Risk Assessment: Detailed Analysis and Answers for Business Success

This document provides comprehensive answers to a series of written questions focused on risk assessment within a business context. The assignment begins by discussing the purpose of risk management standards and provides an example, highlighting their importance in identifying and mitigating potential threats to an organization's capital and earnings. It then outlines the AS/NZS ISO 31000:2009 Risk Management Principles and Guidelines, detailing each of the 11 principles. The requirements of WHS legislation in relation to risk management are explained, including the legal responsibilities of employers and standards for managing specific risks and hazards. The assignment further explores factors for determining risk control measures for hazardous manual tasks, the purpose of risk management policies and procedures, and the impact of unidentified risks. A step-by-step procedure for analyzing risks is provided, along with sources of information for gathering data on potential risks. The document concludes with examples of tools and techniques for risk identification and options for controlling risks within a company.

Manage Risk

Assessment Task 1: Written Questions
1. Discuss the purpose of risk management standards. Include an example of a risk
management standard in your answer.
Risk management refers to a process of determining factors that create threats for
capital and earnings of an organisation. It includes financial uncertainty, failure of a
plan, legal liabilities, natural disasters and more (Teece, Peteraf and Leih,2016).
Therefore, the main purpose of such management in an organisation is to identify the
potential threats before occurrence of them so that chance of failure of business can
be reduced. It also helps in preparing plans for risk-handling activities and mitigating
the adverse impacts on achievement of business objectives. As an project manager
or team member organisation have to manage risk on a daily basis and it plays major
role in organisational growth and enhancement. To access risk for an organisation
there are some definite steps to eliminate risk factor because uncertainty is exist in
every organisation and for that risk management handling program should be
conducted to get appropriate results. Risk management is very much obligatory for
Nature Care Products because they aimed to expand its business in market of
Sydney (Bates and et.al ., 2014) (. So in risk management all standards are very
important to keep relevant at time of changing time and save cost because it is very
much important to remain always competitive in marketplace. It deals in organic
products which are rare in nature so that products are high in demand so they have
vast opportunity for that to enlarge business opportunities to gain higher level of
profitability.
2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and each
of the 11 principles.
The Australian New Zealand Risk Management Standard (AS/NZS ISO 31000:2009)
outlines the following main objectives:-
Coordinate activities in order to control activities of an organisation to reduce
occurrence of risk
Offer an appropriate system for risk oversight as well as management for an entity
Develop an effective system to control internal organisational factors that create threat
1

for company’s capital and profitability
Involvement of stakeholders are very much important for an organisation while
accessing risk because it helps in taking decision at every step of an organisation.
While deal with risk assessment organisation have to importantly keep in mind about
the organisational objectives by accessing risk management process.
In risk assessment organisation have to communicate in proper manner by sharing
authenticate knowledge and information with potential so that proper decisions
should be utilised.
3. Explain the requirements of WHS legislation in relation to risk management.
Safe Work Australia has developed a single set of laws within WHS in order to be
implemented across the nation, to become binding in legal manner. World Health and
Safety Law for improvement the labour condition, has developed national policy which
must be adhere by every running organisation within territory. Here, this act provides
an overview for corporates to make their workplace safe and healthy(Blunden and
Thirlwell, 2012). It outlines the legal responsibilities of employers as well. Along with
this, it also sets out standards for meeting the specific risks and hazards that create
threat for business entities. WHS legislation are very much important for keep
employee safe and secure from any kind of hazardous effects on work and behaviour
of an employee in that case after securing their rights and health they can be able to
give their best in organisational growth and enhancement. It helps in improving
working conditions and keep proper measures to deal with changing working
environment and give them health measures to imply with changes occur in dynamic
environment.
4. List the factors that must be taken into account in determining risk control measures for
hazardous manual tasks as stated in the model Work Health and Safety Regulations 2011.
2

