Reference no: EM132325322
ASSESSMENTS
ASSESSMENT 1: WRITTEN QUESTIONS
You are to answer the following questions.
Questions
1 List two examples of each of the following types of risk: (5-20 words each)
a. Operational risks
b. Strategic risks
c. External risks
2 Describe the six key steps of the risk management process. (200-300 words)
3 What are the two components of risk management that must occur continually throughout the process(2-5 words)
4 List three sources of information that you might use in order to understand your organisation’s objectives. (5-10 words)
5 Explain and describe two items that might be considered for each of the components of a PESTL analysis. (250-350 words)
6 Explain what a stakeholder is and what methods you might use to identify internal and external stakeholders(200-250 words)
7 Describe the meaning of ‘risk criteria’ and its purpose(50-100 words)
8 List three reasons why continual communication is critical to good risk management. (150-250 words)
9 Identify and explain five tools that you might use in order to identify risks. (100-200 words)
10 What are the main components of a risk analysis(5-15 words)
11 What is the difference between qualitative and quantitative risk analysis(200-250 words)
12 Why would you use a likelihood and consequence table(40-80 words)
13 Explain five options for risk treatment. (40-80 words)
14 What is a cost–benefit analysis(20-30 words)
15 What factors should be considered when conducting a cost–benefit analysis(20-30 words)
16 Identify and explain five items that should be documented in a risk management plan. (200-250 words)
17 Why is it important to ensure continual reviewing of the risk management plan(80- 150 words)
18 Describe three mechanisms that can be used to ensure continual monitoring and 19 In your own words, describe the following types of the legislation, codes of practice and national standards which relate to risk management in an organisation and provide two (2) examples of how they apply: (15-25 words each)
Legislation Description and Examples
(a) Duty of Care
(b) Company Law
(c) Contract Law
(d) Environmental Law
(d) Privacy Law
20 Why are risk management standards necessary for risk management and how are they applied in the workplace(80-160 words)
ASSESSMENT 2: CASE STUDY & PRACTICAL
DEMONSTRATION
This assessment requires the completion of the Town and Country case study and participating in a role play meeting.
Instructions to Assessor
Place the students into project teams of a minimum of five people, comprising the Risk
Manager (the student) and four stakeholders. At least two people shall be external stakeholders and two people shall be internal stakeholders.
Stakeholder roles
Internal stakeholders
• Human Resources Officer - responsible for recruiting and inducting new staff
• Marketing Manager – responsible for a media campaign for the launch of the new innovative building technique.
External stakeholders
• Owner, Orange Building Supplies – has a contract to provide all the building materials for TCS jobs for the first 12 months
• Owner, Orange City Real Estate – has a contract to locate appropriate premises and arrange lease documents. Will also be a good network source.
Students may nominate different stakeholders that are more appropriate to their specific situation.
The project teams will meet twice and will be briefed by you on how they are to participate.
The stakeholders will need to draw on their knowledge of the risk management process, especially the role and responsibilities of stakeholders and information they have found during their research for this assessment. You can coach team members in their role if necessary to ensure they contribute to the process. The Risk Manager (student) will use tools and techniques, such as brainstorming and fish bone diagrams to generate a list of risks.
You must observe the meetings, either in person or by using technology (e.g. Skype, recording) and complete the decision matrix in Appendix 1. During the meetings students must establish and use appropriate conventions and protocols when consulting and negotiating with stakeholders about risk management.
Town and Country Services
Regional Expansion Project
As part of Town and Country Services’ (TCS) strategic plan, it will open an office in the large regional city of Orange, NSW to provide a range of architectural services. These services are:
providing a panel of consultant architects who will visit the office 1 day per week
making appointments for local people to meet with the consultants
drawing plans for owners and builders
supervising construction projects
conducting dispute mediation between the individual and the local authorities about planning and building matters
collecting fees and charges for services delivered.
Orange was selected because it is a large regional population and employment centre with sound economic growth. In addition, local government is very supportive of new business opening up in the area and typically facilitates planning approvals within the stated customer
service timeframe standards.
