BSBRSK501 Manage risk
Student Assessment
Unit Overview
This unit describes skills and knowledge required to manage risks in a range of contexts across an organisation or for a specific business unit or area in any industry setting.
It applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, and program or project area. They may or may not have responsibility for directly supervising others.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Establish risk context | 1.1 Review organisational processes, procedures and requirements for undertaking risk management in accordance with current risk management standards
1.2 Determine scope for risk management process 1.3 Identify internal and external stakeholders and their issues 1.4 Review political, economic, social, legal, technological and policy context 1.5 Review strengths and weaknesses of existing arrangements 1.6 Document critical success factors, goals or objectives for area included in scope 1.7 Obtain support for risk management activities 1.8 Communicate with relevant parties about the risk management process and invite participation |
2. Identify risks | 2.1 Invite relevant parties to assist in the identification of risks
2.2 Research risks that may apply to scope 2.3 Use tools and techniques to generate a list of risks that apply to the scope, in consultation with relevant parties |
3. Analyse risks | 3.1 Assess likelihood of risks occurring
3.2 Assess impact or consequence if risks occur 3.3 Evaluate and prioritise risks for treatment |
4. Select and implement treatments | 4.1 Determine and select most appropriate options for treating risks
4.2 Develop an action plan for implementing risk treatment 4.3 Communicate risk management processes to relevant parties 4.4 Ensure all documentation is in order and appropriately stored 4.5 Implement and monitor action plan 4.6 Evaluate risk management process |
Assessment Evidence
To achieve competency in this unit a student must demonstrate their ability to:
Performance Evidence
Evidence of the ability to:
- analyse information from a range of sources to identify the scope and context of the risk management process including:
- stakeholder analysis
- political, economic, social, legal, technological and policy context
- current arrangements
- objectives and critical success factors for the area included in scope
- risks that may apply to scope
- consult and communicate with relevant stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
- develop and implement an action plan to treat risks
- monitor and evaluate the action plan and risk management process
- maintain documentation
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
- outline the purpose and key elements of current risk management standards
- outline the legislative and regulatory context of the organisation in relation to risk management
- outline organisational policies, procedures and processes for risk management
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the regulation, licensing and risk – risk management field of work and include access to:
- relevant legislation, regulations, standards and codes
- relevant workplace documentation and resources
- case studies and, where possible, real situations
- interaction with others
Information for Students
Assessment Information
Prior to Assessment
Your Trainer/Assessor will advise you of your rights before and after assessments, including the right to appeal.
Your Trainer/Assessor will provide you with all relevant information relating to the assessments prior to commencement, and of the appeals procedure that can be utilised if you wish to appeal against the assessment outcome or make a complaint.
Results
You will be informed of the outcome of your assessment as soon as possible from the date the assessment was submitted. Prompt feedback will be offered to you on the outcome of the assessment. Feedback will be delivered in written and where possible, verbal form to you.
AQF Specifications for Assessments
This assessment is set in accordance with the criteria for AQF Level 5. As stated in the AQF specification for the Diploma qualifications must be designed and accredited to enable graduates to demonstrate the learning outcomes expressed as knowledge, skills and the application of knowledge and skills specified in the level 5 criteria and the Diploma descriptor.
Diploma descriptor
Summary
Graduates at this level will have specialised knowledge and skills for skilled/paraprofessional work and/or further learning.
Knowledge
Graduates at this level will have technical and theoretical knowledge in a specific area or a broad field of work and learning.
Skills
Graduates at this level will have a broad range of cognitive, technical and communication skills to select and apply methods and technologies to:
- Analyse information to complete a range of activities
- Provide and transmit solutions to sometimes complex problems
- Transmit information and skills to others
Application
Graduates at this level will apply knowledge and skills to demonstrate autonomy, judgement and defined responsibility in known or changing contexts and within broad but established parameters.
ACSF Specifications and Foundation Skills
The term ‘Foundation Skills’ is currently used to include the core skills defined in the Australian Core Skills Framework (ACSF) as well as the employability skills identified by employers as critical for effective performance in the workplace. The core skills of the ACSF include reading, writing, oral communication, numeracy and learning.
Foundation skills encompass the core skills of reading, writing, oral communication, numeracy and learning as described by the Australian Core Skills Framework (ACSF), and the Employability Skills/Core Skills for Work. They exist on a continuum from very basic skills to highly-developed and specialist skills. The foundation skills have been addressed in this assessment.
Assessment Process
To demonstrate competence in this unit, you must undertake all tasks in this assessment booklet and complete them satisfactorily and in addition, also satisfactorily complete the practical assessment, including demonstrating communication skills during the practical activities. After you have demonstrated consistency in performance you will be awarded this unit.
As part of the assessment process, you must abide by any relevant assessment policies as provided to you. If you feel you are not yet ready to be assessed or this assessment is unfair, please discuss with your assessor all options that are available to you to enable you to complete the assessment.
Submitting Assessments
You should submit assessment tasks with the provided cover sheet.
Assessments should be submitted on or before their due date. Extensions for individual assessment tasks may be negotiated in specific circumstances. Consultation on this must occur prior to the due date and extensions due to illness will require a medical certificate. Extensions must be confirmed by the Trainer/Assessor in writing.