Risk control measures are the steps that are implemented by an organisation to eliminate or
minimize probability or chances from that any employee got injured at job or workplace, it helps in
reduce chances that anything that cause of harm to community while provide services at work
place(Bromiley and et. al., 2015). In that risk control organisation follows some major steps and
factors that helps in keep update and moving to keep updated and relevant at time of changing
environment.
At a workplace, there are various factors that can arise threats for workers as-
 Work area design and layout
 System of work
 Working environment where manual task is performed
 Application of high force
 Manually handling the heavy loads that leads to injuries
5. Explain the purpose of risk management policies and procedures in the workplace.
The main purpose of risk management policies and procedures in any workplace is to provide
safety to associated people and prevent them from those risks, that have potential for injuries and
threat for life. It sets out rules that must be adhere by employers and managers of a company to
prevent their workplace from potential of hazardous. The main purpose of risk management
policies and procedures at workplace is very much helpful in keep health and safety, governance
is an organisational framework, procedures and regulations for both employees for strategic level
to mange or coordinate the performance of employees to keep employees always healthy and
they can give their duties and functions in a proper way(Brown, Medlock and Murray, 2014). Risk
management policy are intended to provide a full fledged framework that helps in access
associated risk and helps in enhance awareness with help of council and helps to managers and
responsible for reporting of risk and for better identifying the control measures in within risk area.
Hence they play major role in organisational growth and enhancement by following rules and
procedures to gain competitive advantage by eliminating risk at maximum level.
6. List three examples of the impact of risks for a workplace if risks are not identified or
actioned.
It is important for an organisation to conduct risk analysis so that it will be identified and company
can take major step in relation to this. There are some negative impact of risk within workplace if
3

it will not identified in advance. Explanation of these are as follows :-
1. Damages and frayed electrical codes
2. sometimes machine in industry start creating notice in relation of this it is necessary to
identify reason behind it and have to take major step for maintenance. Because Noisy of
machineries may result damaging hearing capacities of workers or other staff members.
3. Safety Equipment are necessary in industry so it is necessary to continue check that there
is appropriate equipment available or not.
7. Outline a step-by-step procedure that companies can use for analysing risks.
It is necessary to analyse risk for taking important steps so that company can minimise their
negative outcomes. There are proper steps related to risk analysis explanation of these are as
follows :-
 First step is to Monitor or examine entire aspects of workplace for analysing risk.
 After analysing risk it is important to take major step in relation of identified risk such as
concern in term of machinery or any other equipment maintenance, repair as well as
cleaning procedures.
 It is necessary to identify how work is conducting in organisation so that if risk is
analysing in manner of doing work then it will get modify.
 Gathered information related to each hazardous activity so that it will be minimise
in effective manner and major step in relation of risk deduction can be taken.
 Approach the consequences of each and every hazardous activity as well as
minimise their negative impact.
8. Outline three sources of information that a company could use to gather information on
potential risks.
Business impact analysis: It predicts the outcomes received by the disruption of a business
function and process and collect data which will be useful to frame an effective strategies and
plans. Potential loss scenarios can be identified through risk assessment. It consists of two
components which includes exploratory part and the planning part. It operates on the basis of two
assumptions which includes that every element of an organisation are much dependent on
continued operations of all other components and these components are likely to required huge
fund allocation if any possible risk occurs.
Internal and external reviews: Internal risk can be identified by an organisation from within its
4

organisation and occur during the normal operations of an organisation (Chiarini, 2017). These
kind of risk can be forecasted with some reliability and thus, the company have good opportunity
to minimise internal business risk. It can be related with human, technological and physical
factors. External risk can be occur due to economic events that may occur from outside the
corporate structure. It lead to external risk which can be controlled by an organisation or cannot
be forecasted thus difficult to reduce associated risk.
Audit report: The information related with risk can be gathered through analysing the report which
contains all details about every transactions made by an organsation with their clients. It includes
reviews of the management risk approach which enable an organisation to identify the level of
risk so that proper action can be taken to managr and control risk.
9. Describe three examples of tools or techniques that a company could use to identify risks as
part of a risk assessment process.
Risk assessment techniques refers to a supporting standard for ISO 31000, that provide
guidelines to organisations how to apply systematically apply techniques for risk analysis.
For this purpose, many processes can be taken as-
 Brainstorming to identify potential hazards and risks
 Checklist for control failures and internal environment
 Fault Tree Analysis for identifying and analysing risk factors
In today's context there are various assessment techniques that are refer as a supporting standard
which consist of various guidelines within an organisation that help in applying different and
effective systematic techniques that are associated with risk analysis. Herein for such purpose
many organisation few effective risk assessment are brainstorming. It is one of the effective
techniques that are used by organisation in order to know what are its hazards risk that are
associated with business purpose (Covington and Thamotheram, 2014). Apart from this
checklist help an organisation to manage the pitfalls of both internal and external business
environment so that they can maintain its productivity and profitability in competitive marketplace.
Along with brainstorming and checklist many organisation adopt fault tree analysis in order
analysis different risk factor that are associated with business. As it is necessary for an
organisation to analysis different risk which are essential in identifying what are the internal and
external risk factor that may effective business operation in competitive marketplace.
10. Explain four options that a company could take to control risks.
As a risk management is a on-going process therefore, for controlling risks, a company can use a
5

