BSBRSK501 Manage Risk

ASSESSMENT-1

• Discuss the purpose of risk management standards. Include an example of a risk management standard in your answer. 

The purpose of risk management standards is to provide a set of guidelines and frameworks to industries to execute their operations with proper risk management analysis. Some common standards have been designed for most of the regular situations which happen across the globe and some other standards provide the most pertinent guidelines to counter unprecedented issues. An example of a risk management standard is ISO31000.

• Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and each of the 11 principles.

AS/NZS ISO 31000: 2009 Risk Management Principles and guidelines 

1. Risk management is an integral part of an organization.
2. Risk management plays a vital role in the decision-making process.
3. Risk management affects operations palpably.
4. Risk management leads to the creation and prevention of the value of an organization.
5. Risk management gives foundation and timeline of operations. 
6. Risk management is deployed with accurate is information. 
7. Risk management systematizes operations internally and externally.
8. Risk management works and humanitarian and ethical grounds.
9. Risk management is evident and covers every aspect.
10. Risk management assures perpetual progression.
11. Risk management is subjected to change. 

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

The WHS- Work Health and Safety legislation is the set of rules which are supposed to be followed in every organization to maintain the health and safety of the employees. Its relation to the risk management standards is to cover the health and safety aspect in the risk management analysis within an organization (Asadi, 2015).

• List the factors that must be taken into account in determining risk control measures for hazardous manual tasks as stated in the model Work Health and Safety Regulations 2011.

Factors that must be considered 

1. Repeating situations of force
2. The atmosphere at the workplace
3. Excruciating loads usage
4. Manual work

• Explain the purpose of risk management policies and procedures in the workplace.

The purpose of risk management policies and procedures at the workplace is to set a foundation and frame on the basis of which the operation could be performed.

• List three examples of the impact of risks for a workplace if risks are not identified or actioned.

 The are multiple issues that could arise in case the risks are not identified and actioned. Here are some examples of such issues.

1. Failure of operation at the profit level.
2. Loss of business partners.
3. Loss of man force. 

• Outline a step-by-step procedure that companies can use for analysing risks.

Steps that could be followed to analyze risks are as follows.

1. Identification of the risk.
2. Analysis of the risk.
3. Setting the priority of the risk.
4. Act of substantiating the risk.
5. Thorough rectification.

• Outline three sources of information that a company could use to gather information on potential risks.

Methods that a company could use to gather information about potential risks.

1. Studying the history of the industry and the organization.
2. The process of the taking interview of the employees and ex-employees.
3. The process of consultation with an expert (Aven, 2016). 

• Describe three examples of tools or techniques that a company could use to identify risks as part of a risk assessment process.

Tools and techniques that could be used to identify the risks as part of a risk assessment process.

1. Take the help of the Delphi Technique.
2. Ideating about the operations of the industry and the organization.
3. Revising the legal and operational documents of the organization and the industry.

• Explain four options that a company could take to control risks.

Methods that a company could use in order to control risks.

1. Following the risk management standards. 
2. The Work health and safety legislation to be followed properly.
3. To perform risk management analysis before the commencement of the operations. 
4. A strong and wise leadership.

• Explain four procedures that a company could use to minimise risk.

Methods that the company could use to minimize the risk.

1. Regular analysis of the ongoing operations.
2. A well-founded and viable approach in the execution of operations.
3. Adequate strategic planning.
4. Following risk management standards. 

ASSESSMENT-2

• Develop a risk briefing report.

Risk Briefing Report 

Introduction-

The organization NatureCare Products is based out in Brisbane. It has started its business in 1996. NatureCare Products make skincare products that are eco-friendly and contented with natural ingredients. There is also a consideration of eco-friendly packaging. All of the products are manufactured in a small factory and then shipped to health food shops in Australia. The products which are shipped to the health food shops and first given to the distributors who distribute them to the health food shops thereafter. The company does its business online as well, though the company’s website, it takes the orders from the customer and the products are delivered to them directly. 70% share of the customers of this company is business class women. In a recent board meeting of the CEO and two of the company shareholders, it is decided that the company will try to expand its business by 10% through the process of establishment of retail outlets in Brisbane, Sydney, and Melbourne. The company follows the Risk management policy and procedures of   AN/NZS ISO31000:2009 Risk management principles and guidelines. The company currently employs the staff: Office manager, Operations Manager, Administration assistant, marketing manager, CEO, accounts manager, marketing assistant, sales manager, two shareholders, and 4 customer service representatives.