Plagiarism and Referencing
All students are reminded that plagiarism will not be tolerated. Information, ideas etc. quoted or paraphrased from another source, must be acknowledged with “quotation marks” around the relevant words/sentences or ideas and cited at the end of the document. Sources of information, ideas etc.
must be provided in alphabetical order by author’s surname (including author’s full name, name of document/ book/internet etc. and year and place of publishing) or may be included in brackets in the text.If you refer to any material from the internet, you must give the web page address.
Assessment Outcomes
There are two (2) outcomes of assessments: Satisfactory and Not Satisfactory (requires more
training and experience).
You will be awarded a ‘Competent’ grade on completion of the unit when the trainer/assessor is satisfied that you have completed all assessments and have provided the appropriate evidence required to meet all criteria. If you fail to meet this requirement you will receive the result of Not Competent and will be eligible to be re-assessed.
Re-assessment
Students will be allowed two (2) further attempts at an assessment for which the outcome is Not Satisfactory, within the timeframe of a course (unit of competency). No additional fees will be charged.
Students who require re-assessment beyond the delivery timeframe of a unit or due date of an assessment, unless it is due to medical reasons, will be given the opportunity to request additional time to resubmit and in this time they can request a mentoring session as required.
Reasonable Adjustment
RTOs and trainer/assessors are obliged by law to make reasonable adjustment to ensure maximum participation of students with disability in teaching, learning and assessment activities. This includes:
- Ensuring that course activities are sufficiently flexible;
- Providing additional support where necessary; and
- Offering a reasonable substitute within the context of the course where a student cannot participate
Reasonable adjustment is defined in section 4 (1) of the Employment and the Disability Discrimination Act as ‘an adjustment to be made by a person is a reasonable adjustment unless making the adjustment would impose an unjustifiable hardship on the person’.
Reasonable adjustment as it applies to participation in learning and assessment activities may include:
- Customising resources or activities within a training package or accredited course;
- Modifying a presentation medium;
- Providing additional support;
- Providing assistive or adaptive technologies;
- Making additional information accessible both before enrolment and during the course; and
- Monitoring these adjustments to ensure that the student’s needs continue to be met
An individual’s access to the assessment process should not be adversely affected by restrictions placed on the location or context of assessment beyond the requirements specified in the training package.
Reasonable adjustments can be made to ensure equity in assessment for people with disabilities. Adjustments include any changes to the assessment process or context that meet the individual needs of the person with a disability, but do not change competency outcomes.
When assessing people with disabilities, trainer/assessors are encouraged to apply good practice assessment methods with sensitivity and flexibility.
The assessment process must:
- Provide for valid, reliable, flexible and fair assessment
- Provide for judgement to be made on the basis of sufficient evidence
- Offer valid, authentic and current evidence
Access and Equity
Please speak to your trainer/assessor if you require assistance with any access and equity concerns you may have.
Recognition of Prior Learning
If you can demonstrate that you have the skills and knowledge within this unit, you should speak to your trainer/assessor about this and apply for recognition of prior learning.
Assessments
There are 3 forms of evidence gathering methods for this unit of competency. You are required to complete them all.
Your assessor will advise you when your assessments are due make arrangements for the practical demonstration and ensure all necessary resources are available.
- Written Questions
This assessment consists of 20 questions to assess your knowledge of BSBRSK501 Manage risk. You must answer all questions. A word length is given for each question. You may use various sources of information including: text books, learning workbooks, other documents and the internet and you must list your sources. If you refer to any material from the internet, you must give the web page address.
- Case Study & Practical Demonstration
You are required to respond to a case study which includes undertaking the entire risk management process and writing a report. You are also required to demonstrate your communication and consultation skills and knowledge of the risk management process by organising and facilitating a meeting.
Student Assessment Instructions
To demonstrate your competency in this unit you must successfully complete both theory and practical assessment tasks. The practical assessments will be conducted at a date and place to be advised by your Trainer/Assessor.
All questions must be answered correctly for each assessment task to be completed satisfactorily. There is no restriction on the length of the question responses, or time restriction in completing the assessment, unless specified.
You must complete all questions unassisted by the assessor or other personnel, but may refer to reference material as needed.
Assessment Criteria
For Assessment Task 1 – you will be assessed on your knowledge of:
- the purpose and key elements of current risk management standards
- the legislative and regulatory context of the organisation in relation to risk management
- organisational policies, procedures and processes for risk management
For Assessment Task 2 – you will be assessed on your ability to
- Analyse information from a range of sources to identify the scope and context of the risk management process including:
- stakeholder analysis
- political, economic, social, legal, technological and policy context
- current arrangements
- objectives and critical success factors for the area included in scope
- risks that may apply to scope
- consult and communicate with relevant stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
- develop and implement an action plan to treat risks
- monitor and evaluate the action plan and risk management process
- maintain documentation
- consult and communicate with relevant stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
- communicate risk management processes to relevant parties
- invite participation in the risk management processes
- obtain support for risk management activities
- participate in interactions with stakeholders using questioning and listening to elicit opinions and to confirm and clarify understanding
- establish and use appropriate conventions and protocols when communicating with stakeholders about risk management
- consult and negotiate with stakeholders about risk management processes and outcomes.
- use digital technologies and systems to access information, document plans and communicate with others
Assessment 1: written questions
Student instructions:
This assessment consists of twenty (20) questions. You must complete them all correctly and in accordance with instructions. A word limit range is provided for each question.
