Enterprise Risk Management Assignment 2022

Running head: ERM
Enterprise Risk Management
Name of the student
Name of the university
Author Note:

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Assessment Task 1.
Answer 1.
The purpose of risk management standards is that they enable the business organisations to identify the risks and take
appropriate approaches to manage these risk identified. Barafort, Mesquida and Mas (2017) mention that risk management standards
as specific risk management strategies which are aligned to the core business strategies and principles. These standards remain
uniform and stable in general. This enables the management of the business organisations to follow these standards to manage
different types of risks like data theft risks and legal risks. Adelstein and Clegg (2016) mention that since the risk management
standards followed by particular companies are aligned to the core operations and business principles of the companies concerned,
these standards are aligned more with the market conditions prevailing. The Government of Australia has framed codes and practices
which can be adopted to business organisations like manufacturing companies to deal with risks (Safeworkaustralia.gov.au. 2020).
Thus, it can be construed that risk management standards enable the companies to comply with the laws in power. The companies can
follow specific risk management standards while forming risk management policies which ensures that their decisions are uniform and
lead to achievement of high levels of risk management. The companies can document these risk management approaches and treat
them as guidance in management of future risks. For example, companies can adopt risk management standards like AS/NZS ISO
31000: 2009 in forming risk management strategies (Iso.org. 2020).

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Answer 2.
The following are the eleven principles of risk management principles and guidelines under AS/NZS ISO 31000: 2009:
1. The principles aim to enable companies adopting them achieve high levels of risk management.
2. The AS/NZS ISO 31000: 2009 principles encourage the management of the business firms take proactive role in management of
the risks facing these firms.
3. The principles take into account that fact that all the risks which business organisations face interrelated. This means that the
organisations have to build efficient enterprise risk management or ERM strategies to manage risks (Florio and Leoni 2017).
4. The management and the employees of business organisations should improve their knowledge about risks. This would enable them
to identify and manage risks more efficiently.
5. The risk management strategies which the business organisations adopt should comply with the laws in power like the Safe Work
Act (Safeworkaustralia.gov.au. 2020).
6. The business organisations should improve their risk reporting standards.
7. The business organisations should improve their corporate governance standards.
8. The risk management strategies which the business organisations should adopt should ensure protection of the interests of the
stakeholders to the feasible extent and build their trusts.

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9. The risk management operations of the companies should be incorporated in the business decision making processes adopted in the
companies.
10. The risk management policies which business organisations adopt should enable the management of the companies exercise strong
controls on the different aspects of operations like financing so as to effectively manage the risks pertaining to the areas.
11. The management of the companies should allocate resources like financial resources to manage the risks (Iso.org. 2020).
Answer 3.
The Work health and safety laws require the employer organisations operating in Australia to take appropriate measures to
ensure that their employees are protected from workplace hazards to the feasible extent (Business.gov.au. 2020). Compliance with
these laws necessitate the management of the companies to form risk management strategies like installation of fire extinguishers to
ensure efficient fire management within their office premises. This installation of fire safety management enables the employees to
take prompt actions (extinguishing fires to the feasible extent) which reduces damage to the assets of the companies like furniture and
inventory of finished goods. Adoption of these risk management strategies enables to minimise injuries to employees owing to hazards
like fire (Safeworkaustralia.gov.au. 2020). This ensure smooth operations in the companies. Thus, one can establish on the grounds of
this discussion that WHS laws like Safe Work Act 2008 are required to enable organisations to minimise WHS risks like injuries of
employees owing to workplace hazards which in turn ensures smooth production.

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Answer 4.
There are several factors which must be considered to determine the risk management methods for manual operations in
business organisations which may lead to workplace hazards as per model Work Health and Safety Regulations 2011
(Safeworkaustralia.gov.au. 2020). First of all, the employers should ensure that the workplace is free from workplace hazards like
heat. Secondly, the management of the companies should deploy trained personnel to ensure that the WHS risks are mitigated or at
least minimised to the feasible extent. Thirdly, the employees who engage in manual lifting should be provided with aids like
scaffolding to enable them to lift objects with less strain. Fourthly, the management of the companies should monitor and review the
risk control measures to ensure that they are appropriate with the business requirements of the companies.
Answer 5.
The risk management policies and procedures play several important purposes. First, risk management policies enable efficient
identification and management of the risks. Secondly, the adoption of risk management policies enables the management of the
companies to gain participation of the employees in implementation of the policies by holding meetings with the employees and
training them on risk management. Successful implementation of the risk management policies leads to reduction in accidents and
injuries of employees. This ensues more uninterrupted operations which in turn ensures high profits. Thus, it is clear that the main
purpose of risk management policies and procedures is to generate higher profits by mitigating or at least minimising the risks or
threats to business facing the companies.

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Answer 6.
The three examples of impacts of risks in a workplace if not identified and managed efficiently are increase in employee
injuries owing to accidents like fire, decrease in employee motivation and finally dwindling employee productivity.
Answer 7.
The following are the step by step procedures which companies can adopt to analysing risks:
1. The management of the companies should conduct analyses of the markets concerned like Australia.
2. The management of companies should obtain feedback from stakeholders like customers, suppliers and employees on the risk
which they may have identified.
3. The management should hold meetings with the top managers on the findings of steps 1 and 2 to analyse the risks. It should also
identify the likelihood, intensity and consequences of the rsiks identified.
Answer 8.
The following are the three documents which the companies can consult to gain information on potential risks:
1. Official websites of the Government of Australia.
2. Documents containing findings from the PESTEL analysis and feedback of the stakeholders.