University Course: Risk Management Assessment Task 1 Written Questions

This document presents a comprehensive analysis of risk management principles and practices, addressing key aspects such as the purpose of risk management standards, the AS/NZS ISO 31000:2009 principles, and the requirements of WHS legislation. The assignment explores risk control measures for hazardous manual tasks, the purpose of risk management policies and procedures, and the impact of unidentified risks on a workplace. It outlines a step-by-step procedure for analyzing risks, various sources of information for gathering risk-related data, and tools and techniques for identifying risks within a risk assessment process. Furthermore, the document details options for controlling and minimizing risks, including insurance, risk management plans, and promoting a healthy workplace, providing a well-rounded perspective on risk management strategies.

Assessment Task 1: Written
Questions

Table of Contents
Assessment Task 1 ..........................................................................................................................3
REFERENCES................................................................................................................................8

Assessment Task 1
1. Discuss the purpose of risk management standards. Include an example of a risk
management standard in your answer.
The main purpose of risk management standards are mainly developed with the motive of
identifying and mitigating risks effectively within the firm so that all activities of company can
be performed in best possible manner. It also supports company in implementing their strategies
in tested and proven form. For instance: Businesses can effectively incorporates ISO 31000 risk
management standards within the firm by making use of checkpoints. By making use of this
standard, risk management team can easily attain objectives of the company through
minimisation of risks related to finance, security and project. This is so because, it makes it
allows business manager in determining business opportunities as well as threats. Based on this
knowledge, they simply makes use of available resources for treating identified risks.
2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and
each of the 11 principles.
AS/NZS ISO 31000: 2009
It is the Joint Australia/ New Zealand standard which was developed by respective Joint
Technical Committee OB-007, Risk management. It is highly useful to manage risk management
processes in appropriate manner and also supports in handling specific type of risks in
appropriate manner.
There are total 11 principles of risk management which have been stated as below:
Create value: This is generally done by taking review at continuous basis.
Integral part of organisational processes: It is determined as the integral part of firm's
governance and planning process.
Be part of decision making: Supports in making effective decision and determining their
ow priorities.
Explicitly address uncertainty: It provides chance to company in finding out risk so that
they can execute its associated solution for reduces loss.
Systematic, structured and timely: This is mainly done with the motive of attaining
higher quality of results within timely manner.
Based on the best available information: It is highly important to find out all the
available information with the motive of managing risk in bes possible manner.

Tailored: Business firms especially risk agencies are focusing on managing risk profile
of company at internal as well as external level.
Take into account human and cultural factors: here, it is important to provide priority
to the culture as well as workforce of the company at the time of managing risk.
Transparent and inclusive: all the decision associated with the risk must be clearly
communicated with the workforce in transparent manner.
Dynamic: Risk management process is required to flexible so that every kind of risk
could get managed effectively within the premises.
Facilitate the continual improvement of organisations: Alike other process, agencies
are required to upgrade their risk management process for managing risk in lucrative manner.
3. Explain the requirements of WHS legislation in relation to risk management.
WHS legislation is seen as an effective framework which ensures that all work are
protected at workplace in terms of safety, health and welfare. WHS legislation is highly required
in risk management as it contributes in eliminating risks associated with the health and safety.
This is so because, the respective company is following all amendments covered in WHS
legislation like providence of safe and secure working environment, fixed and feasible working
hours etc.
4. List the factors that must be taken into account in determining risk control measures for
hazardous manual tasks as stated in the model Work Health and Safety Regulations 2011.
There are numerous of hazardous manual tasks like working with machinery and other
equipments, lifting, throwing and carrying, packing etc. In order to perform all of these in
effective manner below stated factors are required to be considered by operators in order to
control risk associated with it.
 Time factor
 Environmental factor
 Psychological factors
 Individual factor
5. Explain the purpose of risk management policies and procedures in the workplace.
The purpose of risk management policies and procedures at working place is to make it
sure that the employees working at the office will be safe in any future uncertainty as some jobs
are come with some associated risk, which may be lead in loose of employee interest in company

