Risk Identification and Management Report: AITE - Higher Education

This report provides a comprehensive analysis of risk identification and management processes within Australis Institute of Technology and Education (AITE). The report begins by defining risk and risk management, outlining the key success drivers, goals, and objectives of the institute, and conducting SWOT and PEST analyses to establish context. It then details the risk management procedure, including identification, assessment, and potential treatments, referencing relevant legislation such as the Higher Education Support Act 2003 and the Education for Overseas Students Act 2000. The report delves into specific risks faced by AITE, such as increasing price sensitivity, decreasing market population, and student-related issues, utilizing brainstorming for risk identification and a risk matrix for assessment. Methods for risk treatment, including reduction, risk sharing, and avoidance, are discussed, along with the roles and responsibilities of key personnel in managing risk. Finally, the report addresses the importance of monitoring and evaluating risk management efforts and provides an overview of auditing requirements and future internal audit plan ideas.

Running head: RISK IDENTIFICATION
Identifying Risk and Applying Risk Management Processes
1/20/2019

RISK IDENTIFICATION 1
Table of Contents
Assessment Activity 1................................................................................................................5
Task 1.1......................................................................................................................................5
Risk Management...................................................................................................................5
Risk Matrix.............................................................................................................................5
Task 1.2......................................................................................................................................5
Key Success Drivers..............................................................................................................5
Goals and Objectives of Australis institute of technology and education.............................6
SWOT Analysis.....................................................................................................................6
PEST Analysis.......................................................................................................................6
Task 1.3......................................................................................................................................7
Task 1.4......................................................................................................................................8
Establish the context..............................................................................................................8
Identification..........................................................................................................................8
Assessment.............................................................................................................................8
Potential risk treatments.........................................................................................................8
Create the plan........................................................................................................................8
Implementation......................................................................................................................8
Review and evaluation of the plan.........................................................................................9
Task 1.5......................................................................................................................................9
Task 1.6......................................................................................................................................9
Higher Education Support Act 2003 (Cwth)..........................................................................9
Tertiary Education Quality and Standards Agency Act 2011 (Cwth)..................................10
Education for Overseas Students Act 2000 (including National Code 2007) (Cwth).........10
Task 1.7....................................................................................................................................10
Students with Disability.......................................................................................................10
Insurance for Australia – OSHC..........................................................................................11
AS/NZS ISO 31000..............................................................................................................11
Task 1.7....................................................................................................................................11
Auditing requirement to risk management...........................................................................11
Future Internal audit plan ideas........................................................................................11
Ensure black swan events are sufficiently managed........................................................11

RISK IDENTIFICATION 2
Assessment Activity 2..............................................................................................................12
Task 2.1....................................................................................................................................12
Overview of Australis institute of technology and education..............................................12
Task 2.2....................................................................................................................................12
The risk for Australis institute of technology and education in Australia...........................12
Students............................................................................................................................12
Increasing price sensitivity...............................................................................................12
Decreasing market population..........................................................................................13
Task 2.3....................................................................................................................................13
Type of tool for identifying Risk - Brainstorming...............................................................13
Task 2.4....................................................................................................................................14
Report Required for Identifying Risk, analysis processes, and outcomes...........................14
Task 2.5....................................................................................................................................14
Role Play..................................................................................................................................14
Task 2.6....................................................................................................................................16
Risk matrix...........................................................................................................................16
Extreme Death......................................................................................................................16
Major Serious.......................................................................................................................16
Moderate..............................................................................................................................16
Minor....................................................................................................................................16
Increasing Price Sensitivity..................................................................................................16
Decreasing Market Population.............................................................................................16
Student..................................................................................................................................16
Likely...................................................................................................................................16
Student..................................................................................................................................16
Increasing Price Sensitivity..................................................................................................16
Decreasing Market Population.............................................................................................16
Unlikely...............................................................................................................................16
Increasing Price Sensitivity..................................................................................................16
Decreasing Market Population.............................................................................................16
Student..................................................................................................................................16
Decreasing Market Population.............................................................................................16
Increasing Price Sensitivity..................................................................................................16

