Comprehensive Risk Management Report: Analysis and Action Plan

This report provides a comprehensive analysis of risk management, including risk identification, assessment, and treatment strategies. It covers both internal and external risk factors, utilizing tools like SWOT and PEST analysis. The report outlines critical success factors for implementing a risk management plan and identifies key stakeholders. It details various risk treatment options, such as avoidance, reduction, and transfer, and emphasizes the importance of regular review and communication. The report also includes an action plan for implementing risk treatment, focusing on banking risk, managers travel risk, by-law compliance risk, and water compliance risk, with specific actions, timelines, and responsible parties identified. Additionally, it addresses the legal and ethical responsibilities related to risk management, referencing privacy law, WHS legislation, contract law, company law, industrial relations, duty of care, freedom of information, and environmental law. The document concludes with adjustments employers can make to assist disabled persons, highlighting practical implementations for a comprehensive risk management approach. Desklib offers a variety of study tools and resources for students.

Manage risk

Table of Contents
UNIT ASSESSMENT 1 (UKA)......................................................................................................4
Question 1....................................................................................................................................4
Question 2....................................................................................................................................4
Question 3....................................................................................................................................4
Question 4....................................................................................................................................5
Question 5....................................................................................................................................5
Question 6....................................................................................................................................6
Question 7....................................................................................................................................6
Question 8....................................................................................................................................6
Question 9....................................................................................................................................6
Question 10..................................................................................................................................7
Question 11..................................................................................................................................7
Question 12..................................................................................................................................7
Question 13..................................................................................................................................7
Question 14..................................................................................................................................8
Question 15..................................................................................................................................8
Question 16..................................................................................................................................8
Question 17..................................................................................................................................8
Question 18..................................................................................................................................9
Question 19..................................................................................................................................9
Question 20................................................................................................................................10
UNIT ASSESSMENT 2 (USA).....................................................................................................10
Part 2 Risk analysis and Presentation Task...............................................................................10
Task 1.........................................................................................................................................10
a) Risk Analysis and Management Plan....................................................................................10
b) Risk Management Treatment Plan........................................................................................11
c) Implementation of risk management treatment plan...............................................................1
Part 3 Develop and Implement action plan risk treatment..........................................................1
Task 1...........................................................................................................................................1

a) Action Plan..............................................................................................................................1
b) Implementation of Proposed action plan.................................................................................2
c) Filing and storing of risk management documentation...........................................................2
Task 2 Monitor Action Plan........................................................................................................2
a) Post Monitoring action plan Implementation Training Session..............................................2
b) Process required to evaluate risk management process on an ongoing basis..........................4
REFERENCES............................................................................................................................5

UNIT ASSESSMENT 1 (UKA)
Question 1
The three documents that need to be reviewed that organization risk management
processes, procedures and requirements are in accordance with current risk management standard
i.e., Australian Standards AS/NZS ISO 31000:2009:
 Risk Management Policy
 Risk Register
 Risk Management Treatment Plan
Question 2
Internal and external area should be covered while defining risk management plan includes:
Internal Risk area:
 Personal management such as shortage of labour, poor morale of employees.
 Technological issues such as outdated software Error or Fraud etc.
External Risk area:
 Economic slowdown can lead to low revenue.
 Potential risk i.e., international governance such as Trading rule and procedures.
 Avoidance and elimination of risk.
Question 3
SWOT and PEST analysis of Woolworths company:
SWOT Strength: Large number of supermarkets and huge market share as it is one of the oldest
and well-known retail brands. Weakness: Lower level of international presence. Opportunities: Can lever big data analytics for efficiency and enhanced experience.
 Threat: Slow growth of online retail in Australia.
PEST Political: The duopolistic nature of retail market faces political pressure. Economy: The easy international trade regulation pave way for new entrants.

