BSBRSK501 Manage risk Activities

SECTION 1: ESTABLISH RISK CONTEXT

Activity 1

1. Create your own definitions for the following terms:

a. Risk.

__Risk is the likelihood that a firm a firm may accrue lower than the expected profits or encounter a loss. A risk in a business is influenced by several factors which include the volume of sales, the unit price, the costs of input, competition and the general business environment and the government legislations.___

b. Risk appetite.

_Risk appetite is the rate at which a firm is ready to accept in the pursuit of the business objectives and prior to the action being regarded as imperative to lower the risk. Risk appetite constitutes of the balance between likely benefits f the innovation and the threats that the change naturally causes. ___

c. Risk capacity.

__Risk capacity allude to the extreme magnitude of the risk which a firm is in a position to withstand.____

Activity 2

2. Imagine that you work for Australia Wide Taxations Solutions – a company of 1500 employees offering taxation services across the country. The company is divided into 5 divisions: personal taxation, small business taxation, corporate services, personal wealth creation and corporate asset management. It is a highly regulated industry and there are many laws that must be adhered to.

You have been asked to undertake a risk management process for the entire organisation. What advantages, difficulties and challenges does a scope of this size pose? How else might you approach the management of risk at Australia Wide Taxations Solutions?

_Advantages: It will be a holistic process.

Disadvantages: It will need substantial resources to carry it it out efficiently, moreso i the level of risk management is substantial and includes many activities across the selection, many regulations and strategies as well as considering disperties in country, state and region. Scope of a risk management strategy entirely represent the firm, its activities and the risk profile. It may also ndicatess the following: the past history, understanding as well as the experience of the ris management held by the senir management, the available resources, the external environment factors.___

Activity 3

3. Why is it advantageous to consider stakeholders’ issues throughout the risk management process design?

_The stakeholders in a management , may present their ideas, the energy, their skills, identify risks and may act to effectively handle the risks.____

Activity 4

4. Comment on the influence/ impact each of the following factors has on an organisation’s risk profile:

o Political – By legal and regulatory adjustments, the political unrest, contract issues and corruption.

o Economic – By flourishing or declining of economic and the interest rates.

o Social – through migration, population aging and the trends in the society.

o Legal – through legal changes, the code of exercise and the guidelines.

o Technological – through advancements in technology, and the strengths and weaknesses of a consumer’s existing plans

o Policy – by business activities and the related threats.

____

Activity 5

5. Conduct a Swot Analysis for the current risk management practices of an organisation with which you are familiar (or research an organization online).

SWOT analysis

Name of organisation: Visy Industries Holdings (Truck company)

Brief description of core function of the organisation:

___In my view, the above analysis is adequate and precise enoughsince the objectives of the aforementioned company is to develop in shipment market and offer customer satisfaction by offering deliveries in due time and offering a favourable cost. F the business weaknesses and the threats are established, the business can be determined to change them into opportunities_and strengths.______________________

Activity 6

6. Nautilus Boat Hire is a small business which is family-owned and operated. It is located in a marina at the mouth of a major river and has been operating for 5 years.

The business is based on:

hire of 8 aluminium runabouts (tinnies) to youth groups, anglers and tourists

hire of 2 deep-sea vessels to serious anglers and scuba divers

hire of fishing gear

sale of bait and scuba tank refills

Nautilus Boat Hire is researching whether to expand the business offerings to include hire of 3 houseboats to families and groups of young adults. A survey that they recently conducted revealed 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, Nautilus Boat Hire determined the following risks to the new business offerings:

people who are not strong swimmers, especially children, drowning

houseboat clients getting lost and/or stuck on sandbanks

clients finding the houseboats very difficult to control in high winds – resulting in damage to the houseboat and/or land structures

clients being sunburned and dehydrated on hot, sunny days

clients making a lot of noise when moored and residents complaining

Using the information that you have been provided, recommend the goals and objectives of managing these risks that Nautilus Boat Hire could adopt.

