Reference no: EM132321844

Manage Risk Assignment -

ASSESSMENT 1: WRITTEN QUESTIONS

Answer the following 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.

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.

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.

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).

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.

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.

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.

Note - Need assessment 2. Please do the assignment as an instructions given.

Attachment:- Assignment File.rar