation from external environment threats. There are various such technological systems available that could assist the organisation from the external environment threats and this would therefore allows for the better management and performance of organisational processes. The risk manager within Avi-Tech is responsible for the performance of management of risky environment of the organisation (Avi Tech Electronic Ltd Annual Report, 2014). Integration of Risk Management and Developing Risk Framework This section of analysis is now focused towards the development of risk management and risks framework so that the management of risks can be carried out in an efficient manner. The important aspects in relation to risk management integration and developing risk framework are indicated as follows: Consideration of Why Risk Assessment is carried out in Business: The risk assessment is carried out in business mainly because it allows the company in achieving desired goals in a positive manner. By performing an assessment of risks, businesses could know the areas that would deviate significant from what is expected, and this would allow the managers in performing adjustment with respect to their strategies in negating the effect of such risks. Thus, proper management of business activities can be achieved from the management of risks within business. In respect to the given case of Avi-Tech Electronic Ltd, the role of risk assessment is crucial to it in efficiently meeting out the needs and expectations of the business of performing the development of electronic products in a positive manner. As Avi Tech Electronic Ltd is identified as producing the electronic products in meeting out the needs and expectations of its diverse range of customers, the chances of risk in performing i ts business processes are significantly higher. As a result, appropriate consideration of risk is essential in achieving effectiveness with respect to achieving organisational objectives (Avi Tech Electronics Ltd Prospectus, 2007). Expected Value and Benefit of Formal Risk Management: The formal risk management that will be carried out will result into positive level of value and benefit from it. As for instance, the expected value and benefit from formal risk management in respect to Avi Tech Electronics is that it will result into the identification of areas that deviate significantly from that of expectations, and the resulting impact would be advance decisions taken by the management in performing the adjustment to their strategies so that risks from the processes are efficiently addressed. The better management of risk can be possible and improved level of decisions to enhance organisational performance can be possible in a positive manner. There would therefore be significant level of benefit that could be accomplished from the formal risk management process, and the delivery of electronic products in meeting out the needs of diverse customer groups can be ensured efficiently at Avi Tech Electronics Ltd ( Kouvelis, Dong, Boyabatli and Li, 2011). Framework for Risk Identification and Categorisation: As risks are applicable in respect to every kinds of organisation, they are also highly relevant in respect to Avi-Tech Electronics Ltd. In order to ensure that the management of different kinds of risks is performed in an efficient manner, it is highly essential that there should be appropriate framework supporting the management of such risks in an efficient manner. There are different types of frameworks available in treating risks of different types, but the most basic framework as applicable in respect to Avi-Tech Electronics is indicated below: The above risk analytical framework is the most basic framework that could be utilised by businesses with a view to perform the management of risks that are faced by them in performing the management of their business process. It is essential to establish communication with the appropriate people in organisation which will allow for the identification of appropriate risks in the process. The third stage involves the risk identification which should be followed by its critical analysis so that most efficient understanding of the risks becomes possible. Once the risk is properly evaluated, there should be risk treatment options that should be applied in order to ensure that efficient overall management is ensured. This framework is highly suitable in managing risks efficiently (Kemshall. Pritchard, 1997). Risk Area Structure: The risk area structure in the context of the given case of Avi-Tech Electronics Ltd indicate that the area is mainly related to environmental performance, meeting out the needs and expectations of customers, timely providing their requirements to them and many more. These aspects should therefore be considered in respect to Avi-Tech Electronics Ltd so that the overall performance of organisational activities to higher level of excellence can be achieved in a positive manner. Risk Identification, Assessment Techniques and Processes: In respect to the identification of risk is concerned, an analysis of the case of Avi-Tech Electronics Ltd indicates that there are various such risks that are evident in respect to the overall performance level of the company. As for instance, a critical assessment of business activities and processes in respect to Avi Tech Electronics Ltd, it analysis indicates that the risks as faced by the company are mainly in the sense that the organisation is extensively dependent on the semi-conductor industry for its performance, and it is also dependent on its customers with whom the company has long term contracts, risk from higher dependence on technology partners by the company, competitive pressures, higher level of dependency on the