Risk Management Project: Establishing Risk Context for Nature Care

This project portfolio meticulously establishes the risk context for Nature Care, an Australian-based eco-friendly skincare product manufacturer. It defines the scope of a risk management process centered on the finance department, including payroll, banking, accounts payable/receivable, and statutory compliance. The project evaluates organizational policies, procedures, and legal requirements, referencing relevant risk management standards. It identifies and engages stakeholders to gather input on risk identification, analysis, and control. Furthermore, the project analyzes the external environment and internal strengths/weaknesses to understand potential risk factors. The project also involves planning stakeholder discussions to identify risks, assessing those risks using appropriate scales, researching risk treatment options, and documenting the entire process using digital technology. Finally, it implements and monitors a selected risk treatment, communicates the action plan to relevant parties, and evaluates the overall risk management process, culminating in a comprehensive evaluation report. Desklib provides access to this and other solved assignments for students.

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Contents
Section 1: Establish risk context................................................................................................................. 8
1Provide a brief overview of the business or organisation you are basing your portfolio on.......................8
1.1What is the name of the business or organisation?...........................................................................8
1.2What is the main focus of the business?............................................................................................ 8
1.3What role will you assume as you investigate risk for your chosen risk management
process/project?..................................................................................................................................... 8
2Determine the scope of your chosen risk management process/project...................................................8
2.1What does your chosen risk management process/project involve?.................................................8
2.2Which departments or work areas are involved in the process?........................................................8
2.3Are there any risks the business will not manage (for example, staff retention)?..............................8
3Evaluate organisational requirements and standards for managing risk...................................................8
3.1Which organisational policies and procedures provide input on how you approach your chosen risk
management process or project e.g. Risk management, Record keeping etc.?.....................................8
3.2Are there any processes you need to follow?....................................................................................8
3.3Attach policies and procedures to this section of your portfolio.........................................................8
4What are the legal requirements associated with your chosen risk management process or project?.....8
4.1Explain the legislation you need to comply with.................................................................................8
4.2Do any regulations apply?................................................................................................................. 8
4.3Is there the potential for new laws to be introduced or existing ones to be amended or rescinded?. 8
4.4Which risk management standard/s are used or guide the risk management activities of the
business?................................................................................................................................................ 8
5List the resources available for you to use as you plan, implement and monitor risk................................8
5.1Are template documents available to support your risk management process/project?.....................8
5.2Do you have budget allocation or restrictions for the risk management process/project?..................8
5.3Which employees are available to assist you?..................................................................................8
5.4What other resources are required?.................................................................................................. 8
6Establish objectives and critical success factors for your risk management process or project................8
6.1List two objectives.............................................................................................................................. 8
6.2List three critical success factors for the risk management process or project..................................8
7Identify stakeholders who will be part of the risk management process...................................................9
7.1Who is able to shed light on or assist with risk identification, risk analysis and/or risk control?.........9
7.2Who is likely to be impacted by an adverse risk event?.....................................................................9

