BSBRSK501

Manage Risk
Name:
ID:

Assessment Task 1: Written Questions

1. Discuss the purpose of risk management standards. Include an example of a risk
management standard in your answer.
Ans: Risk management standards have been designed so that those who must carry out risk
management processes have a guide to help them to work. These standards help to provide
an international consensus on how to deal with certain risks, and they offer best practice
advice on how to deal with others. Risk management standards help organisations to
implement strategies which are tried and tested and proven to work. For example, The ISO
31000 risk management standards framework includes ISO 31000:2009-Principles and
Guidelines on Implementation.

2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and
each of the 11 principle.
Ans:
 Create value: From the continuous reviews of process of the company.
 Integral part of organisational processes: Integrate to agency’s governance
framework and be part of the planning processes.
 Be part of decision making: Help to make better decisions and identify priorities.
 Explicitly address uncertainly: When the risk is identified, the agencies can
implement treatments to improve the results and reduce the chances of loss.
 Systematic, structured and timely: The risk management should be done by an
agency to ensure better results.
 Based on the best available information: To better manage risk it’s important to
understand available information and to be aware that it can have some
limitations. Then understand how this helps risk management process.
 Tailored: An agency of risk management has to consider their risk profile and
internal and external operating environment.
 Take into account human and cultural factors: Risk management have to
recognise the importance of people and culture on achieving objectives.
 Transparent and inclusive: Communication and consultation is important to
identify, analyse and monitor risks.
 Dynamic: The process of risk managing needs to be flexible and allow the risk
manager to identify new risks and risks that doesn’t exist anymore.
 Facilitate the continual improvement of organisations: Agencies with a good risk
management culture invested resources over time on it and are can demonstrate
the achievement of their objectives.

3. Explain the requirements of WHS legislation in relation to risk management.

Ans: The requirements of WHS legislation in relation to risk management includes
employers manage and conduct their work activities in such a manner as to ensure the
safety, health and welfare of employees. That a risk assessment is carried out by the
employer or person in control of the place of work. Transport hazards that exist in the
workplace must be assessed as part of this risk assessment and appropriate steps taken to
eliminate or reduce any risks found.
 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.
Ans: The factors may include does the task involve any of the following repetitive
movement, sustained or awkward postures and repetitive or sustained forces. The duration
of the task is how long the task is carried out over a whole shift or continually at any time
during a shift. Tasks that continue over a long period or are repeated over the workday
increase the risk of injury. High force may be considered as one of the factors. Prolonged
exposure to whole-body or hand-arm vibration increases the risk of MSDs and other health
problems. The degree of risk increases as the duration of exposure increases and when the
amplitude of vibration is high.

5. Explain the purpose of risk management policies and procedures in the workplace.
Ans: The purpose of risk management policies and procedures in the workplace is to ensure
every worker a safe place to work. Some jobs do come with some risk, but each employer
must utilize organizational policies and procedures for risk management to ensure that the
amount of risk for the employee is as low as possible.

6. List three examples of the impact of risks for a workplace if risks are not identified or
actioned.
Ans:
1. Poor User Adoption
2. Unrealized Benefits
3. Late-running Projects

7. Outline a step-by-step procedure that companies can use for analysing risks.
Ans: 1. Identify the Risk- You and your team uncover, recognize and describe risks that might
affect your project or its outcomes. There are a number of techniques you can use to find
project risks. During this step you start to prepare your project risk register.

2. Analyse the risk- Once risks are identified you determine the likelihood and consequence
of each risk. You develop an understanding of the nature of the risk and its potential to affect
project goals and objectives. This information is also input to your Project Risk Register.

3. Evaluate or Rank the Risk- You evaluate or rank the risk by determining the risk
magnitude, which is the combination of likelihood and consequence. You make decisions
about whether the risk is acceptable or whether it is serious enough to warrant treatment.
These risk rankings are also added to your Project Risk Register.

4. Treat the Risk- This is also referred to as Risk Response Planning. During this step you
assess your highest ranked risks and set out a plan to treat or modify these risks to achieve
acceptable risk levels. How can you minimize the probability of the negative risks as well as
enhancing the opportunities? You create risk mitigation strategies, preventive plans and
contingency plans in this step. And you add the risk treatment measures for the highest
ranking or most serious risks to your Project Risk Register.

