RISK ASSESSMENT (Coursework Sample)

Student’s Name: Course name: Professor’s name: Due date: Client’s Shipping Requirements  Client: HBC DC  Shipper: Cost Way Furniture, 537 Monmouth Rd, Jackson Township, NJ 08527  Receiver: HBC DC, 500 Rexdale Boulevard, Rexdale, ON  Ship Date: February 10th, 2022  Delivery Timeline: 48 hours  Crossing: Ambassador Bridge  Mode of Transportation: Full 53’ trailer load, door-to-door  Budget: $1000 CAD  Shipment Details: 20 skids of patio furniture, each skid is 48 x 48 x 48 inches, 1500 lbs. each RISK ASSESSMENT 1 Political stability * United States: The current situation of the United States is currently politically stable. However, the February 22 protest at the Ambassador Bridge indicates a significance disruption of the stability. * Impact on shipment: Protests related to COVID-19 vaccine mandates have led to roadblocks, especially at key border crossings, affecting the flow of goods and increasing transit times. * Canada: Although cross-border protests can spread, as demonstrated by the blockade of the Ambassador Bridge, Canada is politically stable. * Impact on the shipment: Shipments that cross the Ambassador Bridge are immediately impacted by the blockade in Windsor, Ontario, which may necessitate rerouting and result in delays (Crncevic, 2023). 2 Monetary Risk * Currency Fluctuations: The exchange rate between the US Dollar (USD) and Canadian Dollar (CAD) can fluctuate, impacting costs. * Impact on the shipment: Should the currency rate negatively fluctuate; the transportation expenses may rise and beyond the $1000 CAD budget. * The inflation rate: Increasing rates of inflation may result in greater freight and gasoline expenses. * Impact on the shipment: Raising transportation expenses may put a burden on the finances, requiring cautious budgetary planning and oversight. 3 Civil Unrest * Protests and Blockades: In February 2022, demonstrations against the COVID-19 directives led to blockades at important transportation centers, such as the Ambassador Bridge. * Impact to the shipment: The blockade has a direct effect on the scheduled route, resulting in major delays and the need to find alternate routes in order to fulfill the delivery deadline (Qr et al,2022) 4 Natural disasters * Weather Conditions: In February, both the US and Canada frequently experience winter weather, which includes snowstorms and ice roadways. * Effect to the shipment: The shipment may experience major delays in transit, accidents, and road closures due to unfavorable weather conditions (Crncevic, 2023). 5 Trade Policy Changes * Regulations across borders: Although trade laws between the US and Canada are mostly stable, shipments may be impacted by unforeseen changes (Crncevic, 2023). * Impact on the shipment: New compliance requirements may be introduced by potential changes in trade laws or customs regulations, leading to delays and extra expenses. 6 Changes in Trade Policy * Regulations across borders: Although trade laws between the US and Canada are mostly stable, shipments may be impacted by unforeseen changes. * Impact on the shipment: New compliance requirements may be introduced by potential changes in trade laws or customs regulations, leading to delays and extra expenses (Trucks, safety issues, 2020). 7 Customs Delays * Delays at the Border: As of right now, the barricade at the Ambassador Bridge is seriously impeding customs processing. * Effect to the shipment: The shipment timeline may be impacted by longer wait periods and possible rerouting to different border crossings (Qr et al, 2022). Risk Mitigation Strategies 1 Alternative Routes: To get over the blockade at the Ambassador Bridge, either the Blue Water Bridge or Peace Bridge. 2 Shipped on February 8th instead of February 10th to allow for delays. 3 Budget Monitoring: To keep expenses under the $1000 CAD budget, careful observation of gasoline prices and currency exchange rates is necessary. 4 Communication: Informing the client of any delays and extra expenses that can arise from weather-related rerouting. By considering these risks and implementing mitigation strategies, the likelihood of meeting the delivery timeline and budget constraints is increased. This comprehensive risk assessment ensures informed decision-making and client satisfaction. Can the client’s request be executed as requested? Some of the client’s requests such as mode of transport will be executed but some of the other requests about the shipment will not be executed. The following factors prevent the client's request from being fulfilled in its entirety: 1 Ambassador Bridge Blockade: The 48-hour delivery window is unfeasible due to the continuous blockade, which will impede timely crossing. 2 Budget Restrictions: The $1000 CAD budget may not cover additional expenses due to delays and rerouting. Suggested Alternatives * Alternative Route: * Ship Date: Adjust to February 8th, 2022. * Route: Use the Blue Water Bridge (Port Huron, MI to Sarnia, ON) to avoid the blockade. * Delivery Timeline: Extended to approximately 72 ho...