7.3How will each stakeholder provide input to the risk management process (such as identifying
possible risks, helping describe their impact and suggesting ways to prevent or mitigate risks)?..........9
7.4What influence does each stakeholder have on risk management decisions? .................................9
7.5What are the possible issues each stakeholder may have if a risk event occurs (for example,
employees will still want to be paid, customers may still need your products or services and banks will
still need to be paid for loans etc)?......................................................................................................... 9
8Communicate with relevant stakeholders.................................................................................................9
8.1Who will you communicate to (at least two stakeholders) regarding:.................................................9
1.1.1.Explanation of the risk management process or project?..............................................................9
1.1.2.Invitation to assist in risk identification...........................................................................................9
8.2How will you consult with each stakeholder?.....................................................................................9
8.3If not already viewed in person by your assessor, attach proof (e.g. draft email, telephone
conversation recording, video of meeting etc.) of your explanation of the risk management
process/project to the stakeholders........................................................................................................ 9
8.4If not already viewed in person by your assessor, attach proof of your invitation to stakeholders to
assist in the identification of risks (e.g. draft email, telephone conversation recording, video of meeting
etc.). ....................................................................................................................................................... 9
Note: If suitable, 8.3 and 8.4 can be completed as one communication.................................................9
9Analyse the external environment of your risk management process/project. .........................................9
Note: You may choose to perform any external environmental analysis (e.g. PESTLE analysis) to answer
this question instead of the questions below............................................................................................... 9
9.1What is the political situation like (e.g. unrest, government support of small business, government
policies)?................................................................................................................................................. 9
9.2What is the current and predicted economic situation (e.g. state of local and other applicable
economies, interest rates, exchange rates, employment rates etc.)?.....................................................9
9.3Are there any social considerations (e.g. changing values, beliefs, attitudes and habits)?................9
9.4How are technological advances affecting the business (e.g. internet, RPA, risk control)?...............9
9.5What are competitors doing?............................................................................................................. 9
10Establish the strengths and weaknesses within your business that have the potential to create or
impact risk. ................................................................................................................................................. 9
Note: You may choose to use any relevant analysis tool (e.g. SWOT analysis) to answer instead of the
questions below.......................................................................................................................................... 9
10.1Are the current risk management policy/procedures complete and comprehensive?......................9
10.2What is the state or condition of business’ resources relevant to your risk management process or
project?................................................................................................................................................... 9
10.3How effective are existing communication mechanisms between management and the workforce?
................................................................................................................................................................ 9
10.4How loyal are staff?......................................................................................................................... 9
10.5What is the size and quality of the customer data base?...............................................................10
10.6What is the business’ ability to fund or raise funding?...................................................................10
10.7What is the business’ cashflow situation?......................................................................................10

10.8Are supplier relationships strong and reliable?..............................................................................10
Section 2: Identify and analyse risk.......................................................................................................... 11
1Plan to discuss risks with invited stakeholders (identified in Section 1)..................................................11
10.9Choose a tool or technique to facilitate the group discussion to identify risks within the scope of the
risk management process .................................................................................................................... 11
Note: At the meeting, you will collaboratively choose three risks to focus on as a group......................11
10.10List what will be discussed (e.g. identify risks, assess risks, risk treatments, priorities etc.)........11
10.11What method and scale will you use to assess the likelihood and severity of the risks?.............11
10.12What will guide how you prioritise risk (e.g. risk matrix)?.............................................................11
10.13What are you prepared to negotiate? .......................................................................................... 11
10.14How will you negotiate?............................................................................................................... 11
10.15Explain questioning and listening techniques you will use to elicit opinion and clarify
understanding....................................................................................................................................... 11
11Summarise risks................................................................................................................................... 11
11.1Summarise at least three risks identified at the meeting that apply to the scope of your risk
management process or project. For each risk:....................................................................................11
1.1.3.Identify which type of risk it is...................................................................................................... 11
1.1.4.Identify who may be responsible for the risk................................................................................11
1.1.5.List at least two potential outcomes should the risk eventuate....................................................11
1.1.6.What treatment alternatives were discussed?.............................................................................11
1.1.7.How do the stakeholders want to prioritise the risks?..................................................................11
11.2If not already viewed in person by your assessor, attach proof of your stakeholder meeting (e.g.
video of meeting etc.)............................................................................................................................ 11
12Complete the table below to assess the identified risks (using an appropriate scale and stakeholder
input)......................................................................................................................................................... 11
13Research risks...................................................................................................................................... 12
13.1Research each of the identified risks to learn more about the risk and any related risk treatment
options (e.g. speak to stakeholders, do an internet search, review best practice examples, check
policies and procedures, view past incidents, research technology solutions etc.)...............................12
Note: You must access at least two different sources of information....................................................12
13.2Summarise the research done for each identified risk...................................................................12
13.3List the options available to you to treat your identified risks.........................................................12
13.4Attach proof of your research to this section of your portfolio........................................................12
14Use digital technology to document and calculate risk (e.g. a risk register). Include the risk, potential
outcomes, likelihood, impact/severity, risk calculation, treatment actions and priority of each treatment
action........................................................................................................................................................ 12
Note: Risk is calculated (likelihood)x(impact)............................................................................................ 12
Section 3: Implement and monitor risk treatment......................................................................................13