5. Monitor and Review the risk- This is the step where you take your Project Risk Register
and use it to monitor, track and review risks.
 8. Outline three sources of information that a company could use to gather information
on potential risks.
Ans: 1. Consult an expert- Insurance brokers know your claim history, which means they can
provide insight on trends. If you experience the same type of losses multiple times, it
suggests there’s a risk that is improperly managed. Brokers can also play a role in helping
you to assess your business risks and recommending insurance coverage to help protect you
against them in case they occur. If they do not provide this assessment service, they are
probably able to recommend a good consultant who can.
2. Conduct internal research- If you manage your own claims and losses or have
employees that work closely with them, you can perform internal research to identify risks
across the organization. With simple observation, you may be able to recognize areas where
things are not being done correctly. Abnormally high costs in one department may also
suggest an unmitigated risk.
3. Use models or software- There are many business and technological strategies that
help identify and classify risks. Simulations, scenario role-playing, SWOT analysis,
flowcharts, and risk mapping are just some of them. There are also many organizations that
provide information on identifying unique organizational risks. 

9. Describe three examples of tools or techniques that a company could use to identify
risks as part of a risk assessment process.
Ans: 1. Brainstorming- Brainstorming is done with a group of people who focus on
identification of risk for the project.
2. Interviewing- An interview is conducted with project participants, stakeholders, experts,
etc to identify risks.
3. Root Cause Analysis- Root causes are determined for the identified risks. These root
causes are further used to identify additional risks.

10. Explain four options that a company could take to control risks.
Ans: 1. Accept the Risk- Accepting the risk means that while you have identified it and
logged it in your risk management software, you take no action. You simply accept that it
might happen and decide to deal with it if it does. This is a good strategy to use for very small
risks – risks that won’t have much of an impact on your project if they happen and could be
easily dealt with if or when they arise. It could take a lot of time to put together an alternative
risk management strategy or take action to deal with the risk, so it’s often a better use of your
resources to do nothing for small risks.

2. Avoid the Risk- You can also change your plans completely to avoid the risk. avoid risk
This is a good strategy for when a risk has a potentially large impact on your project. For
example, if January is when your company Finance team is busy doing the corporate
accounts, putting them all through a training course in January to learn a new process isn’t
going to be a great idea. There’s a risk that the accounts wouldn’t get done. It’s more likely,
though, that there’s a big risk to their ability to use the new process, since they will all be too
busy in January to attend the training or to take it in even if they do go along to the
workshops. Instead, it would be better to avoid January for training completely. Change the
project plan and schedule the training for February when the bulk of the accounting work is
over.
3. Transfer the Risk- Transference is a risk management strategy that isn’t used very often
and tends to be more common in projects where there are several parties. Essentially, you
transfer the impact and management of the risk to someone else. For example, if you have a
third party contracted to write your software code, you could transfer the risk that there will
be errors in the code over to them. They will then be responsible for managing this risk,
perhaps through additional training. Normally transference arrangements are written up into
project contracts. Insurance is another good example. If you are transporting equipment as
part of your project and the van is in an accident, the insurance company will be liable for
providing new equipment to replace any that was damaged. The project team acknowledges
that the accident might happen, but they won’t be responsible for dealing with sourcing
replacement kit, moving it to the right location or paying for it as that is now the
responsibility of the insurance company.

4. Exploit the Risk- Acceptance, avoidance, transference and mitigation are great to use
when the risk has a negative impact on the project. But what if the risk has a positive impact?
For example, the risk that the new washing machines are so popular that we don’t have
enough Sales staff to do the demonstrations. That’s a positive risk – something that would
have a benefit to the project and the company if it happened. In those cases, we want to
maximize the chance that the risk happens, not stop it from happening or transfer the benefit
to someone else! Exploitation is the risk management strategy to use in these situations. Look
for ways to make the risk happen or for ways to increase the impact if it does. We could train
a few junior Sales admin people to also give washing machine demonstrations and do lots of
extra marketing, so that the chance that there is lots of interest in the new machine is
increased, and there are people to do the demos if needed.

11. Explain four procedures that a company could use to minimise risk.
Ans: 1. Natural disasters and catastrophes- Australia is no stranger to devastating natural
disasters such as fires, storms and floods. The financial and personal wellbeing of you and
your people could depend on how well prepared you are for these events. Take the time to
create an emergency management and recovery plan.

2. Liability claims- Protecting your business against potential lawsuits is critical. Here are
three examples of liability to consider: Public liability- if a third party is injured or their
property is damaged due to your negligence. Such as a customer slipping on a wet floor
because you failed to post a warning sign. Product liability – if you sell or distribute goods
you could be held liable if they cause injury, death or property damage. Professional
liability – if you’re a professional services provider you could face claims of negligence,
error or omission when you’ve provided a service or advice. Establishing which risks are
relevant to your business and implementing strategies to manage them is a smart move. 

