Risk Management: Identifying Risks and Applying Management Processes

This assignment solution addresses key aspects of risk management, including risk identification, assessment, and treatment within a workplace context. It covers the definition of risk management, different contexts where risks need to be managed, and various risk identification tools like the Delphi Technique and root cause analysis. The solution differentiates between internal and external risks, emphasizes the importance of stakeholder consultation, and outlines risk categorization based on likelihood. It also details risk treatment strategies, the importance of monitoring and review, and methods for detecting risks. Furthermore, the assignment explores the use of numerical tools for risk assessment, compliance with organizational and legislative requirements, and effective communication protocols. The solution emphasizes the need for comprehensive documentation and a structured approach to managing risks throughout the project lifecycle.

IDENTIFY RISK AND APPLY
RISK MANAGEMENT
PROCESSES

INTRODUCTION
QUESTIONING
Briefly answer the questions below in the spaces provided.
MULTIPLE CHOICE Circle the correct answer.
TRUE OR FALSE Circle the correct answer.
1. Explain what is meant by risk management
It refers to process of identifying, analyzing, assessing as well as controlling the entire threats, that
may arise at workplace and impact adversely on capital and earnings of organization.
2. Risks can be identified in many different contexts depending on the work situation, local industry
and regions. List three (3) contexts where risks may need to be managed in the workplace:
First Risk – Unsafe working conditions like exposure of wires, wet floor, radiations and more, need
to be managed for safety of workers.
Second Risk – Unhygienic working environment where uncleaned, improper sanitized place may
impact adversely on health of people.
Third Risk – Exposure of chemicals that use for cleaning workplace, may create allergic reactions,
asthma, respiratory etc. needs to be managed.
1

3. Complete the following sentence.
Your risk management treatments will need to be identified and managed.
4. Give three (3) risk identification tools:
1. Delphi Technique
2. Root cause analysis
3. Risk registration
5. Explain the difference between an internal risk and an external risk:
Internal risks arise within an environment due to technological issues, ineffective operational plan,
unsafe working place and more. While external risks create through changes in political and legal
factors, economy fluctuations, natural calamities etc.
6. Give two (2) risks that Gail could potentially plan for:
a) Improvement in risk prediction and early detection procedure
b) Health and safety concern
7. Identified risks do not have to be documented, just noticing them is enough.
Worker conflicts, employee involvement and organizational culture
2

8. Explain the definition of a stakeholder, and who that may include.
Stakeholders are those persons of a company, whose actions, interests and role highly impact on
each and every operation. It includes creditors, employees, directors, government, suppliers,
employers and more.
9. Explain how you would consult relevant stakeholders.
For consulting and engaging relevant stakeholders, it is essential to provide prior information
about project, interact with them to include their decision and suggestions etc.
3

10. List five (5) relevant stakeholders who may need to be consulted when analysing and documenting
risks:
Company employees and staff management team, Board of Directors, Local/National Government
authorities, Risk professionals and employers
11. Once risks have been identified they need to be categorised to determine their level of risk. List the
five (5) levels that you can rate the likelihood of a risk eventuating:
a) Mild risk
b) Moderate Risk
c) Elevated Risk
d) Severe Risk
e) Extreme Risk
4

12. Explain why it is important to prioritise and determine the level of risk.
Prioritizing the level of risks, help in determining the extent to which uncertainty of a risk create
threat for a company, so that plan for management can be made accordingly.
13. True or false. Circle the correct answer.
An overall risk rating is determined by multiplying impact by likelihood. [True]
14. Give five (5) main treatment strategies in how to approach and handle risks.
(a) Avoid risk repercussion altogether
(b) Implement prior plans to reduce occurrence of certain risks
(c) Risk sharing by redistributing the burden of gain or loss over multiple stakeholders.
(d) Providing integrated reporting and monitoring
(e) Establish Key risk indicators
5

15. Complete the following sentence.
Controls are the measures, procedures and assessment tools used to treat, or manage, risks.
16. List some of the strengths and weaknesses of choosing your control measure types.
To reduce and control risks, engineering control measures can be designed, that helps in reducing
exposure towards threats and complying entire business operations with entire health and safety
legislations. Inadequate training of uses engineering tools leads poor management, which indicates
it’s one of the main disadvantages.
6

17. Explain the risk audit method when monitoring risks.
This method helps in focusing upon the procedure for analyzing and managing risks, by providing
assurance and mitigation of risk management process.
18. Multiple choice; Circle the correct answer.
Explain what you would do if you identify a risk that could have an impact beyond your own work
responsibilities and area of operation?
a) Continue working as you normally would
b) Call the emergency service
c) Refer the risks to others as per policies and procedures
d) Try to reduce the risk yourself
7

