BSBOPS504 - Manage business risk
Student Assessment Tool Task 1 – Knowledge Questions
Student Name Shah Mohammed Shafi Student ID Number 11801
Unit Start Date 26/11/2024 Unit End Date 12/12/2024
Assessment Due Date Date Submitted
Student Declaration
Student Declaration:
• I declare that I was adequately informed of the assessment process prior to commencing this
assessment task.
• I declare that I have read and understood the Student Assessment User Guide
• I declare that the work completed is my own and I have not cheated or plagiarised any work
regarding the assessment tasks undertaken in this unit of competency except where the work has
been correctly acknowledged.
Signature shafi Date: 26/11/2024
Assessment Satisfactory or Not Satisfactory
Results
(Please check the assessment result for this task)
Feedback to Student - Please provide feedback on the student’s performance (Please specify which
questions are incorrect if applicable)
Assessor Name
Assessor Signature
Date:
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BSBOPS504 Unit Assessment
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Task 1-Knowledge Questions
Assessment task description
● This is the first (1st) of two assessment tasks you must successfully complete to be deemed
competent in this unit of competency.
● This task comprises eight (8) written
questions.
● The purpose of this task is to assess your knowledge essential to managing business risk.
● You must answer all questions to the required level, e.g. provide the number of points, number of
words; to be deemed satisfactory in this task.
● Your answers must demonstrate an understanding and application of relevant concepts, critical
thinking, and good writing skills.
● Your answers must be concise, relevant and follow the given word-limit to each question.
● Your answers will not be accepted if copied directly from texts, or quoted without acknowledgement
of the source.
● If you need more space for any of your questions, please use the two spare pages at the end of the
document.
Applicable conditions
● This is an open book task and you may refer to your learning materials or your research of external
resources.
● You must complete this task independently.
● The Trainer/Assessor may ask you relevant questions on this assessment task to ensure that this is
your own work, or to confirm your knowledge to close any gaps they may identify as not evidenced in
your written responses.
● You must answer all the questions correctly (achieve a mark of 100 points if complete in student
learning system- Moodle) in order to be deemed Satisfactory for this task.
Evidence to submit
● Complete all the eight (8) questions in Moodle and submit by due date (Default submission method),
Or
● Submit the whole Student Assessment Tool to trainer/assessor if word version or hard copy of
assessment tool is used. (This submission method must be discussed and approved by
trainer/assessor)
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BSBOPS504 Unit Assessment
Version. 1-Updated on 1st Sep 2021
Question 1 Explain the risk management process. You may answer using a labelled diagram or in words
(or both) and must include: Word Limit (250-350 words)
• a definition of risk management.
• a list or illustration of the steps in a risk management process.
• a description of what each step involves.
In business, risk management is defined as the process of identifying, monitoring and managing potentialrisks in order to minimise the negative impact they may have on an [Link] risk
management process consists of three parts: risk assessment and analysis, risk evaluation andrisk treatment.
Risk Assessment & AnalysisThe first step of the risk management process is called the risk assessment and analysis stage. A riskassessment evaluates an organisation's exposure to uncertain
events that could impact its day-to-dayoperations and estimates the damage those events could have on an organisation's revenue andreputation.
Risk EvaluationAfter the risk assessment/analysis has been completed, a risk evaluation should take place. A riskevaluation compares estimated risks against risk criteria that the organization has
already [Link] criteria can include associated costs and benefits, socio-economic factors, legal requirements andsystem malfunctions.
Risk Treatment & ResponseThe last step in the risk management process is risk treatment and response. Risk treatment is theimplementation of policies and procedures that will help avoid or
minimise risks. Risk treatment also extends to risk transfer and risk financing
Marking Satisfactory Unsatisfactory
Question 2 Describe a current risk management standard. In your answer: Word limit (150-300)
• name the standard.
• explain the purpose of the standard.
• list key elements of the standard.
Answer:
Identify the assets to be protected. What are you protecting (i.e. customer information, criticalbusiness processes, etc.), and why (privacy, security, etc.)?
Identify the threats to those assets. What could happen to the assets identified in step 1? Rank thethreats by both impact and probability. (This is the traditional risk
assessment step.)
Apply controls in a layered, overlapping way until the risks are reduced to an acceptable level.
Test the adequacy and effectiveness of the controls
Marking Satisfactory Unsatisfactory
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BSBOPS504 Unit Assessment
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Question 3 Complete the table below to describe the types of business risk.
Answer:
Type of risk Description Example Key responsibility
(at least two people)
These risks canoccur at any timeand are related tothe A business sells natural sunscreen in lotion form but CEO
Strategic risk business ororganisationsstrategy over time peoples preference for lotion declines and
more peoplewant a spray form of sunscreen Managing director
Board of directors
Owner
These risks involvehaving to comply with rules set omplying to allregulations due toCOVID-19 and Head of safety
Compliance bygovernment orregulatory bodies having a COVIDSafe plan thatmeets requirements
Head of operations
risk Managers/supervisors
These risks affectthe financial healthof a business Customers notpaying on time (orpaying ininstalments) CFO
Financial risk (cashflow, liquidity,financial position,debt burden etc.)
