BSBRSK401 Identify Risk and Apply Risk Management Processes

This assessment guide provides instructions and strategies for assessing competency in BSBRSK401 Identify Risk and Apply Risk Management Processes. It covers topics such as risk management, risk identification tools, and internal and external risks. The guide also includes information on customizing assessments and submitting completed assessments.

BSBRSK401 IDENTIFY RISK AND APPLY RISK
MANAGEMENT PROCESSES
ASSESSMENT GUIDE

ASSESSMENT INSTRUCTIONS FOR THE STUDENT
ASSESSMENT BY COMPLETING QUESTIONS WITHIN THIS BOOK:
This booklet contains assessment questions and tasks which will allow you to provide evidence
toward gaining this qualification. If you have been able to demonstrate competence through
recognition for any unit(s) then your Trainer will advise of which questions for that particular
unit(s) that you will not need to complete.
ASSESSMENT STRATEGY
Assessment Tasks to establish competency in this unit may include: self-assessment exercises;
workplace scenarios; workplace tasks; questioning (explanation); questioning (analysis);
questioning (description); case study; self-performance analysis; self-reflection/observation
with checklists; reports; diary/journal; research projects; scenarios -problem solving ; plans;
and multiple choice.
DEMONSTRATING COMPETENCY
To demonstrate competence you must complete all assessment tasks. Each task is linked to
specific competency element/s or critical aspects of assessment.
CUSTOMISING ASSESSMENTS
Students may negotiate to customise assessment tasks to meet their individual needs in relation
to workplace setting, interests, learning style, literacy or cultural background. The original
integrity of the assessment must be maintained.
ASSESSMENT TASK LENGTH
Where space/lines have been provided for addressing an assessment task, the Student should be
guided as to the length of their answer by the space provided. If more space/lines are required,
the Student should attach a separate page containing their name and with the assessment task
number clearly indicated. Where no space/lines have been provided, the Student should
complete the answer on a separate page and attach it to the assessment containing their name
and with the assessment task number clearly indicated.
ASSESSMENT
When you have completed all assessment tasks, complete the information at the front of the
booklet and submit it to your trainer. Your trainer will provide you with feedback and you will
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

be assessed as Competent or Not Yet Competent in this unit. If you are assessed as Not Yet
Competent you will have an opportunity to be reassessed.
WORKPLACE OBSERVATION ASSESSMENT
As part of your assessment for this course, there may be a need for your Trainer to come and
observe you demonstrating skills in the workplace that reflect elements and criteria of this
course. If this is the case, your Trainer will advise you of this requirement and organise a time
with you to conduct this observation.
THIRD PARTY SUPERVISOR SKILLS OBSERVATION
As part of your assessment for this course, there may be a need for your supervisor to document
their observations of the skills that you have demonstrated in the workplace relevant to your
qualification. If this is the case, there will be a copy of this document contained in your Student
Assessment Booklet. It is your responsibility during work placement or at other times at your
workplace to ensure that your supervisor completes the Third Party Supervisor Skills
Observation checklist prior to submission to your Trainer.
SUBMISSION OF ASSESSMENT
How to lodge assessments:
Presentation of any written assessments is important. Remember you are trying to convince
your assessor of your competency. Your written assessment or recognition portfolio should:
 Be typed or handwritten (legibly)
 Have an assessment cover page
 Have a contents list (if appropriate)
 Have headings (if appropriate
 Give clear references (if external information sources are used)
Assessments should be provided stapled or clipped – not in a plastic sleeve or presentation
folder (even though these look professional) as we cannot undertake to return all your
assessments – all assessment items are retained for audit purposes as part of our quality
assurance commitment. Appropriate feedback on your work will be provided back to you.
For the above reasons it is also important to keep a copy of your assessments in case they are
lost in transit. All assessments tasks arriving with a completed email address on the cover
sheet will be acknowledged on the day of receipt.
WRITTEN WORK
Assessment projects are common assessment items used to measure a participants
understanding. A good project should:
 Have your name on each part of the project
 Use a numbering system for referencing to attachments (and clearly label attachments)
 Focus on the set tasks

