BSBRSK501 Risk Management Assignment Sample

• Subject Code : BSBRSK501
• Subject Name : risk management

Assessment Task 1 - Manage Risk

1. Provide a short definition of risk as identified in the Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009).

Risk is a chance that occurs at any point in time and has a negative impact on the things that are directly or indirectly associated with it. In other words, risk can also be defined as an effect of uncertainty in a project or service or an event organized by the organization.

2. Briefly define risk management?

Risk management can be defined as a process by which risks is identified, evaluated and analyzed. At last, some precautionary steps are taken to minimize, monitor and control the probability of the risk.

3. List at least 5 benefits of risk management?

Here is a list of the benefits of risk management.

• Risk management helps in finding ways to deal with the risk.
• Consistency in the projects is another benefit of formal risks.
• Proper allowances for contingencies are quantified based on risk management.
• It provides a common reference point for auditing and assurance.
• It helps to take proactive action by early identification of risk.

4. What is the purpose of the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines?

The purpose of risk management principle and guideline is to provide a standardized method to minimize the chances of risk that may occur due to uncertainty in a project.

5. Briefly discuss 2 of the 11 principles of risk management as per the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines.

• Risk management is an integral part of an organization.

Risk management is an integral part of an organization because it can help protect the environment form uncertain situations which may occur at any time without notification. It may have a serious impact on the finance of the company.

• Risk management is part of decision making.

There is some process in the organization where there is uncertainty. In such situations, the organization ask risk management to evaluate how much impact it can have on the profit of the organization if the risk cannot be mitigated or if it can. The risk management helps the employees to take an informed decision for the project. 

6. Identify three examples of potential impacts of risk?

The three examples of the impact of potential risk include:

• Financial loss:

It may occur when a project s rejected by a client for not fulfilling the requirements properly. It may lead to heavy losses and also decrease the revenue percentage of the organization.

• Healthy and safety of the people:

This kind of risk can occur due to an earthquake in the region. The risk assessment of an earthquake includes an estimation of causalities.

• Sustainability:

The damage caused to the environment and overutilization of the resources in an ecosystem is a potential impact caused due to bad practices in the organization.

7. What are the steps for analysing risks?

Here are the four steps by which an employee can analyse the risk. These are:

• The very first step is to identify the risk or the hazard that may occur in an organization.
• Once the risk that is going to occur is identified, the next step is to analyse it.
• The third step is to create a response plan for mitigating the risk
• The fourth and the last step is to monitor and control the risk which has occurred or is going to occur.

8. List three sources of information that you could use to gather information on potential risks.

The sources of risk can vary for businesses, workplace and so on. Here are three examples of workplace risk that you may have to experience. These include:

• Self-inspection report

The employees in the organization can self- inspect the chances of risks that may occur during the life cycle of the project.

• Report from health experts

Researchers and health expert’s announcement about the potential risk that may harm the organization sale or the environment.

• Website alert from government agencies across the world.

The websites and other government agencies as soon as they get to know about the risk they notify it to the concerned organization with an alert message.

9. List and explain the five options for controlling risk.

The five ways by which a manager can control risk include the following:

• Elimination of risk
• Substitution of risk
• Using engineering controls
• Mitigation of risk
• Exploitation of risk

10. Identify and list five ways in which an organisation can minimise risk.

Five ways by which an organization can minimize the risk include the following: -

• Create a risk management plan
• Practising safety at all times
• Reviewing the existing system
• Sticking towards short term commitments
• Obtaining insurance

11. What are three examples of tools or techniques that could be used to identify risks as part of a risk assessment process?

The three techniques for identifying risk include the following things.

• Delphi Technique

In this technique, a team of experts has consulted anonymously. The information is sent to the expert based on the analysis data is compiled and the result that has been gathered is again sent to the expert until and unless they find a consensus on which there is a need of some action.

• Root cause analysis

In this method, the root cause of the problems is identified. It is the best method because it helps to identify the additional risk that is associated with the project.

• Probability and impact matrix

This matrix is useful because it helps to identify the risk areas where there is a need for immediate response. It is customized according to the requirements of the project. It is found that most of the companies do not have the template for the matrix. This is why it is stated that the organization must use the standardised matrix to identify the risks.

