Executive Summary
Risk management stands out as an integrated and proactive strategy that organizations implement to handle potential risks. Such process should be long-term in nature if positive outcomes and project goals are to be realized. Telstra Corporation operates in the Australian telecommunications industry whereby it provides a wide range of services and products to its customers. It relies on projects to deliver desired systems that can help support its business model. However, the occurrence of risks could have negative impacts on this organisation’s performance. Past scholars have presented evidence-based insights for identifying and addressing risks before they can affect overall profitability. Such observations reveal that companies should link their business models to their risk mitigation strategies. For Telstra, a proper risk management framework with three phases or stages is recommendable to identify risks and prevent them from affecting the sustainability of various projects. The involvement of all key stakeholders would also be appropriate to ensure that positive results are recorded. An aspect of continuous improvement is essential to identify existing gaps and borrow emerging ideas to identify, assess, and address risks more efficiently. The adoption of these aspects at Telstra can make most of the projects successful and eventually deliver the intended organizational aims.
Introduction
Successful organisations rely on powerful practices and methods to overcome specific challenges that might disorient performance. Telstra remains a profitable corporation operating in the Australian telecommunication industry. With the company launching and pursuing numerous projects annually, risks pose significant threats that have the potential to affect productivity. The purpose of this report is to consult past literature on risk management and examine how the information is applicable to Telstra. The acquired insights will form the basis for a superior risk identification and assessment model for the organization. The paper begins by providing a succinct overview of the organization, its industry, business model, and products. This will be followed by a detailed literature review detailing these two subtopics: risk identification and risk analysis and assessment. The section will present the findings from six peer-reviewed and timely sources. The next section will recommend the best framework for guiding Telstra to assess risks. The final section will present concluding remarks for the entire report.
Organizational Context
Telstra Corporation is presently one of the leading and competitive telecommunications organisations in Australia. Its business model is designed in such a way that it provides Internet services, mobile devices, voice, pay television, and networking products. Over the years, this corporation has relied on an effective corporate governance to attract and meet the demands of more clients. At Telstra, every project designed and pursued is intended to transform performance and improve the quality of its services. To achieve the intended business goals, Telstra undertakes a wide range of projects that resonate with the overall organisational objectives. Some of the outstanding ones include infrastructure systems and upgrades, implementation of fiber networks, communication towers, and change management. These projects are designed in such a way that they are managers who understand the intended aims and the overall organisational mission. A detailed framework for risk management exists at Telstra to identify possible challenges and analyze them effectively. The relevant department undertakes continuous evaluation of projects to monitor any kind of risk. The implemented resources and efforts have maximized the current evaluation capability (Rahman and Adnan, 2020). Some of the problems include unpredictability in the business environment and the inability to foresee some risks. Basically, such a model is in place for all projects Telstra undertakes.
Literature Review
Risk Identification
The concept of risk management guides companies to apply evidence-based policies and initiatives to identify and mitigate any form of risk. The fact that Telstra operates in the telecommunication industry means that cyber risks are possible unless proper mechanisms are in place. The first article describing this issue is “Dynamic Real-Time Risk Analytics of Uncontrollable States in Complex Internet of Things Systems: Cyber Risk at the Edge”. Having been published in 2021, this source is reliable and capable of providing high-quality information. The article goes further to identify cyber risks as an area that Telstra and other organisations in the global telecommunication industry should take seriously. The source is peer-reviewed and based on strong evidence. In terms of strengths, the work indicates that organisations that have security postures will find it easier to predict, identify, and mitigate possible cyber threats (Radanliev et al., 2020). The article is also timely and offers convincing arguments regarding the entire idea of risk identification. This research is also relevant to the selected organisation and its industry. Additionally, the fact that he authors focus on the Internet links the content directly to Telstra and its business model. The weakness of Radanliev et al. (2021) is that the work fails to offer additional insights that can guide players in the telecommunication industry to identify some of the cyber-related risks.
The second article supporting this topic is titled “Risk Identification and Assessment of Emerging Platform – Based Energy Internet Businesses” by Chunming Wang, Lin Liu and Xingtong Chen. Wang, Liu and Cheng (2021) is superior to Radanliev et al. (2021) since the work outlines the process of a comprehensive risk assessment that can trigger a powerful matrix for dealing with it. The article also ties the content to the nature of the Internet and how it continues to serve the global telecommunications industry. The work by Wang, Liu and Cheng (2021) is of greater relevance because the article describes how risk identification could be done in different phases of any given project. These specific stages include incubation, growth, and maturity.
