Australian Smart College - BSBRSK501 Risk Management Plan Template

This document presents a comprehensive risk management plan template designed for the BSBRSK501 unit. The plan outlines a systematic approach to managing risks, including definitions of key terms like risk, likelihood, and consequence, referencing the Australian and New Zealand Risk Management Standard AS/NZS 4360:2004. It details the risk management process, emphasizing the importance of gathering information, identifying risks, assessing their likelihood and severity, and implementing appropriate treatment or control methods. The template includes a risk register and a risk assessment legend to facilitate the evaluation and prioritization of risks. The document provides a practical example by identifying and analyzing several risks, such as political, economic, social, technological, environmental, and legal factors, along with proposed treatment methods and action plans. It also includes sales data analysis memo, staff survey results memo, sustainability report, team meeting minutes, and usage report template as supporting documents for assessment.

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Australian Smart College
7 Greenfield Parade, Bankstown NSW 2200
ABN 45 607 618 244
RTO ID: 45302 CRICOS Code: 03661E
Phone: [phone]
Website: www.ascollege.nsw.edu.au
Email: [e-mail]
Australian Smart College Pty. Ltd.
BSBRSK501- Manage risk
Student’s Resources
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Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Nature Care Products
Risk Management Plan
The risk management process will be used by the management team to ensure risk control methods are
included in all organisational planning, management of operations and governance.
Definitions
The following definitions are based on the Australian and New Zealand Risk Management Standard AS/NZS
4360:2004.
Risk
The chance of something happening which will have an impact upon objectives. It is measured in terms of
consequence and likelihood.
Likelihood
A qualitative description or synonym for probability or frequency.
Consequence
The outcome of an event or situation, expressed qualitatively or quantitatively, being a loss, injury,
disadvantage or gain. There may be a range of possible outcomes associated with an event.
Risk assessment
The overall process of risk analysis and risk evaluation.
Risk treatment/control methods
Selection and implementation of appropriate options for dealing with risk.
Conceptually, treatment options will involve one or a combination of the following five strategies:
 Avoid the risk.
 Reduce the likelihood of occurrence.
 Reduce the consequences of occurrence.
 Transfer the risk.
 Retain/accept the risk.
Risk management process
The systematic application of management policies, procedures and practices to the tasks of establishing the
context, identifying, analysing, evaluating, treating, monitoring and communicating risk.
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V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk management procedure
This risk management plan template should be used. The following procedure should be followed for risk
management:
1. Gather information about potential risks and risk treatments or controls using a range of risk
management tools and techniques. The preferred method is brainstorming potential risks
with key staff members and conducting a PESTLE analysis to identify external risks.
2. Confirm key risks and risk treatments or controls to be documented in the risk management
plan. For each risk, indicate the consequence of the risk e.g. loss in sales, loss in profits,
business closure, lack of qualified staff, etc.
3. Identify key risks and document them in the risk register.
4. Using the risk legend within the risk management plan, assess and document the likelihood
of the risk occurring.
5. Using the risk legend within the risk management plan, assess and document the severity of
the risk occurring.
6. Identify and document the agreed treatment or control method for each risk.
7. Assign a ranking to the risk using the risk assessment legend. The ranking of the risk will
determine its importance in terms of risk management.
Risk assessment legend
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V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk register
See risk management procedure.
You must document at least five risks and treatment measures using your research and review of team minutes, feedback from CEO and brainstorming meeting.
Evaluate each risk as to whether it is high, medium or low priority and assign an order for treating risks.
Scope of assessment: Attached
Critical success factors: Attached
Internal & external
stakeholders: Attached
Risk Consequences Severity
Rating
Likelihood
Rating
Treatment or
control
methods
Priority
rating
(high,
medium
or low)
Order of
priority
Deteriorating in bilateral
relationship of Government
of Australia would result in
companies losing
markets(Political factors) Loss of markets, supply chains and lowering of profits High Likely
Entering new
markets High
Terrorist attacks would
result in damage to the
properties of the company,
death of employees, loss of
information and financial
losses(Political factors) Massive loss High rarely
Seek
government
help High
Fall in GDP would lead to
fall in demand for high end
organic skincare
products(Economic factors) Demand and revenue generation would fall High Likely
Foreign
expansion High
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V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Changes in customer
preferences may render the
current products redundant
in parts or entirety.(Social)
Suffering of severe loss. Company may have to divest in the concerned
products to stop incurring any further expenditure and loss in holding
the product line High Likely
Innovation
and NPD High
Modern technology may
render existing technology
redundant and require
companies to invest in
modernisation of
technology.(Technological )
1. May not be able to recover the investment in the existing technology
and be may be required to invest in new technology.
2. May require to borrow high debts to finance modernisation projects.
3. May loose support of investors High Likely
Modernisatio
n High
Hackers may infringe the
data security system of the
company and steal
confidential data. Data may
include financial details,
customer detial, IPR laws or
a combination of these.
(Technological )
1. Loss of business strategies to unauthorised parties.
2. Company loses customers' confidence and loses revenue.
3. Customers may file legal suits.
4.Legal risks. High Likely
Tightening