 Show that you have researched the topic thoroughly
 Cover the topic in a logical and structured manner
 Be written in simple, clear language
 Be well presented with correct grammar, punctuation and referencing (if appropriate)
PLAGIARISM
Plagiarism is a form of cheating. It is taking and using someone else’s thoughts, writings or
inventions and representing them as your own. Plagiarism is a serious act and may result in a
participant’s exclusion from a module or a course. When you have any doubts about including
the work of other authors in your assessments, please consult with your facilitator. The
following list outlines some of the activities for which a participant can be accused of plagiarism:
 Presenting any work by another individual as one’s own unintentionally
 Handing in assessments markedly similar to or copied from another Student
 Presenting the work of another individual or group as their own work.
 Handing up assessments without the adequate acknowledgement of sources used, including
assessments taken totally or in part from the internet.
WHAT ABOUT COPYRIGHT?
You must be careful when copying the work of others. The owner of the material may take legal
action against you if the owner’s copyright has been infringed.
You are allowed to do a certain amount of copying for research or study purposes. Generally,
10% or one chapter of a book is acceptable, where the participant is studying with or employed
by an educational institution.
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
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ASSESSMENT COVER SHEET
Assessment Cover Sheet
Student’s name: USI
Assessors Name: Date
Submitted:
The following questions are to be completed by the assessor:
Is the Student ready for assessment? Yes No
Has the assessment process been explained? Yes No
Does the Student understand which evidence is to be collected and
how? Yes No
Have the Student’s rights and the appeal system been fully explained? Yes No
Have you discussed any special needs to be considered during
assessment? Yes No
The following documents must be completed and attached:
Written Activity and Checklist
The student will complete the written activity provided to them by the
assessor. The Written Activity Checklist will be completed by the
assessor.
S NYS
Observation / Demonstration and Checklist
The student will demonstrate a range of skills and the assessor will
observe where appropriate to the unit. The Observation Checklist will
be completed by the assessor.
S NYS
 Questions and Questions Checklist
The student will answer a range of questions either verbally or written.
The Questioning Checklist will be completed by the assessor.
S NYS
Student Declaration
I agree to undertake assessment in the knowledge that information gathered will only be used for
professional development purposes and can only be accessed by the RTO

I declare that:
 The material I have submitted is my own work;
 I have kept a copy of all relevant notes and reference material that I used in the production
of my work;
 I have given references for all sources of information that are not my own, including the words,
ideas and images of others.
Student Signature: Date:
Result and Feedback
Feedback to Student:
Overall Outcome Competent Not yet Competent
Assessor
Signature: Date:
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

ASSESSMENT CONDITIONS
Assessment must be conducted in a safe environment where evidence gathered demonstrates
consistent performance of typical activities experienced in the regulation, licensing and risk -
risk management field of work and include access to:
 relevant legislation, regulations, standards and codes
 relevant workplace documentation and resources
 case studies and, where possible, real situations
 interaction with others.
 Assessors must satisfy NVR/AQTF Assessor requirements

QUESTIONING
Briefly answer the questions below in the spaces provided.
MULTIPLE CHOICE Circle the correct answer.
TRUE OR FALSE Circle the correct answer.
1. Explain what is meant by risk management
It refers that the identification of the potential risks in advance and analyze them and taking
precautionary steps to reduce the risks in advance. These risks occur from the wide variety of
sources like financial uncertainty, legal obligations, management errors, accidents and natural
disasters. It involves the understanding of the risks that are exists at every functional
department of the company that needs to be managed by the companies to accomplish the
objectives. The presence of risks in every field or sector and that needs to be managed by the
professionals.
2. Risks can be identified in many different contexts depending on the work situation, local
industry and regions. List three (3) contexts where risks may need to be managed in the
workplace:
There are three types of risk that needs to be managed by the company at workplace to protect
the interest of the company and accomplish the long and short term objectives.
Health and Safety Risk: In companies, it is important for the management to protect the
interest of the employees to accomplish the strategic objectives. In this concern, it is
important for the management to provide the safe and sound environment to the workers so
that they can effectively work for the company in the long run. In this regard, the company
needs to manage the risk related to the accidents, injury, harassment and bullying at the
workplace needs to be managed by adhering the legislations and policies so that people can
effectively work and generate productive results. It is important for the management to
manage or overcome these types of risks at workplace by implementing WHS laws at
workplace and worker compensation insurance.
Uncertainty Based Risks: It arises from unexpected events or situations. It is hard to predict
these events and the damage they can cause. It is very difficult to control the event once the
risk is occur. These types of risks include like damage by fire flood and other natural
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

calamities, unexpected financial loss to the company due to economic downturn or
bankruptcy of business, and loss of important customers or suppliers. To reduce these risks at
workplace the company needs to develop an emergency action plan that reduces the damage
in an emergency. Moreover, the company needs to update supplier data base and maintain
good relationship with your clients.
Opportunity based risks: This type of risks related to the selecting of one opportunity over
others. The company spend all resources to one opportunity arise the risk of missing a better
opportunity and getting unexpected results. Opportunity based risks in a business includes a
movement of business to different location like buying a property and selling a new product
or service.
3. Complete the following sentence.
Your risk management treatments will need to be effective
and planned
4. Give three (3) risk identification tools:
1) Risk Register: It is the standard document that needs to be update by the company on daily
basis in the overall lifecycle of the project. It becomes the part of the project documents and
included in the historical records that are used for future projects. It includes
Risks List
Potential responses
Root cause analysis
To update the categories of risks
2) Matrix related to the probability and influence: Matrix helps the management to
identify the severity of the risks for the appropriate action plan. It can be modified or
customized according to the requirements of the project. The companies use the standardized
template to repeat in each project.

