Risk Register for Balfour Beatty PLC

Introduction

The purpose of this report is to prepare a risk register for Balfour Beatty PLC. The risk register will identify the aims and objectives of the organisation as well as the risks that are likely to impact on those aims. The register will also identify the controls the organisation has put in place (if any) in order to prevent the identified risks from affecting the organisation’s performance. According to the International Organisation for Standardisation (ISO), a risk refers to the effect of uncertainty on objectives. Here, an effect is described as, “a deviation from the expected objectives” while uncertainty is ascribed to understanding an event and its consequences and likelihood (ISO 2009). On the other hand, Li and Zeng (2016) define a risk as “the level of exposure to uncertainties that a business must understand and effectively manage as it carries out its strategies to achieve its business objectives and create value.” Failure to adopt risk assessment is among the causes the causes of business failure (Naude and Chiweshe 2017), which justifies the need for risk assessment in Balfour Beatty PLC. In this case, preparing a risk register will help assess the level of threat and propose mitigation actions for the risks that are more likely to occur. The register will also identify the risks that are also opportunities based on the aims and objectives of Balfour Beatty PLC.

Aims and Objectives of Balfour Beatty PLC

Balfour Beatty PLC is an infrastructure group whose vision lies over creating infrastructure, supporting communities, and enabling growth. Balfour Beatty aims to finance, develop, build, and maintain innovative and efficient infrastructure that underpins daily life, supports communities, and enables economic growth (Balfour Beatty 2018). As such, the major objective of Balfour Beatty PLC is to provide the essential infrastructure assets societies need to function, develop, and thrive. Thus, engineering is at the core of Balfour Beatty’s functioning. For Balfour Beatty PLC to achieve all its aims and objectives, it needs to understand the uncertainties that could hinder achievement of these objectives as well as understand the mitigation actions that should be taken to ensure all the aims and objectives are met. This underscores the need for preparing a risk register that will help identify the level of exposure and the impact every risk could have on the organisational objectives. This will help the organisation understand what measures should be prioritised thus promoting progress and achievement of the key aims and objectives. Take a deeper dive into Business Skills as Topic for A Course with our additional resources.

Risk Scores

The table below is a key for likelihood and impact scores as they will be recorded in the risk register.

Acceptable Risk Threshold

The table below is a representation of the risk ratings and the actions that need to be taken. This is essential in that it allows the organisation prioritise risk actions. The risk score is calculated by multiplying the likelihood score and the impact score. The acceptable rating 1-15 as such risk does not have any significant impact on the business.

Likelihood and Impact Matrix

Risk Register for Balfour Beatty PLC

Register for the Threats

Register for Opportunities

Opportunities are not scored as they do not require an acceptable threshold to decide whether they are significant or not or they require mitigation.

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