Analyzing and Mitigating Risks in Business Expansion: A Case Study

Desklib provides past papers and solved assignments. This report analyzes risk management in business expansion.

Identify risk and apply risk management
processes
1

Table of Contents
Assessment Task 1.......................................................................................................................3
Written questions.......................................................................................................................3
Assessment Task 2.....................................................................................................................14
Project set up...........................................................................................................................14
Assessment Task -3....................................................................................................................19
Reference....................................................................................................................................24
2

Assessment Task 1
Written questions
Answer the questions below:
1 Describe the definition of risk as identified in the Australia/New Zealand Standard for
Risk Management.
Risk is basically defined as the chance of happening something which will affect or put impact
on the objective or goals of the company of Australia/New Zealand Standard. Mostly definition
is focused on the probability or the chance of danger and loss or injury. Risk management
help company to identify its risks and provide idea to correct it within the time.
3

2 Explain the purpose of Australia/New Zealand Standard for Risk Management (AS/NZS
ISO 31000:2009) and identify the key principles underlying this risk management
standard.
The key purpose of Australia/New Zealand Standard for Risk Management (AS/NZS ISO
31000:2009) is to provide the principal and guideline for the risk management. The key
principles underlying this risk management standard is to: -
 Identify
 Planning
 Control
 Review
4

3 Outline at least five benefits of risk management.
Method to deal with risk:- It tells about that who is responsible for the dealing with the risk or
we can say the risk owner to him.
Permission for the contingencies:- This is defined as the benefit for the formal risk
management
Fewer surprises:- As after doing the proper risk management for the company, the number of
surprise related to the risk are decreased.
Efficient Decisions Made: - The benefit of the risk management that It help in the
efficient decision making power. By this company help in the decision making and
which indirectly help in the company growth.
Focused on the risk: - Risk management help in the targeting the risk before occurring of
them. By the help of this system one can take essential precaution before occurring of the
issue.
5

4 Outline three general areas of risk for a business.
Financial Risk: - Company stuck in the financial risk as sometime interest rate is increased on
business loan and customer stop investing in their company.
Operational Risk: -Error in the company working and operational task. As in this theft issues
are also increased due to which it requires for change in administrative system.
Strategic risk:- due to lack of proper strategic planning in the company it raise the issue of the
completion in the market.
6

5 Outline three examples of tools or techniques that could be used to identify risks as
part of a risk assessment process.
To Probability and impact matrix: - This method helps the company member to know about
the risk which requires the immediate response. Matrix can be formed according to need of
the project
Data quality analysis: -In this process data is first off all combined and then identified risk.
Determining the probability of risk: -By determining the risk before occurring of it and resolve
before occurring of it.
7

6 Discuss the two ways that risks can be evaluated.
Identify the Hazards:- In order to keep away from the risk company should identify the
hazards ,which can be done by consulting with the employees.
Determine or find that who might harm: - Before causing of the risk on the project, identify
that who is causing harm and why he is doing that.
8

7 Outline the steps involved in the risk management process key.
For the identification of the risk management process key the steps required are --
 Identify of risk: - First step which is used in the risk management process is to identify
of risk factor. The risk can be type of the legal risk, environmental risk, and market
risks.
 Analyse the risk: - As risk is analysed, it should be analysed and then work on it.
 Prioritize the risk: -The level of risk should be seen and priority of risk solving should
be set.
 Treat the risk: -Every risk is require to solved and treated as soon as possible by
taking the help of the experts
9

8 Explain five options for controlling risk.
Identify cause of risk: -To avoid the risk factor it is very important to identify the root cause of
the risk.
Documentation Review: - Documentation review is one of the best tool for avoiding the risk in
the company. To identify the risk it is very important to analyse and review of document and
project related document.
Risk transfer:- This method is one of the best method for the company to minimize the effect
of the risk.
Avoidance: - In this company use alternate method to reduce the risk for the company.
Company can use this method to avoid the risk
Control:- In this method company first plan to make the plan for the risk reduction and then
work according to it.
10

9 Identify and list five ways in which an organisation can minimise risk .
Identify the issue: - This method involve in the identifying of the risk and to find the solution
before occurring of that. Firstly in this one should make the list of the risk and work according
to the problem.
Assess the risk: -Once the risk is visible or identified, it should be properly assessed and work
engages in the process of resolving the issue.
Control of risk: -After the proper identifying and the analysis of risk company should work to
control it. One can take precaution to deal with the risk and take certain steps to resolve it.
Review:- The control measured which have been taken should be proper reviewed and
applied.
Planning: - proper planning should be done for the company so that the factor of risk may not
come again and again in the company.
11

10 Outline the requirement under WHS legislation to manage risks.
It is step by step process to manage risk by the WHS legislation:
Identify the hazard:- Its first step is to identify the cause of the hazard.
Assess the risk: - Secondly it requires analysing the affect which will be going to impact on
the company.
Control risk: - After adopting the above mentioned two step it comes the step to control the
risk by implementing further operations.
Review the control measures: - there should be proper review of the control measure that
whether they are working properly or not.
12