cost of materials and electricity costs, risk of facing possible shortages of skilled operators and engineers, risks of increase over the inflation rates, higher level of dependency of the organisati on over its suppliers and also over its key management personnel. There have also been the higher chances of changes in the political, economic and regulatory conditions which mighty also impact the performance of the company in an adverse manner. These are the major risks that are evident in respect to the performance of Avi Tech Electronics Ltd, and they should be efficiently considered for the purpose of achieving higher level of effectiveness in its performance (Chorafas, 2011). Risk Assessment Criteria and Processes: The risk assessment criteria and processes are crucial from the point of view of performing the efficient management of risks in organisations. In respect to the given case of Avi-Tech Electronics Ltd, the criteria for assessing the risk can be the level of dependency of the organisation over various important factors including the key resources, semiconductor industry suppliers of raw materials, and many more. Apart from this, the risk to the company is also from large number of factors including the performance of the company in respect to the environment conditions as faced by it, and also the attainment of expected level of outcomes from it. This signifies that there are various such criteria in performing the assessment of risks to a greater level in respect to Avi Tech Electronics Ltd. The processes of risk assessment vary from country to country and they are also specific in the context of Avi-Tech Electronics Ltd. The production of elec tronic products requires the application of technical skills, engineering skills and many more (Blecker and Kersten, 2006). Risk Register ISO 31000:2009 is quite significant factor from the point of view of managing the risks as it provides guidelines with respect to managing risks efficiently. The important principles related to risk management as per this risk management system are indicated below: Risks as they Impact the Objectives of Business: The risks at Avi Tech Electronic Ltd affects the objectives of the business in a direct way, as it impacts the ability of meeting out diverse stakeholders need in an efficient way (ISO 31000 - Risk management, 2015). Risk Assessment Process: The process in identifying risks can be establishing context, identifying risks, assessing risks, evaluating risks and finally perform the management of risk in a positive manner. Development of Causes: There are various such factors that account for direct level of causes behind the risks as faced by the company. As in respect to the given case of Avi-Tech Electronics Ltd, there are various important causes that primarily accounts for the development of risks within organisation. First of all, the nature of the business is a quite significant factor that has contributed towards the issue of higher level of risks as faced by the organisation. In addition to this, the role of higher level of dependency of the organisation over different major types of stakeholders is another such factor that has contributed towards the higher level of risks by the business. Thus, an analysis of the given case of Avi-Tech Electronics Ltd indicates that there are various such causes that have accounted for higher level of risks to the performance of the business activities in a positive manner (ISO 31000 - Risk management, 2015). Consequences of Potential Impact: An analysis of the consequences of the potential impact of such risk over the performance of business is that they would result into the negative overall performance of the business processes and may adversely impact the overall image of the organisation in a negative manner. Identification of Controls: Controls are highly essential from the point of view of ensuring that the management of risks is performed in an efficient manner. The controls that are needed are especially in respect to the dependency level of the organisation over certain major factors whereby there has been extensive level of dependency of the organisation in performing its operations in an efficient manner (ISO 31000 - Risk management, 2015). Evaluation of Controls: The controls would highly be effective from the fact that they are evaluated on timely basis. The evaluation of control can be achieved by way of checking for different risks on regular basis and also by way of timely performing checks of controls. Style, Flow and Quality of Supporting Documentation Conclusion and Plan On the basis of entire analysis as carried out in respect to the risk as faced by Avi Tech Electronics Ltd, it has been evaluated that there are significant level of risks that are evident in respect to the performance of the company. The analysis above indicated about various such risks and also the causes and performance of business effectively amidst such risky environment References Avi-Tech Electronics Ltd, (2015) Avi-Tech Electronics Ltd Annual Report, (2014) Avi Tech Electronics Ltd Prospectus, (2007) Avi Tech CSR, (2015) Blecker, T. and Kersten, W. (2006), Managing Risks in Supply Chains: How to Build Reliable Collaboration in Logistics, Erich Schmidt Verlag GmbH. Chorafas, D.N. (2011), Risk Management Technology in Financial Services: Risk Control, Stress Testing, Models, and IT Systems and Structures, Butterworth-Heinemann. ISO 31000 - Risk management, (2015) Kemshall, H. Pritchard, J. (1997). Good practice in risk assessment and risk management 2: protection, rights and responsibilities. 2nd ed. Jessica Kingsley Publishers. Kouvelis, P., Dong, L., Boyabatli, O. and Li, R. (2011), Handbook of Integrated Risk Management in Global Supply Chains, John Wiley Sons.