You may refer to your learning materials or the internet, but must list your sources of information.
Questions
- List two examples of each of the following types of risk: (5-20 words each)
- Operational risks
- Strategic risks
- External risks
- Outline the purpose and key elements of current risk management standards (300 – 500 words)
- What are the two components of risk management that must occur continually throughout the process? (2-5 words)
4a. List three sources of information that an organisation might use in order to gather information on potential risks. (10 – 20 words)
b.Outline the key elements and purpose of organisational policies and procedures and processes for risk management. (50-100 words)
- Explain and describe two items that are typical components for each aspect of a PESTL analysis. (250-350 words)
- Explain and define who is a stakeholder and what methods you might use to identify internal and external stakeholders? (200-250 words)
- Describe the meaning of the term ‘risk criteria’ and describe its purpose? (50-100 words)
- List three reasons why frequent communication is critical to good risk management. (150-250 words)
- Identify and explain five tools that you might use in order to identify risks. (100-200 words)
- What are the main components of a risk analysis? (5-15 words)
- What is the difference between qualitative and quantitative risk analysis? (200-250 words)
- Why would you use a likelihood and consequence table? (40-80 words)
- Explain five options for risk treatment. (40-80 words)
- What is a cost–benefit analysis? (20-30 words)
- What factors should be considered when conducting a cost–benefit analysis? (20-30 words)
- Identify and explain five items that should be documented in a risk management plan. (200-250 words)
- Why is it important to ensure frequent reviews of the risk management plan? (80-150 words)
- Describe two mechanisms that can be used to ensure on-going monitoring and updating of the risk management plan. (120-180 words)
- In your own words, describe the following types of the legislation, codes of practice and national standards which relate to risk management in an organisation and provide two (2) examples of how they apply: (15-25 words each)
Legislation | Description and Examples | |
(a) Duty of Care | ||
(b) Company Law | ||
(c) Contract Law | ||
(d) Environmental Law | ||
(d) Privacy Law | ||
(e) Freedom of information | ||
(f) Industrial relations law | ||
- Why are standards necessary for risk management and how are they applied in the workplace? (80-160 words)
ASSESSMENT 2 – CASE STUDY & PRACTICAL DEMONSTRATION
Instructions to students
This assessment is in two parts. For Part 1 you are required to manage risks in a range of contexts across Town and Country Services and complete a number of written documents. For Part 2 you are required to participate in a meeting.
You must demonstrate your ability to:
- Establish the risk context
- Identify risks
- Analyse risks
- Select and implement treatments.
The details of the tasks follow.
Context and conditions of assessment
The assessment is to be conducted within the simulated workplace environment at the college.
PART 1 – CASE STUDY
Instructions to students.
You are required to read the following case study for Town and Country Services and complete all the tasks set out in Stages 1 to 4.
This tasks also requires you to use digital resources to effectively access information, document plans and communicate with others.
Submission requirements
You must submit:
- a report with appropriate sections, headings and tables, charts, diagrams or flowcharts including: (4-6 pages)
- Description of the business, goals, analysis of external factors and critical success factors
- Identification and analysis of external factors
- Identification of stakeholders
- PESTL and SWOT analyses
- Risk Assessment Table (and supporting Likelihood and Consequence table and Consequence Criteria)
- Risk Management table
- Action Plan
- Strategy for implementation of the risk management plan
- Report on implementation of your risk management action plan and process
- List of sources of information used and any supporting documents.
The report should be a formal, typed document with detailed information organised into sections with appropriate headings and contain the risk tools. This report covers the tasks set out in Stages 1 to 4 on the following page.
- A set of appendices and supporting documents is to be included with your report from the Stages 1 to 4 activities below. As appropriate you are to identify where you accessed this information.
Resources required for this assessment
- The Town and Country Services Risk Management Policy and Procedure and
- AS/NZ ISO 13000 Risk Management Overview
will be provided by your assessor
Assessment Criteria – Part 1
Your performance for this assessment will be assessed against the criteria and evidence requirements in the ‘Marking checklist’ at the end of this assessment.
Town and Country Services
Regional Expansion Project
As part of Town and Country Services’ (TCS) strategic plan, it will open an office in the large regional city of Orange, NSW to provide a range of architectural services. These services are:
Orange was selected because it is a large regional population and employment centre with sound economic growth. In addition, local government is very supportive of new business opening up in the area and typically facilitates planning approvals within the stated customer service timeframe standards.
It is planned to rent an office at street level that has sufficient space to enable meetings with the visiting consultants & private rooms for mediation services. The office will also need video conferencing capacity as an alternative communication method for remote clients. This will ensure that TCS can provide dispute mediation for individuals who do not wish to appear in person or who may be living some distance from the town. It is expected that the office will require a full high-spec fit-out to make them suitable for TCS and reflect the company’s values as a quality provider of design services.
Four full-time and four part-time staff will need to be recruited. Full time staff require previous experience in working with architectural services and local government.
Initial research suggests that due to solid economic growth in the regional centre, 70% of the services will be for architectural projects, including both domestic and commercial buildings with up to 40% of projects employing TCS to manage the build. In addition to the range of architectural services currently provided, TCS is going to launch its innovative approach to building techniques. The new approach, although 20% more expensive than traditional building methods, reduces the building time by 35%; however, specialist building products are required at specific periods during the build.
