Risk Management in Automotive Vehicle Industry -myassignmenthelp

Question: Discuss about theRisk Management in Automotive Vehicle Industry. Answer: Literature Analysis Introduction The risk in automotive vehicle industry is mainly due to the present variation in the exchange rates of the country (Dawson, Searle Paterson, 2104). The variation in rates of the currency between US dollar and the British pound is about 60%. The variation rate of the Japanese Yen is even much higher. According to Drauz (2014), Australias economy is another risk that trends on the risk management. If the risk of the automobile vehicle industry is not controlled then the economy of the country also gets decreased. Spare parts production and assembling of car is going very high in Australia. Changes are also seen in the development of the technology of the automobile industry. There is hazard and risk of the trade of the automobile industry. The brake component manufactures have more risk than hood component Manufacturer Company. The risk that is involved in the automotive industry depends on the total volume of the production (Pinkse, Bohnsack Kolk, 2014). A manufacturing company that sales $50.000.000 amount would be experiencing hazard of risk to that of the company which sales $50.000 US dollar. Australias strategic role in the global market According to Litman (2014), the main challenge of the automotive manufacturer is to achieve satisfactory amount of profit. The cost of newly made vehicles is significant as stated by Research and Development. To compensate with the production cost of manufacturing, sufficient amount of sale should be done. There is extreme competition in the vehicle automotive industry of Australia as there are many companies that emerge from other regions from the global markets (Bell et al., 2014). This creates a pressure on the other brands that are established in Australia. The important part of vehicle automotive industry is the exchange rates that are available in Australia. The vehicle automotive manufacturer of Australia mainly operates in the global market. Many manufactures depends on the exports that gains acceptable sales of the company. The exchange rate risks are lessen by establishing the company in the places near to the company where the vehicle is sold (Huckvale et al., 2015). Recent decrease in the Japanese currency Yen to US currency Dollar had led to much profit in the Japanese car manufactures. It is much difficult for Australia to maintain its competition in the market globally due to its high rate of currency. To gain profitable mount of sale, necessary exports are to done by the manufactures of Australia in this competitive market. The vehicle automotive industries of Australia have stated that government assistance is needed in order to cope up with the competition of the exchange rate in the market of Australia. According to Bahr (2014), with the rise of motor vehicles in the coming economy, the demand is expected to rise in the future globally. The countries that are developing economies have an interest to buy a motor vehicle. In emerging countries, the demand of buying motor vehicle are much higher than that of the developed countries where there is already a hike of motor vehicle and that is always expected to remain the same. Risk Identification Processes Another vital element for project risk management of vehicle in automobile industry is the risk identification process. All the variable kinds and probable fixed of risks that are associated with automobile manufacturing by vehicle industry in Australia. The risks are not only restricted to the automobile company of the manufacturing industry. It is also restricted to the unnoticed that are there in the offices (Borghini et al., 2014). The process of risk identification is iterative. It is a never ending process. To get a check on if all the inputs are equally used or if the engineers are doing their work as they are instructed or the mechanisms of the manufacturing company are working properly or not, process of risk identification is done. The risks that is present in the System Engineering Program that is considered as most serious risk identification (Martn-Pea, Daz-Garrido Snchez-Lpez, 2014). The managers of the departments identify them as the risk events. The management risks , risk regarding human capital, supply chain risk and operational risk are the risk that is present in the System Engineering Program. The risks that are interlinked with each other and re identified continuously are used in the process of mitigating the risk of the industry. Risk Analysis and Evaluation Processes Risk analysis and risk evaluation of the risk management process is the process that comes after risk identification. This is an important part of risk that is identified in the risk management of the vehicle automotive. Identifying the risk that are present in the system module of engineering, the team of risk review would assign the task of prioritization of risk and analyze the risk where extremely serious risk are differentiated from the risks that are normal and they are mitigated to the subject as per the requirement (Kou, Peng Wang, 2014). The automotive vehicle industry of Australia faces very hard competition from the agencies of government, the risk that is most severe come from the end of government. The vehicle industries of Australia publish the annual reports that focus on the aspects that are legal. Such types of aspects are clearance of tax, CSR accomplishment and tax liabilities. Excessive cost of manufacturing and the sales that are declining are related to risk ma nagement (Onat et al., 2016). The Assessment Team of the Feedback is to be functional for this kind of aspects. The feedbacks that the customer gives are to be attended carefully by the management of the vehicle industry also attend the forum of customer review that are send online. The suggestions that are given by the customers, issues related to product query and complaints are to be well initiated by the management team to correct the drawback os the industry. The importance of the industry to the Australian economy Measuring the GVA (Gross Value Add) of the industry or the employment, not always gives full account of industry to contribute to the economy of Australia. The industrys flows to produce extensively are the employment and production of the automotive vehicle industry (Sierzchula et al., 2014). From the studies of automotive industry, it has been seen that the industries are high multipliers. The multiplier varies between 2.9 to 10. The flows on the effect on the surrounding industries are so much important that every $1 GVA that are provided by industry of the automotive manufacturing the benefits of economy ranges between $9 to $1.9 dollar. The governments assistance of 1$, the economy of the Australia receives economic benefit of 18$. CGE (computable general equilibrium) is used by the economy of the Australia and is known as dynamic TERM model. Summary The methodologies that are described in risk management technique give a complete management of risk. The ways by which the risk management is controlled are described in the process in order to accomplish the project time and resources. The economy of the automotive vehicle industry also reflects the economy of Australia. The risk that are related to the vehicle industry are identified first and then the risk is analyzed and evaluated for the further assessment. After analyzing this risk, the risk id optimized by the management team of the automotive vehicle industry and preventive controls are taken that are to be done to avoid those risk. The processes that are involved in managing the risk are al discussed elaborately in management the risk. Methodology Secondary data are those data that are accumulated by some other sources other than the user. Common sources for the automotive vehicle industry are the research papers and statistics that are accumulated by the governmental departments, records of the organization and the data that were collected for the purpose of other researchers. The data that are primary are accumulated by the person who is conducting the research paper. The time is saved by the using the secondary data. A lot of time is wasted for collecting the data, particularly the data that are needed for the research work. Spending this much of time is not possible for any researcher to get of their own. Secondary data is essential for analysts of economic and social change. It is not possible to handle a new survey for the required data that are needed for the research work. For marketing research search, the secondary data may be not useful because the data may be obsolete. Data that are used in the research are obtained from the secondary data of different sources such as progress reports, libraries and internet searches. Aim The main aim of the research project is to identify and analyze the different types of risks associated with the automotive vehicle industry in Australia. The research project also has the aim of finding some suitable ways to reduce the risks factors associated with the chosen industry. Question What are different types of risk factors associated with the project management in the automotive vehicle industry in Australia? What are the main challenges associated with risk factors in the project management in the automotive vehicle industry in Australia? 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