Assessment Task 2 Part A – Risk Management Project

What do students need to complete this assessment?

• Risk Management Policy and Procedure
• Risk management plan template
• Computer and Microsoft Office
• Access to the internet for research

You are the Operations Manager of a medium-sized Australian company, NatureCare Products, based in Brisbane. The company commenced business in 1996 and manufactures and eco-friendly, high-quality beauty care products. The business was established to cater for the growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging.

The company sells its products in health food shops across the country, as well as on-line through its web site. The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of customers are professional women aged 25 – 55.

Strategic priorities focus on business diversification and growth, specifically to increase market share by 10% and to expand the existing product range to attract more customers.

At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail outlets. The CEO has asked you to investigate this undertaking a risk analysis on establishing a chain of retail outlets. The idea is to initially set up a retail outlet in central Sydney, Brisbane and Melbourne. The CEO and shareholders are keen to get the business expansion started as soon as possible so need to get your risk management plan in place immediately.

Currently, the company employs the following staff – Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.

The company currently has a risk management policy and procedure in place (Appendix A) and you will be required to review the policy and ensure you conduct all assessment tasks in accordance with the policy and procedure.

A key component of the assessment task will be the completion of a Risk Management Plan, as well as an action plan for implementation of the Risk Management Plan. Your assessor will provide you with the template for the Risk Management Plan.

The first part of this assessment task requires you establish the risk context in relation to the risk management project. The outcome of this part of the assessment is to provide an initial report to the CEO via email that addresses all of the tasks below. The report should be attached to your email. 

In your covering email you should also provide a brief overview of the risk management project, as well as how the project will be carried out in accordance with the organisation’s Risk Management Policy and Procedure – briefly describe NatureCare Product’s risk management policy and procedures, including risk management principles and specifically risk management in the case of new opportunities.

Your email should also seek feedback from your CEO in relation to the report you provide, as well as approval to undertake the risk management project.

Your report should document your research and analysis. You should conduct all of the following tasks in order to prepare your report.

• Conduct a PESTLE analysis for NatureCare Products in order to identify the business environment in which the company operates. You will be assessed on whether the factors you identify as part of the PESTLE analysis are relevant to the company’s business environment.

• Identify and describe all of the internal and external stakeholders with whom you will need to consult to identify potential risks. What issues are they likely to have?

• Analyse the strengths and weaknesses of the company’s existing retail approach.

• An analysis of the critical success factors, goals or objectives for the business expansion project.

Your report should be no more than 3 pages long and should include graphics to illustrate information and must be written in clear and concise English.

The CEO will review your risk management project report and email you back giving approval to proceed, as well as feedback as required.

Introduction to NatureCare

NatureCare was established in Australia in 1996 to sell beauty care products to customers in the country. The best part of the company is that it creates eco-friendly products which can be used by all demographic people. But the company gets the biggest sale from the working women between 25 to 55. The company is thinking to increase its product range and is focusing on expanding its market share by 10% Currently the company is thinking to expand its business in Sydney, Melbourne and Brisbane.

Goals and Objective of The Business Plan

The goal of the company is to expand its business in the Australian market. The main objective of the company is to increase its sale and thereby earn huge profit percentage for the organization. The business plan of NatureCare covers the following topics. These include brand mission and vision, niche customers, beauty products, competitors, manufacturing strategy, retail strategy, funds and financial forecast of the company.

PESTAL Analysis

To understand the external factors of an organization PESTAL analysis is done. In this case, since the company is trying to expand its business in the market by establishing new stores therefore there is a need to understand the market first. The company is trying to capture the market in New Zealand. Here is the PESTAL analysis of the country.

Political Forces

Australia is a parliamentary democratic country. It is also a constitutional monarch; the queen Elisabeth is the head of the government in the country. It is a small, stable and peaceful country but the country suffers from foreign influence.

Economic Forces

On the economic front, the country is developed and wealthy. It has the 16^th largest economy in the world.The country’s economy grew by 2.3 per cent in 2017. The country imports a lot of things from Australia, Japan, China, USA, Singapore and many other countries. The tax of the country is very simple, the tax rate of the companies and corporates is 30 per cent.

