BSBRSK501 Manage Risk Learner Workbook | Southern Cross School of Business

This learner workbook provides an opportunity to review organisational processes, procedures and requirements for undertaking risk management in accordance with current risk management standards. It covers topics such as risk identification, analysis, treatment selection and implementation, and stakeholder identification.

BUSINESS MANAGEMENT
Name:
Institution:
Course Code:

Southern Cross School of Business
BSBRSK501
Manage risk
Learner Workbook
Table of Contents
Candidate Details...........................................................................................................................................3
Assessment – BSBRSK501: Manage risk.......................................................................................................3
Declaration.......................................................................................................................................................3
Competency Record to be completed by Assessor..........................................................................................5
Observation/Demonstration.........................................................................................................................6
Demonstration is off-the-job...........................................................................................................................6
Observation is on-the-job................................................................................................................................6
Activities.........................................................................................................................................................7
Activity 1.1.1 – 1.1.3.......................................................................................................................................7
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 2 of 36

Southern Cross School of Business
Activity 1.2.1 – 1.2.3.......................................................................................................................................9
Activity 1.3.1 – 1.3.4.....................................................................................................................................10
Activity 1.4.1.................................................................................................................................................12
Activity 1.5.1.................................................................................................................................................14
Activity 1.6.1 – 1.8.1.....................................................................................................................................15
Activity 2.1.1 – 2.3.1.....................................................................................................................................16
Activity 3.1.1 – 3.3.2.....................................................................................................................................18
Activity 4.1.1 - 4.1.2......................................................................................................................................22
Activity 4.2.1 – 4.3.1.....................................................................................................................................24
Activity 4.4.1 – 4.4.2.....................................................................................................................................25
Activity 4.5.1 – 4.5.2.....................................................................................................................................27
Activity 4.6.1.................................................................................................................................................28
Skills and Knowledge Activity......................................................................................................................28
Major Activity...............................................................................................................................................30
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 3 of 36

Southern Cross School of Business
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 4 of 36

Southern Cross School of Business
Candidate Details
Assessment – BSBRSK501: Manage risk
Please complete the following activities and hand in to your trainer for marking. This forms part of your
assessment for BSBRSK501: Manage risk.
Name: _____________________________________________________________
Address: _____________________________________________________________
_____________________________________________________________
Email: _____________________________________________________________
Employer: _____________________________________________________________
Declaration
I declare that no part of this assessment has been copied from another person’s work with the exception of
where I have listed or referenced documents or work and that no part of this assessment has been written
for me by another person.
Signed: ____________________________________________________________
Date: ____________________________________________________________
If activities have been completed as part of a small group or in pairs, details of the learners involved
should be provided below:
This activity workbook has been completed by the following persons and we acknowledge that it was a fair
team effort where everyone contributed equally to the work completed. We declare that no part of this
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 5 of 36

Southern Cross School of Business
assessment has been copied from another person’s work with the exception of where we have listed or
referenced documents or work and that no part of this assessment has been written for us by another
person.
Learner 1: ____________________________________________________________
Signed: ____________________________________________________________
Learner 2: ____________________________________________________________
Signed: ____________________________________________________________
Learner 3: ____________________________________________________________
Signed: ____________________________________________________________
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 6 of 36

Southern Cross School of Business
Competency Record to be completed by Assessor
Learner Name: _______________________________________________________
Date of Assessment: _______________________________________________________
The learner has been assessed as competent in the elements and performance criteria and the evidence has
been presented as:
Assessor Initials
Authentic
Valid
Reliable
Current
Sufficient
Learner is deemed: COMPETENT NOT YET COMPETENT (Please circle)
If not yet competent, date for re-assessment:____________________________________
Comments from Trainer/Assessor:
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 7 of 36

Southern Cross School of Business
_____________________________________________________________________________________
______________________________________________________________________
Assessor Signature: ________________________________________________________
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 8 of 36