It is planned to rent an office at street level that has sufficient space to enable meetings with the visiting consultants & private rooms for mediation services. The office will also need video conferencing capacity as an alternative communication method for remote clients.
This will ensure that TCS can provide dispute mediation for individuals who do not wish to appear in person or who may be living some distance from the town. It is expected that the office will require a full high-spec fit-out to make them suitable for TCS and reflect the
company’s values as a quality provider of design services.
Four full-time and four part-time staff will need to be recruited. Full time staff require previous experience in working with architectural services and local government.
Initial research suggests that due to solid economic growth in the regional centre, 70% of the services will be for architectural projects, including both domestic and commercial buildings with up to 40% of projects employing TCS to manage the build.
In addition to the range of architectural services currently provided, TCS is going to launch its innovative approach to building techniques. The new approach, although 20% more expensive than traditional building methods, reduces the building time by 35%; however, specialist building products are required at specific periods during the build.
Traditionally, local councils have long approval times and make conservative planning decisions; however, changes to the planning regulations have resulted in a change to the planning and approval procedures. This means that Council is obliged to operate within its
stated customer service timeframe standards.
Initial costings have been developed and it is expected that at the end of the first 12 months of operation the new office will be cost neutral. Town and Country Services has not budgeted for any profit until the end of the second year.
Everything needs to be ready in 5 months from today to meet operational deadlines and the launch of planned media campaign about Town and Country Services’ innovative time saving building techniques.
This assessment is in two parts. For Part 1 you are required to manage risks in a range of contexts across Town and Country Services and complete a number of written documents.
For Part 2 you are required to participate in a meeting.
You must demonstrate your ability to:
1. Establish the risk context
2. Identify risks
3. Analyse risks
4. Select and implement treatments.
The Town and Country Services Risk Management Policy and Procedure and AS/NZ ISO 13000 Risk Management Overview will be provided by your assessor.
Part 1
You must submit a report with appropriate sections, headings and tables, charts, diagrams or flowcharts including: (4-5 pages)
Description of the business, goals, analysis of external factors and critical success factors
Identification and analysis of external factors
Identification of stakeholders
PESTL and SWOT analyses
Risk Assessment Table (and supporting Likelihood and Consequence table and Consequence Criteria)
Risk Management table
Action Plan
Strategy for implementation of the risk management plan
Report on implementation of your risk management action plan and process
List of sources of information used and any supporting documents.
The report should be a formal, typed document with detailed information organised into sections with appropriate headings, and risk tools and supporting documents included as appendices.
Assessment Criteria – Part 1
Your performance for this assessment will be assessed against the criteria and evidence requirements in the following ‘Decision Matrix Marking Guide’ at the end of this assessment.
Part 2
The second part of this assessment requires you to participate in a meeting, during which you must demonstrate your ability to communicate details of, invite participation in, and obtain support for the risk management process. Your assessor will place you into a project team of a minimum of five people, comprising the Risk Manager (you) and the four stakeholders. At least two people shall be external stakeholders and two people shall be internal stakeholders.
The meeting will be in a simulated workplace, which will be organised by your assessor. Your assessor will brief the meeting attendees on their role.
The purpose of the meeting is to:
Communicate the risk management process
Invite participation in the risk management process, including identification of risks
Obtain support for risk management activities.
During the meeting, you are to:
1. Establish and use appropriate conventions and protocols when communicating with stakeholders about risk management
2. Use tools and techniques to generate a list of risks – such as brainstorming, fish bone diagram
3. Consult and negotiate with stakeholders about risk management processes, including identification of risks and outcomes
4. Obtain support for risk management activities.
The meeting must be observed by the assessor either in person or by using technology (e.g. Skype, recording).
Assessment Criteria – Part 2
Your performance for this assessment will be assessed against the criteria and evidence requirements in the ‘Decision Matrix Marking Guide’ found at the end of this assessment.
Town and Country Services
As the Risk Manager, it is your responsibility to identify and manage the risks in the regional expansion project. The Board of Directors of Town and Country Services will be responsible for strategic and financial risks and will monitor the project budget.
