Reference no: EM132211855

Manage risk Assignment -

Activity 1 -

This is a Diploma level unit. At this level there is an expectation that you can extrapolate answers to the questions from the text, other readings and independent research.

1. In a short sentence for each, explain the meaning of these terms:

a. Risk.

b. Risk management.

c. Risk appetite.

d. Risk capacity.

2. Why should risk management policies and procedures be periodically reviewed? (100 words)

Activity 2 -

Scenario: You work for Australia Wide Taxations Solutions-a company of 1,500 employees offering taxation services in different cities across the country. The company offers five services: personal taxation, small business taxation, corporate services, personal wealth creation and corporate asset management.

It is working in a highly regulated and legislated industry.

You have been asked to work with the team conducting a risk assessment for the entire organisation.

1. How will you identify the risk management scope-what things do you need to look at? What challenges does a scope of this size pose and how would you approach the risk assessment process? (350-400 words)

Activity 3 -

1. Who are an organisation's stakeholders and why should they and their issues be identified? (300-350 words)

Activity 4 -

1. When considering organisational risk it is important to review the political, economic, social, legal, technological, and policy context. Comment on the influence/ impact each of those factors has on an organisation's risk profile-the risk scope and context. (500-700 words)

Activity 5 -

1. Why is it necessary to review existing risk management arrangements and standards?

Activity 6 -

Scenario: Nautilus Boat Hire is a small family-owned and operated business. It operates from a marina at the mouth of a major river and has been operating for five years.

The business is based on:

• hire of eight aluminium runabouts (tinnies) to youth groups, anglers and tourists
• hire of two deep-sea vessels to serious anglers and scuba divers
• hire of fishing gear
• sale of bait and scuba tank refills

The business is considering an expansion that will include purchase of three houseboats for hire to families and groups of young adults.

They recently conducted a survey revealing that a significant number of clients are tourists from interstate or overseas. Most clients are once-only hirers who have no knowledge of local waters and weather conditions.

As part of their business planning, the company identified the following risks to the new business offerings:

1. people who are not strong swimmers, especially children, drowning

2. houseboats getting lost and/or driven on to sandbars

3. clients finding the houseboats difficult to control-resulting in damage to the houseboat and/or land structures when, for example, mooring

4. clients being sunburned and dehydrated on hot, sunny days

Using the information provided, describe the goals, objectives and targets that Nautilus Boat Hire should include in their risk management plan. These are the critical success factors relevant to the safety of the new operation. (A total of 350-370 words).

Activity 7 -

1. How can support for risk management policies and procedures be encouraged? What skills might be used when garnering support and with whom should you communicate the risk management intentions? (230-250 words)

Activity 8 -

1. The organisation for which you work is planning an extension to the premises and an increase in staff numbers with a view to expanding into new markets. You have been asked to conduct research that will identify any risks or contingency requirements for the department that you head. What parties might be invited to assist with the risk identification and what contribution could they make? (150-170 words)

2. Why should employees be invited to participate in risk management consultations? (150-170 words)

3. What is the danger of attempting to manage risks without properly researching them? (30-40 words)

4. List 12 aspects of risk that might contribute to new research processes.

Activity 9 -

1. A number of tools can be used to collect risk related information and data ready for analysis. List eight.

2. From your list select two methods. Explain what they are and how they work. (Approx. 200 words each)

Activity 10 -

1. Plotting business risks on a risk matrix is recommended. What are the benefits of doing this? (80-100 words)

2. List four questions that might be asked when assessing and prioritising risks

3. How does categorizing risk help? List four benefits of categorising risk.

4. List six factors that might contribute to financial risk

Activity 11 -

1. A number of different risk treatments will be applied depending on the industry in which an organisation operates its structure and the risks it faces. Explain what risk treatment is and the categories of risk treatment options that could be applied. (130-150 words).

2. Under what circumstances might it be appropriate to accept risks, without applying controls? (70-80 words).

3. Insurance is valuable and necessary, but why is it not a real risk control? (70-80 words).

Activity 12 -

1. Why are risk management plans necessary? (220-250 words).

2. Risk management plans should be accompanied by action plans. What information is contained in an action plan? (50-60 words).

3. The organisation for which you work has recently leased new premises. The furniture and equipment has been moved in and the staff are due to start working there 3 days from now.

As a basic risk precaution it is necessary to develop a suitable building evacuation procedure and you have been asked to oversee the process. There were evacuation posters at the old building but these will, of course, no longer be suitable.

