Risk Management: Standards, Guidelines, and Procedures

This document provides information on risk management standards, guidelines, and procedures. It discusses the importance of WHS regulations in relation to risk management. It also covers the steps and tools used in risk analysis and the measures that companies can implement to control risks.

Risk Management
Student details:

Answer 1
The risk management standards are designed for guiding people to develop a risk management plan.
These standards help in providing an international guide people while working and managing risks.
Here are some of the examples of risk management standards avoidance i.e. trying to stay away from
the threat. Reduction which refers to the process of optimizing or mitigating the threat. Sharing
which involves transfer of threat or insuring it. Retention, which states taking specific measures to
accept the cost, incurred over risk management (Hopkin, 2016).
Answer 2
ISO 31000:2009 provides generic guidelines and principles on risk management , these guidelines
can be used by public, private and community either groups or individuals. It does not belong to any
specific sector these guidelines can be applied to any sought of risk of any nature, whether having
negative or positive magnitudes (Glendon, 2015).
11 Principles and guidelines of risk management under AS/NZA ISO 31000:2009
1. Creates and protects value
2. Be an integral part of organizational processes
3. Be part of decision making
4. Explicitly address uncertainty
5. Be systematic, structured and timely
6. Based on the best available information
7. Be tailored
8. Take into account human and cultural factors
9. Be transparent and inclusive
10. Be dynamic, iterative and responsive to change
11. Facilitate the continual improvement of organizations

Answer 3
The WHS regulations are very important in relation to risk management as these are the safety
procedures, which must be followed at a workplace to reduce the illness, injuries and other
dangers like contamination and lack of hygiene. Therefore, it can be stated that there is a strong
relation in between WHS and risk management (Glendon, 2015).
Answer 4
These are factors which should be taken in account in determining the risk control measures for
hazardous manual tasks as stated in the Work Health and safety regulation 2011. Manual tasks
require people to lower, pull, push, carry or lift, lower, push, pull, carry or otherwise move, hold
or restrain any person, animal or thing (Tupa, 2017). Characteristics of hazardous manual tasks
include:
 monotonous force
 sudden force
 tedious movement
 sustained posture
 exposure to throb
Answer 5
The purpose of risk management is to remove or minimize the level of risk caused by hazards.
By following the principles and guidelines mentioned in the risk management it becomes easier
to find the solution, it helps in evaluating the level of dangers faced within an organization, helps
in evaluating the possible consequences of risk. In addition to this, the steps taken in regards to
manage the risk can be assessed with the help of risk management guidelines (Sadgrove, 2016).
Answer 6
These are some of the risks which can if not identified and actioned on time can be immensely
dangerous for the beauty skin care products manufacturing company.

Uncovered/ unchained chemicals – The chemicals used in production of skin care products
should be covered. If they are not maintained properly can be life threatening , spillage of the
chemicals can be harmful.
If the risk of carcinogenic toxicity is not identified at early stage, it can make the situations
worst. Carcinogenic toxicity – which promotes diseases like cancer and tumors developed when,
comes in direct contact to hazardous gases or emissions.
Microbial infections- Company should pay attention towards sanitization process while
producing cosmetics. As a minor microbial infection may cause harm to both the consumer and
the employee (Bi, 2015).
Answer 7
In order to analyze a risk, companies follow proper procedure for risk analysis. These are the
steps, which should be followed respectively while analyzing the risks-
STEP 1- Identifying the hazards, it is the duty of company to identify the potential risks which
can be faced in near future.
STEP 2- Identifying who might be harmed, like customers, visiting clients or the contractors.
STEP 3- Evaluating the level of risks, the harm caused by risk will be severe, mild or very less.
STEP 4- Developing a plan to deal with risk, the companies must develop a plan to deal
effectively with the risks, which will be faced. In addition to this, the companies can also
perform mock drill to check the validity of plan (Aven, 2015).
Answer 8
These are the following sources, which can be used for gathering information for identifying
potential risks-

Scenario analysis- The Company may gather information by analyzing the scenario in which the
workers are working.
Views of working groups- The viewpoint of the workers also matters in making decisions to deal
with risks.
Process analysis- The report of production procedure can act as a source to analyze the process,
where the company is lacking in dealing with the issues (Tupa, 2017).
Answer 9
The three tool or techniques which can be used by a company as a part of risk assessment
process-
Risk Identification- Identification of risk can be performed by the Delphi technique and root
cause analysis. These techniques need professional guidance and skills for application.
Quantitative Analysis – The quantitative analysis can be used for numerical analysis. The
application of quantitative techniques is more complex than various other techniques but the
results obtained are very obvious and precise.
Qualitative Analysis- The qualitative analysis risks helps in acknowledging which risk to focus
on. For instance- RAG, Risk Categorization and Risk urgency assessment (Modarres, 2016).
Answer 10
Four measures that companies can implement to control the risks-
 Avoid the risk- Making effective plans to avoid the risk
 Transfer the risk- The risk can be avoided by transferring it or removing it by following
the WHS regulations and the risk management regulations.
 Mitigate the risk- Alleviation of risk is another technique, which can be used by an
organization to remove risk.
 Exploit the risk- All of the above the company can exploit the risk by developing
effective planning (Myerson, 2014).

Answer 11
 Obtain insurance
 Expand the offerings of the business
 Review the existing system of the internal controls
 Create a management risk plan (Myerson, 2014)..

Bibliography
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