BSBRSK501 Manage Risk Case Study - Assignment

Lecture Assessment 1
Individual Activity – Knowledge Test
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Unit: BSBRSK501 Manage
Risk
Training
Package:
BSB Business
Services
Due date: Week 4
Assessment
Type:
Individual
Activity –
Knowledge
Test
By submitting this Assessment I acknowledge my understanding of plagiarism
Plagiarism
All work must be done individually. Copied work will not be accepted and
could lead to an “academic non-performance” rating. Plagiarism by a
student will result in an automatic ‘NYS’, and as well as being recorded,
may result in further disciplinary action such as a student’s exclusion from
a course. Plagiarism is presenting and using someone else’s work, writings
or ideas as your own with or without their consent.
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Assessment submission rules and conditions
I have read and agree to the assessment guidelines conditions below.
The purpose of this activity is to assess your knowledge and skills of the
unit.
If you have any considerations that may affect your performance in the
assessment please inform your assessor immediately. Your assessor will
provide you with a suitable alternative to complete this assessment.
To gain competency for this assessment, demonstrate competency in
activity tasks by the due date.
Student downloads the assessment through Moodle.
Student completes the assessment cover page ensuring they have written
their name and student number. Online submission opens one week prior
to due week and cut off date is set on Saturday at 11:55pm in the week of
due date.
In case of late submission, the student is only able to submit the
assessment with permission. The Student is first required to see student
services and make late submission fee payment before submitting the
assessment after due date. The student service officer issues the receipt
and student is required to see Trainer to submit the assessment. The
trainer will grant extension on Moodle for the student to re-submit their
assessment.
The student will receive results within 2 weeks from due week, resulting in
a determination of Satisfactory (S) or Not Yet Satisfactory (NYS) for the
task and this result will be displayed on Moodle.
In case of ‘NYS’ (not yet satisfactory) result of the assessment, the student
is given an opportunity to re-attempt and submit the assessment by an
agreed date with their assessor or as soon as possible within the duration
of the unit. The trainer will grant extension on Moodle for the student to
re-submit their assessment, cut off date of re-submission is Saturday at
11:55pm in week 8. Re-attempted assessments submitted during the term
will not incur penalty.
The re-attempted work must address the specific performance tasks
beyond doubt for the assessor to issue a satisfactory (S) result. The
system allows the student to re-attempt online two times within the
duration of the unit. Student is required to meet their assessor before
submitting the third re-attempt. The assessor will grant extension
manually only by request. A repeat NYS outcome could lead to an
administration fee.
Any re-submission or late submission occurring during week 8, the student
is required to see trainer before submitting the late or re-assessment. The
trainer will grant extension on Moodle by request only and the submission
will be closed on Saturday at 11:55pm in week 8.
Any re-submission or late submission occurring during week 9, the student
is required to see trainer before submitting the late or re-assessment. The
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trainer will grant extension on Moodle by request only for 15 minutes.
Therefore students should be ready to submit their assessment before
going to see the trainer.
All work must be done individually. Copied work will not be accepted and
could lead to an academic "non-performance” rating. See below about
Plagiarism.
Plagiarism
Plagiarism by a student will result in an automatic ‘NYS’, and as well as
being recorded, may result in further disciplinary action such as a
student’s exclusion from a course. Plagiarism is presenting and using
someone else’s work, writings or ideas as your own with or without their
consent.
Some examples of plagiarism as follows
Presenting work by another individual as one’s own unintentionally
Handing in assessments markedly similar to or copied from another
student
Handing in assessments without the sufficient acknowledgement of
sources used, including assessments taken totally or in part from the
Internet
Appeal process - If you feel the decision made by your assessor was
incorrect please refer to your Student Handbook for information on
assessment appeals for the required steps to appeal this decision.
Download the assessment you want to appeal and complete the appeal
box in Feedback Evaluation Sheet by signing as to whether you wish to
appeal. You are required to hand the hard copy in to student services.
requirements
If an assessment is not submitted in accordance with the submission
requirements then it will be deemed as being non-compliant. Non-
compliant submissions result in pending on being marked and /or recorded
NYS.
All submissions must be done by PDF file. Student is required to convert
word file assessments, PowerPoint presentation and other attachments to
PDF before submitting unless the evidence is required to submit its
original format (eg. word or excel).
The first page in the file must be cover page. Both the cover page must
contain student name and student number.