Using the template, create an action plan to show how you would proceed.

Activity 13 -

1. List six methods that could be used to communicate risk management plans to relevant parties.

2. The senior accountant at Abacus Accounting, a small accountancy firm, has their laptop stolen from an interstate restaurant where they were conducting a dinner meeting with clients. The laptop contains nearly four weeks of data that has not been backed up to the main server. This is a significant loss. In addition, the accountant is now without use of a laptop and still has much client work to conduct.

The firm recognises that the use of laptops by accounting staff is critical, as is the information the laptops contain.

Abacus Accounting decides to develop a risk management plan that will mitigate or minimise such losses in the future.

Amongst other things, the plan contains details of:

• protocols for safeguarding laptops whilst travelling
• protocols for backing up data
• procedures for updating the asset register with laptop warranty and insurance details
• procedures for reporting the loss of the laptop and how to
• practises to follow in order to expedite replacement

To whom should the plan be communicated and what communication procedures would be effective? (100-120 words)

Activity 14 -

1. Why should risk management data and plans be documented and appropriately stored?

Activity 15 -

1. It is important to monitor and evaluate an action plan once it has moved into its implementation phase. How does monitoring and evaluation help and what sorts of things might come under scrutiny? (200 words)

Activity 16 -

1. Explain who should be involved in the evaluation of risk management treatments. (30-40 words)

2. Sometimes external auditors can be called in to evaluate risk management plans and strategies. What are three advantages of using external auditors?

Summative assessment 1 -

Question 1 - You could be expected to outline the purpose and key elements of current risk management standards. Where would you find this information and how does it link to AS/NZS ISO risk management standards? (200 words)

Question 2 - Legislation and regulations from all levels of government will affect various aspects of business operations and the risk management aspect of business. The impact of legislation and regulations will depend on business operations/ type of business, the number of staff employed, industry sector and the structure of the business.

Explain in 200-250 words:

• why it is necessary to have a working knowledge of the legislation involved in business.
• what legislation or regulations apply to the industry area in which you work or intend to work-list and give a brief description of eight forms of relevant legislation.
• how and from where you sourced this information.

Make a list of 10 forms of legislation or regulation that could have an impact on risk and that you might have to outline when communicating with employees.

Question 3 - Each organisation should have policies and procedures, grounded in the relevant legislation, in place to support their operations and the various functions/ activities of the business. Risk management plans will relate to the overall operation of the organisation.

Outline the reasons why business organisations should develop risk management policies, risk registers and processes for managing risk. (250-300 words).

Summative assessment 2 -

Project 1 - Design, develop and document a risk management plan related to:

• the reduction of accidents, illness or incidents relating to worker or general public safety
• the prevention of operational discontinuity
• the need for new or innovative improvement/ changes in processes or procedures (and the associated risks)
• environmental impact issues-including resource use and management

You might choose another risk area relevant to the organisation for which you work. If you do you will need to describe the organisation and the risk being addressed in terms of industry sector requirements. If you are not working the risk management process might apply to a fictional organisation that you describe in detail.

Explain why and how you would initiate and implement the risk management plan and:

1. Establish the context and scope of the plan.

2. Identify the risk/s.

3. Analyse the risks.

4. Select, plan and document risk management treatments.

5. Explain the implementation monitoring and evaluation processes.

Format your risk identification, analysis and improvement plan/ proposal (or action plan) in a manner that would be accepted by senior management. Ensure that all risk scenarios are addressed and catered for.

Submit:

• the plan
• research results and tools used in the assessment process and in the plan design
• any relevant support information, charts, graphs, statistics etc

The plan must clearly describe the risk/s, proposed actions, resource needs, responsible persons, time frames, deadlines, expected outcomes and success metrics.

Alternative assessment -

If you are currently employed in this field, to assist with assessment, and if you can verify that these are entirely your own work, you might submit any of the following:

• written reports on activities that you have undertaken and that are directly associated with risk management
• a portfolio of evidence showing a range of risk management strategies that you were instrumental in developing and implementing
• assessment of the outcomes relevant to risk treatments that you have managed or overseen
• third party workplace reports of on-the-job performance-to show that you can establish the risk context, identify risks, analyse risks, and select and implement treatments
• performance review results relevant to participation in and management of risks
• notes, electronic data and hard copy information related to presentations you have made informing teams and individuals of risk management processes

Your assessor will determine how well this documentation meets the assessment requirements and will ask you a series of verbal questions relating to relevant documentation and legislation.