BSBRSK501 Manage Risk Project: Institute of Business & Management

This document presents a comprehensive solution to a BSBRSK501 Risk Management Project. It includes a definition of risk according to the Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009), an explanation of risk management concepts, and an evaluation of the benefits of risk management techniques. The document also covers the purpose and principles of AS/NZS ISO 31000:2009, potential impacts of risk, steps for analyzing risks, information sources for gathering data on risks, options for controlling risks, and tools for identifying risks. Furthermore, it provides a PESTLE analysis for NatureCare, identifies internal and external stakeholders, analyzes the strengths and weaknesses of NatureCare's retail approach, and outlines critical success factors and goals for business expansion. The document also includes an introduction to a meeting discussing risks related to business expansion.

MANAGEMENT
Management
Name of student
Name of University
Author note

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Table of contents
Assessment Task 1.....................................................................................................................2
Assessment Task 2.....................................................................................................................7
Part A.....................................................................................................................................7
Part B......................................................................................................................................9
Part C....................................................................................................................................11
Assessment 3............................................................................................................................14
Part A...................................................................................................................................14
Part B....................................................................................................................................15
References................................................................................................................................19

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Assessment Task 1
1. Definition of risk according to the Australia/New Zealand Standard for Risk
Management (AS/NZS ISO 31000:2009)
As identified in the Australian or New Zealand Standard for Risk management or
AS/NZS ISO 31000:2009, a risk is a probability or threat subjected to create damage or
harm, injury, loss or cause any other negative consequences. It is to be avoided at any
cost and through proper implementation of preemptive actions, which will ensure
probability of return on investments lower than the expected rate of return on investments
(Cardona 2013). The risk is also the possibility to lose something that can be of value,
furthermore include any kind of intentional interaction with chances of uncertainty. Risks
arise at all stages within the life cycle of business processes though it can create both
opportunities as well as threats, which requires proper management (Jones, George and
Langton 2013).
2. Defining the concepts of risk management
According to the Australian/New Zealand Risk Management Standard (AS/NZS ISO
31000:2009), the risk management is a set of coordinated activities that are required to
manage, control and direct the organisation considering the risks associated with it towards
the achievement of business goals and objectives.
The risk management enables forming a risk management infrastructure and culture
through application of logical and systematic risk management processes to the stages of life
cycle (Kerzner and Kerzner 2017). The risk management enabled the Council of Australia to
meet the strategic goals by aligning with the organizational policies.
3. Evaluating the 5 benefits of risk management technique

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Risk management technique  Risks are not apparent and can be
mitigated while the procedure of risk
management can also provide insight
and support to the Board of
Directors along with reduction of
business liabilities.
 It could give credit for cooperation,
furthermore allow to frame the
regulatory issues and deal with those
properly.
 A wide range of scopes and
opportunities is identified, which can
help in making effective decisions
and at the same time, combine the
internal transactions and market
related information for gaining an
overview of the risks (Saman et al.
2018).
 The resources are deployed easily
with risk management and it directly
impacts the organizational
infrastructure and culture on a
positive note.

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4. Major purpose of the AS/NZS ISO 31000: 2009 Risk Management Principles and
Guidelines
The purpose of AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines is
to deal with different types of risks, promote uniformity of risk management across all levels
of the origination. This is also effective for identifying the varying needs of the organization,
its goals and objectives, structure, operations, processes, products and services along with
assets and practices employed by the business organizations (Hopkin 2018). The purpose also
include harmonizing the process of managing risks and maintain good quality standards at
present and in future too by supporting various standards that are responsible for dealing with
the risks.
5. Discussion of 2 of the 11 principles of risk management based on the AS/NZS ISO
31000: 2009 Risk Management Principles and Guidelines
Among the 11 principles of risk management according to the AS/NZS ISO 31000: 2009
Risk Management Principles and Guidelines, the two most important principles considered
here are to become an integral part of the organizational processes and becoming a part of the
process of decision making too. The risk management could act as an important aspect of the
organizational process by integrating with the organization’s governance framework, which
can facilitate strategic planning at both the operational and strategic levels (Eschen et al.
2015). The risk management procedure also follows the principle of becoming a part of
decision making by making informed choices and identifying the priorities to undertake
suitable action.
6. Determining the three examples of potential impacts of risk

