Risk Management Knowledge Test: BSBRSK501 Assignment Solutions

This document presents a comprehensive solution to a risk management assignment, addressing key concepts and practical applications. It covers various methods of risk analysis, including qualitative, semi-quantitative, and quantitative approaches. The assignment explores the use of tools like cause-and-effect diagrams and checklists in identifying and mitigating risks. It delves into probability and consequence scales for risk assessment, and outlines strategies for treating risks, such as avoidance, reduction, and the use of personal protective equipment. The solution also highlights the importance of a risk action plan, including key components like timelines and responsibilities. Furthermore, it references relevant standards and legislation, such as AS/NZS ISO 31000:2009 and Australian privacy and work health safety laws. The assignment provides practical examples of workplace adjustments for people with disabilities and discusses insurance policies like public liability and workers' compensation. Finally, it offers detailed answers to the assignment questions, providing a thorough understanding of risk management principles and practices.

RISK MANAGEMENT 1
Risk Management
Student’s Name
Institutional Affiliation

RISK MANAGEMENT 2
Prompt One
There are three ways that research can be conducted for the sake of determining
risk management is a qualitative analysis, semi-quantitative analysis, and quantitative
analysis. Qualitative analysis is used as an important screening method in order to identify
further analysis of the risk that is required. This form of analysis is appropriate for the
decision-making process in the case where the numerical data is not enough. The semi-
quantitative analysis is used to set the value to the risky issues to generates an expanded
ranking scale than the normally achieved from qualitative analysis. However, such values
are not normally predicated real figures which are calculated in the measurable analysis.
Nonetheless, it is vital to take note of the limitations faced while using such a method of
analysis. Finally, Quantitative analysis is used for cases where there are adequate numerical
values. Numerical values are used to analysis the consequences as well as the possibility of
risk. More so, the data determines the quality of the analysis. The result might be in the form
of human impact, technical and monetary effect.
Prompt Two
The cause and effect diagrams are sometimes referred to as Fishbone tools. It is used
as a visualization tool for grouping the possible causes of an issue for the purpose of
identifying the root causes. It is effective in cases where there are many potential causes of
issues to occur.
Checklists are thinking tools or rather discussion tools used to make sure the team
looks at the project from all the possible angles on the risk list while signing off . In this
case, systematic reflection can help the project manager to avoid being blind-sided by
foreseeable risks such as staffing changes or unstable monitoring requirements. It is
essential as the manager tries identifying the risks while focusing on a given situation.
Components are the important tools of interrogation.

RISK MANAGEMENT 3
Information and ideas are generated through brainstorming. However, this idea is not
used in analyzing data. Brainstorming generates different ideas in a short time. Therefore,
the project manager can have used techniques such as structured brainstorming, silent
brainstorming, and free-form brainstorming.
Prompt Three
 Almost convinced which means that there is a higher chance that the risk will happen
most frequently
 Likely meaning that the risk will happen, but it is not a persistent issue.
 Possible means that the risk might happen occasionally
 Unlikely means that the risk is not expected to happen, but there is a chance it might
occur
 Rare means that it is very unlikely that the risk will occur
Prompt Four
 Extreme Consequences meaning that the risk has an adverse effect on the main areas
such as reduction of the enrolment of students in tertiary institutions
 Major consequences mean the loss which can be controlled better by the
management, for instance, the loss of government funding because of low enrollment
 Moderate consequences mean the risk does not cause permanent damage towards the
partnership although it can effectively be repaired.
 Negligible consequences mean that the risk causes some damage such as the moderate
reduction in the number of students enrolled.
 Insignificant consequences mean the risk causes little to no damages such as the
minor reduction in the enrollment percentage of students
Prompt Five