3. On-site security- Whatever the size of your business, protecting your people and property
should be high on your list of priorities. Your options include alarm systems, CCTV cameras
and nightly patrols by private security guards.

4. Employee health- Whether your people are sitting behind a desk for long periods of time
or on a construction site, they’re at risk of injury. All employees must be covered by Workers
Compensation insurance, but it’s wise to be proactive about lowering their risk.
Assessment Task 2- Risk management project

Risk Briefing Report for NatureCare products

Introduction
“Nature care” is a well-established company from 1996 that produces skin care products.
The products that are being produced by the company are eco-friendly and sustainable. The
company produces a wide variety of natural products such as cleansing creams,
moisturizing creams and facial scrubs. The company also sells its products through its
website where its sales are good enough and is looking forward to improve the sales in the
future. The company is now financially stable but has recently found their competitors selling
the same sort of products in the market. Therefore, the purpose of this report is to analyse
as well as contribute treatments to the risks that Nature care has to deal with.

Scope of risk management process

 The number of people who make a purchase while visiting the online store.
 The number of retail outlets selling NatureCare Products.
 Product awareness amongst the target market.
 Market share
 International market.
 To identify new products and new markets.
 To attain annual growth of at least 10% over the next three years.

PESTLE Analysis
Political Factors
Factor Risk treatments as applicable
The company is under control of Updating to the recent laws and
laws of Australia regulations
Tax increase The initial costs may increase therefore
the company should recalculate the price

Economic Factors
Factor Risk treatments as applicable
Exchange rate is unstable Review the operating cycle, hedge exchange
rate
Financial crisis Create a contingency plan with a budget, set
financial priorities.
High wages of human resources Hire international employees

Technological Factors
Factor Risk treatments as applicable
Rapid development of technology Develop products further rather than introduce
 new products
Growing customer database Build a CRM system to connect between
marketing, sales and operation

Legal Factors

Factor Risk treatments as applicable

New regulations and laws Keep updating on the new laws
Law violations Identify main laws that the company has to
follow such as Competition and Consumer Act
2010 (CCA)

Environmental Factors
Factor Risk treatments as applicable
Ingredients are difficult to find due to Seek for alternative resources
climate change
Customer view on ecological issues Study on customer behaviors

Risks
Risk Treatment
Property loss and damage Improve the secrurity system

Computer security Construct technology security system such as

a firewall
Professional negligence Improve the HR management especially
supervising and performance management.
Legal liability Stay updated to the laws and take reference
from
Failure or disruption of a major income Restructure capital finance situation
source or investment

Internal and external stakeholders

Relevant internal stakeholders are as follows:
- Internal stakeholders: Managers, Employees and interior chiefs.
- External stakeholders: Government associations, chance experts, outer
guides, chance examiners.
The above inside and outside work force will have obligations in the peril distinguishing proof
procedure. They should be talented at recognizing a risk and deciding the definite idea of an
issue. They should most likely view the circumstance equitably and can impart any counsel
they have as to dealing with the risk. The test for them is to concur in the manner they like to
have data conveyed, in an open way.
Strengths and weaknesses

- Strengths:
o Eco-friendly products.
o Experience with online marketing.
o Experience with natural care and beauty products.
o Government support
o Politic and procedures align with current standards.
- Weaknesses
o Poor product variety.
o Non-qualified staff for new retail shops.
o Partial understanding about risk policy and procedures.

Critical success factors

The principle goal of NaturalCare Products is to progress toward becoming in the main retail
location organization in Australia, by selling the most elevated quality and better value
common items, utilizing ecofriendly fabricate forms, extending its item run in 10 % and
having a base consumer loyalty of 95%. 

Email (Risk briefing report attached)

To: CEO
From: Apple Liew
Subject: Risk management briefing report

Dear CEO.

As discussed in the previous sessions, I am sending this email to summary our

company’s briefing report. The report include the PESTLE analysis in terms of the
potential risks as well as the risk treatments for each of them. Please find the file
attached with this email.
Thank you for your consideration.

Regards,

Apple Liew
Email (Meeting Invitation to Team Members)
To: Team
From: Apple Liew
Subject: Risk management brainstorming session

Dear Team.

As discussed earlier, the next meeting’s topic will be on the risk manangement
brainstorming. I am sending you this message to clarify that the date will be on Friday,
May 31 and the venue is the Meeting Room.

Please consider the content of the meeting before it. Any new ideas and contribution for
the risk mangement are welcome.

Regards,

Apple Liew

Meeting Notes

Date: 2-2-18

Present: All Staff

Apologies: None

Purpose of meeting: Discuss new business expansion project

Summary of key points

1. Review the current situation especially the financing and liability

2. Set up new strategies for the expansion

3. Finalize the budgeting for the expansion .

4. Hire competent HR

5. Call for capital and external investment

Risk Management Plan
NatureCare Products
The main products of NatureCare is skincare products such as cleansing skin, moisturelizing
products and other products.