3) Delphi technique: In this method the team of experts is involved in the risks to analyze or
solve the problem. A list needs to sent to the experts, responses are compiled and results are
sent back to them for further process until the results are derived.
5. Explain the difference between an internal risk and an external risk:
Internal risks refers that the management faced the risks within the company and it is related
to the normal operations of the company. These risks are can be forecasted with some
reliability and therefore company has the good opportunity to reduce the risks. Internal risks
are employees’ conflicts, union strikes, outdated technological systems and loss of company’s
assets.
Similarly, External risks refers that the factors influence the business due to sudden changes
in the external environment like economic risks, natural risks, political risks and so on that
cannot be controlled by the company. External risks includes changing market conditions or
economic downturn, natural calamities that influence the normal operations of the business
and political risks like change in political environment like interest rates, laws and other
tariffs that influence the business negatively.
6. Give two (2) risks that Gail could potentially plan for:
Internal risks include employees’ conflicts and technological systems risks needs to be plan
by the Gail to ensure smooth running of its operations. Employees conflicts hamper the
productivity of the system and it creates the bad culture at the workplace so the Gail needs to
effectively plan for these type of risk through attractive incentive plan and good leadership
policies that understand and manage the employees in significant manner.
Secondly, external risks that needs to be plan by the Gail to reduce the influence on its
business or company. External risks related to the sudden economic downturn that creates the
crisis in the business and fall in the revenue affects the productivity and performance of the
business in the long run. To combat this risk, the Gail needs to make a strong financial risk
management plan that helps the Gail in these types of situations.
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
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7. Identified risks do not have to be documented, just noticing them is enough.
To identify the risks and needs to be documented properly as it is the critical part of the
company so only notice the identified risks does not provides any solutions to the
management. Documented risks provide the written confirmation to the company or
management regarding the nature of risks severity. Moreover, it is also supports the company
to frame strategic objectives in the long run and it can be communicated easily in concern
department to address the risks effectively. Only noticing and observation of risks is not
enough to combat the risk in an appropriate manner. Documentation is the evidence and that
can be updated at every level of the risk in the project to minimize the risk occurrence
incidents in the long run. So it is important for the company or management to make
document of each risks in the project to recognize the nature of the risks that is helpful to
reduce its impact on project.
8. Explain the definition of a stakeholder, and who that may include.
Stakeholders are the important persons in the company they have the special interest in the
company’s affairs. The stakeholders refers that they have the certain share or part in the
company’s matters or they are directly or indirectly related to the company. They are
benefited from the company’s decisions and policies and they have the particular stake in the
company. The stakeholders are anybody who are affected by the company’s strategy or
project. The stakeholders are external and internal and they can be present at senior and junior
levels. In company there are different types of stakeholders like internal and external
stakeholders. Internal stakeholders are like employees, owners, investors and board of
directors. Similarly, external stakeholders are those who outside the company it includes
customers, suppliers, creditors, communities, government, partners, society and NGO’s.
9. Explain how you would consult relevant stakeholders.
Stakeholder consultation involves different methods like qualitative and quantitative analysis
of the study of the particular project in a deeply manner. In qualitative analysis the company’s
senior management openly discusses or debate on the particular project to identify the views
and concerns of the stakeholders. The management used the focus group methods, interview
method and observational methods. Focus group methods select the particular group of
persons or organizations who deal in the particular project that can be consult by the
management. Similarly, interviews and observations are the best method to identify the
interest of the stakeholders regarding the project. Moreover, deep consultation method

requires the large number of people and select more appropriate measurement techniques.
Quantitative methods like surveys, e-surveys, short interviews and so on. This method of
consultation targets the larger audience on the basis of closed ended questions and rating
parameters. The collected data is analyzed on the basis of statistical analysis and numerical
figures.
10. List five (5) relevant stakeholders who may need to be consulted when analysing and
documenting risks:
Consultation with key stakeholders is an important task in the company. Key stakeholders can
make or break the success of the project in the company if all objectives are met. If the key
stakeholders are not happy or satisfied then nobody is satisfied. All the stakeholders are
important but there are five key stakeholders who are very important in any company that
needs to be consulted when analyze and document the risks. It can be listed are as follows.
Owners: They are the whole and sole of the company and it is important to consult when
analyze and document risks
Employees: They are also important assets for the company so it is important for the
company to effectively communicate to their employees while analyze and document risks.
Without informing them is not possible to successfully execute the plan in an effective
manner.
Government: Is the leading and relevant stakeholders to give green signal to the company’s
policies and projects. So it is important to show the risk involved in the project before
document and analyze the risks.
Investors: They are also an important part of the company to grasp new projects and
investments in the company to increase its profitability. So it is important for the company to
create transparency in the project while document or analyze any risks.
Suppliers: To maintain good relationship with suppliers it is mandatory to share every
benefit, loss and risks to the suppliers. The management also needs to consult with suppliers
regarding any type of risk needs to be analyze and documented.
11. Once risks have been identified they need to be categorised to determine their level of risk.
List the five (5) levels that you can rate the likelihood of a risk eventuating:
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
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Risk analysis is very important in project it gives the idea to the company or management
regarding the like hood, severity and occurrence of risks at every stage of the project. To
analyze the severity and like hood of the risks the project mangers used various techniques
like risk matrix techniques, probability matrix and table analysis so that the risk can be
categorized in an appropriate manner. There are five levels where the risk can be categorized
generally by the project managers by indicating the numeric and other values like “1”
indicates “no risk”,”2” indicates “Minor”,3 indicates “Moderate”,4 indicates “High” and 5
indicates “very high”. So these are the ratings or parameters to evaluate the risks in an
appropriate manner.
12. Explain why it is important to prioritise and determine the level of risk.
Risk assessment is an important method that analyzes the severity and its influence on project.
It is important for the project to accomplish the objectives at each functional level. Risk
analysis and categorization gives the idea to the management to prioritize and arrange the
risks in chronological order and supports to take decisions and action plan. It is also beneficial
for the company to provide timely update to the team so that they can easily implement or
make the strategic action plans to mitigate or minimize the risk at each level. To rank the
identified risks in an orderly manner by consider the consequences and probability of each
risk. Companies assess the probability and consequences with the strategic plan to determine
the risks that affect the objectives and assess in respect of legal requirements, stakeholders
concerns and costs. On the basis of the evaluation of risks the companies takes the decisions
to avoid, transfer and mitigate the risks in an orderly manner.
13. True or false. Circle the correct answer.
An overall risk rating is determined by multiplying impact by likelihood.
True
14. Give five (5) main treatment strategies in how to approach and handle risks.
There are majorly five strategies that are helpful to handle or treat the risks in an orderly
manner that is discussed below.