Student is allowed by default to upload up to five documents on each
submission. You must upload each file separately. You must not upload zip
file.
Submissions from overseas are not allowed as students are required to be
in Australia to attend their regular classes.
Late submission
Late submission arises in two cases.
Student does not submit the assessment in time because of their own
fault. In this case, the student is required to make late submission fee of
$50 before submitting the assessment after the due date.
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Student has approved leave. In this case, the student is exempted from
the late submission fee payment. The student is required to show their
deferment approve letter from the college to their trainer. The trainer will
re-open the submission on Moodle for the student.
I have read and agree to the assessment guideline conditions above.
Task Description
For this task you are required to answer a wide range of questions which
will assess your underpinning knowledge in managing risk.
Procedure:
Read all the questions carefully.
Conduct necessary research. Your lecture notes, online resources and
workbook may also assist you to complete this assessment.
Provide written responses to all questions in the space provided.
Submit your assessment to your assessor by the due week.
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Knowledge Test
What is risk?
Risk refers to uncertainty that comes in future about deviations from the expected
earnings. Sometimes, it creates a situation of danger as well as become harmful for the
people which may lead to loss.
What is risk management and why is it important?
Risk management helps an owner to set up a complete procedure in order to avoid risk
and minimise its impact so that it will not affect the profitability of an organisation. In
other terms, risk management is a process that identifies the future risk or problems
before they occur.
It is important to have risk management because it helps to identify what goes wrong and
right at the workplace and inform owners prior related to the future uncertainty.
What is a stakeholder? Explain your understanding of internal and external stakeholders by
providing some examples of stakeholders.
Stakeholders refer to the people who have interest in the project and they can be
external as well as internal. They are those persons who affect or affected by the
actions or defined objectives of an organization. Sometimes, stakeholders affect
negatively the business which leads to loss beared by any firm. Not all stakeholders of
a company have the same concern to mitigate risk. They not only focus on the
financial risk but there are a lot of other issues which are faced by stakeholders.
There are two types of stakeholders which are mentioned as below:
External Stakeholders: External stakeholders are those individuals or organizations
outside a company but their appearance affect company's performance. Basically, they
are not the part of company but they influenced by the organization's work.
For example: Consumers, creditors, suppliers, competitors, clients, societies and
government, etc.
Internal Stakeholders: Internal stakeholders are those organizations which directly
participate in company and they are influenced by the success of an organisation. They
are those who are highly affected by the decision, performance and company's
profitability. Overall, they are the part of a company.
For example: managers, employees, owners, investors, etc.
What is “critical success factor”?
It is an important factor that should be implemented in every organization in order to
achieve the mission. Critical success factor is a necessary parameter used to ensure the
success of a company. It is recently used in the world of data as well as business
analysis.
List at least 3 common risk categories in an organisation.
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Three common risk categories are as follows:
Financial: Under this system, whole internal business system related to finance is
affected.
People: People means employees and involvement of volunteers are affected and this is
one of the most common risk categories.
Strategic: This means external risk that affect the external environment of a business in
which operations are done.
Describe the purpose and key elements of the current risk management standards in Australia
The purpose of risk management standard in Australia is to analyse risk and provide
generic guide for managing risk. The risk management standard helps to provide an
appropriate system of risk oversight and management for the entity. Further, it also
provides a system of internal control for the entity.
Key elements of risk management standard of Australia are stakeholders, managers,
employees and investors who are internally affected by the performance of an
organization.
What is a risk management plan?
Risk management plan is a simple document that is prepared by the project manager in
order to estimate future risk and also define various solutions in order to response those
issues. This plan helps to identify who is responsible for the risk and the way to handle
those risks because it affects the profitability of an organization.
Risk management plan includes risk strategies that help to avoid risk, to mitigate or
control and even can transfer the risk too.
What is SWOT analysis? Explain the purpose of conducting SWOT analysis in a risk
management process.
S – Strengths
W- Weaknesses
O- Opportunities
T- Threats
SWOT analysis is an assessment model that helps to identify the strengths and
weaknesses of an organization and what a company can do or cannot do. Basically, it is
a strategic planning or technique used to identify overall strengths or weaknesses which
are related to business competition.
Main purpose of conducting SWOT analysis is to determine the internal factors as well
as it helps in controlling measures for the risk using a common approach. It is a strategic
planning that helps to take good decision for the business to run in a positive direction.