The third relevant literature on this topic is the article “An Exploration of the Critical Risk Factors in Sustainable Telecom Services: An Analysis of Indian Telecom Industries”. In the work, the authors indicate that telecommunication companies have higher chances of recording a wide range of risks. Businesses need to identify some of these risks to enhance performance and streamline operations. Chen et al. (2020) is a strong piece of evidence since it is timely and focuses on the telecommunication industry. The work is also superior compared to Wang, Liu and Cheng (2021) because it identifies proper frameworks as powerful approaches for identifying possible risks and mitigating them. The work is also peer-reviewed and offers verifiable evidence that can help Telstra achieve its risk identification goals.
Risk Analysis and Evaluation
The completed literature review has presented several articles examining the nature and processes of risk analysis and assessment. In the article “Application of Z-Numbers Based Approach to Project Risks Assessment”, Nuriyev (2020) describes how risk analysis needs to be executed during every phase of a given project. This work is of great relevance because it supports the use of Z-numbers to ensure that probability theory helps mitigate such issues. The work is presented in a peer-reviewed journal and it is also timely. These strengths make the article meaningful and capable of supporting the entire study. The article “Assessment Criteria of Project Risk Management in Language Translation Service Companies” by Zaveckaite and Ulbinaite (2018) is timely and peer-reviewed. In terms of strength, the authors encourage leaders to apply integrative and proactive measures whenever analysing and planning to handle risks. The concept of long-term management appears plausible whereby the team in place will receive timely support to identify possible success and failure measures. Zaveckaite and Ulbinaite (2018) is superior to Nuriyev (2020) since it describes a model that is evidence-based, timely, and applicable in a wide range of industries. Zaveckaite and Ulbinaite (2018) goes further to support the power of a risk assessment criteria that can help organisations overcome possible challenges and eventually achieve their potential.
By comparing Zaveckaite and Ulbinaite (2018) and Nuriyev (2020), it becomes clear that risk analysis is necessary in every phase of a project to ensure that positive outcomes are eventually recorded. However, the weakness of Nuriyev (2020) is that the work fails to propose a superior framework that can reduce the impacts of risks in the telecommunication industry. The peer-reviewed article “Project Portfolio Risk Identification and Analysis, Considering Project Risk Interactions and Using Bayesian Networks” offers concrete discussions regarding the importance of risk assessment and how it can help companies achieve their potential. Ghasemi et al. (2018) makes a strong case for project interdependencies and how they might result in complexities when pursuing risk analysis. By comparison, Ghasemi et al. (2018) is of greater relevance than Nuriyev (2020) since the work offers the Bayesian model or network as an effective tool for estimating the probability of risks. This framework is applicable in a wide range of projects and settings to aid in the assessment and mitigation of possible threats. The strengths of the arguments evident in these articles make the literature appropriate for this discussion. After comparing Zaveckaite and Ulbinaite (2018), Nuriyev (2020), and Ghasemi et al. (2018), all the presented insights could be merged to deliver a superior model for analyzing and assessing risks, thereby putting in place the relevance control mechanisms. Such attributes could help Telstra identify and address all possible threats.
Recommendations
The completed literature review has identified risk management as an important practice for controlling threats. At Telstra, a superior model is necessary to guide project managers whenever identifying, assessing, and managing risks to minimize negative impacts. Several tools and processes are essential to ensure that all problems are addressed, thereby reducing chances of failure. Through the power of effective models, it could be possible for Telstra to align projects and ensure that they can deliver the intended business aims. Based on the gathered information, an effective framework is essential to help in the management of risks (Ahmadi, Fateminia and Gemünden, 2020). The model can help link projects to the formulated governance structure and the overall organizational strategic direction.
