Risk Management Report: Strategies for Identifying and Managing Risks

This report provides a comprehensive overview of risk management, covering various aspects from identifying risks in the external environment to applying control measures. It delves into the first step of risk management, the tools used for risk identification (SWOT, PEST, and documentation reviews...Read More

IDENTIFY RISK AND
APPLY RISK
MANAGEMENT

Table of Contents
Question 1........................................................................................................................................4
a) Four area of risk in external environment..........................................................................4
b) Risk management...............................................................................................................4
c) First step of risk management process...............................................................................4
Question 2........................................................................................................................................4
Tools of identify risk..............................................................................................................4
Question 3........................................................................................................................................4
Question 4........................................................................................................................................5
b) role of stakeholders in analysing risk.................................................................................5
c) How to consult effectively with the stakeholders group....................................................5
Question 5........................................................................................................................................5
Risk categorisation and process of risk categorisation...........................................................5
Question 6........................................................................................................................................5
Importance of tracking risk management activities................................................................5
Question 7........................................................................................................................................6
Control measures of risk.........................................................................................................6
Question 8........................................................................................................................................6
a).............................................................................................................................................6
b).............................................................................................................................................6
Question 9........................................................................................................................................6
a) how to measure the success of risk treatment....................................................................6
b) how risk treatment improve the future performance..........................................................6
c) auditing technique..............................................................................................................6
Question 10......................................................................................................................................6
a) the context for the risk management..................................................................................6
b) identified risks are identified for future references as well as legal requirement..............7
c) factors that considered while control accounting...............................................................7
Question 11......................................................................................................................................7
Purpose of measure of success and role in review of risk treatment plan..............................7

Question 12......................................................................................................................................7
Auditing risk...........................................................................................................................7
Question 13......................................................................................................................................7
Organisational procedures that consider in risk management task........................................7
Question 14......................................................................................................................................8
Business legislation act taken in risk management process...................................................8
Question 15......................................................................................................................................8
Explanation of purpose and recommendation of AS/NZS ISO 31000:2009.........................8
Question 16......................................................................................................................................8
a) Risk.....................................................................................................................................8
b) Risk identification:- it means that the research and find out the problems that can be treated
as risk......................................................................................................................................9
c) Risk analysis.......................................................................................................................9
d) Risk treatment:-..................................................................................................................9
e) Risk evaluation...................................................................................................................9
REFERENCES..............................................................................................................................10

Question 1
a) Four area of risk in external environment
1. Economic condition of the country.
2. Competition from other competitors business (Cagliano, Grimaldi and Rafele, 2015).
3. Political and government policies of trade.
4. Customers and suppliers of business.
b) Risk management.
It is forecasting and evaluation of financial risk together with identification of process to
avoid and minimise the impacts of those risk (Pawar And et.al., 2015).
c) First step of risk management process.
First step in risk management is to identify the scope management of risk to specific
activities.
Question 2
Tools of identify risk.
11 SWOT analysis:-it identifies the internal strengths and weaknesses of the organisation. It
is effective to identifies the internal risk of business.11 Documentation reviews:- it consists all documents include the checklist, risk report,
hazard, project scope, procedure and policies.11 PEST analysis:- it helps to identify the Political, economical, social and technological
factors that affect the business (Slovic, 2016). It helps to identify the external factors
which affect the business.
Question 3
a) risk register
1. Risk register is a document that monitors the potential risk.
2. Risk register track the action taken to minimise risks.
b) a risk treatment schedule
1. it is a document which has responsibilities for the implementation of plan
2. Detail of the resources are to be used.
Question 4
a) difference between internal and external stakeholders.

Internal stakeholders are entities within the organisation and directly associated with the
business like Employees, board of directors, managers and investors (Haendel, 2019).
External stakeholders are the entities not with in the organisation but associated with
business and has care about performance of firm. Like customers, government, suppliers and
external investors.
b) role of stakeholders in analysing risk.
Internal stakeholders:- this stakeholders help to analysis the resource of the organisation.
External stakeholders:- it helps to analyse customers changing behaviour and government rules
and regulation.
c) How to consult effectively with the stakeholders group.
To consult with the stakeholders firm should use direct communication process so that
both should be clear about the roles and responsibilities.
Question 5
Risk categorisation and process of risk categorisation.
It means that the determining and categorisation of risk on the basis of the most chance to
occur that event (Goerlandt and Montewka, 2015). Evaluation a risk means making a decision
about its severity and ways to manage the risk.
For the risk evaluation process is livelihood and consequences where the risk rating is
given on the basis of the multiplication of likelihood and consequences which denoted as risk
rating. High rating are most chance to occur and less rating have less chance to occur.
Question 6
Importance of tracking risk management activities
Tracking of the risk management activities is important because it ensures the risk can be
minimise by regularly monitoring the standard and actual performance (Vizcarra, Gil-Lafuente
and Ochoa, 2015). It also helps in finding the difference between the actual performance and
standard performance so that risk can be minimise or overcome.
Question 7
Control measures of risk.
11 Elimination:- it means that the good management of risk can remove the risk from the
business.