1) Identification of risks – In the first step, it is necessary for the company to analyze the
operating environment of the business. There are various types of risk like market risk,
environmental risk, legal risks, regulatory risks and so on. It is important for the company to
identify as many as factors. If the company has the appropriate solution then company needs
to employed all the relevant information or data into the system. To do this it is beneficial for
the company to visible to the every stake holders to access into the system.
2) Risk analysis: Once the risk has been identified the second step is chosen by the company
is to analyze it properly. The scope of the risk is determined and it is the important apart for
the company to understand the link between the risk and different factors within the company.
The company assesses the severity and seriousness of the risk it is important to see how many
business functions influence the risk affects.
3) To give the ranking to the risk: In the third step, the companies’ management prioritizes
the risks according to the severity level of the risks. The risk that creates some inconvenience
is rated as low in the matrix or table. Similarly, risks that lead to result in catastrophic loss are
considered highest. It is important for the company to rank or prioritize the risks because it
allows the holistic view to the company regarding overall risk exposure.
15. Complete the following sentence.
Controls are the qualitative, quantitative and
Comprehensive method used to treat, or manage, risks.
16. List some of the strengths and weaknesses of choosing your control measure types.
There are three different methods that is selected by the company to measure and control the
risks. These three methods are qualitative risk control measure, quantitative risk control
measure and comprehensive risk control measure. Below given are the three risk control
measures with its key strengths and weaknesses given below.
Strengths and weaknesses of risk control measure types
Qualitative risk analysis (Strengths)
 It is easy to present like the results of the qualitative risk analysis can be used
graphically using risk assessment matrix. The project manager can easily
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

communicate the risk to the management with the help of the matrix to its team
members or senior management.
 It is simple method and it does not require any hardcore training to conduct the
qualitative risk analysis as it does not depend upon the software and tools. So the
simple method can easily understandable by the management to control the risk
measure types.
Weaknesses
 It does not give the probability and results using numerical information so that it is
difficult to control where the nature of risk is deal in numerical figures.
 Cost benefit analysis is not determined effectively while selection of control measures.
Quantitative Risk Analysis (Strengths)
It gives the idea to the management regarding cost and benefits of the project while selection
of control measure.
It gives the accurate results of the risk.
It also gives the idea to the management regarding the results that are occurred while selecting
the particular risk strategy or control measure in quantitative manner.
Weaknesses
It is majorly reliable on accuracy and scope of the define measurement scale. The dependency
of the measurement scale can be vary if the scope and accuracy is not accurate.
The results of the analysis are the confusing and not exact so that it will create the chances of
conflicts in the management.
The methods and techniques used in this control measure demand high experience, more
expensive and need advanced tools to control the risks.
The dependency on mathematical method is high in this method so it is not possible
sometimes to collect the appropriate data all the times.
Comprehensive method (Strengths)
The main advantage of this risk control measure as it is the combination of the subjective and
objective methods so that the scope of the risk and its problem solving techniques are broad.

