Business Diploma: Risk Management Assignment Solution Report

This document is a comprehensive solution to a business diploma assignment focusing on risk management. It addresses various aspects of risk, including qualitative, semi-qualitative, and quantitative analysis methods. The solution covers tools like Fishbone Checklists and brainstorming for problem identification, and discusses the likelihood and consequences of risks. It outlines risk control measures, workplace risks, and relevant legislation such as the Duty of Care, Contract Law, and Environmental Law. The assignment further explores insurance types, the importance of senior management support, and adjustments for disabled people in the workplace. The document also provides details on implementing a risk treatment action plan, prioritizing risks, and understanding acceptable and uncertainty-based risks. It includes references to support the information presented.

Running head: BUSINESS DIPLOMA
Business Diploma
Name of the Student
Name of the University
Author Note

1BUSINESS DIPLOMA
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................2
Answer 4....................................................................................................................................3
Answer 5....................................................................................................................................3
Answer 6....................................................................................................................................4
Answer 7....................................................................................................................................4
Answer 8....................................................................................................................................4
Answer 9....................................................................................................................................5
Answer 10..................................................................................................................................5
Answer 11..................................................................................................................................6
Answer 12..................................................................................................................................6
Answer 13..................................................................................................................................6
Answer 14..................................................................................................................................6
Answer 15..................................................................................................................................6
Answer 16..................................................................................................................................6
Answer 17..................................................................................................................................6
Answer 18..................................................................................................................................6
References..................................................................................................................................7

2BUSINESS DIPLOMA
Answer 1
Three ways that research can conduct for risk, related issues are Qualitative, Semi-
qualitative and Quantitative analysis.
i. Qualitative analysis is like initial screening to identify any further requirement of
analysis for decision-making when there are inadequate resources or numerical data
(Harding 2018).
ii. Quantitative analysis of risks includes numerical values to analyse the risk’s
consequence and likelihood. The analysis quality is based on the availability of the
data. The result is in monetary or technical terms.
iii. Semi-qualitative analysis sets non-predicted realistic values to produce a more
lengthened ranking scale (Choy 2014). It is necessary to recognise the limitations and
add with formula or description.
Answer 2
Fishbone Checklists are an effective mode used to analyse severe problems (Satyadi
2014). It provides a visual image of the difficulties and potential sets of causes that helps to
identify the issues systematically.
Brainstorming is a tool that a person or a group to find specific problems effectively
(Massingham 2014). It is used to answer the question raised as what, who, why, when, where
and how.
Answer 3
Likelihood denotes to term probability or chances. Risk likelihood is the state of being
probable of a threat occurring or a chance of hazard taking place. The five stages of risk

3BUSINESS DIPLOMA
likelihood are measured in a calculation table as ‘Certain, Likely, Possible, Unlikely and
Rare’.
High/ Certain likelihood risk refers to the risk that is critical and requires a great effort
to deal as a top priority to be analysed and manage.
Answer 4
The example description is based on the frequency of student enrollment in a school
that is described for every five levels of risk’s consequences.
Consequences Example descriptions
Catastrophic Huge loss due to very less enrollment of students in
a school
Major Loss of funding by the government due to less
enrollment but can be managed by better
management
Moderate If any Partnership then damages for short term
period that can be recovered
Minor Not much but a slighter decrease in student
enrollment in a school
Insignificant Very less reduction in enrollments of students in a
school
Answer 5
Risk Control measures are the actions implied as a response to the factor of risk. It
can be designed either to reduce or to eliminate it.

4BUSINESS DIPLOMA
i. Elimination of risk means to consider and assess the risk as the top priority to
remove the entire risks. Example, Rerouting cables to eradicate trip threat in
walkways.
ii. Substitution of risk is to replace less dangerous than eliminating the risk as there
exists a possibility of arising new or unknown risk.
iii. Engineering Controls means to redesign something at the engineering level like
fixing physical safety guard between the moving machine parts and the operator.
Answer 6
Physical Risks in the
Workplace
Engineering Controls Administrative Controls
Fire or electrical Provide safety equipment to
employees to use in the
meantime
Provide training to recognise
and avoid such hazardous
situation and control such
equipment
Abrasive blasting Installing proper cleaning
devices and ventilation
system or can insulate the
surfaces
Establishing and
maintaining housekeeping or
awareness of using
appropriate materials
Answer 7
The International Organization for Standardization (ISO) has established a working
group in the year 2005, which developed AS/NZS ISO 31000:2009 and replaced AS/NZS
4360.

5BUSINESS DIPLOMA
Answer 8
Some points to ensure the support of senior management for the success of the risk
management plan:
 Conduit the manual through carrying the existing process of risk management,
 Keeping budget in Check,
 Consider using experts,
 Effective communication and knowledge
 Go slowly while introducing a key concept and implementation of a plan.
Answer 9
Disability Adjustments in the workplace
Deaf or Hard hearing Provide Auslan Interpreters, hearing loops or Text
Mobility Impairment Provide handrails or a ramp or Moving furniture, or
widening doorway so that easy move with a wheelchair
(Wu, Chen and Olson 2014).
Blind or low vision Installing Screen reading and speech recognition software,
Tactile Ground Surface Indicators
Answer 10
Types of Insurances Risks Covered Organisation’s Benefits
Property Property damage through
natural calamity, fire,
worker’s unrest
Cover the losses and Protect
from Loss of Income
Professional Liability Covers mistake related to
finance, consulting
Financial protection from