Develop a risk management plan which includes:
a detailed stakeholder analysis
explanation of the risk context
identification of critical success factors
identification of risks
analysis of risks
treatments for prioritised risks
details of monitoring arrangements
reporting mechanisms for the risk management plan
an evaluation of the risk management plan’s efficacy in treating risks.
Complete a written report of 4 to 6 pages for your manager (your assessor) that addresses the following 4 Stages of the risk management process.
Stage One: Establishing the risk context and identifying risks
1. Context
When developing a risk management plan, you first need to establish the context of risk in relation to external factors. You must review and monitor industry information and trends in the region. It is essential the risk analysis is based on careful industry research.
Identify external factors that could have an impact upon the success of the project. Write a report of 1.5 or 2 pages with the following five headings and provide one paragraph under each heading:
Political factors
Economic factors
Social factors
Technological factors
The strengths and weaknesses of any existing arrangements.
You will use this information again in Part 4 – Analysis.
2. Scoping
Clearly identify the project’s goals or objectives and its scope and critical success factors of risk management and any current arrangements.
Describe goals/objectives of the business. Consider factors including:
Technological innovation
New products or services
Opening new markets
Organisational structure
Identify the Critical Success Factors – factors that must be present for the project to be successful and promote Town and Country Service’s goal.
The information may be presented in a table.
SCOPE:
OBJECTIVES:
CRITICAL
SUCCESS
FACTORS:
3. Stakeholders
Identify internal and external stakeholders, their role and responsibility in the process, any issues or concerns they have and what they aim to achieve. Stakeholders should be considered as any individual, group or entity that the project will affect, and may include but not be limited to:
Clients or customers
Suppliers and contractors
Internal personnel
A project funding body.
Present this information in the Table of Stakeholders template below.
Stakeholder Internal /
External
Role in process Stake in process
Outline the methods that you can use to communicate with relevant parties and obtain their support for risk management activities. Explain the kinds of support that you would invite them to give. Relevant parties include:
all staff
internal and external stakeholders
specific teams
technical experts.
4. Analysis
Complete the following analyses of the project:
(a) PESTL (Political, Policy, Economic, Social, Technological and Legal) analysis
(b) a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
Refer to your report from Task 1 - Context. Use a table format to present this information. You should get some of the stakeholders in your project team to contribute to this.
5. Research
Review and summarise the information you found, as well as any relevant literature and the Town and Country Services Risk Management Policy & Risk Management Strategy provided to you.
Stage Two – Analysing the risks
Analyse the risks identified in Stage One, develop an action plan for the treatment of risks and communicate it to relevant parties. (2-4 pages)
You need to analyse the potential risks from various viewpoints. Look at the likely consequence of the risk event and the likelihood of the risk event occurring. Finally, look at the level of risk and decide which risks need treatment.
Consult with your project team of stakeholders (including colleagues) to help you identify the risks.
1. Risk Assessment table - Develop a report for your stakeholders. Use the table below to develop a risk assessment plan, including:
a. Likelihood of the risk occurring.
b. Consequence for each risk.
c. Priorities – use a risk calculation table to assist in prioritising the risks.
d. Options – for each prioritised risk outline at least two (2) suitable options for treating the risk.
For your risk calculation, you can use the Risk and Consequence table shown below or a similar format. You must also include the Consequence Criteria that is appropriate for the project.
2. Discuss this report with your colleagues and stakeholders to obtain their feedback and then adjust as required. Document their feedback and how you addressed it.
Before going on to Stage Three, submit your Risk Assessment documents to your manager (assessor), who will have responsibility to distribute it within the organisation.
Stage Three – Identifying measures to treat the risks
Develop a Risk Management Plan to treat the risks and monitor the implementation.
1. Risk Management Plan – develop a risk management plan by completing the table below.
At this stage, you are to exclude estimated costings (currently being dealt with by the Board of Directors for Town and Country Services).
2. Action Plan - Develop an action plan for implementing your risk management plan.
(a) List all the people who will need to know your risk management processes.