Social Forces

Australia is a culturally diverse country. People living in Sydney, Brisbane and Melbourne. The people here have a western influence and the best part about society is that it is made up of people from different races, culture and religion. The people are divided into two categories on in Aboriginals Torres strait islanders and Australian community itself. There is a wide gap between these community people. It is estimated that people from these regions spare their time watching videos on the internet.

Technological Forces

People in Sydney, Brisbane and Melbourne are technically very strong. Moreover, the technology and information sector is also very diverse. This sector is rapidly growing and there is a need for new people to come and join the industry. These regions adopt newer technology very fast in comparison to other states of the world.

Environment Forces

Australia is one of the most beautiful countries in the world and is known for its beaches but despite this, the country faces a lot of challenges. It is the driest in habitat component in the world. Climate change is another concerning issue for the country. It is due to this reason people in the country has become more environmentally conscious. They have started purchasing eco-friendly products so that they can contribute their part towards the environment.

Legal Forces

The city has fair trading law, competition law and consumer laws. The fair work act of 2009 keeps a check on employment for the people. There is privacy law as well which deal with how a person deals with confidential information. 

Internal and External Stakeholders

Two types of stakeholder is internal and external. A brief of these two depending upon NatureCare industry is given below:

Internal stakeholders

Investors and employees are the internal stakeholders of the company. Employees play a strategic role in defining business plans, strategies, tactics and operations for the organization. It is because of them the company can run. Managers play a significant role in the decision-making process in the organization. Owner of the company holds the share of the company. They are liable for the impact that occurs on the organization. These stakeholders are directly involved in the operation process. Each of the group is individually rewarded for their work on the success of the organization. Owner of the organization decides the internal and external stakeholders of the company.

External Stakeholders

There are very few external stakeholders for businesses these include customers, government, creditors, suppliers, community members and so on. None of the organization can flourish without customers they can make or destroy any business. It is thus important for the NatureCare to find out the needs of its customers and make the product according to their desire. The Government can also be considered as a primary stakeholder as it provides a regulatory insight to ensure accounting procedures, legal and ethical practices are handled properly by business representatives. For any company, a local community can be a great benefit. Businesses must thus look at the needs of the community and try to keep them engaged with your products.

SWOT Analysis

SWOT analysis is a process by which an organization can identify its strength, weaknesses, opportunities and threats experienced by it in the environment.

Strengths

• Eco-friendly product – The biggest strength of the company is that it manufactures eco-friendly beauty products for its customers.
• Product quality – The company ensures that all its products are of high quality so that customers do not have to think before purchasing.
• Good marketing style – NatureCare implements good strategies to market its product in Australian cities.

Weaknesses

• Weak website - The look and feel of the NatureCare website are not impressive. Customers find it difficult to navigate and it's because of this they find it difficult to operate.
• Limited products – The company does not have many products for its customers and it is one of the main drawbacks for it.
• Pricing – Since the company manufacture eco-friendly products thus they have a high price on all the beauty products. All the people cannot afford it thus it is again a weakness of the company.

Opportunity

• Regional orientation – In many palaces, make up is related to tradition and thus the company must try to bring those products in the market which are preferred by the people.
• Innovative products – The company must invest in research and development to manufacture innovative products in the market. Moreover, the competition in the market is so high that people purchase products in an impulse and thus the company needs to be creative
• Wide range of products – The company needs to increase its product range to offer a lot of choices to its customers.

Threats

• Competition – The company has a lot of competition from other brands to deal with.
• Negative publicity – Despite, the fact that the company produce organic beauty products, the cosmetics of the company are criticized for the chemical intent in them.
• Economic recession – The global recession also affects the beauty care industry. Besides, a lot of people are laid off from the job and thus they become careful in spending money.

Success Factors

Here are some key driving areas of success

• Organic beauty products – The company provides eco-friendly products.
• Quality ingredients – Ingredients used for the product are of high quality.
• Growing demand – The demand for beauty care product is high in women aged between 25 and 55.
• Newmarket – The expansion of the industry can increase its sale further in the market.