_The firm have to develop clear goals and which can be achieved since the failure to will result to the business employees losing the direction and will not have anything to aim for. In a business, goals acts as a reference point and serves as a need for something to be done. I this instance, there is need for us to change the weaknesses into to strengths as well as turn the threats into opportunities and the manner in which to adopt this has to be clear and legible as well as be in metrcs.___________Nautilus Boart Hire can embrace the following methods in order to manage risks: give life jackets to all of the boat crews, give a service guide in all boat trips, enhance a different boat organization to ease navigation or else acquire other new boats which are simple to use, create awareness of a likelihood of noise pollution as well as give everyone who boards a boat a brochure outlining the use of the protective sun cream. All of the above measures would aid the business to develop, manage the threats as well as attain the business goals.________

Activity 7

7. Getting people on board and keeping them engaged is a key part of managing risk. Explain, in your own words, the importance of getting support for risk management plans and processes.

__Getting help for risk management strategies and processes is crucial in a business since if individuals are not conscious of the results of failing to manage a risk, they may perceive the process as command that withdraws them from executing their duties._____

Activity 8

8. Imagine that you have been asked to oversee the management of risk for your team/ department at work.

Identify the key stakeholders that you will need to communicate with. For each of them describe:

• their interests
• the primary and secondary communication methods that you will use with them
• the key messages appropriate to them
• the contributions that you can expect from them

Use the template provided below:

_

SECTION 2: IDENTIFY RISKS

Activity 9 Case Study

9. Read the case study below and complete the table provided.

Security ‘R’ Us is a small security provision service company operating in an older part of the western suburbs. Security ‘R’ Us have recently moved to new work premises due to expansion in their business.

The activities carried out by Security ‘R’ Us include, providing:

security guards at banks, hospitals and the local university

armed guards for valuables, transport escorts

security patrols to many industrial premises and schools in the greater metropolitan area

With the move came the need for modification to the new workplace. The building had been constructed some 90 years ago. The asbestos register indicated that there is a significant amount of asbestos still in situ.

In considering how to best manage the refurbishment project, the managing director is considering using a contract maintenance team to make modifications to the building, which requires removing 2 walls and part of the floor.

Works will be carried out during normal working hours, with approximately half of the workforce including guards, administrative staff and the management team likely to be exposed to significant dusts that will be created during the works from drilling, sawing, manual dusting and sweeping.

Identify the people at Security ‘R’ Us who should be consulted or involved in identifying the risks involved in the relocation and the reasons for their involvement. Suggest appropriate mechanisms for their involvement.

____

Activity 10

10. What is the danger of attempting to manage risks without researching them?

Risk is probabilistic results that interface with every last movement and occasion. These dangers might happen or may not be happen after total of an undertaking. All the past and current information gives some probabilistic hazards that can be control through present and execute of appropriate arrangement. Research hones give the total data about the exercises that required key strides to finish inside time and with exactness. To investigate the dangers and to control those risks in proper way required abnormal state and dealt with look into.

Not explore the hazard may have the outcome that we know is that peril, degree and how to control it. The hazard must be completely analyzed all together that it can be valued, its potential effect evaluated and the most fitting system to regulate it saw. Without research will influence packs of inconveniences to deal with the hazards that are as following:

- Unable to see the dangers connect with the specific undertaking.

- Challenges to execute the blueprint with dangers free.

- Unable to pass on the work inside social occasion to decreasing and most distant point the dangers.

- Probability of dangers will be high.

- Challenges and criticality will be growth for connection___

11. List at least 8 factors that should be included in the research of any given risk.

- Source of the hazard

- Extent of the hazard (Where, when, why, how could chance happen)

- Associated factors

- History

- Past impact

- Potential impact

- Implications on other saw hazard

- Implications on contenders and associates

- Impact on objectives

- Current controls

- factors that could impact controls to come up short____

Activity 11

12. Prepare a flowchart showing the various steps involved in the process detailed below. Use flowchart symbols. Your flowchart can run horizontally or vertically.

Process name: Determining the best way home.

Background information: There are several routes that Kane can take to get from his office to his home. His choice of which way to go is influenced by the amount of congestion, the time of day and the weather.

If the weather is clear, it is before 5 pm and, after checking the road reports, his primary route is not congested, Kane goes that way. If the road report says the traffic is bad, he takes alternate Route B.

