Financing and management of risk Essay Example | Topics and Well Written Essays - 1500 words

Financing and management of risk - Essay Example The Post Office Ltd. and General Logistics Systems are wholly owned subsidiaries of Royal Mail Group. Post Office Ltd. runs the post office counters and the General Logistics Systems is a global logistics company. The company employs around 2 lakh people working for the organization with a net income of ?300 million. Royal Mail has a network of around 14000 post offices. The network of Royal Mail distributes millions of letters and parcels everyday all over the world. The Royal Mail services include collection of mails and letters from all parts of the world and distribute the same to the respective postal addresses. The letters are posted by the senders in the wall posts which are collected everyday and despatched to the communication addresses. The first class deliveries take one day’s time to reach the address of the receiver. On additional payments, there are special deliveries to the receiver that reaches by 9 a.m. or 2 p.m. on the next day. Royal Mail also has provisions for insurance of the items sent to the receiver. In case the receiver is not present at the time of delivery, an information card is left for the receiver to be noticed. The special deliveries are used by the business houses, small businesses and consumers for prompt deliveries and insurance covers are taken for protection of the items sent by post. Royal Mail also runs a business mail service separately which offers provision for the business houses to send letters, parcels and items at reduced price. The network of distribution for deliveries consists of large fleet containing 40000 vehicles on the road along with the operation through air and rail network throughout day and night. The mails are collected from the wall boxes and collection points, sorted and delivered to the recipients. The various stages of the network through which the delivery is done include collection of mails in major three mail centres which are then passed to the network hubs where it is sorted and delive red across various parts of the country. The collection and delivery services vary according to the requirements and volume. The network of collection and delivery is finalised according to the work plan and targets of operation. Evaluation of risk exposures of Royal Mail The risk exposure to the operations and business environment of Royal Mail could be understood by analyzing the operational issues faced by the organization. Despite maintaining a large fleet for its operations, there are several risks faced by Royal Mail services depending on the location of collection and delivery, time of operations, existing infrastructural issues, etc. The operations of the Royal Mail pertaining to services for collection and delivery of post are carried out in areas which involve huge traffic congestion. Heavy traffic conditions in the localities affect the time of delivery of the postal service. Due to the existing local conditions, the company bears the risk of delay in delivery of items de spatched. The collection and delivery services of Royal Mail from the heart of the city and other localities occur at congested situations during peak traffic conditions. The fleet of workers who are responsible for collection and delivery within the stipulated times face tough operating conditions in order to meet the deadline or