Risk Management: Principles, Practices, and Business Case Analysis

This report delves into the core concepts of risk management, beginning with an overview of risk management standards and their importance in providing guidelines and best practices. It outlines the 11 principles of AS/NZS ISO 31000:2009, emphasizing their role in establishing and sustaining value, integrating risk management into organizational processes, and informing decision-making. The report further examines the application of Work Health and Safety (WHS) legislation in systematically managing workplace dangers, detailing steps for hazard identification, risk elimination, and control. It also highlights the key elements of the Work Health and Safety Regulations 2011, along with the purpose and impact of risk management policies and procedures. The report provides practical examples of risks, such as poor housekeeping, chemical hazards, and electrical hazards, and the potential consequences of failing to identify or address them. It details a step-by-step procedure for analyzing risks, including identifying hazards, assessing potential harm, and taking action. The report also explores various information sources, including brainstorming, Delphi techniques, and SWOT analysis, as well as tools and techniques like checklists and risk registers. Finally, it discusses risk control options, including personal protective equipment (PPE), administrative controls, engineering controls, and substitution, along with methods for risk minimization. The second part of the report presents a risk briefing report for Nature Care Products, including a PESTLE analysis, stakeholder analysis, and a SWOT analysis, culminating in the definition of critical success factors and strategic objectives. The report covers the importance of risk management in a business context, providing a framework for understanding, assessing, and mitigating risks to enhance overall business performance and achieve organizational goals.

Task 1
Ans 1
Risk management standards have been planned with the goal that the individuals who must do risk
management measures have a guide for help them to work. These standards help to give a global
agreement on the best way to manage certain risks, and they offer best practice guidance on the most
proficient method to manage others. Risk management standards help associations to implement
procedures which are attempted and tried, and proven to work.
Ans 2
The 11 principles of AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines
are:
1. Risk management establishes and sustains value.
2. Risk management is an integral part of all organizational processes.
3. Risk management is part of decision making.
4. Risk management explicitly addresses uncertainty.
5. Risk management is systematic, structured, and timely.
6. Risk management is based on the best available information.
7. Risk management is tailored.
8. Risk management takes human and cultural factors into account.
9. Risk management is transparent and inclusive.
10. Risk management is dynamic, iterative, and responsive to change.
11. Risk management facilitates continual improvement of the organization.
Ans 3
WHS legislation according to risk management is for the business methodically oversee risks
emerging from work place dangers. Coming up next are the means/cycle to oversee risk:
1. identify sensibly predictable dangers - distinguish the conceivable risk that could affect the workers
in the company
2. eliminate risks by keeping standard risk management
3. minimise those risks by recognizing the risk itself and follow the standards
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4. implement risk control quantifies so everybody will be in safe
Ans 4
Work Health and Safety Regulations 2011
a. postures, movements, forces and vibration relating to the hazardous manual task
b. the duration and frequency of the hazardous manual task
c. workplace environmental conditions that may affect the hazardous manual task or the worker
performing it
d. the design of the work area
e. the layout of the workplace
f. the systems of work used
g. the nature, size, weight or number of persons, animals or things involved in carrying out the
hazardous manual task.
Ans 5
The purpose of risk management policies and procedures in the workplace is intended to provide a
framework for the management of risk and also to increase overall awareness of risk throughout the
council and to enable managers and those responsible for risk reporting, to better identify, assess and
control risks within their areas.
The purpose of risk management policies and procedures in the workplace are for better decision
making, minimize the risk, optimise the outcomes, improve the performance, achieve the
organisational goals, time-saving and cost saving, better understanding for staffs about the risk
management in the company.
Ans 6
The three examples of the impact of risks for a workplace if risks are not identified or actioned are:
Poor Housekeeping
Poor housekeeping rehearses oftentimes add to occurrences. In the event that seeing paper, flotsam and
jetsam, mess and spills is acknowledged as would be expected, at that point other more genuine hazards
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may be taken for allowed. Housekeeping isn't simply neatness. It incorporates keeping work regions
perfect and organized, keeping up corridors and floors liberated from slip and excursion hazards, and
eliminating of waste materials (e.g., paper, cardboard) and other fire hazards from work regions.
Chemical Hazard
Hazardous chemicals are substances that can cause antagonistic wellbeing impacts, for example, harming,
breathing issues, skin rashes, hypersensitive responses, unfavourably susceptible sensitisation, malignant
growth, and other medical issues from introduction. For instance: Paint, Medications, Cleansers,
Electrical Hazard
Electric shock is one of the most widely recognized hazards across building destinations as per OSHA.
Distinguishing electrical hazards can help bring issues to light of the dangers, their seriousness, and how
it can hurt laborers.
Ans 7
The step-by-step procedure that companies can use for analysing risks are:
Step 1: Identify hazards, i.e. anything that may cause harm.
