Reference no: EM133026573

BSBRSK501 MANAGE RISKS 

Thinking about an international company like KFC

• You are required to prepare a risk management plan for a department or a project in a real or fictitious company (a simulated case) to show evidence that you understand the context of the organization, you can identify risks, analyze these risks, propose appropriate treatment(S) and monitor the treatment prescribed. 

Project Guide

1.1 Context/Scope - Set the scene

• Analyse the internal and external environment within which the organisation operates (internal environment: nature of the business, objectives, organizational structure and policies,   etc.; external environment: carry out a PESTEL analysis of the organization i.e. the main political, economic, social and technological factors etc that influence the organization)
• Clarify the scope of the Risk Management program - Will this exercise consider RM process for the whole organization/ / specific department or specific project?

1.2 Identification:

Identify the risks using a SWOT analysis

• Select a method of risk categorisation (a grouping of different sources).
• Identify the risks (15-30 risks)
• Fill in the risk management plan (identify the causes, consequences and controls already in place (for only 10 risks)
• For only one of the risks you use the fishbone (Cause-effect) diagram to identify the cause(s)

1.3 Analysing Risks

Refer to the criteria for analysing risks. Then proceed as follows:

1. Define a rating by impact criteria (3 ratings or 5 ratings....  You choose)  + describe
2. Define a rating by likelihood criteria ( x ratings) + describe the ratings
3. Decide about a matrix to combine the two criteria and end up with different levels of risks e.g  4x3 matrix; 5x5 matrix......... - for 3 or 4 or 5 levels of risk ( You choose)
4. Decide about the risk tolerance for the organization and show this in your matrix.
5. Construct an impact-likelihood table 

1.4 Treatment 

• For each risk identified, decide on the treatment option (accept, share, mitigate, avoid) and mention different possible countermeasures (as per the treatment option) to address the identified risks
• Select the preferred option(s) and justify on the basis of costs and benefits.
• Allocate responsibilities & assign a "due date" where appropriate.
• You can now present an enhanced version of the table you presented in the previous section so that you end up having a risk register.

1.5 Monitoring/Reviewing  

• Devise some appropriate performance standards to assess the effectiveness of the treatments (performance standards can be task-oriented or results-oriented) 

Decide about a monitoring frequency - weekly/monthly/quarterly /yearly basis (justify).