Scope– 

The scope for the risk analysis is all the departments of the company i.e. Sales department, Administration department, Marketing department, Customer service department, Operations department, HR department, etc. and all the operations of all of these departments. After a thorough analysis, a risk management plan will be developed to be followed across the organization. 

PESTEL Analysis 

• Political Factors

Factors	Risk treatment as applicable
Government policies about the industry before and after elections.	Formation of the strategies which are dependent on the government policies as less as possible.
Regulatory modifications of the company’s norms and conditions	Analysis of the current practices of norms and conditions in the company and make the required changes
CSR policies of the government.	Special consideration of CSR practices of the company
In practice policies of the government for the expansion of the business	Analysis of the government policies and keep an assurance that they will be followed in the business expansion.

• Economic Factors

Factors	Risk treatment as applicable
Data on the growth and decrement of the economy of the industry of the organization.	Analysis of the available data of history and the current practices in the industry.
Data on the growth and decrement of the economy of the Country.	Analysis of the available data of historical and the current economy of the Country.
Forecasted changes in the country’s GDP.	To make some trustable shareholders and customers.
The employment rate of the country	Analysis of the staff and optimize their abundance.

• Social Factors

Factors	Risk treatment as applicable
Changing requirements of the customers and customer of the competitor companies	Execution of the survey at the ground level in the country to know the current and future requirements of the customers.
Impact of the rate of population growth on the number of customers.	Formation of strategies for operations and production to handle the future demands of the customers.

• Technological Factors

Factor	Risk treatment as applicable
Forecasted technological changes by the scientist in the world.	Keeping 100% awareness on terms of technological advancements in the world.
Best technology currently in practice.	Regular scrutinization of the available technology in the world.

• Legal Factors

Factor	Risk treatment as applicable
Government policies for the customers and the authenticity of the products.	Analysis of the legal authentic requirements of the products.
Policies followed by the competitor companies	Unobtrusive analysis of the policies followed by the competitors in the industry.

• Environmental factors

Factor	Risk treatment as applicable
Awareness among the customers and the government of the environment.	Analysis of the government rules and regulations regarding the environmental impact of the organization.
Practices of the competitors for the minimization of the wastage.	Unobtrusive analysis of the practices followed by the competitors in the environmental aspect of the operations (Rabechini Junior, 2013).

• Risks

Risk	Treatment
Budget and availability of the funding bodies for the organization.	Analysis of the capital requirements of the company and raising the number of funds for the organization.
Changes in market demands.	Keep numerous strategies for operations and organizational learning strategies.
Policy changes of the government for business and its expansion	Keep the legal department of the company aware of the government policies and forecast the changes at a personal level.
Changes in the human resource department in order to hire new candidates	Internal training of the employees to develop competence in case of changes in human resources.
Technological issues in any	To assure the inventory regarding the technical requirements of the company.

Internal and external stakeholder analysis

Internal stakeholders

1. Board of directors– The board of directors is responsible for all the crucial decisions that are made for the operation being conducted in a company.
2. Operations department– This refers to the employees who are involved in the manufacture of the products and their supplies, and also the managerial position employees who supervise the operations (Gitau, 2015). 
3. Sales department– Sales department consists of employees who are assigned to the sales of the product. Distributors, suppliers, and salesmen are in this department.

External stakeholders

1. Promotional bodies– This includes media, advertisers, and people who work with the organization to endorse the product.
2. Customers– The most considerable and pivotal stakeholders are the customers of the organization; they are responsible for the revenue generation of the organization.  
3. Funding bodies for the organisation-Funding bodies are the investors and special bodies that provide the capital to the organization to perform its operations.

Strength and Weaknesses

Weakness- Incompetent staff and training department.

Strength- Vision oriented company

Cost– $2200000

Profit– $500000

Inventory-$800000

Competition– Other leading skincare products companies that manufacture chemical-based products.

Marketing– Marketing department of the company

Critical Success Factors–

Goal– To involve risk management practices integrally within the organization.

Objectives–

1. Add risk management in the regular operations of the company.  
2. To make sure that risk management is being implemented throughout the company. 

Critical success factors

1. Decisions made by the board of directors of the company regarding the implementation of risk management analysis in the company. 
2. Awareness of the significance of the risk management analysis among the existing employees of the company. 
3. Competency of the training department. 

• Send an email to the CEO (your assessor).

To

The Assessor 

NatureCare Products Organisation

This email is regarding the risk management analysis that is being performed for the expansion of the business of the NaturCare products through the opening of the retail outlets of the company in Brisbane, Melbourne, and Sydney. A proper risk briefing report has been prepared and the same has been attached to the email. Kindly go through it and approve if it is found to be pertinent.