RISK IDENTIFICATION 3
Student..................................................................................................................................16
Task 2.7....................................................................................................................................17
Methods to treat Risk...........................................................................................................17
Reduction - Increasing Price Sensitivity..........................................................................17
Risk Sharing – Student.....................................................................................................17
Avoidance - Decreasing Market Population....................................................................17
Reduction - Health and Safety Risk.................................................................................18
Task 2.8....................................................................................................................................18
Risk Control Measure..........................................................................................................18
Task 2.9....................................................................................................................................19
Job Role of Assistant Marketing Manager in managing risk...............................................19
Task 2.10..................................................................................................................................19
An increasing number of advertisement..............................................................................19
Control and risk committee..................................................................................................19
31/3/2019..............................................................................................................................19
Control and risk committee..................................................................................................19
Directors, and staff members...............................................................................................19
Assistant Marketing Manager..............................................................................................19
Decreasing Tuition fees........................................................................................................19
Finance Department.............................................................................................................19
10/4/2019..............................................................................................................................19
Finance manager..................................................................................................................19
To all the departments..........................................................................................................19
Assistant Finance manager...................................................................................................19
Inviting Foreign students......................................................................................................19
Administration department...................................................................................................19
1/7/2019................................................................................................................................19
Administration department...................................................................................................19
Marketing team....................................................................................................................19
Administration department...................................................................................................19
Establishing health and safety committee............................................................................20
Administration department...................................................................................................20
1/7/2019................................................................................................................................20

RISK IDENTIFICATION 4
Administration department...................................................................................................20
Food department...................................................................................................................20
Administration department...................................................................................................20
Task 2.11..................................................................................................................................20
Task 2.12..................................................................................................................................21
Evaluate and Monitor management of risk..........................................................................21
References................................................................................................................................22

RISK IDENTIFICATION 5
Assessment Activity 1
Task 1.1
The risk is the possibility of losing something of value. Values like financial wealth, social
status, physical health, or emotional well-being can be lost or gained while taking risk
resulting from a specified action or inaction, predicted or unexpected. The risk could be
determined as the deliberate interaction with the uncertainties. Uncertainties are the
uncontrollable, potential, and unpredictable outcome; the risk is an outcome of action taken
in spite of uncertainty (Carpenter, 2010).
Risk Management
Risk management is the procedure of identification, examination, and acceptance or
extenuation of uncertainty in the decisions of investment.
Risk Matrix
A risk matrix is utilized at the time of risk valuation in order to determine the level of risk by
considering the class of probability against the class of consequence severity (Hubbard and
Seiersen, 2016).
Task 1.2
Key Success Drivers
The key success drivers of Australis institute of technology and education is its teaching staff
and management, which is dedicated and focused towards offering quality education to the
students around the world (Australis institute of technology and education, 2019).

RISK IDENTIFICATION 6
Goals and Objectives of Australis institute of technology and education
The goal of the Australis institute of technology and education is to meet the student's needs
by providing a different range of program choices that can result in successful future careers.
The objective of the Australis institute of technology and education is to distinguish the
significance of offering students with the capabilities to participate and develop competitive
worldwide environment (The National education of Australia, 2019a).
SWOT Analysis
Strength
Skilled and Experienced Staff
Different range of courses for students
(Australis institute of technology and
education, 2019b)
Weaknesses
The courses provided to the student are not
scheduled and planned according to their
need
Opportunities
The university can expand its operations in
other countries too in order to spread
education around the world
University can add a different number of
coerces to its portfolio
Threats
An increasing number of universities in the
industry
Variety of courses increase the confusion of
the student
PEST Analysis
Political Factor
Privatization of universities
Initiatives of the government that increase the
risk of the industry failing
Economic Factor
Shortage of material on national and
international markets
Parents capability to pay fees for optional

RISK IDENTIFICATION 7
activities
Social Factor
Changes in the domestic population
Parental preference has augmented the
inclination of parents to select which
university their children will attend.
Technological Factor
The transformation from paper based books
to e-book trends
A new computer virus that influence the
industry's operations
Task 1.3
Who to consult Why to consult Consulting methods
Directors The directors of the business
are responsible for
supervising the functioning
of the internal control and
risk management system
Brainstorming
Control and Risk
committee
The committee is involved in
the planning,
accomplishment, and
management of the system
Interviews
Checklists
Cause and effect diagrams
Task 1.4
Risk management procedure is an outline of the actions that need to be taken. Seven steps
need to be taken in order to manage risk are:

