Reference no: EM133649008

Manage program risk

Assessment Requirements
You are required to complete and pass every task in the assessment in order to be deemed competent.

Assessment Task 1: Knowledge questions

Questions
Provide answers to all of the questions below:
1. Explain the purpose of risk management standards. Include an example of a risk management standard in your answer.
2. Explain the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and each of the 11 principles.
3. Explain the purpose of risk management policies and procedures in the workplace.
4. Outline a step-by-step procedure that companies can use for analysing risks.
5. Describe three examples of tools or techniques that a company could use to identify risks as part of a risk assessment process.
6. Explain the concept of a dynamic risk register and its use across a program.

Assessment Task 2: Project Portfolio

Activities
Complete the following activities:
1. Carefully read the following:
This project requires you to identify, plan, manage and evaluate program risks that may impact the program outcomes or organisational objectives.
You can do this for a real program at your workplace if this is relevant to you, or you can use the Simulation Pack provided for this unit.
If you use your own business, make sure it has sufficient information (as described in the green boxes throughout the instructions) already established. The program you manage should allow for unpredictable variables (such as staff re-allocation or budget changes) and should include a level of complexity that requires experienced management. Speak to your assessor to get approval if you want to base this on your own business.
Vocational education and training is all about gaining and developing practical skills that are industry relevant and that can help you to succeed in your chosen career. For this reason, basing your project on real relationships with classmates or work colleagues will mean that you are applying your knowledge and skills in a relevant, practical and meaningful way!
You will be collecting evidence for this unit in a Project Portfolio. The steps you need to take are outlined below. Before you begin, complete page 4 of your Project Portfolio.
Start working on Section 1 of your Project Portfolio. Steps 2 to 5 form part of Section 1.
If you are basing this assessment on the case study, refer to the information provided in the Simulation Pack to complete this section.
If you are basing this assessment on your own business, you need access to information about:
• the organisation and program as a whole (e.g. strategic plan)
• the organisation's risk management processes (e.g. risk management policies and procedures).
You will also consult with stakeholders and mentor one stakeholder.
2. Prepare for program risk management.
First, access information about your chosen organisation as it relates to the program you will manage and its objectives (e.g., a Company Information document, Strategic Plan etc.). Summarise and analyse the information to ensure you understand the context of the organisation and where it wants to be.
Next, identify at least two stakeholders who will be associated with managing the risk of the program. These stakeholders should have a diverse background (e.g. different genders, ages, cultures, abilities etc.). Then, identify at least three examples of when communication with the stakeholders is required during the risk management process, explain why the communication is important and then select at least three different methods that may be used for the communication.
Finally, organise, develop and document your ideas about:
• potential program risks (identify potential, actual and residual risks).
• the current risk management approach.
• an ideal program risk methodology (based on the current risk management approach) to address the identified risks.
• how risk management can be integrated across the program and assigned to relevant people for their timely management (e.g. by including risk management in regular team meetings or saving the risk management documentation in a cloud-based location for easy access and use).
• the timing for when risks are monitored and assessed across the program.

You will use the information summarised in this step to prepare discussion points for a meeting you will have with program risk management stakeholders (in step 4).
Read through step 3 before preparing discussion points (using the work you've done in this assessment so far) for a meeting with other stakeholders.
3. Consult with stakeholders regarding program risk management planning.
Meet with at least two relevant stakeholders (identified in step 2) to:
• explain program risk management and agree on the proposed risk management approach.
• agree on the timing for when risks are monitored and assessed across the program.
• identify potential program risks and analyse their impact on the organisation.
The stakeholders you meet with should be diverse and have at least one competing demand (e.g. timing for when risks are monitored and managed).
As you lead the meeting, keep in mind that your discussions are in preparation for documenting risk management in a Risk Management Plan. Take notes for future reference.
Your meeting should take 20 minutes. This will either be attended in person by your assessor or they will attend online. If your assessor is unable to view the meeting at the time, video record the session for your assessor to watch later (attach proof to Section 1 of your Project Portfolio). Your assessor can provide you with more details at this step. Make sure you follow the instructions above and meet the timeframes allocated.
During the meeting, you are required to demonstrate effective communication and negotiation skills including:
• speaking clearly and concisely
• using detailed language to provide information
• asking questions to identify required information
• using active listening techniques to confirm understanding
• using appropriate protocols and conventions (e.g., greeting, handshake, eye contact, politeness etc.) when sharing and seeking information.