(b) Describe how you will file and store your risk management documentation so that it can be easily accessed by those who need it.
(c) Describe the process you will use to evaluate your risk management on an ongoing basis.
3. Monitor and evaluate the risk management plan - Describe how you will monitor and evaluate the risk management plan. Include how you will monitor your Critical Success
Factors, the evaluation mechanisms and processes, who will be responsible and the timeframes.
Stage Four – Implementing and monitoring the risk treatment plan
Read the following information and answer the questions that follow.
Regional Expansion Project
You have been managing the risks of the Regional Expansion Project for the last 3 months and whilst some things have been progressing well some problems have arisen.
The new office was flooded due to recent torrential rain and the office carpet and meeting room furniture have to be replaced. This will be very expensive. You had identified the need to purchase insurance as a risk treatment for the new premises but you now find out that it did not cover storm damage.
In your plan, you identified the risk of being unable to recruit full time staff with previous experience working with architectural services and local government. Originally you had thought that you could second people from Head Office to fill the vacancies while undertaking recruitment; however, this has not worked well as no-one from Head Office is able to stay longer than one week. This is having a detrimental effect on customer service and on establishing local networks. You need a new approach to addressing this risk.
You have been advertising on Seek.com.au to recruit local staff
You are spending a lot of time interviewing but not finding anyone suitable
You cannot get anyone from Head Office to stay for more than 1 week which does not meet customers’ needs.
In your plan, you had identified the risk that the local council may not abide by their customer service timeframes for approvals. This has proven to be true.
You have been encouraging customers to use private certifiers as set out in the action plan; however due to the current delays in council the 2 certifiers have long waiting lists and are not able to work with Town and Country Services for another 5 weeks. You had not identified this as a risk.
Your risk management process
You identified the risks and the treatment actions in consultation with your manager and stakeholders. You now realise that maybe you should have got some specialist advice to help with addressing each of the identified risks. As this is a new business, maybe you should have asked a more experienced project manager for advice.
You realise that your action plan for implementing risk treatments needs to be reviewed. You need to evaluate the plan and provide a report to your manager on your findings.
1. Write a report examining the ongoing implementation of the risk management action plan (about 1.5 pages). Include the following:
a summary of the initial risks and the plan implemented to manage them
a summary of all actions taken to date in attempting to manage identified risks
a statement identifying continued and/or reduced risks, based on the information provided in the scenario above
a statement about the risks you did not identify and the planned actions for mitigating them or avoiding them
proposal for amendments to the risk management plan
an analysis of the effectiveness of the risk management plan, by comparing the implementation with the outcomes identified in the scenario above
an evaluation of your risk management process.
2. Provide the documents of the work you undertook as evidence that you implemented the plan for managing the identified risks.
Keep the documents you used during the process so that you can assemble a neat portfolio of all documents produced as part of your risk management.
Assessment 2: Case Study
Decision Matrix Marking Guide & Results Sheet
Stage One: Establishing the risk context and identifying risks
1. Conduct research into the project area to: review the political, economic, social, legal, technological and policy context
2. Identify the scope of risk management required in the project?
Identify and describe the critical success factors, goals or objectives for areas included in scope?
3. Identify internal and external stakeholders, their role in the process, and any issues or concerns they have, using the template provided?
4. Complete a PESTL analysis for risks associated with the projectComplete a SWOT analysis for risks associated with the project?
5. Review and summarise the research information found, as well as any literature available that is relevant to this scenario?
6. Complete the analysis of risk for the scenario by summarising the scenario and associated risks, accompanied by checklists, diagrams or flowcharts that support the summary?
Stage Two: Analysing the risks
1. Develop a risk management plan using the provided standard risk management table?
1a. Assess the likelihood – for each risk, assess the likelihood of the risk occurring.
1b. For each risk, assess the consequence of the risk occurring?
1c. Use a risk calculation table to assist in prioritising the risks?
1d. For each prioritised risk, outline at least two suitable options for treating the risk?
2. Obtain feedback from colleagues and stakeholders?
Submit risk assessment documents to manager?
