Risk Management Project: BSBRSK501 for Lonsdale Institute

This project focuses on risk management within the context of Lonsdale Institute of Education. It begins by defining key risk management terms such as risk, risk assessment, risk management, risk appetite, risk capacity, risk control, risk treatment, and contingency planning. The project then applies PESTLE and SWOT analyses to evaluate the institute's political, economic, social, legal, technological, and environmental factors, as well as its strengths, weaknesses, opportunities, and threats. The project also examines the importance of research in the risk management process. Finally, it outlines the components of risk recovery plans, including recovery strategies for business activities, equipment, resources, and staff, as well as the components of risk recovery plans which are business continuity planning, emergency or crisis management planning, and contingency planning. The project provides a comprehensive overview of risk management principles and practical applications within a business context.

Running Head: RISK MANAGEMENT 0
Student name
1-16-2019
RISK MANAGEMENT

RISK MANAGEMENT 1
Contents
ACTIVITY 1...................................................................................................................................2
ACTIVITY 2...................................................................................................................................2
ACTIVITY 3...................................................................................................................................3
ACTIVITY 4...................................................................................................................................4
ACTIVITY 5...................................................................................................................................4
References........................................................................................................................................5

RISK MANAGEMENT 2
ACTIVITY 1
 Risk – this is the act of happening which is possible to occur and can cause damage in
any form in future. The values that can be harmed are social status, physical health,
financial wealth, or emotional well being
 Risk Assessment – this is a procedure or a method, where all the activities to identify the
possible risk which can cause harm, the risk is analyzed and evaluated the risk identified,
and finding ways to mitigate that risk
 Risk management – managing the risk involve prioritizing the identified risk involved,
minimizing the risk, monitoring and control the risk factors is involved in the risk
management process.
 Risk Appetite – this is the risk level that a company is ready to accept while risk
management is conducted. Although, it is difficult to define the constraints of risk
appetite. This is decided by the company before analysis the risk of risk management.
 Risk Capacity – the risk capacity is different from risk appetite. The risk capacity is the
level of risk which an organization will be able to tolerate to the maximum extent. This is
set in the initial stage of risk management.
 Risk Control – within the risk management process, it is one of the steps which involves
identifying a method to reduce or neutralize the identified risk. Some of the risk control
method are elimination, substitution, engineering control, and personal; protective
equipment
 Risk Treatment – this is the process of choosing and implementation of selected measures
to mitigate the risk. This includes optimizing, avoiding, retaining or transferring risk.
This can be selected according to the situation or the type of risk.
 Contingency Planning – the future is uncertain, due to with an optional plan has to be
developed in case of implementing one plan fails, a contingency plan is created
considering the risk involved in the organization or the process (apps.treasury.act.gov.au,
2028).
ACTIVITY 2
PESTLE analysis for Lonsdale Institute of Education (Australia)

RISK MANAGEMENT 3
PESTLE analysis Comment on the influence/impact each of
the following factors has on Lonsdale
Political factors:  High political stability
 Educational support from political
parties
Economic factors:  Stable economy
 Low inflation rate
 Compulsory education plans since
1870s
Social factors:  Availability of high-value staff
Technical/technological factors:  Technologically advanced nation
Legal factors:  The transparent and ethical legal
framework
Environmental factors:  Major climate change
 Great environment awareness
(lonsdaleinstitute, 2018)
ACTIVITY 3
A SWOT analysis for Lonsdale Institute of Education.
Strength Weakness
 High-quality education  High competition

RISK MANAGEMENT 4
 Goodwill
Opportunity Threats
 International business
 Increase in courses
 Unfavorable Change in education laws
and system of Australia
(lonsdaleinstitute, 2018)
Risk Treatment
Technology degradation Technology advancement
Competent human resource Recruitment and training
Conflicts Conflict management team development
Change in the education system Continuous monitoring and control
ACTIVITY 4
Research is an important aspect before managing the risk because the risk identified is the first
stage top manage risk. In case the research has not conducted accurately, the risk identified will
be wrong, and major risk could be ignored, which tells the relevance of the research in detail
before managing risk (apps.treasury.act.gov.au, 2028)
ACTIVITY 5
a) sorts of things should risk recovery plans encompass recovery strategies for business
activities, a description of equipment, resources, and staff for recovery, the time objectives for
the recovery, and checklist that can be helpful to safely return to the organization
b) 3 components of the risk recovery plan
 Business continuity planning
 Emergency or crisis management planning
 Contingency planning (apps.treasury.act.gov.au, 2028)

RISK MANAGEMENT 5
References
apps.treasury.act.gov.au, 2028. Risk Management Glossary of Terms. [Online]
Available at: https://apps.treasury.act.gov.au/insurance-and-risk-management/risk-management/
risk-management-glossary-of-terms
lonsdaleinstitute, 2018. Home. [Online]
Available at: https://www.lonsdaleinstitute.edu.au/