Step 2: Decide who may be harmed, and how.
Step 3: Assess the risks and take action.
Step 4: Make a record of the findings.
Step 5: Review the risk assessment.
Ans 8
The three sources of information that a company could use to gather information on potential
risks are:
Brainstorming
Brainstorming is finished with a gathering of individuals who centre around ID of danger for the task.
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Delphi Technique
A group of specialists is counselled namelessly. A rundown of required data is sent to specialists,
reactions are gathered, and results are sent back to them for additional consideration until an agreement is
reached.
Swot Analysis
(Strength, Weakness, Opportunities And Threats) Strengths and weaknesses are recognized for the task
and in this way, hazards are resolved
Ans 9
The three examples of tools or techniques that a company could use to identify risks as part of a risk
assessment process are:
1. SWOT Analysis STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS), Strengths and
weaknesses are identified for the project and thus, risks are determined.
2.Checklist Analysis: The checklist of risk categories is used to come up with additional risks for the
project.
3.Risk register: It includes in the historical records that will be used for future projects.
Ans 10
The four options for controlling risks are:
1. PPE: Protect the worker with personal protective equipment.
2. Administrative controls: Changing the way that people work.
3. Engineering controls: Isolating people from the hazard.
4. Substitution: Replace the hazard.
Ans 11
The four ways to minimise risk are:
1. Identification of the risks early in the project.
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2. Improve communication about risks.
3. Consider opportunities as well as threats when assessing risks.
4. Prioritizing of risks.
Task 2
Ans 1
Nature Care Products
Risk Briefing Report
Introduction
Nature care is an established organization from 1996 that produces skin care products. The products
that are being delivered by the organization are eco-friendly and sustainable. The organization creates
a wide assortment of common items, for example, cleansing creams, moisturizing creams and facial
scrubs. The organization likewise sells its items through its site where its deals are adequate and is
anticipating improve the deals in future.
The organization is currently monetarily steady however has as of late discovered their rivals selling
similar kind of products in the market. Along these lines, the organization chooses to improve its
deals by in any event 20% in the following three years. In this way, the advertising supervisor is
needed to think of suggestion dependent on his analysis and research.
Scope
 Increase the number of people who make a purchase while visiting the online store by 20%.
 Increase the number of retail outlets selling Nature Care Products by 150.
 To increase product awareness amongst the target market by 20%.
 To increase market share to 15%.
 To expand into at least one international market.
 To identify new products and new markets.
 To attain annual growth of at least 10% over the next three years.
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PESTLE Analysis
Political
The political factors include the rules and regulations of the country in which the company is working.
The bill presented in 2016 progressively reduces the corporate tax rate from 30% to 25% for all
corporate entities. The recent news polls are indicating another win of Liberal Government which
would be encouraging for the nature care future investment of $150,000.
Economical
The economic factors include the exchange rates in the state where the company is working. Australia
has a large economy with a per capita GDP on par compared to other western European countries.
Australia has high natural resources and also encourages foreign investments.
Social
The social factors emphasise the technical trends in the society. The modern society is more into the
skin care eco-friendly products to maintain their skin with a good hygiene. The company nature care
produces products that are highly sustainable and natural. Based on the view and thinking of today’s
generation towards the skin care, nature care products have a higher demand comparatively to other
products in the market. Mostly the women ageing 25-55 years are likely to be the most interested.
Technological
Technology has its own influence in today’s world in all the sectors of life. In a company like nature
care trust and recognition play a major role in the progress and development of the company. The
company is always looking forward to develop its products and rather introduce new products to meet
the requirements of the customer and satisfy them accordingly. With the help of technology, it is quite
easier to develop a good relationship with the customers. Technology provides a basic mean in
between the company and the customers making it easy for them to access all the newer products and
upgraded information of the products. The company’s website is easily accessible by any individual
and the technical team of the company always strives forward to keep it up to date with no errors and
defects.
Environmental
The environmental factors lead to various global environment safety laws that must abide by the
global standards. The world has now taken pledge to make the planet beautiful and pollution free.
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Nature Care can also play its part by supporting such campaigns and following the norms of the
world. It is always best to understand the external as well as the internal factors that affect the
company on the whole. The company has been one of the leading skin care brands in Queensland,
Australia. Therefore, it is always a good strategy to consider these factors while determining the
policies for the company.
Legal
Nature care Company has grown big very fast and also has developed a few competitors in the
process. So, in order to stay in the market and maintain its profits and not lose their customers, it
needs to follow all the legal legislations of the country in which it is established. The people of
today’s generation are very much aware of the legal aspects. As the company is bound by a few rules
and regulations, it’s very important to meet all the requirements and thereby develop their products
satisfying all the legal legislations.