Stage Three: Identifying measures to treat the risks
1. Develop a risk management plan
2a. Develop an action plan for implementing risk management plan?
2b. Ensure all documentation is in order and appropriately filed and stored?
2c. Describe the process to evaluate risk management on an ongoing basis?
3. Develop a strategy for implementing and monitoring the action plan?
Stage Four: Implementing and monitoring the risk treatment plan
1. Write a report of approximately 1.5 pages, examining the ongoing implementation of the risk management action plan. Include the following:
• a summary of the initial risks and the plan implemented to manage it?
• a summary of all actions taken to date in attempting to manage identified risks?
• a statement identifying continued and/or reduced risks, based on the information provided?
• a statement about the risks not identified and the planned actions for mitigating them or avoiding them?
• proposal for amendments to the risk management plan?
• an analysis of the effectiveness of the risk management plan, by comparing the implementation with the outcomes?
2. Provide documents of the work undertaken and kept used during the process into a neat portfolio of all documents produced as part of the risk management process to assist in future strategies?
Assessment 2 - Practical Demonstration
Decision Matrix Marking Guide & Results Sheet
1. Consult and communicate with group members to identify and assess risks, decide appropriate risk treatment actions & priorities?
2. Explain the risk management processes
3. Actively engage with group members to obtain their participation in the risk management process
4. Establish and use appropriate conventions and protocols when communicating with stakeholders about risk management
5. Use appropriate tools and techniques to identify risks and used good communication skills to elicit opinions and check understanding
6. Consulted and negotiated about risk management processes and outcomes?
Unit Description
This unit describes skills and knowledge required to manage risks in a range of contexts across an organisation or for a specific business unit or area in any industry setting. It applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, and program or project area. They may or may not have responsibility for directly supervising others.
ELEMENT PERFORMANCE CRITERIA
Elements describe the essential outcomes.
Performance criteria describe the performance needed to demonstrate achievement of the element.
1. Establish risk context
1.1 Review organisational processes, procedures and requirements for undertaking risk management in accordance with current risk management standards
1.2 Determine scope for risk management process
1.3 Identify internal and external stakeholders and their issues
1.4 Review political, economic, social, legal, technological and policy context
1.5 Review strengths and weaknesses of existing arrangements
1.6 Document critical success factors, goals or objectives for area included in scope
1.7 Obtain support for risk management activities
1.8 Communicate with relevant parties about the risk management process and invite participation
2. Identify risks 2.1 Invite relevant parties to assist in the identification of risks
2.2 Research risks that may apply to scope
2.3 Use tools and techniques to generate a list of risks that apply to the scope, in consultation with relevant parties
3. Analyse risks
3.1 Assess likelihood of risks occurring
3.2 Assess impact or consequence if risks occur
3.3 Evaluate and prioritise risks for treatment
4. Select and implement treatments
4.1 Determine and select most appropriate options for treating risks
4.2 Develop an action plan for implementing risk treatment
4.3 Communicate risk management processes to relevant parties
4.4 Ensure all documentation is in order and appropriately stored
4.5 Implement and monitor action plan
4.6 Evaluate risk management process
ASSESSMENT EVIDENCE
To achieve competency in this unit a student must demonstrate their ability to:
Performance Evidence
Evidence of the ability to:
• analyse information from a range of sources to identify the scope and context of the risk management process including:
• stakeholder analysis
• political, economic, social, legal, technological and policy context
• current arrangements
• objectives and critical success factors for the area included in scope
• risks that may apply to scope
• consult and communicate with relevant stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
• develop and implement an action plan to treat risks
• monitor and evaluate the action plan and risk management process
• maintain documentation
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
• outline the purpose and key elements of current risk management standards
• outline the legislative and regulatory context of the organisation in relation to risk management
• outline organisational policies, procedures and processes for risk management
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the regulation, licensing and risk - risk management field of work and include access to:
• relevant legislation, regulations, standards and codes
• relevant workplace documentation and resources
• case studies and, where possible, real situations
• interaction with others
Attachment:- ASSESSMENTS Details.rar