RISK MANAGEMENT 4
When treating the risk within a company, the manager needs to prioritize the risk.
This can consider for priorities of the area of risk. There are different ways in which to
manage risks that are outlined in the Australian standard. These ways include avoid risk,
reduce the chances of the risk, and the use of personal protective equipment (Olechowski,
Oehmen, Seering, & Ben-Daya, 2016).
Avoiding risk is the best thing to eliminate it completely. The manager needs to fix
all that can be fixed, such as changing the operation so that there is a possibility of avoiding
the risk.
Reducing the risk is done by looking on alternative solutions to eradicate the risk.
Focusing on the industrial solutions which do not require individuals to change their
behavior like safety barriers and resurfacing.
Personal protective equipment can be used as a good solution to the eradication of
risk involved. Even though the equipment is not similar in all places, the organization can
have used it as an alternative of there is not any other solution to reduce the risk.
Other methods that can be used when treating risk include:
 The modification of the likelihood of the risk in order to enhance the chances of
getting a beneficial outcome.
 Manipulation of the possible consequences to enhance anticipated gains.
 Partaking in the risks linked to other partners who might be essential through
bringing additional resources hence increasing the chances of getting more expected
gains.
 The final treatment is the retention of the remaining risk.
Prompt Six
The following points; the actual risk, the risk rating, the timeline, the controls or
treatment activities as well as roles and responsibilities for all involved along with

RISK MANAGEMENT 5
Monitoring arrangement should be enacted in the risk action plan (Fitzgerald, Owens,
Angles, Hockaday, Blackmore, & Ferguson, 2017).
Prompt Seven
The International Risk Management Standards AS/NZS ISO 31000:2009 states all
the principles as well as regulations for the management of risks (Standards
Australia/Standards New Zealand Standard Committee, 2009). The organization should
adopt these principles to set out the standards while working towards compliance to ensure
that there is effective risk management.
It assists in reducing risk by;
 Developing a rigorous and confident basis of planning and decision making.
 Gaining the values from variability and uncertainties
 Promote proactive method of management
 Efficient allocation and utilization of resources
 Improves the confidence and trust of stakeholders
 Enhances compliance with the relevant legislation
 It offers better business governance.
Prompt Eight
Privacy law
This Australian law handles personal and private information. Such information may
include collection, use, storage as well as exposure of private and confidential information
along with correction and accessing access of the data. The Australian Information
Commissioner’s office has the mandate to regulate as well as enforce all the actions that are
required to enhance compliance to the rule of privacy by all Australian companies.
Work Health Safety regulations

RISK MANAGEMENT 6
Work Health Safety regulation entails a model WHS Act, Codes of Practice,
regulations as well as the national compliance along with enforcement regulations. These
acts are enacted to harmonise the work health and safety Acts. The organization is thus
needed to meet all of the set standards, or a penalty could be imposed on the company upon
harm of employees because of noncompliance.
Contract law
It composes all the laws that enforce a given promise. Common law regulates
contract law in Australia. It is divided into contractual formation, scope, and content of the
contract, the avoidance of contractual responsibilities, the performance as well as the
termination of the contract along with remedies for breach of contract. All of the contracting
party is bound by contract law as well as a penalty that is imposed for breach of contract.
Prompt Nine
The adjustment that can be made in the workplace for people with disabilities
include;
Providing pieces of equipment such as a tape recorder to leave and take a message
for those with sight impairments. Use the telephone typewriter machine for the ones with
impaired hearing. Finally, the use of computer software, like voice recognition. Training and
development through the use of audio notes for employees who are visually impaired.
finally increasing access to the workplace by placing lower control panels in lifts and the
use of emergency mobile phones.

RISK MANAGEMENT 7
Prompt Ten
 Public Liability
The policy protects the specific organization, volunteers, and paid workers for their
legal liability to the third party damage of property or personal injury. The coverage is
organized in order to protect all of the paid workers and volunteers. But also includes
legal actions against them from third parties or clients. It provides cover against third-
party liability.
 Volunteers Workers Personal Accident
It covers accidental death and injuries that have occurred due to authorized
volunteer activities. It might also cover the payment of the benefit on a weekly
basis while taking part in some voluntary activities. The organization does not need
to compensate in case of a volunteer’s accident.

Running head: RISK MANAGEMENT 8
References
Standards Australia/Standards New Zealand Standard Committee. (2009). AS/NZS ISO 31000:
2009 Risk Management–Principles and Guidelines. Standards Australia/Standards New Zealand
Standard Committee, Sidney.
Olechowski, A., Oehmen, J., Seering, W., & Ben-Daya, M. (2016). The professionalization of
risk management: What role can the ISO 31000 risk management principles play?. International
Journal of Project Management, 34(8), 1568-1578.
Fitzgerald, S. K., Owens, C., Angles, M., Hockaday, D., Blackmore, M., & Ferguson, M. (2017).
Reframing risk: a risk pathway method for identifying improvement through control and threat
analysis. Water Science and Technology: Water Supply, 18(1), 175-182.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.