Southern Cross School of Business
Observation/Demonstration
Throughout this unit, you will be expected to show your competency of the elements through observations
or demonstrations. Your instructor will have a list of demonstrations you must complete or tasks to be
observed. The observations and demonstrations will be completed as well as the activities found in this
workbook. An explanation of demonstrations and observations:
Demonstration is off-the-job
A demonstration will require:
Performing a skill or task that is asked of you
Undertaking a simulation exercise
Observation is on-the-job
The observation will usually require:
Performing a work based skill or task
Interaction with colleagues and/or customers
Your instructor will inform you of which one of the above they would like you to do. The
demonstration/observation will cover one of the unit’s elements.
The observation/demonstration will take place either in the workplace or the training environment,
depending on the task to be undertaken and whether it is an observation or demonstration. Your instructor
will ensure you are provided with the correct equipment and/or materials to complete the task. They will
also inform you of how long you have to complete the task.
You should be able to demonstrate you can:
1. Establish risk context
2. Identify risk
3. Analyse risk
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 9 of 36

Southern Cross School of Business
4. Select and implement treatments
You will also need to show:
Reading
Writing
Oral communication
Numeracy
Navigate the world of work
Interact with others
Get the work done
Activities
Activity 1.1.1 – 1.1.3
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to review organisational
processes, procedures and requirements for undertaking risk
management in accordance with current risk management standards
in accordance with current risk management standards.
Activity What is the difference between the new ISO31000 and AS/NZS
4360:2004?
The new ISO31000 refers to risk management regulation that involves risk
management principles and guidelines that provide frameworks and
principles for managing risks. On the other hand AS/NZS 4360:2004
refers to a standard applied to provide a generic guide for managing risks.
Briefly outline the legal framework.
Legal framework for managing risk is based on principles of good
governance and quality management practices along with principles of risk
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 10 of 36

Southern Cross School of Business
management that are clearly spelt out in risk management standard and
risk management principles and guidelines.
Case study: Christine Finkel worked 13 hours a day, six days a week
for three months. She noted that the floor was slippery but decided to
help a customer before taking steps to clear the area. By the time that
Christine returned to the area, she had forgotten that the floor was
wet. Christine fell and broke her leg.
What unsafe behaviour have you identified here?
She forgot to adhere to risk identification procedures and taking risk
mitigation strategies to prevent that risk.
What could be the impact of Christine’s situation to the organisation?
Now that she broke her leg, it is clear that she become a liability to the
company. The company will be forced to clear her medical bills and hire
another worker. It is a loss to the company.
What would you do if you took a job as a supervisor and walked into a
similar situation?
I would delegate duties to my assistant supervisor so as to keep the
company in operation. I would then sensitize other workers on risk
identification process and risk mitigation so as to prevent it from occurring
again.
Activity 1.2.1 – 1.2.3
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to determine scope for risk
management process.
Activity Do you believe understanding the different types of risk can assist you
in defining the scope?
It is true that understanding types of risk may assist in defining the scope
in risk. Risks are determining by level of loss or damage they express. In
that case, the scope to be explored from this concept will involve external
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 11 of 36

Southern Cross School of Business
and internal factors.
What needs to be evaluated and why?
Based on your outline in the previous question, use your knowledge of
your own organisation to write a brief scope of risk management for
your organisation. (Note: if you work in a large organisation, you can
use this question to write a scope for a project you work on or have
worked on). In your answer, briefly explain the organisation or project.
We need to evaluate both internal and external contexts in risk management.
Internal content in the scope of risk involves social, business and political
environment while internal context in this scope involve good governance
and organizational objectives.
The scope in risk management that my organization need to address is based
on economic factors. The project that the company is undertaking involves
importing and exporting products. The risk in this project is competition.
Thus, to mitigate this risk, the project need to outdo competitors so as to
achieve competitive advantage.
Activity 1.3.1 – 1.3.4
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to identify internal and external
stakeholders and their issues.
Activity Who are your internal stakeholders?
1. Employees
2. Internal investors
3. Management
Who are your external stakeholders?
1. Customers
2. Suppliers
3. Creditors
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 12 of 36

Southern Cross School of Business
4. Government
Identify three of your organisation's stakeholders. What are their
objectives towards your organisation, in terms of risk management (e.g.
supplier believes goods onto an unsafe delivery dock)? Who is your
contact with the supplier and how would you consult with them? What
are your feedback and consultation procedures with them?
In recent months, your organisation has grown as demand for the
product has increased. In turn, the number of deliveries from one of
your suppliers has increased. Your organisation has established a
strong relationship with one driver, Nick, and he is the only one able to
deliver goods to the organisation, due to the volatility of the goods being
delivered. Do you believe that the driver is put at risk? Why?
The driver maybe put at risk. This is because, despite him being a
competent driver, there is need to consult him about the products to be
delivered. Inform him about volatility of these products so that he may
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 13 of 36
Stakeholder Objective/s Contact Feedback and
consultation
Employees
To ensure
activities are
carried out
appropriately.
Management They report to
management team
and consult from
managers.
Customers
They consume
our products.
Employees The consult
customer service
provider.
Government
To provide risk
management
regulations.
Legal team. They consult legal
team so as to follow
legal procedures.