Regards

Operation manager.

• Send an email to your team (your assessor).

To

The Assessor

NatureCare Products

Subject- Invitation to the meeting

This email is regarding the expansion of the business of NatureCare Products with the help of opening new retail outlets in Brisbane, Sydney, and Melbourne. For the establishment of these new outlets, a thorough risk management analysis is supposed to be done. A meeting will be conducted on 15th September 2020 at 01;00 pm in the meeting hall of the company, you all are invited to attend the meeting. 

Regards

Operation manager

• Conduct team meeting.

Date- 15th September 2020

Time- 01:00 pm

Place- Meeting hall

Attendees- Operations manager, assessor, and teammates.

Agenda- Risk management analysis for the business expansion of NatureCare Products. 

In the meeting for the risk management analysis of the business expansion of the company NatureCare Products, a number of risks were discussed. Less number of funding bodies and greenness of the existing staff in terms of production and manufacture, incompetency of the training department, and employees working in the manufacturing department are some of the biggest issues which were discussed in the meeting. Some conclusions were made that with the help of existing funding bodies new trainers will be hired and when the competency of the employees will be increased, new funding bodies will be approached. 

• Develop a Risk Management Plan.

Risk management plan

Scope of assessment:			Current and Future operations of the company
Critical success factors:			Awareness among the employees, training department, and the Board of directors
Internal & external stakeholders:			Board of directors, operations department, sales department, funding bodies, customers, and promotional bodies
Risk	Consequences	Severity Rating	Likelihood Rating	Treatment or control methods	Priority rating (high, medium, or low) Order of priority
Incompetency of the existing employees	Poor manufacture	5		Proper training	High
Incompetency of the training department	Poor knowledge of the employees	5	2	The hiring of good trainers	High
Less number of funding bodies	Inadequate production (Bosetti, 2015)	5	2	Approach new funding bodies	medium

• Send an email to the CEO (your assessor).

To

The Assessor

NatureCare Products

This email is regarding the risk management analysis done for the expansion of the company. Training department and employees’ competency and fewer funds are the major risks. The risk management plan has been attached to the email.

Regards

Operations manager

ASSESSMENT-3

• Write a report on staff training options

After reviewing the case study, some conclusions have been made that on and off-job training for the customer service representatives will be done. A report for the same is mentioned below.

Report for training

Profile– Customer service representatives.

Training options

1. On the job training– This kind of training will be done by the customer service representatives simultaneously with their job roles. This will include

1. Swapping of the job profiles
2. Edification about the job responsibility. 
3. Coaching 

• Off job training- This kind of training will be done by the customer service representatives separately form their jobs.

1. Situational training
2. Quizzes 
3. Grid training (Raz & Hillson, 2005)

On the Job Training
	Name of the Training	Outcome	Location	Cost	Duration
a)	Swapping the job profiles	Leads to the diversity of the knowledge	Room 5	$ 40	Once a month
b)	Edification about the job responsibility.	Increment of the competency	Room 3	$ 30	Once a week
c)	Coaching	Honed skillset	Room 2	$ 30	Once a week
Off the Job Training
	Name of the Training	Outcome	Location	Cost	Duration
a)	Situational training	Increases thought process	Room 4	$ 30	Once a week
b)	Quizzes	Leads to greater knowledge (ALBANIA, 2017)	Room 6	$ 30	Once a week
c)	Grid training	High customer satisfaction	Room 7	$ 30	Once a month

• Undertake an inspection of head office.

Environmental Sustainability and Record of usage of resources.

Areas of RTO & practices reviewed	Description
Use of consumables/ materials/ technology/ equipment  Equipment identification On and off switches Usage of sleep mode by the staff  How the usage of energy is being minimized.	Equipment used Systems VoIP phones Lights Energy usage No switches left on Proper use of sleep mode
Energy usage e.g. water, electricity gas How is the energy used daily? What things/tasks use up the most energy?  Are switches left on overnight/weekend?  Are staff using energy sensibly?  What practices are in place to support effective energy use?	Energy usage by systems and LEDs. Most consumption is done by computers No switches left on. Proper utilization of energy by the staff
Waste Describe workplace waste. How is it disposed of?  Are staff conscious of waste management practices e.g. recycling, reuse, disposal?	Waste of machinery after manufacture. It is disposed of with trucks to the disposal places. The staff of the RTO in conscious about waste management.

• Develop a customer questionnaire.