1Complete the action plan below for ONE of your selected risk treatments (in your Risk register in Section
2).............................................................................................................................................................. 13
Note: If your business already has an action plan template or other specific documentation requirements,
use them instead and attach your work to this section of the portfolio......................................................13
15Communicate the action plan to relevant parties (each person responsible for a step in the action plan).
.................................................................................................................................................................. 13
15.1To who will you communicate?...................................................................................................... 13
15.2How will you communicate (e.g. face-to-face discussion, email)?.................................................13
Note: If you are basing this assessment on the case study business, you are required to communicate
verbally................................................................................................................................................. 13
15.3Unless already viewed in person by your assessor, attach proof of your communication to this
section of the portfolio (e.g. email with attachment, project schedule, video of team meeting etc.). ....13
16Implement your action plan and maintain documentation.....................................................................14
16.1Which step will you implement?..................................................................................................... 14
Note: If you are using the case study, assume that one step in your action plan is to request quotes for
RPA systems for invoice capturing....................................................................................................... 14
16.2What are the organisational policy and procedure requirements to implement your chosen step in
the action plan (e.g. how many quotes are you required to obtain, should a research report be written
etc.)?..................................................................................................................................................... 14
16.3Attach proof of implementation to this section of your portfolio (e.g. request for quotes, research
conducted and written into a research report etc.)...............................................................................14
16.4Describe how you maintained the documentation to indicate completion of the step (e.g. marked
the action plan as “done”). If this step cannot be completed in the Project Portfolio, attach proof........14
17Monitor your risk management process or project................................................................................14
17.1What data is available?.................................................................................................................. 14
17.2Have any new risks emerged?....................................................................................................... 14
17.3Have any incidents been recorded?............................................................................................... 14
17.4Have you (or other stakeholders) received or provided feedback?................................................14
18Evaluate your risk management process or project..............................................................................14
18.1Are you identified risks still relevant?............................................................................................. 14
18.2Have your risk treatments been successful?.................................................................................14
18.3Are there any new risks?............................................................................................................... 14
18.4How satisfied are stakeholders with your action taken to manage risks?......................................14
18.5Are your selected treatment options still in line with best practice?...............................................14
18.6Is any other risk treatment necessary?.......................................................................................... 14
18.7Write a report on the outcomes of the evaluation and attach it to this section of your portfolio. In
you report, include:............................................................................................................................... 14

Student name:
Assessor:
Date:
Business this assessment
is based on:
Risk management
project/process:
Documentation reviewed
as preparation:

Section 1: Establish risk context
1 Provide a brief overview of the business or organisation you are basing your portfolio on.
1.1 What is the name of the business or organisation?
The organisation that has been considered is Nature care which is an Australian based organisation
which is established in the years 1996. Headquarters of the organisation is in Brisbane, Australia. The
organisation is based upon idea of environmental awareness.
1.2 What is the main focus of the business?
The main idea of Nature care is based over eco-frindly manufacturing of products related to beauty skin
care products. Under this business establishment was done over making sure growing demand for skin
products which are environmental friendly and has natural ingredient. Further the business is focused
over making eco-friendly packaging more popular which makes goals of environmental awareness
created.
1.3 What role will you assume as you investigate risk for your chosen risk management
process/project?
In the organisation as a Finance manager and CEO of the organisation requires to investigate over
financial risk involved within financial activities required over performed by the finance team. Under it.
Currently, due to the small size of the business.
2 Determine the scope of your chosen risk management process/project.
2.1 What does your chosen risk management process/project involve?
The chose risk management process is based over finance department and includes responsibilities in
relation to general activities is covered including responsibilities of the finance team include payroll,
banking, accounts payable (supplier payments), account receivable (customer receipts) and statutory
compliance.
2.2 Which departments or work areas are involved in the process?
In this finance department is involved with finance team handling supplier payments, accounts receivable
and statutory compliance related to it. The major area to be covered is based upon these risks which
impacts organisation’s financial responsibilities.
2.3 Are there any risks the business will not manage (for example, staff retention)?
Though IT is involved within responsibility of finance team but It is not needed over assessing risk. So, it
can be observed that IT is the risk which is not required to be assessed.
3 Evaluate organisational requirements and standards for managing risk.