The suggested tool is a framework that Telstra could adopt and implement for all projects to identify, analyze, and even evaluate all possible risks. The model begins with the First Line, also called Communicate and Consult, whereby operational managers and other key stakeholders inside and outside the organization are encouraged to monitor possible risks. They will then liaise with all partners in the company and communicate the same to the risk management department or team (Yang, Ishtiaq and Anwar, 2018). Under this line, the organisation’s major units will collaborate to identify potential risks and examine how they could impact overall performance. This model can ensure that the process is sustainable and capable of preventing future failures and project disasters.
The next part of the process would be Second Line or Risk Management Process. Under this phase, the organisation needs to have oversight functions that focus on these key areas: workers’ wellbeing, safety, health, and industrial compliance. This stage is essential for keeping responsibilities and compliance acceptable. The relevant managers will engage in oversight and make timely decisions. This will be followed by the Third Line or Monitor and Review whereby Telstra would develop an audit function (see Fig. 1). The purpose of such a formation is to promote assurance, identification of risks, and implementation of proper control mechanisms (Yang, Ishtiaq and Anwar, 2018). Through such a model, this organisation will be able to identify possible risks and report them in a timely manner. The established external and internal links will ensure that the model is sustainable. The tam will also consider how the economic, social, and environmental issues could amount to risks and affect the effectiveness of the implemented projects.
The presented framework is justifiable because it is informed by the insights the above articles from the Literature Review present. The model is fluid in nature and capable of resonating with the goals of Telstra as a player in the telecommunications sector. Through the adoption of this framework, the involved partners will be able to identify risks in a timely manner, implement proper mechanisms to reduce their impacts, and promote an aspect of sustainability (Rahman and Adnan, 2020). The company can engage in continuous analysis to learn more about some of the external issues that could have detrimental effects on the success of various projects. This recommendation is, therefore, workable and capable of guiding Telstra to identify, assess, and mitigate, or address risks that could eventually have negative impacts on the overall level of organisational performance.
Conclusions
The completed study has revealed that risk management is a practice all business organizations should take seriously. The analyzed works have showed that risk identification need to be a continuous process designed in such a way that it resonates with the implemented projects. The articles have also revealed that all stakeholders should be involved to analyse and assess risks that might occur. This process will present a superior framework for managing threats and lessening their potential impacts. The discussion has shed more light on the possible effects on environmental, political, and social forces on the success of projects. From the presented insights, companies can design their risk mitigation frameworks for a wide range of projects. The most important thing is to engage all stakeholders, have a proper plan, and be prepared for eventualities that might emerge. In conclusion, the presence of an effective risk mitigation plan is essential to support the success of all projects in a given organization.
Reference List
Ahmadi, A., Fateminia, H. and Gemünden, H. G. (2020) ‘A method for risk response planning in project portfolio management’, Project Management Journal, 51(1), 77-95.
Chen, W. et al. (2021) ‘An exploration of the critical risk factors in sustainable telecom services: an analysis of Indian telecom industries’, Sustainability, 13(2), pp. 445-466.
Ghasemi, F. et al. (2018) ‘Project portfolio risk identification and analysis, considering project risk interactions and using Bayesian networks’, Sustainability, 10(5), pp. 1609-1631.
Nuriyev, A.M. (2020) ‘Application of Z-numbers based approach to project risks assessment’, European Journal of Interdisciplinary Studies, 6(2), pp. 30-40.
Radanliev, P. et al. (2020) ‘Dynamic real-time risk analytics of uncontrollable states in complex internet of things systems: cyber risk at the edge’, Environment Systems and Decisions, 41(1), pp. 236-247.
Rahman, M.S. and Adnan, T.M. (2020) ‘Risk management and risk management performance measurement in the construction projects of Finland’, Journal of Project Management, 5(1), pp. 167-178.
Wang, C., Liu, L. and Chen, X. (2021) ‘Risk identification and assessment of emerging platform – Based energy internet businesses’, Advances in Social Science, Education and Humanities Research, 517(1), pp. 555-560.
Yang, S., Ishtiaq, M. and Anwar, M. (2018) ‘Enterprise risk management practices and firm performance, the mediating role of competitive advantage and the moderating role of financial literacy’, Journal of Risk and Financial Management, 11(3), pp. 35-51.
Zaveckaite, A. and Ulbinaite, A. (2018) ‘Assessment criteria of project risk management in language translation service companies’, Technological and Economic Development of Economy, 24(4), pp. 1323-1343.