 Social: The change in business culture creating poor relation with supplier.
 Technological: Retail industry in Australia implement SAP-based merchandising system
in order to improve efficiency.
Question 4
Four critical success factors for successful implementation of risk management plan are
as follows:
 Commitment and support from top management.
 Information Technology.
 Communication and culture.
 Training and development.
Question 5
Three internal and external stakeholders to be considered while developing risk
management plan for SME store:
Internal Stakeholders:
 Shareholders.
 Managers. Employees.
External Stakeholders:
 Suppliers.
 Landlord.
 Customers.
In order to obtain support from the stakeholders the company can seek a stakeholder
orientation demand and engage the risk stakeholders in the whole risk management and
assessment process. The company will use Stakeholder Meeting communication mode in which
the power point presentation is involved to convey the risk management and treatment plan along
with obtaining the stakeholders support.
Question 6
The relevant parties that may assist in the identification of risk are as follows:

 Managers.
 Clients.
 Employees.
 Government organization.
 Supervisors and Unions etc.
Question 7
The three ways that research can be conducted for risk-related issues are:
 Primary data collection techniques.
 Secondary data collection techniques.
 Assumption and cause and effect analysis.
Question 8
Fish-bone Diagram: The fish-bone diagram is a tool which help the company to solve the
problem with cause-and-effect analysis. It is helpful for identifying possible causes of the
problem and its effect on business operations and performance. It is used by the company to
structure a brainstorming session.
Brainstorming: Brainstorming is a method design teams which is used by the companies to
generate ideas and use those ideas to solve the design problems. It is used by the company at the
beginning of the project and risk assessment.
Question 9
The five stages of risk likelihood are as follow: Identification of Hazard: In this stage, risk assessing parties need to identify the
expected cause harm of the project. This can be done by using number of techniques. Decide who may be harmed and how: This stage is important to analyse the parties and
stakeholders which get harmed by causes of risk and how they harmed. Evaluate the risk and decides on control measures: In this stage, company need to
evaluate the risk and adopt the steps to completely remove the associated risk.

 Record of Findings and its implementation: As per HSE recommendations, the
company need to record its all-significant findings and implement them properly for risk
mitigations.
 Review the risk assessment: This stage indicate that company need to regularly review
the risk assessment process and change it as per identification of new risk causes. The
control measure is also changing as per new hazards identification.
Question 10
In order to assess the impact of potential risk the company first need to assess the
probability of each risk occurring and assign them it rating via use of scale from 1 to 10. The 1
score is assigned when risk is extremely unlikely to happen and 10 when risk is extremely likely
to happen.
Question 11
The three types of risk treatment are as follows: Avoidance: When the company feels that market will fluctuate rapidly which causes
financial risk than avoiding investment is one of the best risk treatments. Reduction: In this, the organization can take mitigation action to reduce the risk such as
implementation of Burglar alarms to reduce risk of fire.
 Transfer: This risk treatment requires transfer of risk to third party such as transfer a
collection of project risks by outsourcing the projects.
Question 12
The three key aspects of evaluation of risk are:
 Risk rating and scoring.
 Claims exposure and cost analysis.
 Stress testing and Sensitivity analysis.
Question 13
The 5 key parts of an action plan for implementing risk treatment are as follows:
 Identify the risk.

 Analyse the risk.
 Evaluate or rank the risk.
 Treat the risk.
 Monitor and review the risk.
Question 14
The 5 types of information that could be a part of communication process with respect to risk
management:
 Longevity risk information.
 Tax risk.
 Liquidity risk.
 Market risk.
 Inflation and interest rate risk.
Question 15
Naming and securing risk management document is important because of its message and
discloser. The well-written documentation is not only helpful for identify risk but it also makes
possible for the company to priorities their activities and avoid potential threats along with
minimize their impact.
Question 16
The company should review their risk assessment plan and practices once in every three
years or wherever there is significant changes to the workplace. It is achieved only by
preparation of risk register and its regular monitor and review.
Question 17
The metrics to measure success of risk management process are:
 Number of risks identified.
 Number of risks that occurred.
 Number of risks that occurred more than once.
 Predict risk severity compared to actual severity.

 Number of risks that were not identified.
 Cost of risk management.
 Number of risks closed.
Question 18
The implementation of risk management principles and guideline as per AS/NZS ISO
31000:2009 assist organization to reduce risk in ways such as:
 Understanding the organization and its context.
 Establishing risk management policy.
 Ensuring accountability, authority and appropriate competence.
 Integrating risk management into organizational processes.
 Allocating appropriate resources.
Question 19
Legislation Relation and Impact on the risk management
Privacy law Privacy law is helpful in regulating, storing and using personally
identifiable risk, its causes and impact. Its impact over the risk
management is that company will able to protect its risk related data from
the hackers.
WHS legislation Under Australian WHS laws, every business must ensure the health and
safety of the worker and the impact of which company is able to provide
safe work environment and reduce work related risk.
Contract law The contract law is helpful in legally binding the parties by way of
agreement and will reduce the risk related to breach of contract.
Company law The company Law provides the risk management policy and its
implementation within the business which is helpful for identification of
elements of risk.
Industrial Relation
law
The industrial relation law provides the policies and procedures to the
company the impact of which they able to reduce risk related to inability to