this can be consider as an reason behind the formation of policy and procedures by an company,
to minimising the risk of job and saving the employee interest in organisation.
6. List three examples of the impact of risks for a workplace if risks are not identified or
actioned.
 Employee turnover : If company does not follow the police and procedures & not identify
them then it may be lead in high employee turnover and when there is a high rate of
employee turnover, there are likely other factors in compensation. Perhaps certain
persons feel that their growth potential is limited or the culture of the enterprise doesn’t
recognize their effort. This will directly place impact over the performance of the
company as their employees are not staying within the company for longer period of
time. Due to this, maximum time of senior staff spends on either hiring new staff or
providing training to them. As a result, they are not able to achieve their organisational
goals in quicker manner.
 Reduction in employee engagement: Here, it can be said that if risk associated with
cultural diversity does not identified by manager their it will directly place negative
impact over the employees engagement. This is so because employees are not able to feel
connected with their colleagues. As a result, they will not be able to get involved in all
organisational work.
 Decline in productivity: Productivity of employees performance will definitely decline if
risk associated with the conflict is not identified at workplace. The main reason behind
this is that employees starts engaging into disputes and other non worthy activities which
directly hampers their productivity.
7. Outline a step-by-step procedure that companies can use for analysing risks.
 Step 1: Identify the Risk
 Step 2: Analyse the risk
 Step 3: Evaluate or Rank the Risk
 Step 4: Treat the Risk
 Step 5: Monitor and Review the risk
8. Outline three sources of information that a company could use to gather information on
potential risks.

 SWOT Analysis : This is the analysis of strength, weakness, opportunities and threats of
an organization which is Commonly used as a tool to measure performance of an
enterprise. This detailed information directly works as the main source and enhances
knowledge of company about possible threats which could be further addressed by
making use of strengths of company. The respective framework is also used by the
company for finding out proposed risk which might occur in the future. PESTLE : This is a tool which is used to analyse the threats in external environment of an
organisation. This analysis aware develops knowledge company about its all available
factors and in finding out those risky factors which might place impact over the
performance of the company in the near future. Along with this, it might also place
negative impact over their profitability.
 Brainstorming : It is that function of a management in which all the ideas of employees
are taken from them an the best one is chosen for implementation. With the incorporation
of method, manager can easily determine source of information from employees side by
which they can find out proposed risk that might develop in the near future.
9. Describe three examples of tools or techniques that a company could use to identify risks
as part of a risk assessment process.
Any company who wishes determine proposed risk from which their company might
suffer in the near future can go for three different below stated tools as the examples. All of them
are stated as below:
Delphi technique: This is an effective technique adopted by company. In this all the
required information is provided to experts which is further reviewed by them with the motive of
determine proposed risk within the company.
Assumption analysis: It mainly identifies several assumption based risks that might
develop in the near future. This directly contributes in finding out proposed risk which might
develop in the future.
Root cause analysis: This is seen as the analysis in which risks are mainly found. These
kind of root causes are used in future for determining anticipated risks.
10. Explain four options that a company could take to control risks.
Track your cash flow: This is the first option by which company can control Financial
risk as they have adequate amount of finances for handling the situation in effective manner.

Get Legal: The company can also make use of legal authority in case of risky situation
associated with non-compliance of laws.
Listen to alerts: Alerts basically aware company about the possible risk related with lack
of knowledge about amendments which might develop in the near future.
Take support from best advisory: Here, increasing employee turnover associated risk
can also be controlled by effectively taking advise from best person in appropriate.
11. Explain four procedures that a company could use to minimise risk.
Obtain insurance: By adopting right insurance policy the company can easily reduce
risk at workplace as it provides them support in loss or any other kind of situation.
Develop risk management plan: Manager of the company must also formulate risk
management plan so that they get ready for the financial risk which might develop in future.
Promote healthy workplace: Additionally, creation of positive working environment
can also reduce result in reduction of risks of health such as noise, dust, psychological stress,
unsafe machines etc. at workplace.
Stick with short term commitments: By making short term goals the respective
company also reduce risk of delay in achieving organisational goals chances at workplace.

REFERENCES
Books and Journals
Almeida, H., Hankins, K.W. and Williams, R., 2017. Risk management with supply
contracts. The Review of Financial Studies, 30(12), pp.4179-4215.
Aven, T., 2016. Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), pp.1-13.
Bellini, F. and Di Bernardino, E., 2017. Risk management with expectiles. The European Journal
of Finance, 23(6), pp.487-506.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Rampini, A.A., Viswanathan, S. and Vuillemey, G., 2019. Risk management in financial
institutions. The Journal of Finance.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Tupa, J., Simota, J. and Steiner, F., 2017. Aspects of risk management implementation for
Industry 4.0. Procedia Manufacturing, 11, pp.1223-1230.
Van Staveren, M., 2018. Uncertainty and ground conditions: a risk management approach. CRC
Press.
Online
What are the 5 Risk Management Steps in a Sound Risk Management Process. 2014. [Online].
Available Through: <https://continuingprofessionaldevelopment.org/risk-management-
steps-in-risk-management-process/>.