Reference no: EM132514787

BSBRSK501 Manage risk - Australian Centre of Further Education

Assessment Task 1 Questions

Problem 1a: Briefly explain what is risk management. Answer must be no fewer than 25 words
Problem 1b: Outline the purpose and key process elements of the current AS/NZS Standard on risk management. Answer must be no fewer than 25 words.
Problem 1c: Explain why it is important for an organisation to review organisational processes, procedures and requirements for understanding risk management in accordance with the current risk management standards. Answer must be no fewer than 25 words
Problem 2: Explain why it is necessary to determine the scope for the risk management process. Answer must be no fewer than 25 words.
Problem 3a: List three (3) types of internal stakeholders of an organisation in relation to risk management.
Problem 3b: List three (3) types of external stakeholders of an organisation in relation to risk management.
Problem 4: Managers must understand the environment or context in which they are conducting their risk management activities. Explain why it is important to review each of the following contexts to identify the scope of the risk management processes:
a) Political
b) Economic
c) Social
d) Legal
e) Technological
f) Policy
Problem 5: When reviewing strengths and weaknesses of existing arrangements in relation to risk management, what are the four (4) areas that should be focused on?
Problem 6: Explain why it is important to document critical success factors, goals or objectives for the area included in the scope. Answer must be no fewer than 25 words.
Problem 7: Explain why it is necessary to obtain support for risk management activities.
Problem 8: Explain why we should use a combination of verbal and written communication methods to communicate risk management process and invite participation. Answer must be no fewer than 25 words
Problem 9: Explain why it is essential for all stakeholders to be involved in identifying risks. Answer must be no fewer than 25 words.
Problem 10: List two (2) types of information that a manager could use to research risks that may apply to scope.
Problem 11: List two (2) tools and techniques used to generate a list of risks that apply to the scope, in consultation with relevant parties.
Problem 12: Read Attachment 1- Risk Management Procedures, List the five (5) ratings which are used to assess the likelihood of risks occurring in ABC Company. Give a brief description to each rating.
Problem 13: Read Attachment 1- Risk Management Procedures, List the five (5) ratings which are used to assess the levels of impact or consequence if risks occur in ABC Company.
Problem 14: Read Attachment 1- Risk Management Procedures, complete the following table by deciding the risk rank "Extreme, High, Medium, Low".
Problem 15: What are the five (5) possible options for treating risks?
Problem 16: List at least four (4) key components of a risk treatment action plan.
Problem 17: Describe why you need to maintain communication with stakeholders and/or participants throughout the risk management process. Answer must be no fewer than two sentences.
Problem 18: Give three (3) reasons why you need to ensure that any documentation associated with risk management is in order and stored appropriately.
Problem 19a: Explain the role a manager plays in monitoring their risk management action plan. Answer must be no fewer than 2 sentences.
Problem 19b: Describe two (2) contingency plans you might have in place for difficulties that might arise when implementing a risk management action plan.
Problem 20: Explain why it is necessary to evaluate the risk management process. Answer must be no fewer than 25 words
Problem 21: Outline two (2) legislative and regulatory context of organisations in relation to risk management.
Problem 22: Conduct a research on an organisation and outline three (3) organisational policies, procedures and processes for risk management. Complete the following table. One example has been given to help you complete the table.

Assessment Task 2 - Project (Scenario)
Task overview You are required to complete a scenario based project and prepare a set of documents accordingly.

This is an open book assessment. You will do this task in the classroom or as homework. There is no time limit in completing this assessment.

Project Scenario
ABC Company started as a small company and has grown into a national retail business specialising in a range of exclusive products. ABC Company has more than 150 retail, online and phone order outlets across Australia.
Business has been good, but the management is always concerned of the risks, especially given the situation during the past three months. Over this period, there have been significant international, national and organisational incidents that have affected the business.
On the international front:
• Five key suppliers of our top-selling range of products have received global condemnation about using toxic or banned chemicals in their products and polluting the environment through their unsustainable production methods.
• Floods have affected some Asian suppliers so that the manufacture and transport of numerous top-selling lines has been interrupted for the past three months. This is affecting online sales.
On the national front:
• Australian consumers are spending less due to the uncertain global financial situation and rumours of government tax increases that are likely to decrease household disposable incomes.
• There has been recent political uncertainty with leadership challenges and allegations of corruption. These issues and the impending federal election are leading customers, businesses and investors to take a wait-and-watch approach.
• Federal consumer legislation was introduced in recently, so there is a need for all states to be brought up to date, especially with increased consumer knowledge of rights such as the product safety law.
• Uniform WHS laws have also been introduced by most of the states.
There are some issues arising within the organisation.
• There has been an increase in complaints from customers about:
- online purchasing system problems/disconnections,
- goods not being delivered on time and
- allegations that confidential customer information is being passed on to other companies.
• Customers have complained that the company website and online purchasing links are not working sometimes.
• There is also rising social media pressure about claims that ABC Company's major suppliers use sweatshops, child labour and manufacturing processes that cause environment destruction.
• Information systems and warehousing/logistics systems are more than 10 years old.
• Management is thinking about downsizing (reducing the number of employees) and adopting rigorous budgetary cuts across all sections of the organisation.
• Staff morale has dropped, with many conflicts between staff and complaints about hours worked and lack of training.

