Assessment Task 2.7 Part A.7 Part B13 Assessment Task 1 1. Definition of Risk according to the Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009)

MANAGEMENT
Management
Name of student
Name of University
Author note

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Table of contents
Assessment Task 1.....................................................................................................................2
Assessment Task 2.....................................................................................................................7
Part A.....................................................................................................................................7
Part B......................................................................................................................................9
Part C....................................................................................................................................11
Assessment 3............................................................................................................................14
Part A...................................................................................................................................14
Part B....................................................................................................................................15
References................................................................................................................................19

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Assessment Task 1
1. Definition of risk according to the Australia/New Zealand Standard for Risk
Management (AS/NZS ISO 31000:2009)
As identified in the Australian or New Zealand Standard for Risk management or
AS/NZS ISO 31000:2009, a risk is a probability or threat subjected to create damage or
harm, injury, loss or cause any other negative consequences. It is to be avoided at any
cost and through proper implementation of preemptive actions, which will ensure
probability of return on investments lower than the expected rate of return on investments
(Cardona 2013). The risk is also the possibility to lose something that can be of value,
furthermore include any kind of intentional interaction with chances of uncertainty. Risks
arise at all stages within the life cycle of business processes though it can create both
opportunities as well as threats, which requires proper management (Jones, George and
Langton 2013).
2. Defining the concepts of risk management
According to the Australian/New Zealand Risk Management Standard (AS/NZS ISO
31000:2009), the risk management is a set of coordinated activities that are required to
manage, control and direct the organisation considering the risks associated with it towards
the achievement of business goals and objectives.
The risk management enables forming a risk management infrastructure and culture
through application of logical and systematic risk management processes to the stages of life
cycle (Kerzner and Kerzner 2017). The risk management enabled the Council of Australia to
meet the strategic goals by aligning with the organizational policies.
3. Evaluating the 5 benefits of risk management technique

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Risk management technique  Risks are not apparent and can be
mitigated while the procedure of risk
management can also provide insight
and support to the Board of
Directors along with reduction of
business liabilities.
 It could give credit for cooperation,
furthermore allow to frame the
regulatory issues and deal with those
properly.
 A wide range of scopes and
opportunities is identified, which can
help in making effective decisions
and at the same time, combine the
internal transactions and market
related information for gaining an
overview of the risks (Saman et al.
2018).
 The resources are deployed easily
with risk management and it directly
impacts the organizational
infrastructure and culture on a
positive note.

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4. Major purpose of the AS/NZS ISO 31000: 2009 Risk Management Principles and
Guidelines
The purpose of AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines is
to deal with different types of risks, promote uniformity of risk management across all levels
of the origination. This is also effective for identifying the varying needs of the organization,
its goals and objectives, structure, operations, processes, products and services along with
assets and practices employed by the business organizations (Hopkin 2018). The purpose also
include harmonizing the process of managing risks and maintain good quality standards at
present and in future too by supporting various standards that are responsible for dealing with
the risks.
5. Discussion of 2 of the 11 principles of risk management based on the AS/NZS ISO
31000: 2009 Risk Management Principles and Guidelines
Among the 11 principles of risk management according to the AS/NZS ISO 31000: 2009
Risk Management Principles and Guidelines, the two most important principles considered
here are to become an integral part of the organizational processes and becoming a part of the
process of decision making too. The risk management could act as an important aspect of the
organizational process by integrating with the organization’s governance framework, which
can facilitate strategic planning at both the operational and strategic levels (Eschen et al.
2015). The risk management procedure also follows the principle of becoming a part of
decision making by making informed choices and identifying the priorities to undertake
suitable action.
6. Determining the three examples of potential impacts of risk

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Three major examples of potential impacts of risks are related to the quality of life,
health and safety and sustainability.
 Risks could affect the health and safety of organization and people as well,
thus deteriorating the lifestyle conditions and hindering any successful
processes. For example, an earthquake can cause risks of casualties.
 Quality of life can get deteriorated in case a house is being purchased without
considering the risk that the industrial properties nearby can pollute the air
surrounding the house (Burby et al. 2013).
 The risks could also affect the ecosystem and harm environment.
7. Various important steps for analysing risks
The risks are analysed with the risk management process and it includes various steps:
 Identification of risks
 Evaluation and ranking the risk according to its severity
 Treating the risks
 Monitor and review the risks
 Undertaking necessary actions for mitigating the risks through contingency plan
 Holding persons accountable for the risks
 Finally, execution of mitigation plan
8. The three major information sources used to gather information on potential
risks
The secondary sources ate basically useful for gathering information about risks associated
with many businesses while the primary sources are used including conduct of surveys for