Questions	1	2	3	4	5	6	7	8	9	10
What is your rating about our products?
Rate our services
The rate in terms of value for money
Rate the accessibility of our website
Rate the life span of our products
Rate the services provided at retail stores
Rate the eco-friendliness of our products
Rate our staff behavior

• Send an email to the CEO (your assessor).

To 

The Assessor

NatureCare Products

This email is to inform you that the staff training report and questionnaire for the customers have been prepared, the same has been attached to the email. Kindly approve.

Regards

Operation manager

• Write a risk monitoring report.

The purpose of the Report:

The purpose of this report is to review the following documents –

• Sustainability report
• Staff survey results memo
• Sales data analysis memo
• Customer survey results memo, and 
• Performance review results memo

The risk Controls identified:

• Improper reviews of the performance.
• Issues in training. 
• Improper communication
• Workload
• Redundancy in unimportant issues

Review of Customer Survey Results Memo

1. Satisfaction 

58customers- completely satisfied, 8 customers- dissatisfied and 1 customer- indignant 

1. Easement of business 

1. customers- completely satisfied, 10 customers- dissatisfied and 8 customers- indignant

1. The behaviour of staff and manager

42 customers- completely satisfied, 12 customers- dissatisfied and 3 customers- indignant 

1.  Customer with the interest shown in buying products again

63 customers- completely satisfied, 10 customers- dissatisfied, and 2 customer- indignant

A review of Sales Data memo

16 % increment in sales

Review of Staff Survey Results Memo 

• Unenthusiastic staff
• Lack of track records

Review of Performance Review Results Memo

• Adaptation in a new environment
• Proper co-operation (Lai, 2014).

1. Send an email to the CEO (your assessor). 

To

The Assessor

NatureCare Products

This email is to inform you that risk monitoring report has been prepared and the same has been attached to the email.

Regard

Operation manager.

ASSESSMENT-4

• Develop a risk management evaluation report 

• Evaluate the overall risk management process. 

• Was it easy or difficult to identify risks?

Certainly, it was easy.

• Was staff input (at the meeting) helpful?

All members of the staff contributed wonderful suggestions. 

• How confident are you that all the risks have been identified?

I am completely confident. 

• Consider whether the process indicated in the NatureCare Products’ current Risk Management Policy and Procedures is sufficient to guide the risk management process used for the business expansion project. Explain why or why not. 

Since the risk management policy of NatutreCare Products resonates with AS/NZS ISO31000:2009 Risk Management Principles and Guidance, I found it sufficient for the business expansion. 

As I have reviewed the risk management policy and procedures, I found them sufficient for the business expansion. As they are well executed and they are also consistent with AS/NZS ISO31000:2009 Risk Management Principles and Guidance (Etges, et. al., 2017).

• Explain whether the principles of risk management in the NatureCare Products risk management policy and the procedure is consistent with AS/NZS ISO31000:2009 Risk Management Principles and Guidance.

Yes, the risk management in NatureCare Products risk management policy and the procedure is consistent with AS/NZS ISO31000:2009 Risk Management Principles and Guidance as it contains all the parameters as set out in this standard.

• What changes would you recommend to the risk management process?

Some training policies should be added to the existing policies.

• Take a screen shot of all of your folder and files.

• Send an email to your assessor.

To

The 

Accessor

NatureCare Products

Subject- Submission of the Risk Evaluation Report.

This email is to inform you that the Risk Evaluation Report has been prepared and its screenshot has been taken, both of them have been attached with the email. Kindly check

Regards

Operations manager

References

Albania, k. (2017). Analysis of international risk management standards (advantages and disadvantages). European Journal of Research and Reflection in Management Sciences Vol, 5(3).

Asadi, Z. (2015). An investigation of risk management strategies in projects. Marketing and Branding Research, 2, 89-100.

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their foundation. European Journal of Operational Research, 253(1), 1-13.

Bosetti, L. Risk Management Standards in Global Markets. December 2015

Gitau, L. M. (2015). The effects of risk management at project planning phase on performance of construction projects in Rwanda. Jomo Kenyatta University of Agriculture and Technology, 1-76.

Lai, F. W. (2014). A conceptual framework for enterprise risk management performance measure through economic value added.

Rabechini Junior, R., & Monteiro de Carvalho, M. (2013). Understanding the impact of project risk management on project performance: An empirical study. Journal of technology management & innovation, 8, 6-6.

Raz, T., & Hillson, D. (2005). A comparative review of risk management standards. Risk Management, 7(4), 53-66.