Assessment Task 2 Part B – Risk Management Project

What do students need to complete this assessment?

• Computer and Microsoft Office
• Access to a meeting space

Context and conditions of assessment

This assessment should be completed in the classroom as part of the simulated work environment. The assessor will advise dates for submission.

Instructions to student

The next part of the assessment requires you to research risks pertaining to the business expansion project, as well as consult with team members to brainstorm risks.

You should research risks that may apply to this project using a range of sources including the PESTLE analysis you conducted, as well as any other statistical data available, market research reports or any other information sources. 

Once you have conducted your research, you will be required to conduct a team meeting to discuss your ideas and brainstorm further risks. The meeting should be for at least 30 minutes.

Your assessor will advise you of who will be in your team (your team will be fellow students role playing NatureCare Products staff). You will need to send an Outlook invite to your team members at least 3 days prior to the meeting. Your Outlook invite should include the purpose of the meeting, as well as the date, time and duration of the meeting. Your assessor will be one of your team members and will observe your performance during the brainstorming meeting. 

At the meeting you should also discuss potential risk treatments.

At the meeting, you will be assessed on the following:

• Provide an introduction to the meeting
• Discuss the risks you have identified
• Seek ideas from the team about risks involved in the business expansion.
• Use effective communication skills including questioning and active listening.

Purpose of the meeting

A warm welcome to everyone present here, today the agenda of the meeting is to find out risk factors of expanding the business in other parts of Australia. The trend among consumer is changing they are not looking for a beauty product but they are looking for something eco-friendly we are doing our part in it by providing them with the organic products but this is not it. We need something like gender-neutral. Relying heavily on women can put our company in danger.

Risks identified

The price of the products is very high, if required the company must take the help of labs and firms to find an ingredient that can be used and the cost of it is also not high. Another thing is there is a need for a wide range of products. It will also help the company to enhance its sale.

Ideas from other team members about risk

The biggest risk is from our competitors who are doing their best to keep their customer in-tight with the company. The company is not investing in vitamins and supplements that promise beauty of the people. 

Conclusion of the meeting

At last, we need to work on all the above points to ensure our business is risk-free.

Assessment Task2 Part C – Risk management project

What do students need to complete this assessment?

• Risk Management Policy and Procedure
• Risk management plan template
• Computer and Microsoft Office
• Access to the internet for research

Context and conditions of assessment

This assessment should be completed in the classroom as part of the simulated work environment. The assessor will advise dates for submission.

Instructions to student

The final part of this assessment requires you to complete the Risk Management Plan, as well as an action plan. Your assessor will provide you with the template for the risk management plan.

Completion of the risk management plan will involve:

• Documenting all of the risks based on the work that you have completed for Parts A and B of this assessment task.
• Documenting risks in order of likelihood of occurring from most likely to unlikely
• Assessing and documenting the likelihood of the risk occurring, as well as the severity of the risk should it occur.
• Devising and documenting strategies for the treatment or control of the risk if it occurs.

Once you have completed the Risk Management Plan, it should be emailed to the CEO (your assessor). Your covering email should refer to the Risk Management Plan and indicate which of the risks that you believe are most likely to occur in relation to the business expansion project. You should also confirm why you believe the identified treatment strategies for each of the risks will be effective in ensuring risks are minimised or do not occur.

As well as the Risk Management Plan, you must also develop and send the action plan to all staff, including the CEO and that identifies how the risk treatment for at least three of the risks identified in your Plan will be implemented.

Your action plan must include:

• The actions that are required
• Who is responsible for the actions (identify the relevant NatureCare Products staff member)
• Timelines
• Monitoring processes that will be used.

Action plan

The company must make a strategy to create gender-neutral products. It must increase its marketing strategies to capture people of all the demographics. The company start decreasing its price to make it affordable. It starts investing in creating vitamins and supplements for increasing the beauty of its customers.

People responsible for the action

CEO and other managers of the different departments would be responsible.

Timelines

Within 6 months the company will implement all the things to increase its sale.

Monitoring Process

The company will prepare a document and will keep checking the interventions of the company.