The accuracy is high in this method. The management gets the accurate results from this risk
control measure.
Weaknesses
It is complex method as it requires the ample of time and money to collect the data and
identify the risk control measure from the particular risks that creates the confusion in the
company.
It is difficult to implement the method in the company due to mix approach.
It requires more data and information to assess the particular risk category.
17. Explain the risk audit method when monitoring risks.
Risk audit is the systematic examination or evaluation of risks of the effectiveness of risk
responses in dealing with the identified risks and their root causes as well as the effectiveness
of the risk management process. Project risk audit are performed by the external and internal
audit throughout the project to ensure that project stays on track and identified risks are in
control. The main purpose of the audit is to ensure the process is doing what is supposed to be
doing. The auditor checking for possible hazards and observe other similarly projects to see
how the team or employees are interact with the particular environment. Moreover, the
auditor also timely reviews the procedures and policies in the timely manner to ensure that the
risk is controlled and management plans execute accordingly. Lastly, they also interviewed
the key personnel in the company to ensure that they can work in a significant manner.
18. Multiple choice; Circle the correct answer.
Explain what you would do if you identify a risk that could have an impact beyond your own
work responsibilities and area of operation?
a) Continue working as you normally would
b) Call the emergency service
c) Refer the risks to others as per policies and procedures
d) Try to reduce the risk yourself
Option C
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
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19. Explain how you would ensure that you are detecting as many risks as possible.
To identify the risks in the company’s project or process is an important task for the
management to generate good revenue and smooth running of operations in the entire process.
As a manager or employee in the company I would use the systematic risk management
process to detect as many as possible risks into the process of the company to enhance the
growth of the company and smooth running of its operations. I would use the simple risk
management steps in the company that ensures me to detect as many risks in the company. It
includes risk identification, risk analysis, risk ranking, risk treatment and monitor and reviews
the risks in the company or management. Risk identification ensures me to recognize, uncover
and describe the risks that influence the outcomes of the project. With the help of the project
risk register methods it is easy to identify different risks in the project. Similarly, risk analysis
gives the idea to the severity and results of the risks in the company or project. On the basis of
the risk analysis method I would rank all the risks according to their priorities and complexity
level. On the basis of the rank I would decide if the identified risks are acceptable or it
requires the serious treatment. After that risk treatment method is used to mitigate, transfer,
avoid and accept on the basis of ranking. This process is helpful to analyze the number of
risks in the process in a systematic manner.
20. Give three (3) examples of the smaller organization golden rules.
Small organization three golden rules include they focus on the productivity so that they
provide training to its employees to generate maximum productivity and good customer
services skills. Secondly, they focus on their customers’ well they can effectively improve the
product and services to penetrate into the market and finding new ways and opportunities to
combat the risks in an appropriate manner. Lastly, small companies focus on the optimum
utilization of resources at bare minimum costs that would increase the profitability of the
company in a long run. For example, company specially focus on the customer service skills
in the hospitality or service industry to deliver better services to their clients with the help of
the good servicing and communication skills.
21. True or false? Circle the correct answer.
You mustn’t ensure all relevant areas of your organisation or business are aware of the risks
that may impact them.
True

22. Complete the following sentence.
A risk treatment method is a document defining how risk managed and
control are to be implemented to treat particular risks or risk events.
23. Multiple choice; Circle the correct answer.
At the completion of your project or business activity you will want to see all of your risks
closed in the risk register. Each risk must meet one of the following criteria to be closed:
a) The risk was successfully prevented from occurring
b) The risk did not occur
c) The risk occurred and was treated
d) All of the above
Option C
24. Explain why it is important to monitor and review your risk treatments for the lifecycle of the
project, and once they are complete.
It is important for the company or project management to review the risk treatments during
the entire project lifecycle to assess the authenticity of the project. It is very important for the
company or project management to monitor the risk methods due to control the risk at every
stage of the project. In absence of this it would hamper the cost, time and profitability of the
project in the long run. Risk treatment monitoring provides the assurance to the company’s
management to project operations is going in a smooth manner to accomplish the objectives.
Moreover, risk treatment methods provide the new decisions or strategies to the project to
handle the risk in different methods. Risk treatment monitoring helps the management to save
the project from uncertain occurrences in the future like natural calamities, economic
downturn and other calamities that influence the profitability and revenue of the company.
25. Explain a simple yet effective way of how you would review risk treatments.
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

The simple method of risk treatment method is to communicate with the seniors of the team
who handle the particular project like senior project managers, supervisors and managers on
timely basis. Communication is on daily basis regarding the problems and risks exists in the
project will mitigate significantly at very initial level. Discussions and team meetings with
members help to measure and monitor the risk treatment in an entire project lifecycle. From
this review method, it gives the idea to the management and team regarding the
implementation of various risk review techniques at each stage of the project lifecycle so that
it will helpful to take appropriate decision in the overall project lifecycle.
26. True or false? Circle the correct answer.
The person given responsibility for the risk treatment is also usually responsible for the
treatment monitoring and review. This person should not be responsible for communicating
the results of the review to the concerned stakeholders and other areas that could benefit from
this knowledge.
False
27. Explain two (2) steps to provide assistance to auditing risks in your own area of operation,
and explain how you would achieve this.
To audit the risks in timely manner is an important technique to mitigate or control the risk in
the overall operations in the company. In order to audit the risks in own area of operation, I
would analyze the major influential areas that majorly affects the company’s operations on
daily basis. I will thoroughly analyze the each and every task of my operations and identify
the possible risks on the risk register so that it can be updated on the daily basis. Secondly, I
would review the past implementation of the risks and their treatment methods so that it gives
the good idea or method to review the own areas of operation in significant manner.
28. Give three (3) primary purposes of monitoring and review
The first purpose of risk monitoring is to keep track of all the risks that occur. It is the detailed
evaluation or plan of all the risks that is store or record in the register to analyze and identified
by the management for the sake of effective strategy.
Second purpose of the risk monitoring is to evaluate the effectiveness or viability of the
responses that are implemented by the management or company in the overall project
lifecycle. It is important to evaluate the effectiveness of the implemented plans by the
management in timely manner that gives the idea to the company whether the company