This tool is basically used by many organisations in order to identify where they are in
current scenario.
What is PEST analysis? Explain the purpose of conducting PEST analysis in a risk
management process.
P- Political
E- Economical
S- Social
T- Technological
PEST analysis is the measurement tool that is used to assess the market for a specific
product. This helps to take better decision by analysing its political, economic, social
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and technological factors. These are the external factors and help to improve the
efficiency of an organisation.
It is necessary to use PEST in every organisation because it will help in taking good
decision, making strong marketing activities as well as product development and
research. This strategic tool helps to identify external environment and to analyse the
competitive advantages. PEST analysis also helps to determine the micro factors that
affect overall performance as well as activities of a business for a long term.
What are the five stages of risk likelihood? Briefly explain each one.
There are five stages of risk likelihood which are mention below:
Minor: Under this first stage of risk likelihood, there is no special management team is
required in order to monitor whole team performance and even the report is also not
reviewed.
Low- Risk: This is the 2nd stage of risk likelihood. Under this, no special management
action is required and it is likely expected to occur with a probability of 40 percent.
Moderate: It is the third stage of risk likelihood which needs to be reviewed by special
management team and under this, full management report is reviewed.
High – risk: Under the fourth stage of risk likelihood, the whole management report is
reviewed but there is more management actions team are needed as compared to 3rd
stage.
Extreme: It is the fifth stage of risk likelihood where more increased management
actions are needed as compared to 4th stage because risk is at extreme point that is why
require higher actions.
List and give an example description for each of the five levels of consequences.
Low: it is the first level where a service provider has no impact on its reputation and
there will be no violation of law as well as low amount of economic loss that can be
restored.
Small: it is the second level of consequence where for the service provider there is no
violation of law as well as no economic loss but at the same time small amount of
reduction in its reputation for the short time period.
Moderate: it is the third level of consequences under which less serious violation of
law which results in warning and the economic loss can be restored. Reputation can be
affected that may influence trust and respect.
Severe: under fourth level of consequence a service provider is found to breach a law as
a result in minor penalty or fine and on the other side there will be large economic loss
which cannot be restored and there will be serious loss of reputation that affect the trust
for a longer time.
Catastrophic: it is the fifth level of consequence where serious violation of law which
results in penalty or economic loss which cannot be restored and there will be serious
loss of reputation which affect trust and its respect for a longer time period.
What should be included in a risk action plan? Describe briefly the key factors and the types
of information within each inclusion.
Risk action plan should include the type of risk, summary, proposed action, resource
requirements, responsibilities, timing, budgeting, monitoring.
There are some key factors such as:
Early identification: it is necessary to identify the risk as soon as possible. Under this
factor it requires risk related information.
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Monitoring: continue monitoring is necessary to identify whether the company is
achieve the demands or not. Under this logical information is required.
Budgeting: is the most affect factor where whole system is based upon. In this factor,
cost accounting information requires.
Responsible person: it is necessary to identify who is responsible for the action plan.
Under this, different types of information must be required and it depends that which
type of problem is this.
There are several ways to manage risk. Outline risk treatment options and give brief
explanations.
There are several ways to manage the risk some of them are as follows:
 Accept the risk: it means that when an owner identified the risk but take no
action plan it means they simply accept the risk which is actually a good strategy
to use but it is applicable only for small type of risk because it does not impact
much on the project.
 Avoid the risk: it is a good strategy to avoid the risk by making changes on the
plans. When the action plan changes, there are increase in chances to manage the
risk.
 Transfer the risk: it is the most common risk strategy where the risk are transfer
in order to manage it. It means that an owner transfer the impact and management
of risk to someone else which lead to result of not facing problem in future.
 Mitigate the risk: it is another most important managing risk technique which is
mostly used by the owner. It is simplest and easiest method to implement and it
helps to limit the impact of risk into a business.
When managing risk, it is important to understand hierarchy of control. What is hierarchy of
control? Explain each option.
Hierarchy of control is a tool that help to control different types of hazard such as safety
of hazard, biological, chemical etc. There are five basic options that help to represent the
hierarchy of control which are mention below:
 Elimination and Substitution:: this option is the most effective at reducing
hazard and it is difficult to implement also. But on the other side if the project is at
development stage then this step is so easy to implement and inexpensive. In real
and existing process, large amount of changes have to made in order to eliminate
or substitute for hazard.