Traditionally, local councils have long approval times and make conservative planning decisions; however, changes to the planning regulations have resulted in a change to the planning and approval procedures. This means that Council is obliged to operate within its stated customer service timeframe standards.
Initial costings have been developed for the office set up and a projected cash flow for the new services has been developed. Town and Country Services has not budgeted for any profit until the end of the second year. The budgeting for the project is being handled by the Board of Directors of Town and Country Services and therefore you will not be required to manage this aspect.
Everything needs to be ready in 5 months from today to meet operational deadlines and the launch of planned media campaign about Town and Country Services’ innovative time saving building techniques.
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Part 1 – Case study
As the Risk Manager, it is your responsibility to identify and manage the risks in the regional expansion project. The Board of Directors of Town and Country Services will be responsible for strategic and financial risks.
You are to develop a risk management plan which includes:
- a detailed stakeholder analysis
- explanation of the risk context
- identification of critical success factors
- identification of risks
- analysis of risks
- treatments for prioritised risks
- details of monitoring arrangements
- reporting mechanisms for the risk management plan
- an evaluation of the risk management plan’s efficacy in treating risks.
The following Stage 1 to 4 activities guide you through this process.
Complete a written report of 4 to 6 pages for your manager (your assessor) that addresses the following 4 Stages of the risk management process.
Stage One: Establishing the risk context and identifying risks
Stage 1 has 5 components Context, Scoping, Stakeholders, Analysis and Research on which you will report.
- Context
When developing a risk management plan, you first need to establish the context of risk in relation to external factors. You must review and monitor industry information and trends in the region. It is essential the risk analysis is based on careful industry research.
Identify external factors that could have an impact upon the success of the project. Write a report of 1.5 or 2 pages with the following five headings and provide one paragraph under each:
- Political factors
- Economic factors
- Social factors
- Technological factors
- The strengths and weaknesses of any existing arrangements.
Answer: The strategic plan of Town and Country Service (TCS) is to rant an office at a street site for enabling meetings in a private room with visiting consultants for the purpose of mediation services. In concern to analysis the risk for that external factor are identified for determining the impact on the success of the project plan such as:
Political factors: – This factor creates huge influence on the business environment by developing some restricted rules and regulations.
Economic factors: – The economic factors also reflect the economic condition of the country where companies are deciding to set up their business.
Social factors: – The social factor is important for developing brand image for the business by communicating with the society or community to large extent.
Technological factors: – The technological adoption creates huge impact on the business efficiency n terms of designing, websites and also video conferencing.
The strengths and weaknesses of any existing arrangements: – The strength from the current environment is services offered and weaknesses is lack of meeting room facility for the visiting consultants.
- Scoping
Clearly identify the project’s goals or objectives and its scope and critical success factors of risk management and any current arrangements.
Describe goals/objectives of the business. Consider factors including:
- Technological innovation
- New products or services
- Opening new markets
- Organisational structure.
Identify the Critical Success Factors – factors that must be present for the project to be successful and promote Town and Country Service’s goal.
The information may be presented in a table.
SCOPE: | The scope of the project is narrow in nature because project requires only enough space and easy access at street site. In addition, the project plan main purpose is to develop a proper meeting place for visiting consultant and private room for mediation and also facilities for video conferencing.
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OBJECTIVES: | There are some objectives that are needed to be accomplished by the project respectively:
· Setting up the street side office for making company’s operation effective · Increasing in revenue by 45% from both domestic and international building projects every year · Increase in number of projects by 25% related to supervision of construction services |
CRITICAL SUCCESS FACTORS: | There are some critical success factors which in help in managing the risks are as follows:
· Introducing new innovation · Saving time · Building new techniques · Staff commitment · Meeting construction project on deadline. |
- Stakeholders
Identify internal and external stakeholders, their role and responsibility in the process, any issues or concerns they have and what they aim to achieve. Stakeholders should be considered as any individual, group or entity that the project will affect, and may include but not be limited to:
- Clients or customers
- Suppliers and contractors
- Internal personnel
- A project funding body.
Present this information in the Table of Stakeholders template below.
Stakeholder | Internal / External | Role in process | Stake in process |
Risk Manager | Internal | Evaluate the risk and continuous monitoring of condition of project risk | Responsible for project success and financial gain or loss |
HR consultant | Internal | Managing existing staff and recruiting new staff | Responsible to select a staff without any biasness |
Investors | External | Timely providing financial support | Focus on generating a return on investment |
Customers | External | Focus on meeting the expectation and satisfaction from delivered services. | Ensure best possible solution services as per demanded |
Building Supplier | External | Supplier role is to provide or supply the required raw material for new business construction | Supplier is responsible to maintain healthy relation with company and also for increasing sales |
Legal manager | Internal | The legal manager play essential role in checking all required documents and contracts are signed | The stake is responsible for maintaining the image of business by overcoming illegal activities |
Assets Manager | Internal | The role of asset manager is to focus on arranging the assets in such a manner that safe premises can be created. | Responsibility to focus on managing the brand image. |
Outline the methods that you can use to communicate with relevant parties to obtain their support for risk management activities. Explain the kinds of support that you would invite them to give. Relevant parties include:
- all staff
- internal and external stakeholders
- specific teams
- technical experts.