data security High
The companies would be
required to comply with the
Environment Protection and
Biodiversity Conservation
Act 1999. Fialing to comply
with the law would attract
infringement charges
1. Increase in investments in legal compliance expenses.
2. Investment in eco-friendly manufacturing process which would be
expensive initially.
High Likely Compliance High
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V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
(Environment.gov.au. 2020)
(Environment)
The government may
change laws like increasing
the rate of taxes like GST.
(Legal) Increase in taxes would reduce the net profit after tax of firms High Likely Compliance High
The companies should
comply with workplace
safety acts like Safe Work
Act Australia 2008
(Safeworkaustralia.gov.au.
2020). Failing which would
have several negative
impacts (Legal )
1. Increase in accidents in workplace like injuries and even fatalities.
2. Productivity may be stalled for a short time or for a long time.
3. Government would take legal steps against company like
investigations and impose legal charges.
4. Productivity may be stopped for indefinite periods.
5. Wastage of inventory.
6. Increase in inventory holding expenses owing to no production.
7. Increase in legal expenses
8. Massive fall in net profits.
9. Damage of market goodwill. High Likely
1. Risk
training of
employees
2.
Installations
of risk
management
equipment
like fire
extinguishers
3. Providing
gloves and
protective
wearables to
employees
4. Deploying
risk manager High
6 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk action plan
Each of the risks identified above should be included in the table below and actions shown. The table should be copied and pasted for each risk.
Description of risk Deteriorating in bilateral relationship of Government of Australia
would result in companies losing markets(Political factors)
Summary of recommended response and
impact Loss of markets, supply chains and lowering of profits
Proposed actions Entering new markets
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 12 months
Reporting/Monitoring Management
Description of risk Terrorist attacks would result in damage to the properties of the
company, death of employees, loss of information and financial
losses(Political factors)
Summary of recommended response and
impact Massive loss
Proposed actions Seek government help
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 12 months
Reporting/Monitoring Management
Description of risk Fall in GDP would lead to fall in demand for high end organic
skincare products(Economic factors)
Summary of recommended response and
impact Demand and revenue generation would fall
7 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Proposed actions Foreign expansion
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 6 months
Reporting/Monitoring Management
Description of risk Changes in customer preferences may render the current products
redundant in parts or entirety.(Social)
Summary of recommended response and
impact
Suffering of severe loss. Company may have to divest in the
concerned products to stop incurring any further expenditure and
loss in holding the product line
Proposed actions Innovation and NPD
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 12 months
Reporting/Monitoring Management
Description of risk Modern technology may render existing technology redundant and
require companies to invest in modernisation of technology.
(Technological )
Summary of recommended response and
impact
1. May not be able to recover the investment in the existing
technology and be may be required to invest in new technology.
2. May require to borrow high debts to finance modernisation
projects.
3. May loose support of investors
Proposed actions Modernisation
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 9 months
Reporting/Monitoring Management
8 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Description of risk
Hackers may infringe the data security system of the company and
steal confidential data. Data may include financial details,
customer detial, IPR laws or a combination of these.
(Technological )
Summary of recommended response and
impact
1. Loss of business strategies to unauthorised parties.
2. Company loses customers' confidence and loses revenue.
3. Customers may file legal suits.
4.Legal risks.
Proposed actions Tightening data security
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 6 months
Reporting/Monitoring Management
Description of risk
The companies would be required to comply with the Environment
Protection and Biodiversity Conservation Act 1999. Fialing to
comply with the law would attract infringement charges
(Environment.gov.au. 2020)(Environment)
Summary of recommended response and
impact
1. Increase in investments in legal compliance expenses.
2. Investment in eco-friendly manufacturing process which would
be expensive initially.
Proposed actions Compliance
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 12 months
Reporting/Monitoring Management
9 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Description of risk The government may change laws like increasing the rate of taxes
like GST. (Legal)
Summary of recommended response and
impact Increase in taxes would reduce the net profit after tax of firms
Proposed actions Compliance
Resource requirements Financial, material, manpower, technological
Responsibilities Management
Timing 12 months
Reporting/Monitoring Management
Description of risk The companies should comply with workplace safety acts like Safe
Work Act Australia 2008 (Safeworkaustralia.gov.au. 2020).
Failing which would have several negative impacts (Legal )
Summary of recommended response and
impact
1. Increase in accidents in workplace like injuries and even
fatalities.
2. Productivity may be stalled for a short time or for a long time.
3. Government would take legal steps against company like
investigations and impose legal charges.
4. Productivity may be stopped for indefinite periods.
5. Wastage of inventory.
6. Increase in inventory holding expenses owing to no production.
7. Increase in legal expenses
8. Massive fall in net profits.
9. Damage of market goodwill.
Proposed actions
1. Risk training of employees
2. Installations of risk management equipment like fire
extinguishers
3. Providing gloves and protective wearables to employees
4. Deploying risk manager
Resource requirements Financial, material, manpower, technological 10 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E

This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
11 | P a g e
V2_MAY_2019
Australian Smart College Pty. Ltd.
RTO ID: 45302 CRICOS Code: 03661E