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Three major examples of potential impacts of risks are related to the quality of life,
health and safety and sustainability.
 Risks could affect the health and safety of organization and people as well,
thus deteriorating the lifestyle conditions and hindering any successful
processes. For example, an earthquake can cause risks of casualties.
 Quality of life can get deteriorated in case a house is being purchased without
considering the risk that the industrial properties nearby can pollute the air
surrounding the house (Burby et al. 2013).
 The risks could also affect the ecosystem and harm environment.
7. Various important steps for analysing risks
The risks are analysed with the risk management process and it includes various steps:
 Identification of risks
 Evaluation and ranking the risk according to its severity
 Treating the risks
 Monitor and review the risks
 Undertaking necessary actions for mitigating the risks through contingency plan
 Holding persons accountable for the risks
 Finally, execution of mitigation plan
8. The three major information sources used to gather information on potential
risks
The secondary sources ate basically useful for gathering information about risks associated
with many businesses while the primary sources are used including conduct of surveys for

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gathering people’s responses and opinions regarding the risks faced within the workplace of a
specific organisation (Lam 2014).
9. Explaining the five major options for controlling risks
 Assessment of likelihood or risks associated with the hazards that may cause injury,
harm or illness
 Investigation of level of harm that might be caused due to the risks
 Making workers knowledgeable and informed about the risks and hazards
 Evaluating alternative ways that can suit the needs of reducing the chances of risks
and hazards
 Maintaining all these factors stated above and find out options for cost elimination
along with reduction of risks and hazards from the business perspectives.
10. Identification and evaluation of five approaches to minimise risks
It is important to remain conscious about cash management to ensure that unnecessary
costs are prevented and it would be essential for insuring against the specific kinds of risks.
With the changes in business processes, the people of the organisation must be insured along
with proper use of contractual indemnification clauses are essential (Piekkari, Welch and
Welch 2014). The creation of separate entities can help in managing the assets and ensure
that the organisation fulfil its criteria of remaining cost conscious and maintain the quality
standards effectively too.
11. Three major examples of tools or techniques used to identify risks as part of a
risk assessment process

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The examples of tools and techniques responsible for managing the risk assessment
procedure properly are interviewing technique, maintaining historical records of the
company and managing expert judgment and decisions to be made for improving the
business performance to the utmost level possible. The cost and time estimation could also be
important for accomplishment of tasks within the deadline without compromising anyhow on
the quality of business operations and processes.

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Assessment Task 2
Part A
PESTLE analysis for NatureCare
Political- The Government policies and principles intervene the economy of the Sydney and
Melbourne and this can assist in managing the major areas such as educating the workforce,
managing proper health and wellbeing of the people and maintaining good quality
infrastructure of the economy including the road and rail systems (Guillén and García-Canal
2013). The efficient legal framework and high degree of certainty in Australia further ensures
creation of a multi-lingual and well educated workforce to maintain a competitive cost base.
Economic- The price of properties is high related to income levels in Australia and thus
setting up retail chains in various locations can be difficult. This has created high demands
for the retail chains to be set by NatureCare while the capital growth offers great opportunity
for making investments.
Social- The upper, middle and lower class are responsible for the buying decisions made and
it is based on the ownership, property control and capital. The upper class is signified by high
quality and eco-friendly products consisting of natural ingredients, which creates ease for the
company to develop new chains in all over Australia for managing successful business
expansion (Eriksson et al. 2015).
Technological- The Commonwealth Scientific and Industrial Research Organization enables
science and technology, which allows for the growth of the company within the industry as
well as ensures managing good research and development activities along with
implementation of IT resources for effective resources funding along with better
communication at work and delivering services through marketing appropriately.

