Manage Risk - Purpose, Standards, and Procedures

Running head - MANAGE RISK
Manage risk
Name of the student
Name of the university
Author’s note

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Assessment Task 1
Question 1 - Discuss the purpose of risk management standards. Include an example of
a risk management standard in your answer.
Answer - The purpose of risk management is to identify potential problems before they occur
so that risk-handling activities may be planned and invoked as needed across the life of the
product or project to mitigate adverse impacts on achieving objectives.
For example – One of the biggest risk management standards could be seen at the
construction sites. There are abundant types of risks in the working site that risk assessors
should be aware off.
Question 2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and
Guidelines and each of the 11 principles.
Answer - ISO 31000:2009 can be applied throughout the life of an organization, and to a
wide range of activities, including strategies and decisions, operations, processes, functions,
projects, products, services and assets.
ISO 31000:2009 can be applied to any type of risk, whatever its nature, whether having
positive or negative consequences.
Although ISO 31000:2009 provides generic guidelines, it is not intended to promote
uniformity of risk management across organizations.
The introduction of the 11 Principles of risk management
1. Creates and protects value Good risk management contributes to the achievement of an
agency’s objectives through the continuous review of its processes and systems.

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2. Be an integral part of organisational processes Risk management need to be integrated with
an agency’s governance framework and become a part of its planning processes, at both the
operational and strategic level.
3. Be part of decision making the process of risk management assists decision makers to
make informed choices, identify priorities and select the most appropriate action.
4. Explicitly address uncertainty by identifying potential risks, agencies can implement
controls and treatments to maximise the chance of gain while minimising the chance of loss.
5. Be systematic, structured and timely The process of risk management should be consistent
across an agency to ensure efficiency, consistency and the reliability of results.
6. Based on the best available information to effectively manage risk it is important to
understand and consider all available information relevant to an activity and to be aware that
there may be limitations on that information.
7. Be tailored an agency’s risk management framework needs to include its risk profile, as
well as take into consideration its internal and external operating environment.
8. Take into account human and cultural factors Risk management needsto recognise the
contribution that people and culture have on achieving an agency’s objectives.
9. Be transparent and inclusive Engaging stakeholders, both internal and external, throughout
the risk management process recognises that communication and consultation is key to
identifying, analysing and monitoring risk.
10. The challenging environment we operate in requires agencies to consider the context for
managing risk as well as continuing to identify new risks that emerge, and make allowances
for those risks that no longer exist.

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11. Facilitate the continual improvement of organisations Agencies with a mature risk
management culture are those that have invested resources over time and are able to
demonstrate the continual achievement of their objectives.
Question 3. Explain the requirements of WHS legislation in relation to risk
management.
Answer - An approved code of practice applies to anyone who has a duty of care in the
circumstances described in the code. In most cases, following an approved code of practice
would achieve compliance with the health and safety duties in the WHS Act.
Question 4. List the factors that must be taken into account in determining risk control
measures for hazardous manual tasks as stated in the model Work Health and Safety
Regulations 2011.
Answer –
 Engage workers to undertake work for them, or if they direct or influence work
carried out by workers
 May put other people at risk from the conduct of their business or undertaking
 Manage or control the workplace or fixtures, fittings or plant at the workplace
 Design, manufacture, import or supply plant, substances or structures for use at a
workplace
 Install, construct or commission plant or structures at a workplace.
Question 5. Explain the purpose of risk management policies and procedures in the
workplace.
Answer – The policies and the procedures are -
 Embed risk management into the culture of the council