Managing The Organizational Risks Management

Running head: MANAGING RISK
SIT50416 Diploma of Hospitality Management
Name of the Student
Name of the University
Author’s Note

1
MANAGING RISK
Assessment
Assessment 1 – Knowledge Questions
Question 1: How can your business use Australia/New Zealand
Standard for risk management AS/NZS ISO 31000:2009?
This risk management related standard provides such guiding principles or a
framework for managing the organizational risks (Bromiley et al., 2015). This
standard includes such 11 principles which incorporates the process of
managing risks. Moreover, this edition of the standard involves an
informational annex with a full package of attributes for enhancing the risk
management to manage the risks for getting high range of achievement.
Question 2: Why must you review the existing risk management
arrangements before conducting a risk assessment?
Every organization must have a documentation of the risk management
related policies or standards for managing as well as controlling organizational
risks (Pritchard & PMP, 2014). It is necessary for reviewing the policies of the
risk management because it helps to the organization for becoming up to date
as well as supports the vision or mission of the organization and also
managing or controlling the risks.
Question 3: Give 3 examples of influences of the business that might
involve risk?
According to the risk management, there occurs three categorised risks that
may be confronted by the business and the types are as below:
 Financial Risk – Improper financial planning, lack of financial reports monitoring etc.
 Strategic Risk – Lack of proper competitor analysis, improper identification of potential
risks etc.
 Physical Risk – Lack of installation of fire or smoke alarms, fire escapes, absence of
burglar alarms or security guards etc.
Question 4: What will a formal risk management framework identify?
The proper risk management framework consists four steps for identifying the
organizational risks. The first step relates the establishing of context,
identification of risks, analysis or evaluation of risks, treating with risks and
also monitoring and also reviewing the risks (Glendon & Clarke, 2015).
Question 5: List 3 possible external stakeholders.
According to analysis of any business, the external stakeholders are as follows:
customers as well as suppliers and also government.

2
MANAGING RISK
Question 6: List 3 possible internal stakeholders.
According to analysis of any business, the internal stakeholders are as follows:
board of directors as well as auditors and also operations teams (Munyuko,
2015).
Question 7: Name one political item that could influence risk to a
business.
The political item of corruption level which acts as a risk factor for the
business.
Question 8: What do strengths indicate when you are reviewing
existing business arrangements?
The strengths indicate the level of the reliability of system existing within
business and it can be in terms of products or staffs or customers loyalty as
well as locations and also marketing expertise which leads to compare with
the competitors (Hoffmann, Kiedrowicz & Stanik, 2016).
Question 9: Give 2 examples of weaknesses related to risk
management failures.
The examples of weaknesses of the organization are such as poor governance,
failure of implementation of enterprise risk management.
Question 10: List 3 examples of generic success factors in the risk
management process.
In the risk management process, the three success factors including
commitment from the top management as well as communication and also
training.
Question 11: Expense is one factor in getting support of senior
management. Name another.
The expense factor provides the proper guidance to organizational
requitements or the tactics for meeting deadlines (Carley & Prietula, 2014).
Being a senior management, it has the capability of studying as well as
discussing every aspect within an inspected way.
Question 12: Name 2 groups of people you should communicate with

3
MANAGING RISK
during the risk management process.
Within the period of risk management related process, it should communicate
with the managers as well as staffs of the organization.
Question 13: List 4 records (data or documents) you could use as a
basis for risk management activities.
The four records of the risk management activities are as follows:
 Stakeholder analysis
 Work break down structure
 Cost estimation report
 Schedule assessment report
Question 14: List 3 tools or techniques you can use to research risks.
The list of techniques that are related for researching risks are as follows:
 Interviewing
 Delphi technique
 Historical records
Question 15: What does SWOT stand for?
The SWOT stands for strength, weakness, opportunity and threat.
Question 16: To determine the risk level of something what are the 2
areas you need to rate?
The following two areas are likelihood and also consequence that are required
to rate for determining the risk level (Grace et al., 2015).
Question 17: What is the difference between consequence and
likelihood?
Likelihood is defined as the probability for occurring the risks affecting in
environment.
Consequence is defined as the environmental impact during the occurrence of
risks.
Question 18: Why is prioritising risk important?
The main purpose of the prioritising of risks is to make a base for the
allocation of resources and apart from that, the qualitative techniques involve
the analysis of the probability or impact and also helps to develop the
probability or impact matrix, risk categorization, rating of the risk frequency