You are required prepare four documents by addressing all the requirements listed by bullet points. To complete these documents, you are required to read the Attachments 1-7.
1. (P1) Prepare a report.
• (P1a) Summarise the key risks facing the organisation and list them under the following scope headings: political, economic, social, legal, technological and policy.
• (P1b) Review and list the organisation's current policies and procedures that relate to the risk context in accordance with current risk management standards.
• (P1c) List four (4) legislation, regulations, standards and codes that are relevant to the current situation.
• (P1d) List the key stakeholders who should be involved in the risk management process. Where possible, indicate which stakeholders should be consulted about specific risks.
• (P1e) Indicate the key stakeholders you will need to gain support from for this risk management process to be successful.
• (P1f) Use the information you have gathered to complete a risk management plan using the template (Refer to Attachment 7- Risk Management Plan Template)
2. (P2) Review the information you have gathered. In a new document, write a one-page summary of:
• (P2a) the strengths and weaknesses of the existing arrangements to adequately address the identified risks
• (P2b) critical success factors that will ensure the risks are addressed
• (P2c) strategies you will use to consult with stakeholders to identify and assess risks, invite participation and explain the risk management processes
• (P2d) other possible sources of data that may apply to the scope of this project; for example, market research, information from other businesses.
3. (P3) Provide an analysis of each risk you have identified. Reorder the risks in terms of priority, from highest to lowest.
4. (P4) Using the content of the report, prepare a presentation for ABC Company's senior managers. The CEO has stipulated that she wants the presentation to cover how the risk management process will be implemented, monitored and evaluated. Use slide presentation software to develop the presentation and include the following:
• (P4a) A list of options commonly used in risk treatment processes
• (P4b) The most appropriate options for treating each of the identified risks
• (P4c) A proposed action plan to treat the identified risks, including:
- what actions are required
- who is taking responsibility
- time lines
- the monitoring process
- a proposed folder structure for storing information relevant to the risk management process
- key factors in implementing, monitoring and evaluating the risk treatment action plan.
You are required to address all the bullet points and meet all the requirements in each task in order to be deemed satisfactory for this project.

Assessment Task 3- Simulated Observation (Practical)

Task overview You will be completing this role play relating the Assessment task 2 Project Scenario in a simulated office environment on ACFE campus.

O1
Oral Presentation:

Student communicates with team members about the risk management process and invite participation by explaining ABC Company Risk Management Procedures (Attachment 1) on risk identification, risk rating, risk controls, and risk monitoring and reporting, as well as by explaining the importance for participating the risk management process by every employee. Examples can be used to facilitate the understanding of the team members

Student must cover all the above areas as well as demonstrating the ability to:
- Establish and use appropriate conventions and protocols when communicating with team members about risk management
O2 Role Play - Part A (Team Leader and Manager)
Student: Team Leader
Assessor: Manager

Student will be giving one issue chosen from Project 2 scenario.

Student consults and communicate with the manager (played by assessor) regarding the issue.
Student is required to demonstrate your ability to identify and assess risks, as well as determine the priority by answering a fewer questions asked by your manager (assessor). Your manager may disagree with your opinion on the risk level, you are required to be able to ask questions to elicit opinions from your manager, confirm and clarify understanding

Student must cover all the above areas as well as demonstrating the ability to:
- Establish and use appropriate conventions and protocols when communicating with manager about risk management
- confirm and clarify understanding through questioning and active listening
- deal with disagreement and clarify understanding using active questioning and listening
O3 Role Play - Part B (Team Leader and Manager)
Student: Team Leader
Assessor: Manager

Now student has identified the risks and risk level and priority after consulting and communicating with the manager.
Student then has to demonstrate the ability to determine the risk treatment actions and explain the risk manager processes by determining the control measure chosen (removing the risk, reducing the probability of occurrence, reduce the consequence or transfer the responsibility of the risk) and explaining to the manager (played by assessor) the actions to be taken and their weakness and strengths

Student must cover all the above areas as well as demonstrating the ability to:
- Establish and use appropriate conventions and protocols when communicating with manager about risk management
- confirm and clarify understanding through questioning and active listening
- appropriately deal with disagreement and challenges

Attachment:- Manage risk.rar