Manage Risk: Steps, Policies, and Strategies

Running head: MANAGE RISK
Manage Risk
Name of Student
Name of University
Author Note

MANAGE RISK
Table of Contents
Skills and Knowledge Activity..................................................................................................2
1. Explaining the five steps for implementation of the AS/NZS ISO 31000:2009 Risk
Management...........................................................................................................................2
2. Outlining the difference between the Act, Regulations and Codes of practice..................2
3. Organisation's policies and procedures regarding risk management..................................3
4. Adjusting risk management to incorporate disabled employees/customers.......................3
5. Steps to monitor your risk management plan.....................................................................3
6. Communicating risk management plan to the relevant stakeholders.................................4
Major Activity............................................................................................................................4
Overview of the scenario........................................................................................................4
1. Legal framework implied...................................................................................................5
2. Applying standard..............................................................................................................5
3. Areas of risk.......................................................................................................................6
4. Application of risk..............................................................................................................6
5. Responsible for risk............................................................................................................7
6. Stakeholders and objectives...............................................................................................7
7. Conducting a PEST and SWOT analysis...........................................................................8
8. Outlining influence of critical success factors....................................................................9
9. Identifying communication with party change.................................................................10
10. Other research.................................................................................................................10

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11. Risk assessment..............................................................................................................10
12. Likelihood of the problem..............................................................................................11
13. Consequences of the risk................................................................................................11
14. Evaluating and prioritising risks for treatment...............................................................12
15. Considering risk priority.................................................................................................12
16. Opportunities in the case................................................................................................13
17. Minimising the risk.........................................................................................................13
18. Risk action plan..............................................................................................................14
19. Documentation needs to be maintained..........................................................................14
20. Reasons...........................................................................................................................14
21. Implementing action plan...............................................................................................15
22. Frequency of communication with stakeholders............................................................15
23. Evaluating the case.........................................................................................................16
Bibliography.............................................................................................................................17

MANAGE RISK
Skills and Knowledge Activity
1. Explaining the five steps for implementation of the AS/NZS ISO 31000:2009 Risk
Management
The five steps of implementation of AS/NZS ISO 31000:2009 Risk Management includes:
Step 1: Changing the paradigm for risk and risk management- This helps in taking a top-
down approach to the risk management so that it becomes a key component of an
organisation to determine its objectives.
Step 2: Take stock- The risk management framework is designed so that it suits the internal
and external contexts of organisations.
Step 3: Evaluate maturity- It is necessary to ensure that the treatment of the risks are
effective. It is necessary to ensure goals, targets and benchmarks are used.
Step 4: Develop plan to start- It provides strategies so that management can be engaged in
the risk process as it can help in increasing success of the program.
Step 5: Develop plan to keep it going- The risk management need to be embedded into
business processes so that management can be accountable.
2. Outlining the difference between the Act, Regulations and Codes of practice
Act: Act aims to ensure that WHS is managed in an effective manner. It is enacted by
the legislations of a country and possesses the force of law. It aims not to affect the
operations of a State or Territory Act.
Regulations: Regulations provide structure within a statutory framework and details
to implement legislation. The statutory and legal authorities enact it. It may or not be
enforced by the law (Berkenkotter and Huckin 2016).

MANAGE RISK
Code of practise: Code of practise is enacted by an organisation or by the legal
authorities. Violating a code of practise may not be subjected to any legal actions. It is
guidance so that organisational policies can be maintained. For example, code of practise
based on WHS Act 2011 is the Work Health and Safety Approved Codes of Practise 2011.
3. Organisation's policies and procedures regarding risk management
The organisational policies and procedures regarding the risk management are based
on the implementation of the policies of the WHS Act 2011. The risk management process of
the organisation consists of identifying hazards, assessing risks and implementing risk control
measures such as hierarchy of control. The implementation of the WHS Code of Practise
2011 aims to provide practical guidance for the employers and the employees so that they can
meet the duty of care and provide safety for the people. At the same time, checking the laws
of the State and Territory is essential so that the policies regarding risk can be applied.
4. Adjusting risk management to incorporate disabled employees/customers
The risk management to incorporate disabled employees and customers need to be
based on the facilities and opportunities provided to the people. For example, in the case of
disabled employee, dangerous equipments such as conveyors, sharp bladed equipments and
so on should not be kept in a close proximity. At the same time, works that are light and does
not require much physical effort can be reduced from the. For customers that are wheel chair
bound, a ramp can be provided so that they do not have to wait in the car or outside the
stores. This can provide encouragement and satisfaction to the customers and ensure that the
loyalty of the customers is maintained.
5. Steps to monitor your risk management plan
In order to ensure that the risk management plan is monitored properly, the
application of Deming’s PDCA cycle can help the organisations. According to Bocken et al.

MANAGE RISK
(2014), the PDCA cycle consists of four steps that can help an organisation to maintain the
quality of products and ensure that no risk exists within the organisation.
Plan: It is necessary to change once an opportunity has been identified.
Do: Organisations can implement small-scale changes as a part of experiment.
Check: Analysing data from small scale that has been implemented.
Act: Implement the change tactics on a large scale once it has been successful.
At the same time, other processes can be the six sigma, lean method and total quality
method. These can help in increasing the involvement of the employees and provide
measurement opportunities for remaining within the system.
6. Communicating risk management plan to the relevant stakeholders
The risk management plan can be communicated to the relevant stakeholders with the
help of email or by conducting meetings. According to Bohnsack, Pinkse and Kolk (2014),
the relevant stakeholders of a company usually comprises of the employees, customers and
the Government. In the case of employees, meeting can be held that provides proper
knowledge about the adoption and execution of management plan. Ideas can be generated
about the improvement of the plans and the manner in which the organisation can be kept
safe. The customers and the Government officials can be provided with email detailing the
risk management plan and the methods that are used to mitigate any threat in the business.
Major Activity
Overview of the scenario
The scenario that needs to be analysed is a safety risk that require the application of
effective risk management technique. Risk is considered as a probability of threat agent that