number of options explanation of these are as follows :-
 Accept risk: If any project has a strategic importance and a large scope of business
growth then risk for failure of same be accepted. Because in business environment
without risk it is not possible to gain growth as well as success.
 Mitigate risk: To reduce occurrence of risks it is necessary to frame actions plan in
relation of this so chances of hazards can be minimise. For example: to execute a task
successfully, a company can assign professionals who are expert in handling a project.
Along with this, risk management team should be hire so that occurrence of risk can be
minimise if their will be any then it will minimise (Dierker, Kang and Seo, 2013).
 Eliminate risk: A risk can reduce to nil only by identify the activities which generates risk
as well as stop doing such activities in working of company.
 Transfer risk: A risk can also be transferred to other activities or individual. For example:
Assets that are at higher risks can be insured so that if it will damage or destroyed than
money can be claim in against of such assets.
 Transfer risk: A risk can also be transferred to other activities or individual. For example:
Assets that are at higher risks can be insured.
11. Explain four procedures that a company could use to minimise risk.
It is necessary for achievement success in business environment is to minimise level of risks that
creates threats to business, a company can apply following main procedures:
Put appropriate risk planning efforts into project schedule for increase chance of success of
executing a project
For identifying potential risks a company must involve participation of its stakeholders
Make plan to avoid, accept or mitigate risks
Weekly regularise the risk assessment activities
6

Assessment Task 2: Risk management project
7

Risk Briefing Report (Final Version)
Introduction
Risk management is considered as a process to control internal and external activities of business
that might create threat for an organisation. It helps a company in identifying risk, developing
plans for reducing the same and preventing workplace from potential of hazards. In context with
NatureCare Products of Australia a company is going to launch its e-business to sale products
online. Therefore, its managers have made a plan that covers entire activities and resources need
to open the same.
The risk related to NatureCare Products Risk Management Policy includes a proper guidance
on how to manage risk. This policy is aligned with AS/NZS ISO31000:2009 that includes a
commitment to implement risk management within business effectively by:
 Minimising as well as managing risk
 Incorporate the policy into effectively decision-making processes
 A commitment to review progress and track records of risk management
Scope of risk management process
As there is a high scope for to earn high income and generate profitability. But it covers various
type of risks that may impact on capital of respective company. As opens up a new branch
requires much investment of capital but to shortage of same, may lead to project failure also.
Along with this, there are many factors present in business environment that create risks for
success of this project.
PESTLE Analysis
Political Factors
8

Factor Risk treatments as applicable
Personal Care Product Safety Act Apply hands-on approach to ensure product
safety and production must be designed for skin-
care treatment that not harms others.
Government stability and involvement
in trade unions
Make alternatives plans to coverage risks that
lead to project failure. Along with this, buying
political risk insurance also consider as an
important way for managing political risk and
reduce risk exposure as well. It is essential for a
Nature care company to analysis as well as
monitor political climate in order to check
stability that is ongoing.
Taxation Increase or decrease in taxation also considered
as important economical impact that affect
decision policy, so nature care needs to concern
on shifts in interest rate for analysing patterns of
marketplace, where it currently wants to expand
it business. Along with this it is necessary for
respective company is to monitor political climate
which help them in keep updating their initial
policies as well as tax that is updated by
government. Through this they also able to adapt
properly change.
Economic Factors
Factor Risk treatments as applicable
A recession-resistant industry Develop policies related to pricing strategies to
9

meet demand of price conscious. Along with this
change in economic condition also impact on rate
of export as well as import.
Demand and supply This factor may affect business of Nature care
more negatively. Therefore, company needs to
offer products on reasonable rates that increase
demand of cosmetic products as well as must
preserve proper stock as well. Moreover, by
reviewing economic condition on regular basis
respective company able to adopt growth by
decline projections.
Rise in global development As this factor showcase high income of customers
that aid to increase profitability of business. But it
also might increase labour and material costs
which might raise production cost of respective
company as well. Along with this through grow in
economic condition respective company able to
generate employment for local, nation as well as
international candidates.
Factor Risk treatments as applicable
Legal Factors
Factor Risk treatments as applicable
Tax policies In order to managing business activities,
organisation requires to identify impact of tax
10