implements the right risk treatment methods to save the cost and time of the project in the
future.
The third purpose of the risk monitoring and review is to ascertain whether the proper policies
are follow or not in the company. It is also important to identify the nature of policies that are
changes according to the nature of risks so that is important to monitor and review the policies
in a timely manner.
29. Give five (5) questions you could ask yourself to complete the risk management review.
It is important to ask relevant questions to yourself before complete the risk management
review. It helps the company or management to review the plan in an appropriate manner.
Below given are the important questions that could ask yourself to complete the risk
management review.
-What are the company’s top risks and their severity level that impact the level of the project?
-How effective is the company to manage the top risks?
-What are the tools and techniques that are used by the company to address or plan for the
particular identified risks?
-Is the company is ready to respond to critical situations?
-What are the major problems and challenges that are repeatedly exists in the project of the
company?
30. Describe how you would comprehend documents and texts of varying complexity to extract
and analyse relevant information.
To extract the relevant information from the documents from the company’s software with the
permission of the senior management levels and extract from the folders and files of the
different department management systems and analyze it properly. I will take the help from
the different employees of the team members to comprehend and understand the information
gathered from the documents and understand with the help of the different project
management software and converters to analyze it properly.
BSBRSK401 Identify risk and apply risk management processes
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31. Explain how you would use specific, industry related terminology and logical organisational
structure in the workplace documents that identify and analyse risk and report management
process outcomes.
I would mention the terminologies and codes communicated in the different functional
departments of the organisational structures so that any functional department can access the
terminologies and codes to identify the relevant information regarding risks and implement
suitable action to minimise the impact of risk in the company. I would store the relevant
material and documents into the appropriate systems that can easily analysed by the all levels
of management for their reporting purpose. I would categorised the coding of different
documents according to the functional departments like marketing, production and finance
and operations and store at on the central server so anybody can access into the ERP to easily
generate the information.
32. How would you participate effectively in interactions with stakeholders by using questioning
and listening to elicit opinions and clarify understanding?
It is important for any company or project management to communicate with their
stakeholders in the timely manner. To do this, I would attend the meetings with stakeholders
on timely bass and I would repso0nd to their queries through different communication
channels like electronic and non electronic channels and hear their concerns in sincere
manner. After hear their views of the stakeholders I would write down all the key important
points of the stakeholders in precise manner that would help me to find the solutions of their
problems. Moreover, I would create the transparency between the stakeholders and me
regarding any questions problems and opportunities face by the company so that it would
create the mutual trust and understanding between them.
33. Explain how you would use numerical tools to assess risk and use numerical data to review
plans
I would give the highest ratings or data to the risks which are critical in nature in the form of
numerical scale in the table. In the same manner, I would number the numerical data which is
low in value that indicates the low influence of risk on the project. So on the basis of the
numeric figures or data once can assess the impact of risks in significant manner. I would use

the software like SPSS and Excel to represent the risk categories in the form of numerical
information to review the plan. Moreover, I will use the pie charts and diagrams to give the
exact and clear picture to the management to review it significantly.
34.
a) Why is it necessary to comply with organisational and legislative requirements?
It is important to comply with the organizational and legislative requirements to protect the
interest of the internal and external stakeholders. Moreover, guidelines and policies helps the
management to protect from any false claims and litigations arise in future due to any
mishappenings. It acts as an evident for the company to protect their assets and reputation in
the market. It is the guidelines that create the procedure for the company’s management to
combat any type of risks in the future. It also protects from any unnatural incidents on
workplace while the employees comply with organizational and legislative requirements.
b) Describe how would you take responsibility for identification and management of risk
within your own work context and refer matters to others as required?
I would always take responsibility in my work through the approval of my senior persons in
the project. I would show my skills and capabilities in front of the seniors and provides the
fruitful solution to identify and manage the risks in the project. I would analyze my work in a
timely manner so that the risks can be managed effectively. Moreover, I would personally
meet with the stakeholders and give the relevant information to them regarding the risks
management techniques and methods that affect the project outcomes. I would give the
solutions to other departments if I would find the relevant strategies and options that combat
the risk significantly.
35. How would you select appropriate communication protocols and conventions when
conferring with others to establish risk management requirements?
I would aware internal and external stakeholders regarding the risk management requirements
through internal and external communication methods. Internal communication methods
includes the office messengers, chat box and office communication devices that needs to be
use to communicate with the employees and top leadership in the company through standard
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
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RTO 21683

policies and protocols like appropriate reporting structures and hierarchy level. Similarly, for
external stakeholders i would create the special online page for their enquiries and concerns
that can be handled by the company’s management. So in this manner the particular protocol
is developed that are helpful to establish risk management requirements successfully.