Southern Cross School of Business
assess risks of this activity.
What could the impact of the increase of deliveries have on the
supplier?
The supplier will be force to revisit the methods used to supply deliveries so
as to accommodate these changes. This need to be do so as to minimize
risks.
The supplier contacts you and asks you to change your driver policy, as
the driver has complained. What is this called? How would you resolve
this problem?
This is called setting the risk management context. I would change my
driver policy after considering the best risk assessment approaches so as to
enable the driver to perform duties at minimal risks.
Activity 1.4.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to review political, economic,
social, legal, technological and policy context.
Activity With your team, make a list of the at least one change in the following
areas that will impact on your organisation's risk management
processes. What steps would you take to ensure that your work area is
safe, with regards to risk?
The areas are:
Political
1. Political stability. It is important to enhance political stability. This
is done by reducing civil unrests that can bring instability as well
as close consultation with all stakeholders.
Economic
1. Unemployment rate. The rate of unemployment need to be reduced
so as to reduce risk associated with unemployment. This can be
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 14 of 36

Southern Cross School of Business
done through training individuals with skills.
Social
1. Population growth rate. It is important to maintain sustainable
population. This can be done through valuation of resources that
can support a given population.
Legal
1. Government regulations. There should be principles and guidelines
to be followed when mitigating risks so as to assist organizations
on scopes to follow.
Technological
1. Technological research. There should be innovations in
technological aspects that can be applied to mitigate issues that can
result to risks.
The policy context
Present and future risk in external contexts can be reduced through
application of external factors analysed in PEST (LE) analysis. Each factor
need to be addressed in unique capacity since the scope of risk is also
different.
Activity 1.5.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to review strengths and
weaknesses of existing arrangements.
Activity Complete a SWOT analysis of an organisation that you know well.
Strength
1. The organization has a
perfect risk identification
and assessment procedures.
Weaknesses
1. Inadequate resources.
2. Lack of adequate time to
assess risks.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 15 of 36

Southern Cross School of Business
2. Employees are highly
skilled.
Opportunities
1. The organization is likely
to minimize risks in the
future.
2. Employees are being
trained on how to manage
risks.
Threats
1. Competitors who take
advantage of risk the
organization is facing.
2. Lack of full compliance
with risk management
regulations.
Is the organisation internally or externally driven? Why?
The organization is internally driven since the strengths assist the company
to mitigate risks. Weakness help the organization to initiate new policies
and strategies to mitigate risks.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 16 of 36

Southern Cross School of Business
Activity 1.6.1 – 1.8.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to document critical success
factors, goals or objectives for area included in scope.
Activity Use the following critical success factors to explain how you would
ensure that your organisation’s performance improves. The CSFs are:
Trust
This is a prerequisite needed to facilitate the process of risk mitigation.
Thus, in order for trust to work as a critical success factor, teamwork and
cooperation must be considered.
Organisational culture
It is very important to enhance organizational culture is mitigation of risks.
Risk management procedures require full involvement in initiatives
applied by organizational culture that offer support to management team.
Management support
Management team cannot operate alone in risk management. Support from
other stakeholders will assist the management to initiate policies and
procures that are appropriate in risk management.
Communication
Communication process is applied to inform relevant bodies on risk
identification, risk assessment and implementation of strategies so as to
mitigate risks.
How can you know if you have handled the CSFs correctly?
If risks are mitigated and prevented from occurring, then the organization
has managed to handle the CSFs correctly.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 17 of 36