4. Develop a Risk Management Plan.
You are required to develop a Risk Management Plan for the program.
Your Risk Management Plan must incorporate the meeting outcomes. It should also contain clear and accurate information to allow all stakeholders across the program to effectively and uniformly communicate risks, consequences, controls and treatments.
The identified risks should have a high impact on the program objectives (e.g. loss in staff could mean poor customer service) and the actions proposed for risk control or treatment should be complex (i.e. require skilled intervention).
You may use the template provided in the Simulation Pack, or any other template required by your organisation.
Use business language in an appropriate format and structure. You will be assessed on this.
Draft an email to all the stakeholders who attended the meeting to share your Risk Management Plan with them and confirm their approval. In your email:
• explain that you have included all agreed outcomes from the stakeholders meeting in the plan.
• confirm that risk management is integrated across the program and is transparent and timely (explain how risks have been assigned and how/when they should be addressed).
• confirm that all stakeholders are aware of the expectations and responsibilities.
• request that stakeholders commence their responsibilities.
• confirm that stakeholders will monitor and assess the risks assigned to them at the intervals agreed to at the stakeholder meeting.
Assume that the Risk Management Plan is attached to the email.
Use business language in an appropriate format and structure. You will be assessed on this.

5. Mentor and support a staff member.
First, develop a mentoring plan for one of the project managers of a project in the program for the upcoming 6 months. The aim of the mentoring is to support the project manager in analysis, evaluation and treatment of risks. Select activities that address these concepts.
As a minimum, your plan should include details of the mentoring arrangement, time period, number of meetings during the period and activities to be completed, as well as expectations. Use the Mentoring Plan Template in the Simulation Pack to guide your work.
Plan for your first mentoring session that addresses one of the aspects of analysing, evaluating and treating risks. Also identify at least two activities that the project manager can complete to develop his risk management skills following the session (e.g. research industry best-practices for risk treatment etc.).
Meet with the project manager to discuss the plan and provide a first mentoring session.
Make sure the project manager has a copy of the mentoring plan (either printed or digital).
Your mentoring session should take 20 minutes. This will either be attended in person by your assessor or they will attend online. If your assessor is unable to view the session at the time, video record the session for your assessor to watch later (attach proof to Section 1 of your Project Portfolio). Your assessor can provide you with more details at this step. Make sure you follow the instructions above and meet the timeframes allocated.
If you are basing this assessment on a busines of your choice, you may mentor an actual person in the business, or you may request a role-play participant in a simulated environment. Speak to your assessor for further information.
If you are basing this assessment on the case study, you will provide the mentoring session to your assessor (playing the role of Dan).
During the mentoring, you are required to demonstrate effective communication skills including:
• speaking clearly and concisely
• using detailed language to provide information
• asking questions to identify required information
• using active listening techniques to confirm understanding
• using appropriate protocols and conventions (e.g., greeting, handshake, eye contact, politeness etc.) when sharing and seeking information.

Make sure you have answered all questions in Section 1.
You are required to attach certain documents as part of your evidence - review the documents you need to attach as outlined in Section 1 of the Project Portfolio.
Submit Section 1 to your assessor.
Start working on Section 2 of your Project Portfolio. Steps 6 to 7 form part of Section 2.
Assume that a period of time has passed and the program is running. It is now the time (as agreed in at the stakeholder meeting in step 3) to monitor and assess risk.
If you are basing this assessment on the case study, refer to the information provided in the Simulation Pack to complete this section.
If you are basing this assessment on your own business, you need access to information about program progress (e.g. emails from project managers, survey results, customer feedback etc.). The program progress should indicate at least two challenges/variances that pose a risk.
6. Identify variances to program outcomes and analyse potential risk responses.
First, draft an email to relevant program stakeholders requesting program updates. In your email, also confirm that the stakeholders have been monitoring the risks according to the time interval agreed at the initial stakeholder meeting.
Use business language in an appropriate format and structure. You will be assessed on this.
Review the program progress and identify any variances that have resulted in risk.
You must identify at least two program variances that have actuated risks.
Analyse the variances (using impact analysis) to determine the impact of the variance over time and what should be done to correct the impact of the variance.
Your proposed risk responses should support achieving the program objectives and adhere to the responses agreed to in the Risk management Plan.
Have different responses for each variance.
7. Initiate risk responses to achieve program objectives.
Draft an email to a relevant decision-maker (e.g. CEO) to request their authorisation for the risk responses to be actioned. In your email, explain the variances in program outcomes that have resulted in a need for remedial action. Then, explain which actions should be implemented to respond to the risks.
Use business language in an appropriate format and structure. You will be assessed on this.
Assume that the actions have been approved.

Respond to stakeholders who provided input on the program progress (as per your email in step 6). Draft an email to explain the response to any variances identified.
Depending on the nature of your business and program, you may need to draft separate emails to different stakeholders.
Initiate responses to address the two variances.
Risk responses can be initiated for example by:
• submitting an insurance claim
• organising training
• conducting a Workplace Health and Safety check.
If you are basing this assessment on the case study, you are required to:
• develop a client questionnaire that can be used to measure client expectation and satisfaction.
• develop a job description for a program administrator (using the template provided in the Simulation Pack).
Update the Risk Management Plan to include details of the risks being treated.
Make sure you have answered all questions in Section 2.
You are required to attach certain documents as part of your evidence - review the documents you need to attach as outlined in Section 2 of the Project Portfolio.
Submit Section 2 to your assessor.

