Minimise Agency and Consumer Risk (CPPDSM4015B) Assessment

This assessment requires completing a risk management plan for a real estate agency department. Part A involves identifying potential risks, causes, sources, impacts, and risk rating. Part B requires establishing systems to minimize risks, ongoing monitoring and reporting systems, and an appropriate agency complaint handling procedure.

ASSESSMENT
Minimise Agency and Consumer Risk(CPPDSM4015B)
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CPPDSM4015B_AS_v1 © April 2016 Kaplan Education Pty Limited

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Before you begin
Read everything in this document before you start your assessment for this subject.
Instructions for completing and submitting this
assessment
The information and resources that can assist you in answering the questions in this assessment can be
primarily sourced from the learner guide and supporting resources for ‘Minimise Agency and Consumer
Risk (CPPDSM4015B)’, located on your eLearning platform. You may also be required to conduct some
independent research.
When completing your assessment:
• ensure you read each question carefully and answer all parts of the question
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subject name and question number.
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The assessment marking process
Once you have submitted your work:
• your assessment will be marked
• your results, including feedback will be provided in this document under ‘Assessment Result’
• your assessment will be returned to you on the eLearning platform for this subject.
‘Not yet competent’ and resubmissions
Should your assessment be marked as ‘not yet competent’ you will be given an additional opportunity
to amend your responses so that you can demonstrate your competency to the required level.
Further resubmissions to this can be requested at a fee.
When resubmitting:
• you must address the assessor’s feedback in your amended responses
• you only need to amend those sections that the assessor has indicated require resubmission
• make changes to your original submission
• use a different text colour for your resubmission. Your assessor will be in a better position to gauge the
quality and nature of your changes.
Units of competency
This assessment is your opportunity to demonstrate your competency in the following unit:
CPPDSM4015B Minimise agency and consumer risk
Assessment activities
The assessment consists of the activity below.
Project
• This project requires you complete a risk management plan
• This project consists of two (2) parts
• Part A requires you to complete a risk analysis, a template has been provided to you in this assessment.
• Part B consists of three (3) questions.
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If you have any questions about this assessment you can email us at [e-mail]. You can
expect an answer from one of our technical advisers or student support staff.
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Project
Take one department in a real estate agency — it could be sales, property management, commercial,
administration, etc. You are required to prepare a risk management plan for this department, by
completing Part A and Part B below.
Part A — Risk analysis
Carry out a risk analysis for your chosen department.Your analysis must include:
1. Identification of potential risks, both to the agency and to clients. You mustinclude in your response:
• Client risks
• Agency risks
Note: This unit requires you to identify both agent AND consumer risks, so ensure there is a spread of
both.
2. The causes of each risk you identified in ‘1’?
Note:Check that each risk identified has a cause associated with it.
3. The sources you would use to locate information about each of these risks.
Note:Check that for each risk, you have identified at least one source of information you could use to
find out more information about the risk.
4. The impacts of each identified risk on the agency, client, or other stakeholders?
Note:You must indicate that you have considered impacts not just on agent but also on consumer and
other stakeholders, e.g. if agent risk relates to a rental property the agency manages, the landlord as the
client is impacted, but also the tenant is a stakeholder.
5. A risk rating - rate each risk according to the risk rating grid in your workbook (i.e. consequences,
likelihood and severity of risks).
6. Categorise these identified risks and set priorities for managing these risks moving forwards.
Below is an example of the type of information which may be included in your risk analysis. This is an
example only and the question requires that you identify as many risks as possible for the agency and
the client.
Identified risk: Risk to personal safety of agency staff when completing open for inspections.
Cause of risk: Attack from aggressive client or unknown person who attends property, agent is alone in a
remote location.
Source of information about risk: Industry association, Workcover web site.
Impact of risk on agency, client or other stakeholders: Staff may be unable to work due to physical injury,
psychological stress etc.
You may like to use a template similar to this below:
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Priority to treat risk Risk rating Potential impacts of risk
Sources of information
about risk Causes of risk Identified risk
High 7/10 The risk may cause accidents
and may injure the employees
which would make the agency
liable for the injury
The information in relation to
this risk can be obtained via
the accidents records, the
safety procedures in place and
compliance level records.
Work health and safety related
risk may be caused due to non
compliance with safety
instructions and in adequate
safety features being present
Work health and safety risk
High 7/10 The risk may lead to the breach
of consumers’ laws which
would result in fines and
penalties as well as loss of
reputation. The risk may also
potentially hamper the
benefits of the consumer
The information in relation to
this risk can be obtained via
the consumer protection laws
and recent cases where such
laws have been discussed by
the courts.
These issue may arise out of
non compliance with Australia
Consumer law which includes
restraining from misleading