PORTFOLIO COVER SHEET
Student’s Name:
BSBRSK401 -Identify risk and apply risk management processes
I declare this evidence to have been produced by the undersigned:
Student’s Signature: Date submitted:
Portfolio evidence presented:
Outcomes from learning programs (including self-learning and online learning)
Assessment feedback (from a trainer or assessor)
Observation checklists (from a workplace supervisor or assessor)
Written assessments or references (including workplace supervisors, community leaders)
Third party reports
Work journals
Finished products
Product description or specifications (supporting the product samples included)
Other evidence (list each piece)
All Students:
 Completion of self-paced learning materials and trainer feedback form a part of the assessments
for this unit.
 Completed observation checklists from a workbook supervisor or assessor form a part of your
assessment for this unit and must be included in your portfolio.
 Product descriptions or specifications for all products used during are required as a part of
assessment for this unit and must be included in your portfolio.
Assessor to complete: PLEASE CIRCLE ANSWER
Portfolio evidence is: VALID SUFFICIENT AUTHENTIC CURRENT
Assessor Signature Date:
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

PORTFOLIO INSTRUCTIONS
Student’s Name:
Unique Student
Identifier (USI):
Unit: BSBRSK401 - Identify risk and apply risk management
processes
Assessor’s Name:
Training Package:
Workplace/simulated
workplace:
Date of assessment:
Portfolio Instructions:
ALL STUDENTS:
For you to be deemed competent in this unit of competency the following activity needs to be
satisfactorily completed and supporting evidence supplied at least once.
The case study below can be used to augment your delivery of the evidence required. Ensure
that your responses to the delivery of the evidence are in agreement with the performance
criteria for this unit of competency.
Case Study:
You are to assume the role of a loyal and long-term sales supervisor who manages a fun and
energetic sales team of six at a successful family owned stationery and office requirements
business. You have a wealth of experience and knowledge in the industry. It is your role to ensure
the sales team are actively and successfully seeking new business while maintaining their
existing clients and looking for ways on how to improve the services. Most of the customer
contact is made over the phone, with one sales representative on the road who visit’s clients.
The sales team reports back to you with this month’s customer feedback. It is obvious there is an
enormous growth in mistakes. A number of clients have complained about picking errors or not
receiving their deliveries at all.
Brian, the Director of the family business, is apprehensive that clients will abandon the company
and sales will decline. Both Brian and you know you have to take measures to ameliorate their
services.
You are required to record the processes and steps he/she would take to carry out this task by
working through the performance criteria listed for this unit.
You are to supply at least one example of evidence of the ability to:
relevant legislation, regulations, standards and codes
relevant workplace documentation and resources
case studies and, where possible, real situations

interaction with others
Below are the criteria required as evidence for your portfolio, make sure you clearly read and
define each point and include all relevant documentation in your portfolio.
Portfolio contents must be organised in a logical sequence.
The information you include in this portfolio should be typed and presented in a neat and tidy
manner.
Identify risks
The risks regarding workforce management, compensation management and customer
service management that will lead to loos for the company
Risk management matrix needs to be used to minimise the risks in the business so that it will
improve the business position
To implement labour law, Compensation law and health and safety law for the workers so
that they will motivate and focus on their work.
Analyse and evaluate risks
To analyse the different laws with internal stakeholders and ask for feedback or satisfaction to
reduce the inefficiencies in the business that impact the revenue of the business
To categorise the risk into different manner like unsatisfied customers, workers conflicts,
business loss and ineffective management
To analyse the process through internal and external audits, feedbacks from the customers
and employees and develop the strategic plan to improve the results in a business.
Treat risks
Timely audits and regular feedback from the customers and employees in significant
manner.the main strengths of this risk assessment is less time consuming, cost consuming and
simple method. Similarly, the main weakness of this method as it not provides the exact
results to the user.
There are different control measures like effective compensation management, workplace
safety methods and insurance are the major risk control measures that reduce the minimum
impact on business. In this scenario, the company needs to implement compensation
management act in the company and Insurance of Goods that will helps the business to
recover any loss made by the employees for their customers that is recoverable
Monitor and review effectiveness of risk treatment/s
In this step, the sales head needs to regular audit of the implemented risk management
strategies like compensation management, insurance and workforce compensation
management to reduce the ineffectiveness in the company. It can be measure through audit by
top management executives every month who cross check the details of the customers, orders
received and their feedback that will give the idea to the management to reduce the
inefficiencies in the system. After implementation of suitable strategies in company the
company audit and review the requirements in timely manner.
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

Resources required for Portfolio
Resources required like compliance policies, review of legislations like sale of goods act,
insurance act, Company act and worker compensation act. Moreover support from top
management and employees gives the idea to resolve the issue.