If the weather is bad or if the weather is fine but it is past 5 pm, Kane knows his primary route will be congested so he automatically takes alternate Route A home.

_____

SECTION 3: ANALYSE RISKS

Activity 12

13. Using the guide that is provided below, rank the risks that have been identified for the Nautilus Boat Hire company’s houseboat project (from activity 6.)

The risks have been identified as:

people who are not strong swimmers, especially children, drowning

houseboat clients getting lost and/or stuck on sandbanks

clients finding the houseboats very difficult to control in high winds – resulting in damage to the houseboat and/or land structures

clients being sunburned and dehydrated on hot, sunny days

clients making a lot of noise when moored and residents complaining

_____

Activity 13

14. Plotting your business risks on a risk matrix is widely recommended. What are the benefits of doing this?

___ Plotting threats on a system empowered the organization to see each one of the perils that can happen association. Besides, it makes the organization gathering and describe perils depending upon they impact, criticalness and gravity. Plotting perils, is used in the midst of Risk Assessment as it is a direct instrument to grow detectable quality of threats and help organization essential authority. The probability of harm happening might be organized as 'Certain', 'Believable', 'Possible', 'Unrealistic' and 'Extraordinary'. In any case it must be seen as that low probabilities may not be outstandingly strong.

____

_____

Activity 14

15. Using the severity and likelihood matrix that you created for Nautilus Boat Hire, list the risks in priority order and give reasons for your rankings.

The people who are unable to swim drowning. This will give a negative impression to both the business and customer.. This situation may lead to the business closure.

Customers making so much noise and getting complaints from the residents. This were create a negative implication for the business. This may lead to closure of the business due noise pollution.

The boat users getting lost or being stuck in the banks. This create a negative image for the business.

Customers finding that the boat is not usable in bad weather leading to its damage. This will craete a bad picture of the business.

Customers getting scorched by the sun on a hot day. This is likely to happen but the effect is negligible_______________________________

SECTION 4: SELECT AND IMPLEMENT TREATMENTS

Activity 15

16. In your own words, describe what the ALARP principle means and give an example of it in practice.

_Applying control measures to a risk may lower the threat to a tolerable level. Given that employees in a chemical firm adopts effective protective gear, the threat of a physical damage by chemicals will be lower as compared to when protective clothes are not worn._______

__

Activity 16

17. Risk management is an integral part of any planning process. What sorts of things should risk recovery plans encompass?

__ The prepared cost and the key resources secure the whole relationship to join the thing. To deal with the abuses and in addition to deal with the cash of the relationship, along these lines to spare the time and cash what's more to develop the recuperation setup is the real deal in the recuperation design. (Roe, 2010)

The hazard association is to lessen hazard to a classy level, dismiss unsuitable dangers and exchange various dangers can include:

- Identify potential risk circumstance

- To dissect the estimations of the hazard

- To review the business' ability to change in accordance with and deal with the hazard

Emergency courses of action ought to perceive center issues of:

- The nature or capacity of the probability

- The operational effects of the probability

- The conventional reactions

- The budgetary ramifications of the reactions

- The likely impacts on different strategies in the business______

18. Describe the 3 key components of a solid risk recovery plan.

___ Emergency or crisis administration planning.

It is the point at which an association envisions what may happen in an emergency or crisis, and after that makes arrangements to deal with this for the time being.

- Business coherence planning.

It is the point at which the business moves past the underlying reaction to an emergency or crisis gets ready for recuperation of business forms with negligible interruption.

- Possibility planning.

It can be a mix of the over that can distinguish what ought to be done to limit the effect of a negative outcome on key business forms emerging from a surely based hazard.____________________________________

19. Who should be involved in the design and development of risk recovery plans for a project? Why?

___ There should be the relationship of the wander organization aggregate in the diagram and change of peril recovery prepares for an endeavor and Key accomplices will's character particularly influenced should be locked in with the arrangement and headway of risk recovery outlines since they are the all inclusive community who are in the best position to perceive and explore possibility. External risk authorities could in like manner be incorporated if major____________________________________

20. List 3 areas of risk an organisation can develop a contingency plan for.

___ The domains of peril that the business will develop a crisis game-plan will be established on the confirmation of the rule risks to the business, the arranging of the takeoff outline and besides the correspondences structure.