6BUSINESS DIPLOMA
healthcare or any wrongful
act cause harm to customers
lawsuits increases credibility
Workers’ Compensation Death or disability of an
employee while working
Medical Coverage,
Managed care
Product Liability Injury or damage to the
third party
Protection from any lawsuit,
coverage for manufacturing
and production
Business Interruption/
Income
Interruption in daily
working due to certain
events
Provide coverage for
income earned, relocation,
employee wages, loan
payments
Answer 11
The types of legislation, codes of practice and national standards in context with risk
management in an organisation are discussed below.
 Duty of Care
It is the legal obligation to avoid conduct fraught with the irrational risk of threat to
others. Examples, an accountant owed a duty of care while preparing tax returns to minimise
the chance of an IRS audit and manufacturers owed to customers who use their product or
service.
 Contract Law
Australian contract law (common law) is legal enforcement of promises made as a
part of a bargain freely within the legislated parameters. Example, an agreement made

7BUSINESS DIPLOMA
between two parties and the Supply of money, property or services in exchange for
something valuable.
 Environmental Law
Australian environmental law is made to safeguard the natural species through
different legal Acts. Example, Environment Protection Act 1993 and The Environment
Protection and Biodiversity Conservation Act 1999 that protects the Australian environment
and permits for the picking of wildflowers.
 Franchising Code of Conduct
The Australian Consumer Law and Franchising Code of Conduct regulate the actions
of franchisees and franchisors. Example, The New Code enacts good faith in context to a
franchise agreement in which contract cannot leave good faith obligation and The Disclosure
Document to disclose all the information.
 Fair Trading Act
The Competition and Consumer Act 2010 is a national law in Australia that deals
with the ways through which the business must deal with their customers, suppliers and
competitors (Cairns et al. 2017). Examples, Product safety standards in products like
flammability of children’s clothing and Fair-trading Act 1987 for the description of goods,
and advertising.
Answer 12
The process of risk management includes ‘Risk identification, analysis, evaluation,
and mitigation and control’.
Risk Identification Example- Value of money will change during the project can say
by experience but by how much is uncertain, so it consists of risk.

8BUSINESS DIPLOMA
Risk Mitigation and Control Example- Inspections, maintenance, Testing, Dur
Diligence, Automation, engineering controls.
The risks process can easily be communicated through involving the individuals in the
plan and current status of work through informing them regularly through meetings, e-mails,
or in hand papers.
Answer 13
a) Acceptable risk
It refers to the level of individual and property loss that can be tolerated by a person,
or a group, an organisation, community, region, state or a nation (Syme 2014). Example, Risk
of flooding can be acceptable for once in every 50 years but unacceptable for every year.
b) Hazard based risk
Hazard refers to the intrinsic properties that have the potential to harm. Hazard based
risk occurs from dangerous materials or actions like chemicals and working at heights.
c) Uncertainty based risk
Uncertainty based risk refers to the risk that occurs from an uncertain event like a
natural disaster (flood, earthquake) or loss from suppliers (Blackburn and Stuard 2014).
Answer 14
Worker’s Compensation Insurance that an employer must take in case of injury to an
employee during work in Australia.
Answer 15
The critical parts of an action plan for implementing risk treatment are as follows:
 information security training,

9BUSINESS DIPLOMA
 performance measures,
 Proposed actions, time plan and priorities,
 Reporting and monitoring requirements
 Requirements of resources, and
 Roles and responsibilities involved in the proposed actions.
Answer 16
It is important to prioritise risks because it focuses on management’s attention
towards the risk that requires top or low priority by ranking accordingly. The steps must
consider while prioritising risks is to identify the risks and second is to define the risks. This
includes risk seems to be similar ranking or severe and responses for where to apply the
limited resources.
Answer 17
The Equal Opportunity Act 1984 (South Australia) is the Act that an employer
complies with to make adjustments for disabled people.
Answer 18
(1) Consequence- (3)
(2) Scope- (4)
(3) Risk ranking- (2)
(4) Consultation- (5)
(5) Likelihood- (1)

10BUSINESS DIPLOMA
References
Blackburn, K. and Stuard, S.B., 2014. A framework to facilitate consistent characterization of
read across uncertainty. Regulatory Toxicology and Pharmacology, 68(3), pp.353-362.
Cairns, R., Brown, J.A., Gunja, N. and Buckley, N.A., 2017. The impact of Australian
legislative changes on synthetic cannabinoid exposures reported to the New South Wales
Poisons Information Centre. International Journal of Drug Policy, 43, pp.74-82.
Choy, L.T., 2014. The strengths and weaknesses of research methodology: Comparison and
complimentary between qualitative and quantitative approaches. IOSR Journal of Humanities
and Social Science, 19(4), pp.99-104.
Harding, J., 2018. Qualitative data analysis: From start to finish. SAGE Publications
Limited.
Massingham, P., 2014. An evaluation of knowledge management tools: Part 1–managing
knowledge resources. Journal of Knowledge Management.
Satyadi, C., 2014. Improving Patient Safety: Proficiency Testing Management Utilizing
Ishikawa/Fishbone Methodology and Risk Management System (RMS) in Alignment to
Internal Quality Control Plan (IQCP). American Journal of Clinical Pathology, 142(suppl_1),
pp.A142-A142.
Syme, G.J., 2014. Acceptable risk and social values: struggling with uncertainty in Australian
water allocation. Stochastic environmental research and risk assessment, 28(1), pp.113-121.
Wu, D.D., Chen, S.H. and Olson, D.L., 2014. Business intelligence in risk management:
Some recent progresses. Information Sciences, 256, pp.1-7.