Southern Cross School of Business
Activity 2.1.1 – 2.3.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to invite relevant parties to assist
in the identification of risks.
Activity Identify a risk in your work area (or possible risk if there are no risks
requiring improvement).
What is the risk?
The risk in the work area is competition that affects the operations of the
organization and the organization is likely to incur damages and losses.
Provide details of the problem.
Our organization is providing travel services to customers. However,
emergence of new travel agencies pose a danger to our organization that
can result to loss of clients’ hence financial loss.
Who would you discuss this problem with?
The problem should be addressed to management team and risk
management department.
What type of research would you do to measure the level of risk?
The level of damages the problem bring to the organization should be the
main topic of research. This will determine the level of risk.
What documentation could you use?
The documentation to use in this critical case is risk management
principles and guidelines.
What literature would you research?
I would research risk mitigation strategies applied by previous experts to
solve the problem affecting the organization at present.
Consultation is an important part of the risk analysis? In what ways
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 18 of 36

Southern Cross School of Business
can you gather information from stakeholders in this instance?
I would ask them their views on the main cause of competition in travel
services.
I would ask them to gather feedbacks of various customers.
I would gather their views on what need to be done.
Finally, we would reach to the most appropriate approach to mitigate this
risk.
Activity 3.1.1 – 3.3.2
Estimated
Time
45 Minutes
Objective To provide you with an opportunity to assess likelihood of risks
occurring.
Activity Using the research from Activity 2.1.1-2.3.1, complete the following:
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 19 of 36

Southern Cross School of Business
Likelihood
 Probability of a given risk occurring, such as:
o Almost Certain (exposed to hazard constantly)
o Likely (exposed to hazard occasionally)
o Unlikely (could happen but only rarely)
o Highly unlikely (could happen but probably never will).
Moderate Injury consequences & possible likelihood form part of
standard Risk Management but you can decide if they meet your
requirements.
Consequences may be rated as:
a) A fatality 1
b) Major or serious injury (serious damage to health that may be
irreversible, requiring medical attention and ongoing
treatment). This is likely to involve significant time off work;
1 All notes are taken from the Occupational Health and Safety Code of Practice 2008
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 20 of 36

Southern Cross School of Business
c) Minor injury (reversible health damage that may need medical
attention but limited ongoing treatment). This means that it is
less likely to spend more than a day off work.
d) Negligible injuries (might sustain slight injury and may require
only primary first aid) and no time off work
Assess the risk
What is the likelihood of this problem arising again?
According to risk assessment indicated in risk matrix, it is clear that the
likelihood of this problem to occur is very high. This is because, much of
distribution in the risk matrix prioritize the problem as extreme risk and
high risk.
What are the possible consequences of this risk?
Bearing in mind that the problem under consideration is a high and extreme
risk, the consequences are involvement of senior management team in
laying down strategies to mitigate risks.
Evaluate and priorities risks for treatment?
The main purpose of risk matrix is to prioritize risks so as to determine
which need to be mitigated first. In this case, the priority is as follows:
1. Fatality
2. Major injury
3. Moderate injury
4. Minor injury
5. Negligible injury
What risk priority would you consider?
So as to determine which risk to be mitigated first based on needs and
urgency.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 21 of 36

Southern Cross School of Business
What opportunities do you think there are in your case? How can these
opportunities be used?
The opportunities revealed in risk matrix are to determine which risks to be
considered based on level of risk. There is an opportunity to mitigate risks
once and for all since the likelihood of a risk occurring is well established.
These opportunities will be used to narrow down to the main cause of this
problem and resolve the matter.
Activity 4.1.1 - 4.1.2
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to determine and select most
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 22 of 36

Southern Cross School of Business
appropriate options for treating risks.
Activity Using the Hierarchy of Control Pyramid to identify ways in which to
eliminate, control or minimise the hazard used in the Activity 2.1.1-2.3.1
and 3.1.1-3.3.2:
Suggest at least one way of handling the risk for each step of the process:
 Elimination
In order to use elimination process in managing risk, one way is to
identify different hazards and then try to norrrow down to the most
propble risk.
 Substitute or modify
The best way to modify or substitute risks is to determine the main causes
of a particular risk. If the causes fail to verify the risk under
consideration, then substitute with another risk.
 Isolate
Isolation phase is done once the risk is identified. In that case, risk assesor
isolate that risk from other probable risks and commit more efforts on the
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 23 of 36

