BSBRSK501 Manage Risk - Assessment 3

This document explains the purpose of current risk standards, key elements of risk management, legislative obligations, organizational policies and procedures, likelihood of risks occurring, and benefits of risk management. It also discusses the people involved in the risk management process and the support required for risk management activities.

BRBRSK501 MANAGE RISK
MANAGE RISK
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2/20/2019
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Assessment 3
Question 1.
The purpose of current risk standards is:
 To identify the risk categories and sources to the project;
 To define the parameters, that are used to evaluate, prioritizing and categorizing risks;
 To established and maintain the strategies to be used for the management of risk;
 To recognized and documented the risk;
 To evaluate the risk to assign relative significance to identified risks;
 To develop a risk mitigation plan for critical risk;
 To monitor risks and their status;
 To maintain and establish policies of organization for performing and planning the
process of management of risk;
 To plan for performing the process of management of risk;
 To give the responsibility and expert witness for executing the risk management process;
 To trained the people for associate the process of risk management;
 To recognized and consist of the significant stakeholders of the process of risk
management;
 To check status, activities and consequences of the process of risk management with
management of upper level and resolve issues.
Question 2.
Key elements:
1. Risk identification: A company risk identification process assess and prioritizes the risk
of a company, providing decisions makers the quality inputs to help them in formulation
of effective risk responses.
2. Sourcing of risk: Once the risks are identified, they are drawn to their source causes. If
the company know the risk drivers, it is easy to design metrics of risk and proactive risk
responses at the source.
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3. Risk evaluation: The company choose an appropriate responses of risk such as-
 Avoidance of risk
 Acceptance of risk
 Reduction of risk
 Sharing of risk
4. Risk mitigation: once the risk responses selected, the company recognizes any gaps in
risk management abilities and improve those abilities as significant to implement the
response of risk. The efficacy of mitigation of risk activities should be check or
monitored.
5. Risk monitoring: An information from web enabled technologies and Risk analytics helps
to support the creation of management of risk.
Question 3.
All people and companies are required to obey with applicable legislation to which they are
subject. This contains given laws, by laws and regulations. The Company requires determining
their legislative obligations. The following essential to be considered when applying for the
grants:
1. Privacy: it needs to be taken care of privacy act 1988, while setting Privacy of
information to safe the company from any occurrence of risk.
2. Anti-discrimination: the discrimination act 1992 in Australia, states that Anti-
discrimination is important while determining risks in context of legislative and
regulatory. Discriminations is based on age, sex, race, etc.
3. Equal opportunity: Equal opportunity act 2010 are applied in the companies of Australia
in which equal opportunities are given to the staff of the company so that can-not become
a risk for an organization in future.
4. Environment protection: the environment protection and biodiversity conservation act
1999 needed to be applied by the companies. For this purpose various schemes they have
launched to protect environment from their business activities.
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5. Health and safety: there is no regulation and enforcement of WHS legislation. They leads
the development of national policy across the Australia to promote the safety and health
of every employee.
Question 4.
Organizational policies and procedures:
 Establish a set of guiding principles for the employee to reduce risks related with
their jobs.
 Provide right equipment for safely do the job and to keep equipment in safe
working condition and trained employees to take risks at work.
 Implement emergency services and instruct every employee in the safety
measures.
Organization process:
 Identify the risk
 Analysis the identified risk
 Evaluate the risk after analyzing such risks
 Control or Mitigate the risk after evaluation of risk in an organization.
Question 5.
The information, which is required to review:
 Identify the hazards when preparing to conduct risk management: To identify hazards at
workplace a person need to take a walk through their workplace. Few hazards are easy to
identify but some hazards needs help from professionals or expert outside the business.
 Decisions made regarding who could be injured or harmed and in what manner: The
decision is made regarding groups who are affected by the hazards and risks that they
recognized in their search. Woolworths provides some group’s examples that could be
affected by hazards: people who are not in the company every day, the members of the
public and several types of employees in the workplace ( Hillson, and Murray, 2017).
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 Establishment of measures to control the risks: The Woolworths establishes the Measures
to control risks by using various tools and techniques. They first identify the way how
the risk is managed at current and what further steps might be essential to overcome the
risks distinguished by law. They take advice from the best leaders in practice in their
similar industries for gathering the solutions.
 Reporting of findings and proposed solutions: They record those findings of their
assessment and inform those findings at risks of the control. For this, they provide
additional training regarding changes in procedures, policies and process. They also
provide sessions to staffs to remember those staffs that they have the accountabilities in
ensuring a safety at organization (Haimes, 2016).
 Reviewing assessment of risk: The variations are taking place in the company in order to
continue current with procedures and policies. As these variations take place in the
company, it is essential to measure those areas when executed into their company to
lessen the risks (Aven, 2015).
Question 6.