Internal and external stakeholder analysis
Internal: Managers, Employees and internal supervisors.
External: Government organisations, risk consultants, external advisors, risk auditors.
The above internal and external personnel will have responsibilities in the hazard identification
process. They need to be skilled at identifying a risk and determining the exact nature of a problem.
They need to be able to view the situation objectively and have the ability to communicate any advice
they have in regard to handling the risk.
The challenge for them is to agree in the way they like to have information communicated, in an open
manner.
Strengths and weaknesses
Strengths Weaknesses
Eco-friendly products. Poor product variety.
Experience with online marketing. Non-qualified staff for new retail shops.
Experience with natural care and beauty products. Partial understanding about risk policy and
procedures.
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Government support
Politic and procedures align with current standards.
Critical success factors
The main objective of Natural Care Products is to become in the number one retail store company in
Australia, by selling the highest quality and better price natural products, using ecofriendly
manufacture processes, expanding its product range in 10% and having a minimum customer
satisfaction of 95%.
The strategic objectives of Natural Care are to:
 Expand the market in 20%, opening a new retail shop in Melbourne, Sydney and Brisbane.
 Achieve 100% ecofriendly suppliers to guarantee high quality products.
 Sustain a customer satisfaction rate of 95%.
 Expand product range to attract more customers.
 Improve the management processes and training within the organisation.
 Have sufficient store space to accommodate the range of products according with the expected
demand.
Ans 2
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Ans 3
9

Ans 5
Risk Management Plan
Definitions
A risk management plan is a document that a project manager prepares to foresee risks, estimate
impacts, and define responses to issues.
Risk
Risk is the possibility of losing something of value. Values can be gained or lost when taking risk
resulting from a given action or inaction, foreseen or unforeseen. Risk can also be defined as the
intentional interaction with uncertainty.
Likelihood:
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Chance of something happening In risk management terminology, the word “likelihood” is used to
refer to the chance of something happening, whether defined, measured or determined objectively or
subjectively, qualitatively or quantitatively, and described using general terms or mathematically.
Consequence:
Outcome of an affecting objectives. An event can lead to a range of consequences. A consequence can
be certain or uncertain and can have positive or negative effects on objectives. Consequences can be
expressed qualitatively or quantitatively. Initial consequences can escalate through knock-on
effective.
Risk Assessment:
Since risk assessment and management is essential in security management, both are tightly related.
Security assessment methodologies contain risk assessment modules as an important part of the first
steps of the methodology. On the other hand, risk assessment methodologies evolved to become
security assessment methodologies. An ISO standard on risk management (Principles and guidelines
on implementation) was published under code ISO 31000 on 13 November 2009.
Risk treatment/control methods
There are many formal methods used to "measure" risk. Often the probability of a negative event is
estimated by using the frequency of past similar events. Probabilities for rare failures may be difficult
to estimate. This makes risk assessment difficult in hazardous industries, for example nuclear energy,
where the frequency of failures is rare, while harmful consequences of failure are severe. Here are the
6 techniques associated with risk control.
1. Avoidance
2. Loss Prevention
3. Loss Reduction
4. Separation
5. Duplication
6. Diversification
Risk management process
In business, risk management is defined as the process of identifying, monitoring and managing
potential risks in order to minimize the negative impact they may have on an organization. Examples
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of potential risks include security breaches, data loss, cyber-attacks, system failures and natural
disasters.
Risk Description Likelihood Consequence Level of Risk Control Methods Risk Priority
Loss of IT data Moderate Major Extreme Accept Must
Loss of Shareholders Vital Major Extreme Control Should
Loss of Stores Unlikely Moderate High Control Could
Loss of Staff Unlikely Moderate Low Avoid Should
Loss of Vital
Records Unlikely Major High Accept Must
Risk action Plan
Risk
Description
Impact of risk Recommen
ded actions
Resource
requiremen
ts
Timeli
nes
Responsibi
lities
Monitoring
processes
Loss of IT
data
Keep a copy of
data and store it
in Web Storage
Duplication Web
Storage
1 Oct
2020
Careful
activities
to store
Everyday
Loss of
Shareholders
Keep a note on
shareholders
preferences
Loss
Prevention
Statistics 8 Oct
2020
Proper
Analysis
of
statistics
Quarterly
Check
Loss of
Stores
Make strong
commitment and
bond with stores
Loss
Reduction
Stores Data 16 Oct
2020 Analysis
Monthly
Analysis
Loss of Staff Recruiting
efficient and
effective staff
Avoidance
Interviews
24 Oct
2020
Careful
Examinati
on
Staff
Developme
nt
Loss of Vital
records
Keep an eye on
Record
maintenance and
procedures
Separation Data
Analysis
30 Oct
2020
Data
protection
Everyday
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