Relevant Parties | Communication sources | Kinds of Support towards risk management activities |
Staff | · 2-3 meetings per week
· Sending Text Messages |
· Staff showing commitment and using full capacity to complete the project
· Regular checking e-mails, messages |
Internal and External Stakeholders | · E-mail,
· Video Conferencing · Sending text messages |
· Help in providing the feedback regarding implementation of project plan
· Support in decision making by participating as investors or shareholders for managing the risks |
Specific team | · E-mail
· Meeting per week · Video-conferencing |
· Provide support in managing the safety and security system of the project plan |
Technical experts | · E-mail
· Text messages · Audio conferencing |
· Installation of new technology equipments for risk management
· Coordination timely with risk manager |
- Analysis
(a) PESTL (Political, Policy, Economic, Social, Technological and Legal) analysis
Political Factor
· Changes to political rules and regulations every year and after 5 years · Effective political condition is related to privacy issue |
Economic Factor
· Establishing up new office as per the economic condition and stability for attaining sustainability |
Social Factor
· Developing business relations with the suppliers · Developing brand image of the business |
Technological Factor
· Timely implementation of new technology in terms of designing |
Legal Factor
· There are some legal rules which are considered seriously for avoiding any legal fraud or void in contract which can affect negatively. |
Policy
· Follow proper government rules and regulations |
(b) SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis
Strengths
· Well-recognized brand name · Adoption of new technology · Effective market analysis · Effective economic condition |
Weaknesses
· Less customer data · No collaboration with the market mainly local · Meeting space |
Opportunities
· Convincing more numbers of suppliers · Expansion of business in different regions of Orange · Development of new service opportunities |
Threats
· Shortage of employees or labour · Threat from uncertain calamities · Arrangement of big investment |
- Research
Review and summarise the information you found, as well as any relevant literature and the
Town and Country Services Risk Management Policy & Risk Management Strategy provided to you.
References:
- IEC 31010:2009 Risk management – Risk assessment techniques
- Guide 73:2009 Risk management – Vocabulary
- AS/NZS ISO 31000:2009 Risk management – Principles and guidelines
Stage Two – Analysing the risks
Stage 2 has 2 components developing a Risk Assessment Table and Consultation with Stakeholders
Analyse the risks identified in Stage One, develop an action plan for the treatment of risks and communicate it to relevant parties. (2-4 pages)
You need to analyse the potential risks from various viewpoints. Look at the likely consequence of the risk event and the likelihood of the risk event occurring. Finally, look at the level of risk and decide which risks need treatment.
Consult with your project team of stakeholders (including colleagues) to help you identify the risks. (This activity will be completed in the practical demonstration part of the assessment, which your assessor will organise.)
1.Risk Assessment table – Develop a report for your stakeholders. Use the table below to develop a risk assessment plan, including:
- Likelihood of the risk occurring.Numerical values have also been assigned as
- Almost certain – 90% or greater chance of certain occurrence over life of the project
- Likely – 65% up to 90% chance of occurrence over life of the project
- Possible – 35% up to 65% chance of occurrence over life of the project
- Unlikely – 10% up to 35% chance of occurrence over life of the project
- Rare – < 10% chance of occurrence over life of the project
- Consequence for each risk.
- Priorities – use a risk calculation table to assist in prioritising the risks.
- Options – for each prioritised risk outline at least two (2) suitable options for treating the risk.
Report
Introduction
The main purpose of this report is to develop a risk assessment plan which helps the Town and Country Service (TCS) in developing the relationship between the risk management and stakeholders and also by discussing the potential role of TCS by engaging the stakeholders in a better manner by using proper risk management process.
Project Objective
The main objective related to this report is that to communicate with the company’s stakeholder regarding the hidden problems and risks which might be faced by the TCS in existing and new business respectively. In this report, the role of stakeholder towards the risk is also discussed for developing better understanding related to the risk management processes for improvement of TCS brand image in the city of Orange.
Stakeholder’s role
While assessing the risk management plan, the stakeholder’s role help the companies in terms of providing the benefits as a consultant in numerous manner such as by building the level of trust for TCS among the groups of stakeholders. In addition, the stakeholders also contributing in decision making which is related to future growth and the success by sharing the TCS information with the shareholders and employees. The risks are identified by the key stakeholders of the company as they understand and analysis the market both internally and externally efficiently by identifying the companies restrictions.
Conclusion
From the overall study, it is concluded that the key stakeholder plays significant role in TCS for enhancing the management efficiency and controlling the risk management efficiently.
For your risk calculation, you can use the Risk and Consequence table shown below or a similar format. You must also include the Consequence Criteria that is appropriate for the project.
RISK ASSESSMENT: | |||
Risk/Priority | Risk Rating | Action Plan | |
1 | Damage or accidents at workplace | Low | Provide the employee and labour with insurance facility
Installation of proper camera security system |
2 | Recruitment and selection of Staff | High | Provide urban employees with the permanent job opportunity as well as short term deployment of employees |
3 | Local contractors or suppliers unwilling to work with any new firm | Moderate | Building new strategies for creating a new healthy relationship with local suppliers and contractors as well as with local government and simply also encourage them to work with Town and Country Service (TCS) |
4 | Slowly acceptance of new developed construction technology | Moderate | Development of new strategies for achieving the benefits of marketing by using the new technology instead of traditional marketing |
5 | Board of company does not comply with the approval of customer services schedule | High | Encourage the customers for using the private certification. The board must also monitor the time of approval and also follow up accordingly (only if service don not meet expectations) |
- Send this report to your colleagues and stakeholders to obtain their feedback and then adjust as required. Document their feedback and how you addressed it.