 Engineering Controls: well design and effective engineering controls are helpful
to protect the workers and are not depend in order to provide higher level of
protection. Engineering control's cost are highly at initial level but for longer time
run its operating cost are lower than other hazardous control.
 Administration Controls and Personal Protective Equipments: this are less
effective than other options and this is basically used in existing process where
hazard are not controlled. This both options are available at cheap rate but are
costly to sustain. It is proved that these options are less effective then other
methods and need more effort by the workers so generally avoid to use.
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Distinguish between monitoring and review in a risk management process.
Monitoring: it is the process of observation where a manager identify whether all parts of
an organization are meet to their policy requirements or not. On the other side,
organization are maintain the risk register and all the action plans are suitable to mitigate
the risk or not.
Review: it is an assessment which can be given at the end of project. In the context of risk
management process, it is a tool that help to identify problems in planning which sees
both side of problem i.e. positive or negative.
Describe why communication and consultation is important in a risk management process?
Communication and consultation are two important aspects that help to share the
information about a risk between a two person, one is decision maker and another may be
employees or managers. By communication and consultation they can share their
experience and perception and can develop good relationship between whole management
team.
List and explain three legislative and regulatory requirements that the company should
consider when managing risk.
Equal Employment opportunity: Under this law, all the employees of a company must
be paid an equal amount of salary. There should not be any discrimination based on their
age, gender, religion.
Privacy law: all the data must be kept confidential, no leakage of personal data will be
tolerated. This law help to handle all the personal information about the individual.
Disaster and emergencies: the company must prepare the action plan which help to
protect a company from any disaster or any emergencies.
Choose an organisation and describe its policies and procedures for risk management.
Policies of Australia Council:
Risk management policies help to improve the decision making and enhances the
outcomes as well as accountability of Australia Council. The main aim of this risk
management policy is to ensure that all the activities are undertaken in proper way and
they are appropriately consider both risk and opportunities or not. These policies help to
identify the better opportunities and threats of a company.
Procedure of Australia Council for risk management:
 Risk identification: under this procedure, sources of risk are identified which
includes impacts of areas, causes and its consequence.
 Risk analysis: it help to analysis of sources of risk for Australia Council.
 Risk evaluation: the level of risk can be identified by risk analysis and it can be
ranked according to rating system.
 Communicate and consult: this is necessary element to achieve the successful
integration of the risk process.
 Risk Treatment: it deals with the funding and other resources in order to modify
risk.
 Monitoring and review: continue monitoring will be helpful for the effectiveness
of Australia council's risk management profiles.
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Please explain how to ensure that the documentation regarding to the risk management
process is in order and appropriately stored.
It is necessary to have all the documents regarding the risk management, the whole
documents should be created and stores in company's information management system. It
can be manually or can be stored in computer system. But it is essential that all the
copies of risk management plan are created in equal level. At the time of implementation
of plan, there should not be any confusion. The storage system must contain a log that
should clearly define person's name, title, department, extension number or office
location. This will help to check and get quick results. These documents are easy to
understand and it is necessary that all documents need to communicate properly.
Lecture Assessment 1
Feedback Evaluation Sheet - Individual Activity – Knowledge Test
UNIT NAME: BSBRSK501
Manage Risk
Did the learner in this assessment demonstrate: YES N
O
Identifying internal and external stakeholders and their issues 
Knowledge necessary to review political, economic, social,
legal, technological and policy context  
Knowledge necessary to review strengths and weaknesses of
existing arrangements  
Understanding of critical success factors, goals or objectives
for area included in scope  
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Understanding of risk management process  
Understanding of importance of communicating with
relevant parties about the risk management process and
invite participation
 
Knowledge of tools and techniques to generate a list of risks
that apply to the scope, in consultation with relevant parties  
Understanding of how to assess likelihood and consequence
of risks  
Knowledge necessary to develop an action plan for
implementing risk treatment  
Understanding of action plan  
Understanding of legislative and regulatory requirements
when treating risk.  
Understanding of organisational policies and procedures for
risk management  
The purpose and key elements of current risk management
standards  
FEEDBACK TO
STUDENT:
ASSESSOR’S
DECLARATION:
I hereby certify that the
above student has been
assessed by myself and all
assessments are carried
out as per the Academy’s
Assessment Policy &
Procedure.
___________________________
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_ Date: ______________
APPEAL PROCESS:
I would like to appeal the outcome of this assessment as per the appeals
procedure in the Student Handbook
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