Risk assessment legend

Risk Rating = Likelihood x Severity

Serverity Catastropic 5 5 10 15 20 25
Significant 4 4 8 12 16 20
Moderate 3 3 6 9 12 15
Low 2 2 4 6 8 10
Negligible 1 1 2 3 4 5
1 2 3 4 5
Improbable Remote Occasional Probable Frequent
Likelihood

Risk register

Scope of assessment: Financial risks

Critical success factors: Increase the sales to 10%
Internal & external stakeholders:
Risk Consequences Severity Likelihood Treatment Priority
Rating Rating or control rating
methods (high,
medium
or low)

Order of
priority
Budget The budget is High Medium Reduce 1
risk unefficient due
to the
underestimatin
g or other
issues
Funding Funding does High Medium Reduce 2
risk not meet the
actual
requirements
Inflation Initial costs Low Medium Accept 3
increase
 Interest Initial costs Low High Accept 4
rate increase

Risk action plan

Each of the risks identified above should be included in the table below and actions shown.
The table should be copied and pasted for each risk.

Description of risk The budgeting is underestimated

Summary of recommended There is not enough capital to for the project to be
response and impact continued. Therefore, the company should immedately seek
for external resources to avoid the project being paused.
Proposed actions Call for capital from creditors
Resource requirements Capital
Responsibilities CFO, financial department
Timing One month
Reporting/Monitoring Financial report

Description of risk Funding is not available

Summary of recommended There is not enough capital to for the project to
response and impact be continued. Therefore, the company should
immedately seek for internal resources to avoid
the project being paused.
Proposed actions Rearrange the capital structure for the project
Resource requirements Capital
Responsibilities CFO, financial department
Timing One month
Reporting/Monitoring Financial report

Description of risk Inflation leads the price of matetials increase

Summary of recommended The initial costs rise leading toe company to
response and impact reestablish the pricing policy
Proposed actions Forecast the inflation rate when doing the
pricing analysis; stay updated to the news on
the market
Resource requirements Human resources
Responsibilities CFO, financial department
Timing Three months
Reporting/Monitoring Financial report

Description of risk The rise of interest rate leads the price of

matetials increase
Summary of recommended response The initial costs rise leading toe company to
 and impact reestablish the pricing policy
Proposed actions Forecast the interest rate when doing the
pricing analysis; stay updated to the news on
the market
Resource requirements Human resources
Responsibilities CFO, financial department
Timing One month
Reporting/Monitoring Financial report

Email (Risk Management Plan Attached)

To: CEO
From: Apple Liew
Subject: Risk management briefing report

Dear CEO,

I am sending the final risk management report and which are attached with this email. The
final report include the risk briefing, risk management plan, risk monitoring as well as
the evaluation. Please check the attached files for more details.

I’m looking for your feedback for this report. Thank you for your consideration.

Regards,

Apple Liew

Assessment Task 3- Risk implementation project

Staff training report

Introduction
The motivation behind risk the board preparing is to raise essential familiarity with risk the
board ideas and instruments, to empower members to recognize and oversee risks in their
possess units and to reinforce venture the executives through sufficient forward arranging of
potential dangers.

Context
The half-day preparing module on risk the executives presents the meaning of risk and the
reason for risk the board and talks about strides towards the successful administration of
dangers. The course goes past the arrangement of nonexclusive devices and stretches out
to returning to components of hierarchical culture, basic leadership and situational
 mindfulness. Practice contextual analyses and activities are proposed toward the finish of
the instructional
meeting, and members are mentioned to attempt a counterfeit risk investigation utilizing the
procedure portrayed in the module.

Objectives
- To grant to new participants essential learning and abilities,

- To help the representatives to work all the more successfully in their present
position by presenting them to the most recent ideas, data and systems and
creating in them the aptitudes required in their fields,

- To develop a second line of capable officers and set them up as a piece of

their vocation movement to possess increasingly dependable positions.

- To expand the brains of the ranking directors by giving them chances to

exchange of encounters inside and outside so as to address the restricted
standpoint that may emerge from over specialization.

Environmental Sustainability and Resource Usage Record

Areas of RTO & practices reviewed

Use of consumables/ materials/ technology/ The equipment that uses the most energy is the electric motor.
equipment The switches are turned of during weekend. The company is using
smart lighting system that automatically switch on/off when people
enter or leave the area.
Staff are energy-sensible.