Before going on to Stage Three, submit your Risk Assessment documents to your manager (assessor) via email, who will have responsibility to distribute it within the organisation.
Stage Three – Identifying measures to treat the risks
Stage 3 has 3 components Develop a Risk Management Plan to treat the risks, Develop an Action Plan for implementing the risk management plan and Monitor and Evaluate the implementation plan.
- Risk Management Plan – develop a risk management plan by completing the table below. At this stage, you are to exclude estimated costings (being dealt with by the Board of Directors for Town and Country Services).
Risk Management Plan (template)
Risk | Assess Risk | Controls | Monitoring | Timelines | Responsible |
1. Recruitment and selection of Staff | High | This risk can be controlled by recruiting the best skilful and talented staff | Timely recruitment of employees as per work load | As per commencement of the project | HR manager |
2. Local contractors or suppliers unwilling to work with any new firm | Moderate | The risk can be controlled by building new strategies which attract more number of contractors to join hand with TCS. | By conducting monthly assessment of the relation with the contractors | At the time of switching the business | Marketing manager |
3. Damage or accidents at workplace | Low | The risk need to be controlled by | Monitoring project activities efficiently | Before and during the project | Risk manager |
4. Slowly acceptance of new developed construction technology | Moderate | The adoption of new strategies help in controlling the risk in terms of saving the time, cost and reducing the construction time, by using new technology or method instead of traditional method | By checking the increase in sales information every month | At the time of moving the business premises | Marketing Manager |
- 2. Action Plan – Develop an action plan for implementing your risk management plan.
(a) List all the people who will need to be involved, their role/responsibilities/tasks, resource requirements, time frame and any reporting requirements.
People responsible | Role/responsibilities/tasks | Resources Requirements | Time Frame |
1. Marketing manager | The responsibilities is to develop the relation with contractors for encouraging or convincing them to work with new firm | Effective strategies for development of business | 2 months |
2. Risk manager | The role is to focus on overcoming the damage or accidents at workplace by identifying different risks respectively. | Effective new technology, financial resources | 1 month |
3. HR manager | The role of management is to recruit and select the employee with the best talented urban employees for the enhancing business efficiency and productivity | Physical resources, financial resources and human resources | 3 months |
(b) Describe how you will file and store your risk management documentation so that it can be easily accessed by those who need it.
Answer: The documentation will be filled up efficiently by proper adoption of process for making easy access to documents such as:
- Draft a report
- Checking report grammar and spelling
- Sending a feedback
- Adoption or implementation of feedback
- Acceptance of documents as per policies
- Naming the file
- Approval from risk management and top management
- Storing the file in the folder name as risk management
3.Monitor and evaluate the risk management plan – Describe how you will monitor and evaluate the risk management plan. Include how you will monitor your Critical Success Factors, the evaluation mechanisms and processes, who will be responsible and the timeframes.
Answer: The risk management plan can be monitored and evaluated by using different ways such as by reviewing the risk situations after every week or month and then reviewing the risk performance after every three months time period. There are some cases in which risk will be determined with the identification of new risk. Furthermore, proper course of risk treatment will be evaluated and the process of re-identification of risk impact on new projects will be used for the setting up of an action plan as per key findings. The timely meeting will be arranged with the board of directors to discuss for the same.
Stage Four – Implementing and monitoring the risk treatment plan
Read the following information and answer the questions that follow.
Regional Expansion Project
You have been managing the risks of the Regional Expansion Project for the last 3 months and whilst some things have been progressing well some problems have arisen.
The new office was flooded due to recent torrential rain and the office carpet and meeting room furniture have to be replaced. This will be very expensive.
You had identified the need to purchase insurance as a risk treatment for the new premises but you now find out that it did not cover storm damage.
In your plan, you identified the risk of being unable to recruit full time staff with previous experience working with architectural services and local government. Originally you had thought that you could second people from Head Office to fill the vacancies while undertaking recruitment; however, this has not worked well as no-one from Head Office is able to stay longer than one week. This is having a detrimental effect on customer service and on establishing local networks. You need a new approach to addressing this risk.
You have been advertising on Seek.com.au to recruit local staff.You are spending a lot of time interviewing but not finding anyone suitable.
You cannot get anyone from Head Office to stay for more than 1 week which does not meet customers’ needs.
In your plan, you had identified the risk that the local council may not abide by their customer service timeframes for approvals. This has proven to be true.
You have been encouraging customers to use private certifiers as set out in the action plan; however due to the current delays in council the 2 certifiers have long waiting lists and are not able to work with Town and Country Services for another 5 weeks. You had not identified this as a risk.
Your risk management process You evaluated the risk management process undertaken and you think that although you originally identified the risks and the treatment actions in consultation with your manager and stakeholders the project would have benefitted from some specialist advice to help with addressing each of the identified risks, particularly in the recruitment of specialist staff. |
You realise that your action plan for implementing risk treatments needs to be reviewed. You need to evaluate the plan and provide a report to your manager on your findings.