DIRECT OBSERVATION INSTRUCTIONS
Student’s Name:
Unique Student
Identifier (USI):
Unit: BSBRSK401 -Identify risk and apply risk management processes
Assessor’s Name:
Training Package:
Workplace/simulated
workplace:
Date of assessment:
ALL STUDENTS:
The Student is to demonstrate in the following role play at least one example of evidence of the
ability to:
identify risks
consult with relevant stakeholders to analyse and evaluate risks
identify and evaluate control measures
develop and implement treatment plans for own area or responsibility
refer risks that are beyond own area of responsibility to others
maintain risk management documentation.
Role Play:
You are to assume the role of an experienced customer service manager who controls a dynamic
team of 18 staff in a profitable corporation. It is your role to support and manage the team to carry
out eminent service.
The team reports back to you immediately with any negative consumer criticism. It is obvious there is
an enormous growth in mistakes. A number of clients have complained about receiving their
deliveries much later than advised and items missing from their orders.
The Head of the corporation is fearful that it may impact ongoing sales. You know you have to take
measures to ameliorate their service to ensure the client is at ease.
You are to conduct one role play to exhibit that you can identity and evaluate risks. The role play is to
be a meeting with stakeholders to rectify the cause of the issues and come up with a solution to
prevent ongoing risks. A colleague or class mate can play the role of this person and must be briefed
on the situation so he/she can act the role appropriately.
You will be required to check your progress with the trainer/ assessor at the completion of each
part of the assessment before commencing the next.
The trainer/ assessor will inform you of any significant errors or misjudgements throughout the
procedure and give valuable feedback to you for the rectification of the problem.
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

If the result of the assessment is that you are Not Yet Satisfactory, you may be required to retake
the assessment.
Identify risks
In this scenario the risk is related to loss of reputation of business. financial loss, goods theft by
the individuals in the business and so on. The management can use brain storming solutions,
interviewing and checklist analysis. The company can identify the risks and according to the
companies act, Insurance act, Sale of Goods act and compensation act.
Analyse and evaluate risks
The customer service manager discuss with internal and external stakeholders regarding various
types of risks and categorised the level of risks with the help of risk matrix to identify the impact
of risk in business and its stakeholders. To document the risks through brainstorming session
with employees so that the main problem can be identify by the manager for ineffective services.
Similarly, interviewing with employees and customers give the idea to the management in main
areas that will be helpful to measure the results behind inefficiencies in a company.
Treat risks
Control measures like audit of per delivery and record by the manager in ERP’s that will be
helpful to reduce the chances of late delivery and goods theft. Entry in ERP is helpful to
create a permanent record in the database and it is helpful for the company during audit. The
main weakness is as it requires training and it is costly software that increases the cost of the
company. The risks are related to financial loss and theft of goods impact the profitability nd
good will of the company. To control thes risk management needs to record each and evry
call or transaction in ERP’s
Monitor and review effectiveness of risk treatment/s
To monitor or audit the database of the sales in timely manner. Identify the sales graph and
compare with past month sales and find the discrepancies in the system. On the basis of
discrepancies the management needs to maintain checklist or data regarding the identified
risks in the company through regular visits at the workplace and check the compliance policy
followed by the company according to the data protection policy.
Resources required for Direct Observation
Resources required like compliance policies, review of legislations like sale of goods act,
insurance act, Company act and worker compensation act. Moreover support from top
management and employees gives the idea to resolve the issue.
THIRD PARTY OBSERVATION - CLIENT
Student’s Name:
Unique Student
Identifier (USI):

Name of Third
Party:
Unit: BSBRSK401 -Identify risk and apply risk management processes
Assessor’s Name:
Assessment Date:
Third Party Instructions: Please complete this form to give feedback about the performance of
the Student during the service that was provided to you today.
Information provided on this form is used for evaluation and assessment to determine the
competency of the Student.
This information is confidential and is not released to any external parties without your written
consent.
Please tickYes or No for the questions below: Yes No
relevant legislation, regulations, standards and codes
relevant workplace documentation and resources
case studies and, where possible, real situations
interaction with others
Comments:
BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683

STUDENT FEEDBACK FORM
Student’s Name:
Unique Student
Identifier (USI):
Unit: BSBRSK401 -Identify risk and apply risk management processes
Assessor’s Name:
Assessment Date:
Please provide us some feedback on your assessment process.
Information provided on this form is used for evaluation of our assessment systems and processes.
This information is confidential and is not released to any external parties without your written consent.
Please tick  Yes or No for the questions below: Yes No
Did you receive information about the assessment prior to the date?
Were the instructions to the assessment clear and easy to understand?
Did you understand the purpose of the assessment?
Were you advised of the performance criteria?
Were you advised of the process of the assessment?
Were there any surprises in your assessment?
Did you feel the assessment was fair?
Was your assessor professional?
Did you feel the assessment was accurate?
Were you comfortable with the outcome?
Did you receive feedback about your assessment?
If you answered no to any of the above questions are you aware of the appeals
process?
Comments:

BSBRSK401 Identify risk and apply risk management processes
Assessment Guide
Copyright © Mentor Education Pty Ltd
RTO 21683