Financial controller
Managers/supervisors
These risks areassociated with abusiness Targets notbeing met becausea machine breaks down Head of operations
Operational ororganisationssystems and processes.
risk
Marking Satisfactory Unsatisfactory
Question 4 Explain three (3) different tools and techniques that may be used to identify risk. The following is
an example for you to follow.
Example: Brainstorming: Brainstorming is a group discussion to produce as many ideas or
solutions to problems in a pre-determined amount of time.
Answer:
Documentation Reviews
The standard practice to identify risks is reviewing project relateddocuments such as lessons learned, articles, organisational processassets, etc.
Delphi Technique
A team of experts is consulted anonymously. A list of requiredinformation is sent to experts, responses are complied, and results aresent back to them for further review until a consensus is reached.
Checklist Analysis
The checklist of risk categories is used to come up with additional risksfor the project
Marking Satisfactory Unsatisfactory
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BSBOPS504 Unit Assessment
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Question 5 Briefly explain four (4) options that a company could use to take to control risks.
Answer:
Risk audit - Project teams may have defined risk responses. The question is Are theresponses effective? Project managers
facilitate risk audits examine the effectiveness of therisk responses and to determine whether changes are required. The team also examines
theprocesses to identify, evaluate, respond to, and control risks.
Variance and trend analysis As with many control processes, we now look for variancesbetween the schedule and cost baselines and the actual
results. When we the variances areincreasing, there is increased uncertainty and [Link] the trends and respond before thesituation gets out of
hand.
Technical performance measurement Imagine that you are working on a softwaredevelopment project and that the
functional requirements have been developed. Youveplanned to deliver functions at a point in time at the end of the fourth sprint, at the
end ofphase 1, or a milestone. The technical performance measurement is a measurement of thetechnical accomplishments.
Reserve analysis During the cost planning, the contingency and management reserves areadded to the project budget as needed. As risks
occur, the reserves may decrease. Dependingon how your organisation handles reserves and your risk management plan, project managersmay
request more reserves when inadequate
Marking Satisfactory Unsatisfactory
Question 6 Explain how legislation and its related regulatory requirements relate to risk management. In
your answer: Word limit (250-350)
• identify two (2) different legislative and regulatory requirements that may apply to risk
management.
• for each legislative requirement, explain how it relates to risk management.
• provide one (1) example of how regulations support one of the legislation.
Answer:
Work Health and Safety Act 2011 (Work Health and Safety: How to Manage Work Health andSafety Risks Code of Practice 2015) The WHS
Act and Regulations require person whohave a duty to ensure health and safety to manage risks by eliminating health and safetyrisks so far
as is reasonably practicable, and if it is not reasonable practicable to do so, tominimise those risks so far as is reasonably practicable.
Food Act 2001 (Food Regulation 2002) Relevant if an organisation is handling food intendedfor sale, or sells food. The purpose is to ensure
that food is safe and suitable for humanconsumption. Some food businesses may be exempt being registered as a food business, ifthey handle
or sell.
Marking Satisfactory Unsatisfactory
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BSBOPS504 Unit Assessment
Version. 1-Updated on 1st Sep 2021
Question 7 Explain the purpose of risk management policies and procedures in the workplace as they
relate to risk management. Word limit (50-100)
Answer:
Risk management policies and procedures in the workplace aim to identify, assess, and control potential hazards to ensure a safe and healthy environment. They provide a
structured approach to minimizing risks that could harm employees, disrupt operations, or damage assets. These policies help organizations comply with legal requirements,
reduce financial losses, and foster a culture of safety by promoting proactive measures to prevent accidents and manage unforeseen events effectively.
Marking Satisfactory Unsatisfactory
Question 8 Complete the table below to summarise how three (3) policies and procedures
relate to risk management.
Answer:
Policy/procedure Description
The Record Keeping Policy and Procedure ensures the accurate and secure documentation of workplace activities, such as employee
Record keeping policy and details, training logs, incident reports, and risk assessments. It involves systematic data collection, accurate documentation in
standardized formats, secure storage in physical or digital systems, and adherence to confidentiality requirements. Records are retained
for the legally mandated duration and safely disposed of when no longer needed, following privacy laws. This policy ensures compliance
procedure with legal standards, promotes accountability, and facilitates access to records during audits or investigations.
There is strong evidence that participating in good work is good for mental and physical health and wellbeing. A workplace health and
WHS policy and procedure safety management system can minimise the risk of injury and illness from workplace operations. It is one of the most effective ways to
make sure health and safety is embedded across your organization and is a part of everything you do
Companies must adhere to data protection laws when handlingsensitive information and it is paramount when
Confidentiality policy/procedure processingcriminal record checks that a strict code of confidentiality ispracticed. Failure to protect and secure confidential
informationmay not only lead to the loss of business or clients, but it alsounlocks the danger of confidential information being
misusedto commit illegal activity such a fraud.
Marking Satisfactory Unsatisfactory
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End of Assessment Task 1 of 2
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