The people who are involved in the risk management process are internal stakeholders and
external stakeholders-
Internal stakeholders such as:
1. Board members
2. Staff
3. Students
4. Volunteers
External stakeholders such as:
1. Partners and community
2. Clients
1. Consultants/contractor
2. Funding bodies
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Question 7.
The support for risk management activities is obtained from the directly responsible persons such
as senior managers, department heads and deans. Risk management is the responsibility or
obligation for all the employees in the Woolworths group limited. Internal as well as external
audit is responsible for an assessment of risk in the organization. The company for assisting in
procurement of mitigation mechanisms provides the group of risk management (Grey, 2009).
Good communication is important for any effective strategy of risk management. The people
who are invited for the risk management such as senior manager, department heads of the
company must be communicated the process of managing risk. The Woolworths group before
taking any decision related to management of risk communicates to its members, shareholders
and responsible persons of the company. Those responsible people help in identifying risk of the
company, assessing those risks for evaluation and try to control the risks in an effective manner.
For identification, they participate in the process of decision-making regarding how to evaluate
risk and how it affect the company and its operations (Engle, 2009).
Question 8.
The likelihood of risks occurring is access by assessing the probability of each risk occurring and
assign it a rating. This is a simplest mechanism to enhance visibility of risks and helps in
decision-making process of management.
Following are the schemes to access the likelihood of risks occurring:
 Chance of occurrence: It express the likelihood that an occurrence of risk as probability.
Probability is lie between 0 and 1. The number 0.0 state that situation will not happen and
1.0 state that I will definitely happen. Probability can also expressed in the form of
percentage.
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 Class ranking such as high, low and medium: Classification of risk into different
categories represents the probability. For classification, following words can be used such
as low, medium, high, often, always, sometimes, never and rarely.
 Ordinal grading such likely to occur, most likely to occur situation: the risk is ordered in
such a way that the first risk most likely to occur and second one next likely to occur and
so on.
 Relative likelihood of occurrence: if company has two possible risks, they can express
those risk in such a way that how much more likely one is occur than the other one.
Question 9.
The implemented action plan is essential to check its progress. When the plan has been executed,
it is require evaluating the accomplishment of the solution. Checking the plan assist in ensuring
that the solution is being executed as expected. It is require to know whether the strategies are
effective or not. Monitoring the action plan helps in providing the consolidated source of
information that showcase the progress of project ( Kaplan, and Mikes, 2012).
Monitoring of implemented action plans helps in improving the performance and achieves
results. It provided required data to guide tactical planning, to design and implement projects and
programs to allocate, and reallocate resources in well-known ways. The monitoring of
implemented action plan also important for determining what changes should be made and what
changes should not be made in the organization or company.
Question 10.
Benefits:
1. Identification of risk: it assist in encouraging awareness in period of regimentation and
serene at the emergency times (Tchankova, 2009).
2. Assessment of risk: it emphasizes on task identification on supporting the effect of
projects or business. This stage emphasis on the thinking or suggestions that are
discussed between the stakeholders.
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3. Risk treatment: it helps in considering individual’s own risks that are the subsection of
carry out a plan. It has in-house adherence that are carried and decrease towards the taken
actions
4. Risk minimization: it allows individual to speed up the data or information to alter
guidelines and likelihoods that are prepared effective within the planned functions of
business.
5. Risk awareness: it allows one to think on the treatments of risk within the lessons learnt
and are arranged into absence of preparation.
6. Time and cost saving: it threats to the task that is completed over the tasks and the other
strategies of business (Deloach, 2018).
In addition, the developed risk management plans are need to be communicated to board
members or seniors members, department heads and deans who review these activities of
risk management.
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References
Aven, T. (2015). Risk assessment and risk management: review of recent advances on their
foundation. Operational research, 253(1), pp. 1-13.
Bromiley, P., Mcshane, M., Nair A. and Rustambekov, E. (2015). Enterprise risk management:
review, critique, and research directions. Long range planning, 48(4), pp. 265-276.
Deloach, J. (2018). Key elements of the risk management process. [Online] Available from:
https://www.corporatecomplianceinsights.com/key-elements-of-the-risk-management-process/
[Accessed 25.02.2019]
Engle, R. (2009). Anticipating correlaions: A new paradigm for risk management. N.J.:
Princeton University Press.
Grey, S. (2009). Practical risk assessmet for project management. New York: John Wiley &
Sons.
Haimes, Y. (2016). Risk modelling, assessment, and management. N.J.: Wiley.
Hillson, D. and Murray, R. (2017). Understanding and managing risk attitude. London:
routledge.
Kaplan, R. and Mikes, A. (2012). Managing risks: A new framework. [Online] Available from:
https://hbr.org/2012/06/managing-risks-a-new-framework [Accessed 25.02.2019]
Tchankova, L. (2009). Risk identification- basic stage in risk management. Environmental
management and health, 13(3), pp. 290-297.
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