11 Substitution:- it means that to replace the old system with the new automatic system.11 Isolation:- it means that to take the steps that risk can be install the guards on machine
where risk of person being minimised with the machines.
Question 8
a)
To deciding the control methods to be used is depends on the level of risk and risk that
likelihood of risk that occur and affect the business.
b)
Strength:- factor of corporation that helps to achieve the objectives to adopt the control.
Weakness:- internal factors that obstruct achieving the objectives and it can be improved
(Shameli-Sendi, Aghababaei-Barzegar and Cheriet, 2016).
Question 9
a) how to measure the success of risk treatment.
To measure success of risk treatment in includes the Cost should be minimised, reduction
in the impact of risk, reduce the likelihood and reduce the chances of occurrences.
b) how risk treatment improve the future performance.
Reduction in impact of the risk occurs that helps in minimise the exposure to source of
risk which helps in future growth.
c) auditing technique.
To review monitoring and reviewing risk treatment internal and external audit can be
used which helps in the auditing the monitoring technique.
Question 10
a) the context for the risk management
This is the context within which the risk management policy is to be implemented,
including defining each person's responsibilities and resources (Slovic, 2016).
1. Defining the scope for risk management of the specific activities
2. Planning the structure of the risk management process into logical elements.
b) identified risks are identified for future references as well as legal requirement.
1. The probability that risk will occur.
2. The unmanageable of the risk.

c) factors that considered while control accounting.
1. Functional Safety. Machine and process safety is a major consideration.
2. Stable operating environment.
Question 11
Purpose of measure of success and role in review of risk treatment plan.
Purpose of measure the success of risk treatment plan is to evaluate the cost benefits
analysis whether risk us being controlled to level that is reasonably achievable and cost effective
to further treat the risk (Heckmann, Comes and Nickel, 2015). Measure of success plays role of
the organisation's willingness to tolerate risks of that kind.
Question 12
Auditing risk.
The goal of audit is to form and express an opinion over the financial statement that it
gives the true and fair results. Risk regarding to the audit is assessment of the financial statement
and assertion produced by the evaluation of the financial materials.
Question 13
Organisational procedures that consider in risk management task.
1. Strategic risk identification:- it is the part of strategic planning.
2. Enterprise risk identification:- it is an ongoing process based on the enterprise risk
register.
3. Department risk identification:- it is associated with the different department of
organisation (Shameli-Sendi, Aghababaei-Barzegar and Cheriet, 2016).
Question 14
Business legislation act taken in risk management process
1. Model work health and safety act 2011:- this act says that employer have to provide the
healthy and safe environment to the to employees working and provide risk free
environment.
2. EEO and Anti discrimination act 1986:- this act says that employer can not discriminate
employees on the basis of age, gender and sexual preference (Vizcarra, Gil-Lafuente and
Ochoa, 2015).

3. Fair Work act 2009:- the act says that employer have to pay fair work to the employees
working at same level.
4. Privacy act 1988:- employer is liable to maintain the privacy of the employees.
5. Equal pay act 2010:- this act says that employees working on same level of post are liable
to get the same pay scale.
Question 15
Explanation of purpose and recommendation of AS/NZS ISO 31000:2009
It is not specific for any industry or sectors it can be used by any public, private or
community enterprise, group or individual. It can be applied throughout the life of organisation
for the various activities including the strategic and decisions, operation, process, functions,
projects, products and services. It promotes uniformity of risk management across the
organisation (Goerlandt and Montewka, 2015). It utilised to harmonise risk management
processes in existing and future standards.
Question 16
a) Risk
Risk is common in organisational life and can range from having minor to the biggest
impact on organisation (Shameli-Sendi, Aghababaei-Barzegar and Cheriet, 2016). Risk is
anything that can prevent or slow down an organisation to achieve its goals.
b) Risk identification:- it means that the research and find out the problems that can be treated as
risk.
c) Risk analysis
Identifying and quantifying the uncertainties to making the risk management decisions
that can help the organisation avoid mitigate and other problems (Vizcarra, Gil-Lafuente and
Ochoa, 2015).
d) Risk treatment:-
A risk management and action plan document that management controls to be adopted
and should include responsibilities for the implementation of the plan.
e) Risk evaluation
it means that to evaluate the what types of risks business should be face in the future,

REFERENCES
Books and Journals
Cagliano, A. C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management
techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.
Goerlandt, F. and Montewka, J., 2015. Maritime transportation risk analysis: review and analysis
in light of some foundational issues. Reliability Engineering & System Safety, 138, pp.115-
134.
Haendel, D., 2019. Foreign investments and the management of political risk. Routledge.
Heckmann, I., Comes, T. and Nickel, S., 2015. A critical review on supply chain risk–Definition,
measure and modeling. Omega, 52, pp.119-132.
Pawar, R.J. And et.al., 2015. Recent advances in risk assessment and risk management of
geologic CO2 storage. International Journal of Greenhouse Gas Control, 40, pp.292-311.
Shameli-Sendi, A., Aghababaei-Barzegar, R. and Cheriet, M., 2016. Taxonomy of information
security risk assessment (ISRA). Computers & Security, 57, pp.14-30.
Slovic, P., 2016. The perception of risk. Routledge.
Vizcarra, G. A., Gil-Lafuente, A. M. and Ochoa, E. A., 2015, November. Identification of the
exchange risk exposure by applying the model of forgotten effects. In International Forum
for Interdisciplinary Mathematics(pp. 381399). Springer, Cham.