19. Explain how you would ensure that you are detecting as many risks as possible.
Making checklists helps in ensuring that all common risks are detected as much as possible.
After then conducting a post review also aid in capturing the most significant risks.
8

20. Give three (3) examples of the smaller organisation golden rules.
(a) Providing equal treatment to all
(b) Implementation of health and safety practices
(c) Establishment of code of ethics
21. True or false? Circle the correct answer.
You mustn’t ensure all relevant areas of your organisation or business are aware of the risks that
may impact them. [True]
22. Complete the following sentence.
A risk treatment procedure is a document defining how risk management and
control measures are to be implemented to treat particular risks or risk events.
9

23. Multiple choice; Circle the correct answer.
At the completion of your project or business activity you will want to see all of your risks closed in
the risk register. Each risk must meet one of the following criteria to be closed:
a) The risk was successfully prevented from occurring
b) The risk did not occur
c) The risk occurred and was treated
d) All of the above
24. Explain why it is important to monitor and review your risk treatments for the lifecycle of the
project, and once they are complete.
Ongoing monitoring and reviewing processes, is considered as one the most important factor that
help in managing efficiency and effectiveness of project outcomes during and after completion of
same.
25. Explain a simple yet effective way of how you would review risk treatments.
Risk assessment is a simple way to review risk treatment
26. True or false? Circle the correct answer.
The person given responsibility for the risk treatment is also usually responsible for the treatment
monitoring and review. This person should not be responsible for communicating the results of the
review to the concerned stakeholders and other areas that could benefit from this knowledge.
True or False
10

27. Explain two (2) steps to provide assistance to auditing risks in your own area of operation, and
explain how you would achieve this.
(a) Align the project scope and objectives with industry standards as well as requirements
(b) Testing the labor-intensive steps, reviewing the governance with IT risk management
framework controls
28. Give three (3) primary purposes of monitoring and review.
(a) Monitoring and reviewing risk procedure helps in ensuring that risk management procedure
has been adequately implemented.
(b) This would also help in identifying new risks regarding with any changes in project, reaching of
key milestones, occurrence of unexpected risk and more.
(c) It also helps in evaluating effectiveness of risk processes as well as identifying requirement of
any further improvement.
29. Give five (5) questions you could ask yourself to complete the risk management review.
(a) What are the top risks of company and extent of their impact on key people and business?
(b) Which risk assessments is currently used by management for reducing and handling situations
that could create threat for business?
(c) Is there any kind of organizational “blind spots” that requires warranting attention?
(d) If the company understand entire key assumptions that underlying its strategy as well as align
with competitive intelligence process, for monitoring external factors or changes which could alter
the assumptions?
(e) If the stakeholders or associated people have possessed with requisite skill sets, which require
to provide the effective and efficient risk oversight?
11

30. Describe how you would comprehend documents and texts of varying complexity to extract and
analyse relevant information.
Risk assessment technique and text analytical software will be used for comprehending documents
and other procedure, which would help in extracting and analyzing relevant information more
easily.
12

31. Explain how you would use specific, industry related terminology and logical organisational
structure in the workplace documents that identify and analyse risk and report management
process outcomes.
Industry specific terminology will be used in conducting SWOT analysis, that help in identifying
effectiveness of risk management process via brainstorming technique, as well as other unexpected
threat that may arise risks for organization.
32. How would you participate effectively in interactions with stakeholders by using questioning and
listening to elicit opinions and clarify understanding?
Will take a fresh look first towards risk management process which helps in analysing complexity
of business environment, including severity of impact of specified risks. Gathering information on
these and preparing proper questionnaire, will help in making proper interaction with stakeholders
or associated team members to share opinions or managing the same.
33. Explain how you would use numerical tools to assess risk and use numerical data to review plans
Numerical tools like absolute and relative quantitative risk assessment can be used to assess risks
and review plans. Hereby, absolute assessment aid to determine numerically presenting risk values
like probabilities and consequences of complex situations. While relative risk assessment tool help
in focusing on two or more alternative design plan for determining the relative probabilities and
consequences.
13

34.
a) Why is it necessary to comply with organisational and legislative requirements?
Complying business organizational and legislative requirement is essential to ensure that company
will meet with minimum standard of care and any kind of operation will not create harm or loss for
associated people.
b) Describe how would you take responsibility for identification and management of risk within
your own work context and refer matters to others as required?
Inspect the entire work regularly and I will look out on how other people use the equipment to
evaluate existence of unsafe working practices. In case of identifying and accessing any risk, will
inform immediately to associated department for managing the same.
35. How would you select appropriate communication protocols and conventions when conferring
with others to establish risk management requirements?
Digital communication protocol will be used to ensure that information regarding with
identification and management of risk will be transferred or shared with entire stakeholders in a
real time processing.
14