• health and prosperity
• Information advancement
• Accidents/emergencies____

Activity 17

21. The senior accountant at Abacus Accounting, a small accountancy firm, has his laptop stolen from an interstate restaurant where he was conducting a dinner meeting with clients. The laptop contains nearly 4 weeks of data that had not been backed up. This is a significant loss of a large amount of personal information regarding clients and business opportunities. In addition to this loss, the accountant is now without use of a laptop and still has much client work to conduct.

As a result of this loss, Abacus Accounting undertakes a risk management process and decides to implement an action plan to ensure all identified risks are minimised.

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

Amongst other things, the plan contains details of:

• o protocols for safeguarding laptops whilst travelling
• o protocols for backing up of data
• o procedures for updating the asset register with laptop warranty and insurance details
• o procedures for how to report the loss of the laptop and how to expedite replacement

Explain to whom the action plan, and its associated details, needs to be communicated to and when and how this could be best achieved.

__The action plan must be addressed to all of the stake holders who will have the role of taking an action on them. The action plan must explicitly define what ought to be taken and what need to be abandoned, the responsible person, the due date and the consequences of failing to observe it. The Abacus accounting must explicitly communicate on the risk management plans to staff in the business. It must expound on the measures. The most effective way of realising this is by adopting the two- way communication channel rather than the one way: “Feedback”’. The communication methods are face-to face discussion, email, written manuals and training. _________________________

Activity 18

22. Why should all documentation be in order and appropriately stored?

_____ Documentation is a key piece of any association structure. Risk association documentation passes on benchmarks and administers development. Along these lines, it ought to be accessible, cautious and issued by the general population who have the ace to manage it. Having a well through and through considered and acknowledged documentation structure in any association will guarantee that threat records are done aggregated and store fittingly. Securing documentation is fundamental, what's more major for a business to run easily. Security and protection should be clung to while managing affiliation subtle parts and delegates motivations behind interest. Securing documentation is a methodology of guarding records. There ought to be irrelevant risk of burglary, distortion, scattering and harm to the set away records. You can guarantee this by keeping up the best flourishing reasonable advances and guaranteeing that lone trusted workers have the section to the storeroom. There is insignificant direct taking the time toward build up a hazard easing get ready for a specific occasion in the event that it is recorded wrongly and now one can fine it when required. All aggregating frameworks, paying little personality to whether printed copy or electronic must be unmistakably point by point and got a handle on by enormous representatives____

23. What is the basis for a good documentation storage system?

____ As showed by standards Australia (2001), a document organization system should ensure that records:

- Can be found

- Are once in a while investigated, reevaluated as crucial and asserted for adequacy by skilled and tried and true staff going before being issued

- Current variations of material documentation are open at all regions where exercises central to the reasonable working of the system are performed

- Obsolete records are immediately removed from all motivations behind issue

- Archival records that are held for legitimate or bona fide reasons must be sensibly perceived

These documents might be in any medium as long as they are open, significant and viably fathomed._____

Activity 19

24. Discuss why it is important to monitor an action plan once it has moved into its implementation phase.

An action plan should be tackled with a general gender of a continued improvement of the firm’s performance by an effective risk management. The oversight team should be viewed as a crucial part of the development phase. Oversight provides for a variance against the planned goals for a hasty identification and rectification.

_____

25. Using the review scope and frequency triangle below, give at least 2 examples of activities that could be performed at each level.

Continuous oversight: efficient use of the machinery, the compliance strategy by the workers.

Review: evaluate the economic performance; assess compliance with the internal directives.

Audit: Assess the status of the system, examine the risk plan.

______

Activity 20

26. Discuss the following statement:

‘Audits conducted by external companies are just another academic exercise designed to create employment for consultants.’

__I disagree with the argument since in my own view, the external audits are imperative at times to audit some firms hence they are external firms and hence it is neutral. Select external auditor and try an auditor who has qualifications in one’s organisation’s company, one who has effective skills and has a rich experience and the one who showcase the ability to hastily create a bond with other employees._____