- Write a report examining the ongoing implementation of the risk management action plan (about 1.5 – 2 pages). Include the following:
- a summary of the initial risks and the plan implemented to manage them
- a summary of all actions taken to date in attempting to manage identified risks
- a statement identifying continued and/or reduced risks, based on the information provided in the scenario above
- a statement about the risks you did not identify and the planned actions for mitigating them or avoiding them
- proposal for amendments to the risk management plan
- an analysis of the effectiveness of the risk management plan, by comparing the implementation with the outcomes identified in the scenario above
- an evaluation of your own risk management process.
Risk | Action Plan |
Recruitment and Selection of staff | The action plan is use of modern and easy process of recruitment which will help in attracting new employees from the urban countries and small cities too. |
Slowly acceptance of new developed construction technology | Developing strategies for making employee accept the new construction technology respectively. The use of strategies will also help in creating the benefits of marketing in terms of saving of cost and time in comparison to the traditional method respectively. |
Local contractors or suppliers unwilling to work with any new firm | The strategies will also support in building the relationships of contractors with the company named TCS. |
Board of company does not comply with the approval of customer services schedule | This action plan help in encouraging the customer by monitoring the approval time of contract closely as well as follow up the actions quickly if approval doesn’t meet the level of service standards. |
Summary of all actions plan that need to be undertaken as follows:
- Employment opportunity for the urban city people.
- Encourage the suppliers or contractor to work with new firm
- Develop strategies for building the relationship with contractors
- For achieving approval, use of private certification bodies by the customers help in monitoring the time accordingly follow up action when service standard doesn’t meet.
Through the above summary, it is identified that risk status is dependent on communication to employees by e-mails, proper meeting every week, video conferencing , etc regarding risks are mitigated or reduced or not.
There are some risks are found to be appeared recently:
- Natural calamities
- Employees not staying for long period
- Damage to office furniture and carpet
For mitigating the risks, some action plans can be used efficiently:
- Training to casual staff members
- Increase in incentives
- Location of office premises should be at higher floor
In order to fulfil the external audit criteria for that, there is need to develop a proper proposal and send it to the board of director as they are responsible for establishment of effective risk management strategy.
Risk | Implementation | Outcomes |
Shortage of skilled staff | Selection of new talented staff | Hiring staff as per requirement but not retaining for long term period |
Damage to office premises | Change of business infrastructure | Conducting meeting on time |
Natural calamities risk | Opening office at 2-3 floor instead of ground floor | High chances of safety from any flood or calamities |
With the establishment of new office of Town and Country Service (TCS) in region city of Orange, NSW focuses on providing a wide range of architectural services for the large numbers of people.
For setting up new office for that as a TCS risk manager, manager risks are identified such as shortage of skilled employees and damage to office premises and so on. However, PESTL and SWOT analysed also for identifying the risks and in that risk manager responsibility is to reduce the risks after monitoring and reviewing the risks by adhering to new brainstorming session and also somewhere not identified all the risk because of B Plan.
- Provide the documents from the work you undertook as evidence that you implemented the plan for managing the identified risks.
Keep the documents you used/developed during stages 1 to 4, so that you can assemble a neat portfolio of all documents produced as part of your risk management and include as the appendices and supporting documents that are to be attached to the report.
References
- TCS annual report related to risk management
- TCS website
- ISO 1300
Moreover, for developing risk management strategy, data is collected from different departments such as IT and Accounts, etc.
marking checklist– assessment 2: case study
Student Name:
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Assessor Name:
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Date of Assessment:
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Unit of Competency:
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BSBRSK501 Manage risk |
Trainer/Assessor to complete. S = Satisfactory, N = Not Satisfactory
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Did the student satisfactorily: | S/N | Comment |
Stage One: Establishing the risk context and identifying risks | ||
1. Conduct research into the project area to:
§ review the political, economic, social, legal, technological and policy context § review strengths and weaknesses of existing arrangements? |
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2. Identify the scope of risk management required in the project?
Identify and describe the critical success factors, goals or objectives for areas included in scope? |
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3. Identify internal & external stakeholders, their role in the process, and any issues or concerns they have, using the template provided? | ||
4. Complete a PESTL analysis for risks associated with the project?
Complete a SWOT analysis for risks associated with the project? |
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5. Review and summarise the research information found, as well as any literature available that is relevant to this scenario? | ||
6. Complete the analysis of risk for the scenario by summarising the scenario and associated risks, accompanied by checklists, diagrams or flowcharts that support the summary?
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Stage Two: Analysing the risks | ||
1. Develop a risk management plan using the provided standard risk management table? | ||
1a. Assess the likelihood – for each risk, assess the likelihood of the risk occurring. | ||
1b. For each risk, assess the consequence of the risk occurring? | ||
1c. Use a risk calculation table to assist in prioritising the risks? | ||
1d. For each prioritised risk, outline at least two suitable options for treating the risk? | ||