3.1 Which organisational policies and procedures provide input on how you approach your chosen
risk management process or project e.g. Risk management, Record keeping etc.?
Risk management the process by which an organisation is able to identify potential risk before its
accruing. Also such management makes analysis of the risk done and then steps is been taken in order
to reduce the risk. There are three main kinds of risk management which is business risk management,
non business risk management and financial risk management. In relation over case study of Nature care
organisation financial risk management is involved.
3.2 Are there any processes you need to follow?
The process which is required to be used within it is based upon steps which are outlining of objectives in
this main focus is over identifying of projects necessities and create understanding of it in relation to
project. Other steps are Risk management plan which makes framework prepared over handling of risk in
proper manner. Identification it means elements to be identification of it in relation over risk through risk
management plan. Then comes evaluation which includes evaluating of risk in effective way. Planing in
which appropriate strategy in relation over risk is applied in this case financial management is required to
be done. Also constructive feedback is required attained form risk solving strategies.
3.3 Attach policies and procedures to this section of your portfolio.
The risk management policy of Australia is required to be used that leads upon making financial risk
managed in proper manner. In this process to be used is based over managing funds over raw materials,
introducing optimum utilisation of finance and proper plan is required to be prepared by Nature care to
makes sure that risk related over objective is been identified in proper manner.
4 What are the legal requirements associated with your chosen risk management process or project?
4.1 Explain the legislation you need to comply with.
The appropriate legislation that can be applied is Faire work Act 2009 and Privacy act 1988. In Faire work
Act 2009 fairness within various process of an organisation. Then in Privacy act 1988 this protects
private information of employees. Nature care through these policies is able to attain satisfaction in
relation to its employees.
4.2 Do any regulations apply?
Only the above mentioned legislation that is Faire work Act 2009 and Privacy act 1988 is required to be
used in order to make sure that risk is been handled in proper manner. Also these legislation makes
fairness introduced within work process of Nature care. Then privacy of employees is been protected
through managing risk.
4.3 Is there the potential for new laws to be introduced or existing ones to be amended or
rescinded?
No, new laws is required to be applied but amendment can be done as per the nature of problem accrued
through risk.
4.4 Which risk management standard/s are used or guide the risk management activities of the
business?
In this budget planning can be used by nature care that is helpful in keeping money safe to deal over the
risk and makes sure that proper utilisation of financial resource is been done.
5 Other regulation that can be applied as per case scenario Privacy act 1988 which is helpful in
making sure about regulations applied over managing financial risks.

5.1 Is there the potential for new laws to be introduced or existing ones to be amended or
rescinded?
No, change is to be done within the policies or legislation only standards and guidelines can be
developed for making regulation applied.
5.2 Which risk management standard/s are used or guide the risk management activities of the
business?
The standards of risk management in relation over theft is based upon three levels which of high, low and
medium. In the meeting held between payroll and Finance manager of natural care risk identified is high
in nature.
5.3 Are template documents available to support your risk management process/project?
RPA process is been used within the case study in relation over managing of risk in the project. This
makes more secured form over managing transactions which is going to help in making theft identified in
proper manner.
5.4 Do you have budget allocation or restrictions for the risk management process/project?
Implementation of the system cost $25 000.
Implementation of the system cost $25 000. This has been applied which has helped in
managing risk over new products in better and effective manner.
5.5 Which employees are available to assist you?
Payroll officer is there for helping in providing assistance in relation to the risk that has taken place within
Nature Care.
5.6 What other resources are required?
Resources required is based upon evidences related to theft and report over financial transaction done in
relation to it.
6 Establish objectives and critical success factors for your risk management process or project.
6.1 List two objectives. Objectives of risk management factor process is to develop secured medium to identify theft done
in relation over stock. Other objective is to makes sure that cash flow is improved in more effective manner.
6.2 List three critical success factors for the risk management process or project.
Three success factors related to risk management process is legislation, evaluation and
monitoring.
7 Identify stakeholders who will be part of the risk management process.
7.1 Who is able to shed light on or assist with risk identification, risk analysis and/or risk control?
Potential stakeholders related to risk identification as per the case study are Investors and fund
providers,payroll officer, finance manager and finance assistance.
7.2 Who is likely to be impacted by an adverse risk event?
The impact over adverse risk event investors and fund providers,payroll officer, finance manager and
finance assistance. .