Start working on Section 3 of your Project Portfolio. Steps 8 and 9 form part of Section 3.
Assume that the projects part of the program have been completed.
If you are basing this assessment on the case study, refer to the information provided in the Simulation Pack to complete this section.
If you are basing this assessment on your own business, you need access to information about:
• Program outcomes (including one residual risk)
• Feedback on risk management processes.
8. Analyse the program outcomes and assess the risk management process.
Create a survey to seek feedback from a variety of program stakeholders on the risk management processes.
You may assume that the survey has been sent to the stakeholders (e.g. via social media or email).

Review and analyse the program outcomes then evaluate the overall risk management process.
9. Identify and document residual risk.
Identify at least one residual risk at project completion. Update the Risk Management Plan to include details of the risk. Also use review comment functionality to document lessons learned for future program risk management.
Draft an email to a relevant program stakeholder (e.g. the CEO) to:
• respond to the feedback they provided via the survey (e.g. thank them)
• document the risk-management outcomes
• explain the residual risk and transfer liability for the risk.
Use business language in an appropriate format and structure to suit the audience. You will be assessed on this.
10. Submit your completed Project Portfolio
Make sure you have completed all sections of your Project Portfolio, answered all questions, provided enough detail as indicated and proofread for spelling and grammar as necessary.
Submit to your assessor for marking.

Project_Portfolio

Section 1: Establish and support program risk management

Summarise information about your chosen organisation as it relates to the program you will manage (including the desired outcomes)
Attach proof of any relevant documentation to this section of your portfolio (e.g. Section from the Strategic plan).
Identify stakeholders
Which stakeholders are associated with managing the risk of the program?
How are they associated with the risk management process?
Identify communication requirements
Provide three examples of when communication with stakeholders may be required across the program to manage risk.
Why is the communication important for risk management?
Select threeappropriate methods that may be used for the communication.
Identify communication requirements
Provide three examples of when communication with stakeholders may be required across the program to manage risk.
Why is the communication important for risk management?
Select threeappropriate methods that may be used for the communication.
Document initial ideas about the program risk management
What are potential program risks?
What is the current risk management approach (e.g. according to existing policies and procedures)?
Describe an ideal program methodology to address the risks.
How should risk management be integrated across the program?
When should risks be monitored and assessed across the program?
Attach any existing risk approach information to this section of the portfolio (e.g. risk management policy and procedures).
Prepare discussion points for a meeting with other stakeholders

Summarise your meeting with stakeholders
Who attended the meeting?
Explain how the stakeholders were diverse (e.g. different gender, ages, cultural, ability, role etc.).
What did you discuss and agree on?
Attach proof of your stakeholder meeting (unless already viewed in person by your assessor).
Develop a Risk Management Plan
You must document and analyse at least five risks and treatment measures.
Also prioritise each risk and assign an order for treating risks.
Attach your plan to this section of your portfolio.

Draft an email to share your Risk Management Plan with stakeholders
Attach your draft email to this section of the portfolio.

Create a Mentoring Plan for one project Manager.
Attach your Mentoring Plan to this section of the portfolio.
Attach proof of your mentoring session to this section of the portfolio (unless already viewed in person by the assessor).

Section 2: Manage program risk

Draft an email to relevant program stakeholders requesting program updates
Attach your draft email to this section of the portfolio.
Summarise program progress
How have projects in the program progressed?
Identify at least two different variances to desired outcomes that have actuated risks.
Perform impact analysis for each identified variance
What is the impact of the variance over time?
How does the variance impact the program objectives?
What should be done to correct the impact of the variance (what remedial action is required)?
Request authorisation for the risk responses to be actioned
Attach your draft email to this section of the portfolio.
Respond to stakeholder responses to your request for a progress update by drafting an email
Attach your draft email to this section of the portfolio.
Initiate a risk response for each variance
Action the authorised remedial actions.
Attach proof of how you initiated a risk response for each variance.
Attach proof of your updated Risk Management Plan.

Section 3: Evaluate risk management processes

Seek feedback about risk management outcomes from program stakeholdersby creating a survey
Attach your survey to this section of your portfolio.
Analyse program outcomes
What was achieved?
Were the objectives met?
What went wrong?
What was successful?
Evaluate the overall risk management process
Make sure you answer from your own personal experience during this assessment.
Was it easy or difficult to identify risks?
Was staff input (at the meeting) helpful?
How confident are you that all program risks have been identified?
Consider whether the process indicated in the current Risk Management Policy and Procedures is sufficient to guide the risk management process for program management. Explain why or why not.
Explain whether the principles of risk management in the risk management policy and procedure is consistent with AS/NZS ISO31000:2009 Risk Management Principles and Guidance.
What changes would you recommend to the risk management process and to assist program management outcomes and lessons learned for other programs?
What lesson have you learned for future risk management?
Update Project management Plan to document residual risk
What residual risk exists (at least one)?
Add review comments to the plan to document lessons learned.
Highlight any changes.
Attach your updated Project management Plan to this section of the portfolio.
Draft an email to respond to feedback, document risk-management outcomes and transfer liability for the risk
Attach the draft email to this section of the portfolio.