Energy usage e.g. water, electricity gas The most energy consuming equipment is the machine system in
which the solution could be replaced with modern eco-friendly
system when the old ones are depreciated.
Staff are energy-sensible.

Waste The wastes are collected by staff and sent to another party for the
recycling.

Date of inspection or review: 14/07/19 Completed by: Jim Vu

Customer Questionnaire

I have been happy with my purchase from NatureCare Products.

1 2 3 4 5 6 7 8 9 10

Do not Don’t Neutral Sort of

Tolltaly
Agree at really agree
agree
All agree

I find that Nature protucts stocks the type of producyts that I want to buy.

1 2 3 4 5 6 7 8 9 10

Do not Don’t Neutral Sort of

Tolltaly
Agree at really agree
agree
All agree

The price of products at NatureCare Products is reasonable.

1 2 3 4 5 6 7 8 9 10

Do not Don’t Neutral Sort of

Tolltaly
Agree at really agree
agree
All agree

NatureCare Products Allowed me to pay for my purchase in form that I find mose convenient

1 2 3 4 5 6 7 8 9 10

Do not Don’t Neutral Sort of

Tolltaly
Agree at really agree
agree
All agree

I have recived very good service from NatureCare Productss staff.

Risk monitoring report

Nature Care Products

Introduction
Nature Care is a company that mostly target on skin care products. In order to best evaluate
the quality of the products, a customer survey was conducted. Below is the result from the
survey.

Customer Survey Results Memo

The overall satisfaction with products from NatureCare is demonstrated as below:
• 26 totally satisfactioned
• 18 partly satisfactioned
• 3 neutral
• 2 disatisfactioned
• 1 totally disatisfctioned

Sales Data Analysis Memo

A review of the sales data shows that the stores were the Managers who were previously
customer service officers are employed are doing better in terms of sales than the
Melbourne store.

While this again indicates managerial effectiveness, it could also not necessarily be
reflective of excellent management skills as it may be to do with the product knowledge of
the managers and their commitment to the company.

Staff Survey Results Memo

The staff received positive comments from customers as 42 customers rated them as
helpful.

Analysis of staff survey results and achievements against targets in relation to

sustainability.

The staff survey results suggest the effectiveness of the staff in contributing to the sales and
customer service of the company.

Performance Review Results Memo

38 customers rated the products as worth of the money

33 customers are willing to re purchase a product
27 customers are willing to recommend a product for friend or family

Evaluation
In summary, the survey pointed out that the company Nature Care receives a fair
satisfaction from customers. Therefore, the company needs to improve the quality of
products to enhance the satisfaction. The company may also run tests on a focus group to
review the reaction of customers to the products,
Assessment Task 4- Risk management process evaluation project

Risk management evaluation report

This report addresses an evaluation of the overall risk management process.

This a report after finished all the preparation to the two of the client serveries agent staff. It
has made preparing overview after the preparation. In the review, have as a portion of the
questions which are:

1. What parts of the preparation you are partaking in is generally pleasant?

2. What parts of the preparation that you partook in is least pleasant?
3. What advantages did the preparation give to you?
4. What extra preparing do you require to help you in accomplishing your work
objectives?

Those are the question need the staffs answer it after the preparation. The outcome had
turned out in the report of the preparation study results archive.

This report is outlining all the appropriate response. First question is what parts of the
preparation you are taking part in is generally charming? Both of the staff are charming on
the preparation. Along these lines, in the part they have done it well. Second question is
"what parts of the preparation that you take an interest in is least agreeable?". In this
section, one of the staffs feel weight on it since that the homework had given them, he can't
finish it in the restricted time. Notwithstanding, the anther staff is feeling glad to have those
of the errand. It is on the grounds that they feel it have helped them. To some extent
perhaps need to change the time more.

Next question is "what advantage did the preparation give to you?". In the part both of the
staffs are get advantage on it. It is on the grounds that they can apply the thing in the
working spot. Last question is "What extra preparing do you require to help you in
accomplishing your work objectives?". Both of the staffs are feeling no need any extra
preparing. In any case, the preparation quality needs to improve it more in the appropriate
response that have notice it.
In conclusion, by and large the preparation was done it well. The overview is become more
acquainted with how the preparation is and the preparation is do it well.

Email (Risk management report)

To: CEO
From: Apple Liew
Subject: Risk Management Report and Screenshoot

Dear CEO,
I am sending the final risk management report and screenshot which are attached with this
email. The final report include the risk briefing, risk management plan, risk monitoring
as well as the evaluation. Please check the attached files for more details.

I’m looking for your feedback for this report. Thank you for your consideration.

Regards,

Apple Liew