7.3 How will each stakeholder provide input to the risk management process (such as identifying
possible risks, helping describe their impact and suggesting ways to prevent or mitigate risks)?
In this payroll officer makes makes analysis done in relation over theft and cash flow problems. Then
finance assistance provides proper monitoring done about risk management process. Finance manager
makes management of the process done through providing proper guidelines as per legislation applied
within controlling risk related to Nature care products. The investors is required to seek that risk is not
going to impact profit outcome of Nature acre products. Financial assistance is helpful in managing
financial resources. Finance manger is going to provide solution over risk that has been created.
7.4 What influence does each stakeholder have on risk management decisions?
In this payroll officer makes makes analysis done in relation over theft and cash flow problems. Then
finance assistance provides proper monitoring done about risk management process. Finance manager
makes management of the process done through providing proper guidelines as per legislation applied
within controlling risk related to Nature care products. The investors is required to seek that risk is not
going to impact profit outcome of Nature acre products. Financial assistance is helpful in managing
financial resources. Finance manger is going to provide solution over risk that has been created.
7.5 What are the possible issues each stakeholder may have if a risk event occurs
As per the case study potential issues arise to payroll officer is that lack of resources and finance lead
towards making not research conducted which makes issues remain unsolved. If financial assistance is
not provided then money cannot be arranged on time winch collapsed process of risk management and
its applicability. Finance manager issue may arise over making payments and salary distribution to
persons working under him.
8 Communicate with relevant stakeholders.
8.1 Who will you communicate to (at least two stakeholders) regarding:
Since the case study explains that main stream communication is required to be achieved which can be
made through using communication channels. These channels lead upon making information passed in
effective manner leading towards improving of communication process. In this case internal
communication channels is to be used within which payroll officer and finance assistant can be used for
making communication through internal channels smooth. Communication will be done by finance
manager.
8.2 How will you consult with each stakeholder?
This can be made possible by using ethical code of conduct which makes work integrity maintained with
discipline and order. Also consultation can be done using emails or through telephones withion staff
members.
8.3 If not already viewed in person by your assessor, attach proof (e.g. draft email, telephone
conversation recording, video of meeting etc.) of your explanation of the risk management
process/project to the stakeholders.
Dear sir,

It is requested to the finance assistance that an meeting is required to be held on the discussion related
to the risk management process applicability. Kindly make sure that its report upon analysis is to be
prepared as soon as possible. Also relevant data in relation over risks accrued in relation should be
mailed back to ( finance mangernaturecare@89). So kindly make sure that these points is been fulfilled
before joining the meeting.
Thanks you.
( Finance manager)
8.4 If not already viewed in person by your assessor, attach proof of your invitation to stakeholders
to assist in the identification of risks (e.g. draft email, telephone conversation recording, video of
meeting etc.).
Dear sir,
It is requested to the finance assistance that an meeting is required to be held on the discussion related
to the risk management process applicability. Kindly make sure that its report upon analysis is to be
prepared as soon as possible. Also relevant data in relation over risks accrued in relation should be
mailed back to ( finance mangernaturecare@89). So kindly make sure that these points is been fulfilled
before joining the meeting.
Thanks you.
(Finance manager)
9 Analyse the external environment of your risk management process/project.
In order to understand the impact of external environment proper analysis is done that is PESTEL
analysis. This analysis acts as tool which makes impact of external factors understood in more
effective manner. This is one of the most effective way which leads over understanding about
various factors impacting risk management process. Further analysis is done in relation ton nature
care risk management as follows:
Political factors: These are those factors which are based upon various kinds of polices that has
been formed by government related to various aspects of corporate world. In these policies based
tax, competition or antitrust laws, corporate governance with health and safety legislation is involved.
If policies formed by government becomes rigid in nature then it can lead upon making risk
management process of nature care face financial problems which makes process formed lack
financial stability and lead towards its collapse of risk management.
Economic factors: Such factors covers about different kinds of economic factors which makes
economic sustainability attained within an organisation. In this factors like inflation and deflation
rate , unemployment rate with import export rate increased. In relation to nature care if import rate
increases then expansion capacity is going to be affected which makes loss to be faced and risks
accrued.
Social factors: These are those factors which is based upon analysing of trends, taste which is
been existing within individual living within society. Such factors makes various elements to be
identified which impacts the expansion of an organisation within particular market. Further factors
includes all customers preferences within society. It impacts organisation like nature care in a way