The companyPolyVeya Pty Ltd is a publically listed Queensland-based plastic forming company that makescomponents for the automotive industry. It is well established in Coolangatta and has justfinished upgrading to a new warehouse and forming machinery that will allow it to take onextra capacity. It has 250 staff.The situationThe Board of PolyVeya Pty Ltd has approached several large boat builders with the intention ofexpanding into marine plastics, a relatively mature sector. The approaches are well received,with some reservations regarding the company's experience in the salty, high-UV marineenvironment. PolyVeya is well financed (underwritten) but is carrying some debt and hasminimal cash reserves. There is a quality leadership team in place, but it has little experiencewith marine plastics.The risksThe risk management team at PolyVeya Pty Ltd conducted a risk assessment and found severalareas of risk that could affect its move into the new market. These include:? Technology risk - although they have upgraded their plant, is it suited to marine plastics?? Product risk - will the products from the new player be embraced by the market?? Financial risk - with minimal reserves and some debt from the upgrades, if they are unableto produce a competitive product quickly, they may face financial difficulties.? Reputation risk - what effect will the move to diversify have on their brand?? Commercial/market risk - given they are moving into a saturated market, how will theyperform?? Management risk - does management have sufficient experience to be able to adjustshould the marine sector reject their new product?

Question 3 As you prepare a risk treatment action plan, what do you need to consider to ensure your plan is effective? Suggested response Question 4 Prepare a draft risk treatment action plan for the CEO of PolyVeya Pty Ltd using this table. Risk Risk level Action Resources Responsible Review by Review date person