RISK IDENTIFICATION 8
Establish the context
Establishing the context comprises planning the residue of the procedure and charting out the
possibility of the exercise, the individuality, and goals of the shareholders.
Identification
After establishing the context, another step in the procedure of handling risk is to recognize
potential risks (IEDU, 2019).
Assessment
This step is comprised of identifying the level of loss that could be faced by the business due
to identified risk.
Potential risk treatments
After the risk identification and assessment, business identifies different techniques used to
manage the risk (IEDU, 2019).
Create the plan
In this step, proper planning is done regarding the combination of methods will be used for
every risk.
Implementation
The planning is followed in this step in order to mitigate the effect of risk.
Review and evaluation of the plan
Experience, practice, and actual loss outcomes will require changes in the strategy and add
information to permit conceivable different decisions to be taken in dealing with the risks
being faced (IEDU, 2019).

RISK IDENTIFICATION 9
Task 1.5
As an action plan is implemented as a solution to a problem, it is essential to monitor its
development. The time plan is implemented, it is important to assess the success of the
solution. Monitoring of the action plan should not be confused with assessing the solution.
Monitoring of the action plan support in analyzing that solution is being executed as per the
requirement and expectations. Assessing the solution takes place after the implementation of
the action plan and offers an indication of whether the elucidation has corrected the problem.
Task 1.6
Australis institute of technology and education need to follow some of the laws framed by the
Australian government some of them are:
Higher Education Support Act 2003 (Cwth)
The higher education support act frame provision for Commonwealth regular and capital
funding for the segment. The objective of this act is:
To provision the system of higher education that is characterised by the equity of access,
quality, and diversity, contributes to the growth of intellectual and cultural life in Australia,
and is suitable to fulfil the economic and social needs of Australia for a highly skilled and
educated population (University of Wollongong Australia, 2019).
Tertiary Education Quality and Standards Agency Act 2011 (Cwth)
The aim of this act is to offer for national stability in the regulation of higher education.
Besides this, is focused on regulating higher education by using standards based quality
structure and principles concerning controlling a necessity, proportionality, and risk.

RISK IDENTIFICATION 10
Education for Overseas Students Act 2000 (including National Code 2007) (Cwth)
This act framed clear rules and responsibilities for education institutions that desire to
educate overseas students. Besides this, it is planned to offer consumer protection for foreign
students visiting Australia on student visas (University of Wollongong Australia, 2019).
Task 1.7
Students with Disability
The Australian Government encourages the rights of the young people and children with
disability to offer similar educational opportunities that are offered to other school students.
The government of Australia considers that they must work for establishing high-quality
school system that supports children of Australia to influence their full potential, such that
they can completely participate in the social and economic life of the community. The
government of Australia works in collaboration with states and territories to assist students
with disability and learning problems in numerous ways, including:
 Positive Partnerships
 Planning for personalized Learning and Support: A National Resource
 Disability Standards for education 2005 (Department of Education and Training,
2017)
 Understanding learning difficulties: A Practical Guide
Insurance for Australia – OSHC
Australia follows a distinct insurance coverage for overseas students known as Overseas
Student Health Cover (OSHC). OSHC is a type of insurance created to support foreign
students cover the hospital and medical care cost that they require while in Australia. To avail
this benefit, students need to purchase their Australian international student health insurance
before departing from their domestic country (International Student, 2019).

RISK IDENTIFICATION 11
AS/NZS ISO 31000
ISO 31000 is a standard’s family of risk management organized by the Global Organization
for Standardization. The purpose of ISO 31000:2009 is to offer generic guidelines and
principles on risk management. ISO 31000 focused towards offering a commonly recognized
standard for consultants and businesses hiring risk management procedures to substitute the
myriad of prevailing standards, practices, and models that differed between subject matters,
regions, and industries (International Organization for Standardization, 2019).
Task 1.7
Auditing requirement to risk management
Future Internal audit plan ideas
The time of creating top-down, risk-based internal audit plans, it is important to look at the
findings of risk management function as key risks. These types of programs generally
comprise episodic risk assessments that classify and measure evolving or serious risk issues.
Ensure black swan events are sufficiently managed
Many of the functions of risk management experience events that can severely threaten the
business if not handled appropriately (Underwood, 2017). Insurable risks comprise natural
catastrophes, occupational illness or injury, data breaches, etc.
Assessment Activity 2
Task 2.1
Overview of Australis institute of technology and education
Australis institute of technology and education are also known as Alif Australia Pty Ltd is a
registered training organization founded in 2010. The business is involved in offering quality