Southern Cross School of Business
risk.
 Engineering controls
This involves laying down strategies so as to mitigate thye identified risk.
Risk mitigator will design all resources required to control the risk
under consideration.
 Administration controls
This process involves a review phase of strategies applied to mitigate the
risk. Here, you review whether those strategies worked.
 PPE
Pesonal protection equipment is risk control strategy where an individual
equip himselve with risk mitigation policies so as to prevent damages
caused by this risk.
What control would you recommend? Why?
Evaluation control. This control is used to determine whether a particular
risk was mitigated. It is a review policy to reflect on strategies applied to
mitigate risks. It is usually applied by management team.
Activity 4.2.1 – 4.3.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to develop an action plan for
implementing risk treatment.
Activity Briefly explain the risk action plan for this assessment.
The main reason for establishing risk management action plan is to ensure
that risk management is embedded in the culture of the organisation. This
plan also ensure that the organisation maintains risk management best
practice. In addition, the risk action plan outlines how an organisation is
going to identify, minimise as well as control the risk. This process include
monitoring and reviewing the risk management process. In this
assessment, the risk action plan is very applicable in risk mitigation and
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 24 of 36

Southern Cross School of Business
management. It covers the following areas:
1. Purpose of the action plan.
2. Goals of the organisation’s risk management.
3. What risk management is.
4. Benefits of the plan.
5. Organisation's background.
Activity 4.4.1 – 4.4.2
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to ensure all documentation is in
order and appropriately stored.
Activity Individually or in pairs, discuss the following questions:
What documentation and records do you think you will need to
maintain and file before, during and after the action plan is
implemented?
 Compliance and due diligence statement
 First Aid/medical post records
 Hazardous substances registers
 Health surveillance and workplace
environmental monitoring records
 Maintenance and testing reports
 Manufacturers’ and suppliers’ information,
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 25 of 36

Southern Cross School of Business
including SDS and dangerous goods storage lists
 Mentoring and auditing documents
 WHS audits and inspection reports
 Records of instruction and training
 Risk management policy statement
 Risk register
 Risk treatment and action plan
 Safety bulletins or notices
 Workers’ compensation and injury management records
Why?
These documents are very relevant for various reasons:
 Facilitate continuous monitoring and review of risk management.
 Provide an audit trail in the case that processes are followed up.
 Provide management and decision makers with a plan that ensures
that risk exposures are addressed in a logical manner
Activity 4.5.1 – 4.5.2
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to implement and monitor action
plan.
Activity Individually or in pairs, discuss the following questions:
You need to be able to implement the action plan. What do you need
to do? Briefly outline how you will implement each step.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 26 of 36

Southern Cross School of Business
1. Introduction. In this step, I determine the purpose of risk action
plan in connection to organizational objectives in risk
management.
2. Background on organization. In this step, I review how the
organization operates, I determine what risk management plan to
use and finally determine the purpose of risk action plan towards
solving this problem.
3. Risk management process. This is where a clear overview of a
particular risk is considered.
4. Implementation stage. This step involves various strategies and
recommendations to be initiated in this management process.
5. Monitoring and review. A good risk assessor need to review
whether the policies recommended worked or not.
How often will you communicate with stakeholders?
It is important to communicate with stakeholders probably weekly so as to
review the process of risk management. This will offer opportunities for
new ideas and future action plan.
Activity 4.6.1
Estimated
Time
30 Minutes
Objective To provide you with an opportunity to evaluate risk management
process.
Activity How will you evaluate your case? Develop a tool that you can use to
perform this task.
Evaluation process is very significant in risk management. Risk
management process is not static but dynamic which implies that it is an
ongoing process. For that matter, risks will change as the environment
changes. There is need to develop a tool so as to perform evaluation
process. This tool will follow the format below.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 27 of 36

Southern Cross School of Business
 Self-assessments
 Physical inspections.
 Checking and monitoring success of actions.
 Audit and reassessment of risks to achieving objectives .
 Key dates, time frames and deadlines should be set for
communicating, monitoring, reporting and review.
Skills and Knowledge Activity
Estimated
Time
45 Minutes
Objective To provide you with an opportunity to demonstrate your knowledge of
the foundation skills, knowledge evidence and performance evidence.
Activity Complete the following individually and attach your completed work to
your workbook.
The answers to the following questions will enable you to demonstrate your
knowledge of:
Reading
Writing
Oral communication
Numeracy
Navigate the world of work
Interact with others
Get the work done
Answer each question in as much detail as possible, considering your
organisational requirements for each one.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 28 of 36