2. Obtain feedback from colleagues and stakeholders?
Submit risk assessment documents to manager? |
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Stage Three: Identifying measures to treat the risks | ||
1. Develop a risk management plan | ||
2a.Develop an action plan for implementing risk management plan? | ||
2b. Ensure all documentation is in order and appropriately filed and stored? | ||
2c. Describe the process to evaluate risk management on an ongoing basis? | ||
3. Develop a strategy for implementing and monitoring the action plan? | ||
Stage Four: Implementing and monitoring the risk treatment plan | ||
1. Write a formal, typed report of approximately 1.5 – 2 pages, examining the ongoing implementation of the risk management action plan. Include the following: | ||
· a summary of the initial risks and the plan implemented to manage it? | ||
· a summary of all actions taken to date in attempting to manage identified risks? | ||
· a statement identifying continued and/or reduced risks, based on the information provided? | ||
· a statement about the risks not identified and the planned actions for mitigating them or avoiding them? | ||
· proposal for amendments to the risk management plan? | ||
· an analysis of the effectiveness of the risk management plan, by comparing the implementation with the outcomes? | ||
2a. Provide documents of the work undertaken and kept used during the process into a neat portfolio of all documents produced as part of the risk management process and attached to the report to assist in future strategies? | ||
2b. identify where the information was accessed from | ||
Feedback to Student:
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Student’s overall performance is: | £ Satisfactory £ Not Satisfactory | ||
Is re-assessment necessary?
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£ Yes £ No | ||
Trainer/Assessor Signature:
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Date: | ||
Student Signature:
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Date: |
assessment 2: part 2 – practical demonstration
Instructions to the student
The second part of this assessment requires you to participate in a meeting, during which you must demonstrate your ability to communicate details of, invite participation in, and obtain support for the risk management process. Your assessor will place you into a project team of a minimum of five people, comprising the Risk Manager (you) and the four stakeholders. At least two people shall be external stakeholders and two people shall be internal stakeholders. The meeting will be in a simulated work environment in the RTO, which your assessor will organise. You will have 30-40 minutes for the role play. Your assessor will brief the meeting attendees on their role.
The purpose of the meeting is to:
- Communicate the risk management process
- Invite participation in the risk management process, including identification and assessment of risks
- Obtain support for risk management activities.
During the meeting, you are to:
- Establish and use appropriate conventions and protocols when communicating with stakeholders about risk management
- Explain the risk management process
- Actively engage with group members to obtain their participation in the risk management process
- Use tools and techniques to generate a list of risks – such as brainstorming, fish bone diagram.
- Use communication skills to elicit opinions and check understanding.
- Consult and negotiate with stakeholders to identify and assess risks, decide appropriate risk treatment actions & priorities
- Obtain support for risk management activities.
The meeting must be observed by the assessor
Assessment Criteria – Part 2
- Your performance for this assessment will be assessed against the criteria and evidence requirements in the ‘Marking Checklist’ found at the end of this assessment.
Results sheet – assessment 2: Practical demonstration
to be completed by the assessor
Student Name: | |
Assessor Name: | |
Location of Observation: | |
Unit of Competency: | BSBRSK501 Manage risk |
Date: |
Trainer/Assessor to complete.
S = Satisfactory, N = Not Satisfactory |
Demonstration Result | |
S/N | Comment | |
Did the student: | ||
1. Establish and use appropriate conventions and protocols when communicating with stake-holders about risk management? | ||
2. Explain the risk management processes? | ||
3. Actively engage with group members to obtain their participation in the risk management process? | ||
4. Use appropriate tools and techniques to identify risks and used good communication skills to elicit opinions and check understanding? | ||
5. Consult and communicate with group members to identify and assess risks, decide appropriate risk treatment actions & priorities? | ||
6. Obtain support for risk management activities? |
Feedback to student: | |||
Students overall performance is: | £ Satisfactory £ Not Satisfactory | ||
Is re-assessment necessary? | £ Yes £ No | ||
Trainer/Assessor Signature: |
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Date: | |
Student Signature: |
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Date: |
ASSESSMENT SUMMARY & FEEDBACK |
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Student Name: |
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Student ID: | |||||||
Assessor Name: | Date of Completion: | ||||||||
Unit of Competency: | BSBRSK501 Manage risk | ||||||||
Assessments | Student Results | ||||||||
Satisfactory | Not Satisfactory | Not Completed | |||||||
1. Written Questions
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£ | £ | £ | ||||||
2. Case Study & | £ | £ | £ | ||||||
3. Practical Demonstration | £ | £ | £ | ||||||
Feedback to Student:
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Result:
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£ Competent £ Not Competent | ||||||||
Is re-assessment required: | £ Yes £ No | ||||||||
Trainer/Assessor Signature: |
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Date: | |||||||
Student Signature: |
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Date: | |||||||
Assessment Cover Sheet
Student Name: | ||||||
Student ID: | ||||||
Contact Number: | ||||||
Email: | ||||||
Assessor Name: | ||||||
Qualification: | ||||||
Unit of Competency: | BSBRSK501 Manage risk | |||||
Assessment: | ☐ 1. Written Questions
£ 2. Case Study £ 3. Practical Demonstration |
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Due Date: | Date Submitted: | |||||
If your assessment is being submitted after the due date, please attach a copy of the written confirmation of extension received from the Trainer/Assessor. | ||||||
Declaration: |
I have read and understood the following information at the beginning of this assessment (please tick): |
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☐ General assessment information
☐ Submitting assessments ☐ Assessment results ☐ Plagiarism and referencing |
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I declare this assessment is my own work and where the work is of others, I have fully referenced that material. | ||||||
Name (please print) | Signature | Date | ||||
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