produce goods as per industrial average.
Duty of care The duty of care which is both legal and ethical responsibility held by
director of company to make decision in good faith and prudent manner.
The impact of which the risk related to misrepresentation and fraud will get
remove.
Freedom of
information
The freedom of information give right to the person to publish and
consume information. It implementation reduce risk such as low brand
awareness, low government responsiveness etc.
Environmental
Law
The environmental law is related to risk management because its helpful in
providing protection to the environment and the impact of which company
can reduce its risk related ecological resources, lead in drinking water etc.
Question 20
The three adjustments that employers can made in order to assist a disabled person are:
 Implementation of Screen-magnification for blind and low vision person.
 Moving a person with disability to different office or allowing work from home.
 Allow them longer or more frequent breaks.
UNIT ASSESSMENT 2 (USA)
Part 2 Risk analysis and Presentation Task
Task 1
a) Risk Analysis and Management Plan
The likelihood, consequence and priority of risk is ranked on the basis of three category i.e.,
Extremely High (5), High (4), Medium (3), Low (2) and Extremely Low (1).
Description of
Risk Identified
Likelihood Consequence Priorities
(Based on
risk
calculation
table)
Options
Banking Risk: Extremely Extremely Extremely 1. Sharing the risk.

High High High
2. Avoidance of risk.
Managers Travel
risk:
Medium High Medium 1. Retention of risk.
2. Transferring of risk.
By-law
Compliances risk:
High Extremely
High
High 1. Loss Prevention and
reduction of risk.
2. Avoidance of risk.
Water Compliance
risk
Medium Medium Low 1. Avoidance of risk.
2. Sharing the risk.
Risk calculation table:
The priority of risk is ranked on the basis of 21 to 25 = Extremely High, 16 to 20 High, 11 to 15
Medium, 6 to 10 Low and 1 to 5 Extremely Low.
Risk Likelihood Consequence Priority (Likelihood *
Consequence)
Banking risk 5 5 25 Extremely High
Managers travel risk 3 4 12 Medium
By-law compliance
risk
4 5 20 High
Water compliance risk 3 3 9 Low
b) Risk Management Treatment Plan
Risk Assess Risk Control/ Treatment Monitoring Timelines Responsible
Banking
risk
Extremely
High
1. By
transferring
all cash to
bank account
by opening
it.
2. Change bank
to the nearer
Monitoring of
bank account
and business
credits along
with clear
communication
with whistle
Opening
week
Financial
Controller

one to avoid
long walk.
blower.
Managers
travel risk
Medium 1. Give
managers
excusal letter
to leave any
meetings
before 3:00
PM.
2. Use of health
insurance for
all managers.
Monitoring the
insurance of all
managers
along with
reviewing
safety
measures
implementation
Opening
week
CEO with
MacVille
Board
By-law
compliance
risk
High 1. Identify and
assess legal
risk in real
time.
2. Build a
culture of
integrity i.e.,
from top to
down.
Monitoring
culture and
structure of the
organization.
Within 3
months
Goldsmith
Partner
Water
compliance
risk
1. Install native
plants to cut
down water
use.
2. Install water
tank and
reduce
dependence
on council
water.
Monitoring
installation of
plants and
water tank.
Within 6
months
CEO

3. Introduce
new process
on water use
and
conservation
.

c) Implementation of risk management treatment plan
Covered in ppt.
Part 3 Develop and Implement action plan risk treatment
Task 1
a) Action Plan
Identified Risk Action By When? Who is
responsible?
What resources
are needed?
Banking risk:
Due to theft of
cash from
Premises
Contacting
nearer bank for
opening of bank
account.
Developing SOP
on banking
transaction to
control financial
risk.
Opening Week Financial
Controller
Personal and
business
identification
such as passport,
business license
or another
document
required to open
business and
personal bank
account.
Managers Travel
risk: Due to
Physical injury.
Issuance of
Excusal letter
and contacting
insurance
company for
managers health
insurance.
Opening Week CEO with
Macville Board
$5000 required
for excusal letter
printing cost and
insurance cost.
By-law
compliance risk:
Due to reputation
or brand loss and
fines.
Write new policy
and procedure as
per the
company’s
structure and
Within 3 months Goldsmith
Partner
The company
need
management
support and
employee’s
1