Southern Cross School of Business
1. What are the five steps for implementation of the AS/NZS ISO
31000:2009 Risk Management – Principles and Guidelines? Explain.
2. Outline the difference between the Act, Regulations and Codes of
practice.
3. What are your organisation's policies and procedures regarding risk
management?
4. How might you adjust your risk management to incorporate disabled
employees/customers?
5. What steps will you need to take to monitor your risk management plan?
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 29 of 36

BUSINESS MANAGEMENT 30
Major Activity
Estimated
Time
1 - 2 Hours
Objective To provide you with an opportunity to demonstrate your knowledge of
the entire unit.
Activity This is a major activity – your instructor will let you know whether you
will complete it during class or in your own time.
Attach your completed answers to the workbook.
You must individually, answer the following questions in full to show your
competency of each element:
1. Establish risk context
2. Identify risk
3. Analyse risk
4. Select and implement treatments
Complete the following and present it as a portfolio:
For this project you may use the follow scenario or you can choose a risk
that you are familiar with in your workplace. What you must be able to do is
identify and describe in each step of the process the influence the
organisation's policies, processes and procedures throughout your answers –
this will allow you to demonstrate your understanding of the risk
management process.
If you are not employed, use a former employer and, if you have never
worked in the workforce, use the knowledge and legislation within your
learner guide and refer to it where necessary in each question.

BUSINESS MANAGEMENT 31
If you are using your own case, briefly outline the scenario.
1. What part/s of the legal framework will impact on this risk?
2. What standard applies presently?
3. What areas does your risk address? (e.g. commercial relationships)
4. There are different types of risk, including legal, financial and safety
risk. Which one/s do you think apply in your case?
5. Who is responsible for this risk?
6. Who are your external and internal stakeholders? What are their
objectives?
7. Review any political, legal, social, economic or technological changes
that will influence you. Create a SWOT analysis of these below.
8. Outline how critical success factors will influence this case.
9. Using the stakeholders identified earlier, identify how you would
communicate and consult with each party changes?
10. What other research would you need to do in this case?
11. In this next section, you may choose to complete a risk assessment form
internal to your organisation. This is acceptable.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 31 of 36

BUSINESS MANAGEMENT 32
Likelihood
 Probability of a given risk occurring, such as:
o Very likely (exposed to hazard constantly)
o Likely (exposed to hazard occasionally)
o Unlikely (could happen but only rarely)
o Highly unlikely (could happen but probably never will).
Consequences may be rated as:
a) A fatality 2
b) Major or serious injury (serious damage to health that may be
irreversible, requiring medical attention and ongoing treatment).
This is likely to involve significant time off work;
c) Minor injury (reversible health damage that may need medical
2 All notes are taken from the Occupational Health and Safety Code of Practice 2008
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 32 of 36

BUSINESS MANAGEMENT 33
attention but limited ongoing treatment). This means that it is less
likely to spend more than a day off work.
d) Negligible injuries (might sustain slight injury and may require only
primary first aid) and no time off work
Assess the risk
12. What is the likelihood of this problem arising again?
13. What are the possible consequences of this risk?
14. Evaluate and priorities risks for treatment?
15. What risk priority would you consider?
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 33 of 36

BUSINESS MANAGEMENT 34
16. What opportunities do you think there are in your case? How can these
opportunities be used?
17. Based on your assessment and research, list the ways in which you can
minimise the risk.
Choose the risk option that you believe is correct. Which one is it?
18. Briefly explain the risk action plan for this assessment.
19. What documentation and records do you think you will need to maintain
and file before, during and after the action plan is implemented?
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 34 of 36

BUSINESS MANAGEMENT 35
20. Why?
21. You need to be able to implement the action plan. What do you need to
do? Briefly outline how you will implement each step.
22. How often will you communicate with stakeholders?
23. How will you evaluate your case? Develop a tool that you can use to
perform this task.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 35 of 36

BUSINESS MANAGEMENT 36
References
Coleman, T.S. (2011). A Practical Guide to Risk Management. Research Foundation of CFA
Institute.
Crouhy, M. (2014). The Essentials of Risk Management, Second Edition. McGraw-Hill
Education.
SCSB | BSBRSK501 Learner Workbook | V 1.6 07/2015 | 36 of 36