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Legal- There are contractual issues in case not written on a formal document and legally
bound. Lack of compliance with the Government laws, rules, regulations and sanctions could
also create issues to hold and manage assets (Oh and Contractor 2014). The organisation
must follow proper organisational policies and principles for ensuring that legal advices are
taken from the legal companies specialised in the international business expansion.
Environmental- The growing interest in protection of environment and developing awareness
about environment could also help in managing sustainable measures and ensure that the
company survives in the business long run.
Identification and description all of the internal and external stakeholders
The internal stakeholders of the organisation are employees, managers, business
owner and the shareholders or investors who are responsible for investing on the company to
gain good rate of return on investments. The most important external stakeholders are
customers, whose needs are required to be fulfilled, the Government bodies, suppliers and the
creditors to whom the company owes a certain amount of money (Jones, George and Langton
2013).
Strengths and weaknesses of the retail approach of the company
The strengths of the retail approach include successful differentiation of products and
services in the previous locations where the company operates at present. It could also be
beneficial for creating some unique features in the items and ensure that the customers in
foreign market segments are attracted. Another major strength is the ability to maintain a
good culture and working conditions, which motivates people to perform efficiently
(Eriksson et al. 2015). The weaknesses include lack of innovation perspective and poor

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quality marketing approaches, which can hinder exposure of brand and effective product’s
distribution.
Critical success factors, goals and objectives for the business expansion
The critical success factors for business expansion include strategic focus on certain
areas of leadership, planning and management of people along with learning and
development of staffs for enhancing the operations’ efficiency.
The goals and objectives include setting up a retail chain in central Sydney,
Melbourne and Brisbane by attracting the new clients and retain existing ones too (Piekkari,
Welch and Welch 2014). The company served mostly the female clients and now to facilitate
innovation, the company aims to target both male and female clients by introducing new age
eco-friendly products that could be suitable for them.
Part B
Introduction to the meeting
The meeting, scheduled in the workplace of NatureCare, would aim to discuss about
the risks related to the business expansion. At the meetings, the team members would be
acquainted with the risks of lack of product diversification, intensified competition between
the brands. Statistical data regarding the intensity of the risks would be shown to the team
members in the form of presentations for enhancing their visual skills. Within this, the focus
would be on the macro-environmental analysis of Australia in terms of expanding the scope
and arena of the business. After the presentation, question answer session would be
conducted for gaining an insight into the approaches of the team members towards the risks
and challenges towards the proposed expansion. An outlook invitation would be sent to the
team members 3 days prior to the meeting, so that they can take the necessary preparation.
NatureCare

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This is to inform all the team members of NatureCare, that a meeting would be organized
on the coming Sunday, that is, 13th January 2019. All the team members are requested to
be seated by 9:30 AM sharp, so that the meeting can be started within 10:00AM sharp. The
meeting would be presided by the CEO with due consideration to the following issues:
 Lack of product diversification Intervention of the governmental schemes and policies regarding the
maintenance of proper infrastructure High prices of the locations in terms of setting up the retail chain outlets
 Harmful chemicals in the skincare products, which can lead to environmental
pollution
Discussion of the risks
One of the primary risk, which the personnel of NatureCare has identified is the
inadequate stock of the skincare products as compared to the intensified competition,
prevailing in the market. This issue is a challenge towards catering to the needs of the
customers. The personnel are doubtful regarding the effectiveness of chain retail outlets and
considers it as a risk towards expanding the business into the foreign markets (Hopkin 2018).
Intervention of the governmental policies and schemes into the pre-existing Risk
Management Policy and Procedure would require revision and audit for the prepared
policies and practices. Here, the focus would be on the maintenance of proper
infrastructure. High prices of the locations might aggravate the complexities towards setting
up the retail chain outlets.