culture. engagement.
They also need
$2000 for
publishing by-
laws policy.
Water
compliance risk:
Due to wastage
of water and also
its excessive
consumption.
Implementation
of plant and
water tank and
communicate the
new process of
water use and
conservation
with employees.
Within 6 months CEO This required
$10000 for
installation of
plant and $5000
for water tank.
b) Implementation of Proposed action plan
Covered in ppt.
c) Filing and storing of risk management documentation
The risk management documents are filed in simple and concise format using various
charts and tables in the word document. The risk managements files are prepared and created by
using risk MS Word application and its storage is done in both hard copy and soft copy. The hard
copy such as papered documentation and soft copy such as electronic documentation is one of
the best ways to make its accessible to all the stakeholder within the premises. But when they are
outside the premises, they can assess the files through clouds as company are also storing risk
management documentation at cloud using cloud computing software.
Task 2 Monitor Action Plan
a) Post Monitoring action plan Implementation Training Session
Elements, Goals,
Indicators
Activity Material Time What are
participants
doing?
2

Bank account
opened late and
there is service
issue with the
new bank.
Asking staffs to
conduct small
feasibility study
on switching
bank.
Meeting bank
personnel one by
one to negotiate
better service
details.
Banking
procedure,
various market
reports and hand-
out on how to
negotiate better
deals.
1 hours Staffs are
listening and
raising questions.
No excusal letter
by the CEO
issued yet.
Requesting CEO
to issue excusal
letter and
lecturing staff on
their personal
safety while
travelling.
Name and
address of
recipient and
supporting
documentation.
Travelling
guidebook.
15 minutes CEO are giving
approval and
staffs are
Lack of written
procedure on the
water saving
process due to
store manager
being too busy.
Lecturing staff
on the procedure
of water saving
process along
with realizing
them the
importance of
water.
Water saving
process register
and its procedure
book.
1 hour 30
minutes
Staffs are
listening
carefully.
Issues with
monitoring a
weekly water
usage system.
Lecturing
personnel to
make changes in
plant for smooth
monitoring of
water usage
Water usage
system access.
30 minutes Staffs are
listening and
raising questions
during whole
session.
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system.
b) Process required to evaluate risk management process on an ongoing basis
The process required to evaluate risk management involve the following steps that need to be
considered by company on an ongoing basis such as:
 Identify the risk: At this stage, the company need to identify the possible risk that may be
arises in the future and for this they need to analyse the causes of the risk. The company
need to identify the possible outcome and the risk attach with it.
 Analyse the risk: In this stage, company need to analyse the risk by using the
consequences and its impact on the basis of EH, H, M, L and EL basis.
 Evaluate the rank of risk: The rank of risk to give each risk priority is done in this stage
and for it’s the consequence rank is multiplied by its impact rank. This is one of the best
ways to identify the priority of risk.
 Treat the risk: On the basis of priority and ranks, the treatment related to each risk is
done in this stage and for risk treatment five category is used such as avoidance,
reduction, sharing, transferring and elimination.
 Monitor and review the risk: This is the last stage of risk management process with the
help of which company can monitor and review the whole process and implement the
changes accordingly on daily basis.
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REFERENCES
Books and journals
Galli, B. J., 2017. Risk management in project environments: Reflection of the standard
process. The Journal of Modern Project Management. 5(2).
Rozzani, N., Mohamed, I. S. and Yusuf, S. N. S., 2017. Risk management process: Profiling of
islamic microfinance providers. Research in International Business and Finance. 41.
pp.20-27.
Karami, M., Samimi, A. and Jafari, M., 2020. The necessity of risk management evaluations in
petrochemical industries. Advanced Journal of Chemistry-Section B. 2(3). pp.151-158.
Witzany, J., 2017. Credit risk management. In Credit Risk Management (pp. 5-18). Springer,
Cham.
Szymański, P., 2017. Risk management in construction projects. Procedia Engineering. 208.
pp.174-182.
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