Page 11 - CIMA MCS Workbook February 2019 - Day 2 Suggested Solutions

SUGGESTED SOLUTIONS

clear that the responsibility for risk lies with all those employed by Crowncare. It will be necessary
to consider the most effective means of communication particularly given the number and
geographical spread of the dental practices. Crowncare could also instigate internal
communication for circulation, e.g. newsletters or blog posts where issues such as recent
technological development/changes are highlighted which could potentially have an effect on
risk. Similarly recent events where the effect of risk may not have been considered at the earliest
opportunity should form part of this communication. Highlighting these events may encourage
other departments and the Board to take the new department’s findings seriously.

In that context, communication will need to be efficient and effective to assist in this respect. It
will need to be a “two‐way” exercise, requiring the ability to deliver clear messages to both
internal and external stakeholders with clarity and brevity. Messages should be appropriately
structured as this will help the recipients to understand and retain the information.

Communication of the new department’s findings is likely to be a regular if not continuous flow of
information. It is imperative given the nature of the new department that they should ask for, and
listen to feedback. Two way communication of this sort will help prevent misunderstandings and
build good working relationships. The new department should explain clearly why any changes it
recommends are important to ensure that the importance of their communications is recognised.

Risks identified and potential savings made as a result of successfully implemented mitigation
practises could be used as performance indicators and would help to demonstrate the
department’s importance. The new department should emphasise that non‐acceptance of
recommendations made will potentially result in loss of revenue, profitability and perhaps even
worse – brand and customer loyalty. Raising the importance in this way would support the
introduction of the new department and embed its role for the longer term success of Crowncare.

Change management issues associated with the creation of this new department are likely to
focus on people issues with new leaders created, skills and capabilities developed and perhaps
even jobs changed.

Change is unsettling and the leadership of the board is important. In order to motivate the board
to make full use of the department’s output it is important that the CEO demonstrates this
support.

It is recommended that a business case for any new department be made, with specific examples
of risks that have occurred in the industry identified to support this aim.

Financial Manager

KAPLAN PUBLISHING 101