Assessment Task3 Part A – Risk treatment implementation and evaluation

What do students need to complete this assessment?

• Risk Management Policy and Procedure
• Risk management plan template
• Computer and Microsoft Office
• Access to the internet for research

Context and conditions of assessment

This assessment should be completed in the classroom as part of the simulated work environment. The assessor will advise dates for submission.

Instructions to student

Imagine that one of the risks you identified in your risk management plan was the inability to attract sufficiently qualified and knowledgeable staff to manage the new retail stores and that the risk treatment identified is to invest in the training and development of existing staff to fulfill this role at least in the short term. It was identified that at least two of the existing customer service representatives are interested in taking on this new role. Neither of the two customer service representatives have managerial skills and knowledge but they both have excellent company and product knowledge, as well as customer service skills.

This assessment task requires you to research suitable training for the existing customer service representatives that will provide them with the skills to manage the retail stores. As the retail stores are not due to open for a further six months, the training can be completed during the six month time period.

The outcome of this assessment task is a memo to the CEO (your assessor) that includes the following:

• Discusses the range of training options for the customer service representatives, including both formal and informal training options and options that allow skills to be developed on the job and/or outside of the workplace.
• Identifies your recommended option/s for the training, including a rationale for your recommendation/s.
• Details of the recommended training including location, costs and duration.

Your memo must be in clear and concise English and should be submitted by the date specified by your assessor.

Date: 10^th June 2020

To: CEO_NatureCare@gmail.com

From: Shaik@gmail.com

Subject: Training for customer service representatives

I am writing to inform you that due to unskilled staff there is a requirement of a training and development center where the customer service representatives can be trained. It is because customer service representative has various kinds of responsibilities like they have solved problems of the store, they need to troubleshoot the customer, provide training to the staff member, manage the workforce of the store and provide exceptional service to customers. This is why there is an utmost requirement of a place where the customer service representative can learn from the courses. These courses can include customer service leadership, brand loyalty, customer retention, customer service mastery to delight customers and managing a customer service team. These courses can be completed in six months. Besides these, there is a quarterly and half-yearly training program as well in which a new hire customer service representative is trained. Here are some training entailments gained from the training this includes acquainting in a team, establishing expectations, introducing a product and setting up a tool. The price of this type of training for the company would be $100 per employee. 

Hope to hear from you soon.

Regards,

Shaik

Assessment Task 3 Part B – Risk Treatment Evaluation

What do students need to complete this assessment?

• Risk Management Policy and Procedure
• Risk management plan template
• Computer and Microsoft Office
• Access to the internet for research

Context and conditions of assessment

This assessment should be completed in the classroom as part of the simulated work environment. The assessor will advise dates for submission.

Instructions to student

Based on the risk management project, you have completed you are required to evaluate the process you undertook in relation to the risk management policy and procedure.

Send an email to your assessor addressing the following:

• Summarise the overall risk management process – was it easy or difficult to identify risks, was staff input helpful, how confident are you that all the risks have been identified?
• Was the process indicated in the NatureCare Products current risk management policy and procedures sufficient to guide the risk management process used for the business expansion project? Why or why not?
• Are the principles of risk management in the NatureCare Products risk management policy and procedure consistent with AS/NZS ISO31000:2009 Risk Management Principles and Guidance?
• Are there specific procedures for the provision of training to staff on risk management?
• What changes would you recommend to the risk management process?

Your email must be in clear and concise English and should be submitted by the date specified by your assessor.

Date: 10^th June 2020

To: CEO_NatureCare@gmail.com

From: Shaik@gmail.com

Subject: Summary of the risk in NatureCare

I would like to draw your attention towards whether it was easy to identify risk. Please note that it was quite difficult as I had to carry out various analysis to find out the risk which can decrease the sales of the beauty products. The policy and procedure in Nature care were not sufficient because it did not cover some risks which can result in decreasing revenue percentage. Yes, the principle in both areas is consistent. Yes, a specific provision is made to train the customer staff representative. I would recommend the company to be innovative, make products affordable and use better marketing strategies. It will help in the betterment of the company.

Regards,

Shaik

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