and deceptive conducts and
providing consumer
guarantees in relation to
services
Consumer protection issues
Medium 5/10 The risk may lead to poor
quality services being provided
to the consumers which would
not be in their best interest. It
will also cause loss of
reputation for the agency.
The information in relation to
this risk can be obtained via
customer complaints records
and audit reports
This risk may arise where there
is inadequate quality control
framework in place. The quality
of services provided has to be
high or else it will cause
detriments to the agency.
Presence of inadequate
supervision causes this risk
Quality control which includes
auditing
Medium 5/10 Due to political circumstances
and natural events there may
be changes in polices which
may or may not be in the
favour of the agency
The information in relation to
this risk can be obtained via
newspapers and media on a
regular basis
This risk is caused due to the
changes in political
circumstances which often
leads to the change in policies
and procedures.
Political circumstances or
natural events
High 7/10 Employee fraud and corruption
will make the agency
vicariously liable and will also
cause detriments to the
consumers.
The information in relation to
this risk can be obtained via
employee previous records and
present conditions and
character.
This risks also arises due to the
lack of supervision on the
employees which provides
them an opportunity to indulge
in fraud and corruption
Employee fraud and corruption
High 7/10 The risk may lead to the breach
of laws which would result in
fines and penalties as well as
loss of reputation. The risk may
also potentially hamper the
The information in relation to
this risk can be obtained via
subscribing to various updates
provided by regulatory
authorities such as the
This risk arises which there is
no proper framework within
the agency to ensure
compliance with regulatory
Failure to comply with
regulatory and legislative
requirements
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benefits of the consumer Australian Competition and
Consumer Commission
and legislative requirements.
High 7/10 The risk may not only be
subject the consumers to risk
as their private data is leaked
but also lead to legal actions
against the agency
The information in relation to
this risk can be obtained via
complaints form the
consumers.
The risk is caused when the
privacy laws are violated
negligently or intentionally
Leaking clients data
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Part B — Establish systems to minimise risks
Question1
For each of the risks you have identified in Part A, indicate:
• The options for minimisingeach risk identified.
• The legislative requirements which need to be considered when suggesting options to minimiseeach
risk.Note: Be sure to refer to legislation including any relevant state/territory specific legislation.
• The agency policies and procedures which will need to be implemented for each risk.
Identified risk Options for minimising risk
Legislative requirements to
consider
Agency policies and
procedures to be implemented
Work health and safety
risk
 Having in place a
health and safety
supervisor
 Having in place
prominent and
clear safety
instructions
Work health and safety All employees are
required to abide by the
rules laid down by the
safety instructions
Consumer protection
issues
 Having in place a
compliance
framework
 Education and
training on
consumer laws
consumer protection, fair
trading and trade
practices (ACL)
All action must be in
compliance with
consumer laws
Quality control which
includes auditing
 Supervising the
quality
department
 Providing support
to the
department by
training
property sales and
management
Quality of services has to
be provided utmost
priority
Political circumstances or
natural events
 Having a backup
plan to address
the changes in
policies
 Having a risk
management
committee
All The managers will keep a
close check on change in
Political circumstances or
natural events
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Identified risk Options for minimising risk
Legislative requirements to
consider
Agency policies and
procedures to be implemented
Employee fraud and
corruption
 Strict supervision
 Training and
education
 Fines and
penalties
anti money laundering‐ The agency will not
tolerate any form of
corruption and fraud
Failure to comply with
regulatory and legislative
requirements
 Having in place a
compliance
framework
 Education and
training on
regulatory and
legislative
requirements
All Agents should refer to
the law in force to base
their actions
Leaking clients data  Prioritizing
confidentiality
 Storing
confidential data
safely
privacy All private data of the
clients have to be stored
safely
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Question2
What ongoing monitoring and reporting systems would you need to establish to minimise risks to the
agency, clients and other stakeholders?
Employee code of conduct
Maintaining employment records
Policies and procedures manual
Worker’s compensation or work cover
Internal grievances and disciplinary procedures
Supervision
Audit trails and record keeping
Internal procedures for handling money
Landlord or lessor insurance
Establishing a risk compliance programme
Risk transfer: Professional indemnity insurance
Question3
Describe an appropriate agency complaint handling procedure that you could implement to minimise risks
to both the agency and clients. Include in your response, any specific state or territory requirements for
your state or territory in relation to complaint handling procedures.
An agency must have properly defined dispute resolution process
The internal disputes have to be related to the way in which employees interact with each others during
the transactions
The external disputes have to be related to the way in which employees interact with the clients
A successful procedure must consists of an overall policy for the purpose of complaint management
It should describe how complaints should be lodged
Ways in which complaints are to be responded
The ways in which the complaints are t be rejected
The time in which the acceptance of the complaint has to be notified to the complainant
END OF ASSESSMENT
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