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Task summary For this task you are required to review the risk context of the organisation and conduct research; and then develop a briefing report for the CEO and shareholders of an organisation. Resources and equipment required to complete this task Access to textbooks and other learning materials. Computer and Microsoft Office (or similar program). Assessment Cover Sheet Assessment Task 1 Cover Sheet BSBRSK 501.docx Preview the document Access to the internet for research and to access publications about risk management standards such as: Links to an external site.

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Risk Management Policy and Procedure

(BSBRSK 501 SD Risk Management Policy and Procedure (ID 99163).docx Preview the document). When should the task be completed? Your assessor will provide you with the due date for this assessment. What needs to be submitted? Upload an Email to CEO with risk management briefing report attached. Instructions You are the Operations Manager of a medium-sized Australian company, Nature Care Products, based in Brisbane. The company commenced business in 1996 and manufactures Eco-friendly, high quality beauty skincare products. The business was established to cater for a growing demand for skin products that contain Eco-friendly and natural ingredients. There is also an emphasis on Eco-friendly packaging. The company sells its products in health food shops across the country, as well as online through its own website. The company targets customers that want high quality, Eco-friendly products. Market research has identified that around 70% of customers are professional women aged 25 – 55. Strategic priorities focus on business diversification and growth, specifically to increase market share by 10% and to expand the existing product range to attract more customers. At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail outlets. The CEO has asked you to investigate this by undertaking a risk analysis on establishing a chain of retail outlets. The idea is to initially set up a retail outlet in central Sydney, Brisbane and Melbourne. The CEO and shareholders are keen to get the business expansion started as soon as possible so you need to get your risk management plan in place immediately. Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above. The company currently has a risk management policy and procedure in place that incorporates the AS/NZS ISO 31000:2009.

Risk Management Principles and Guidelines

Review the risk context and conduct research. Review the case study information provided to you to determine the scope of the risk management process required, as well as the company’s risk management policy and procedure and information on risk management standards. Make notes for use in your report that address: Legislative and regulatory context of the organisation in relation to risk management. Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process. An analysis of the strengths and weaknesses of the company’s existing retail approach namely, online and through health food shops. Analysis of critical success factors, goals or objectives for the business expansion project. Following, this you are required to conduct a PESTLE analysis for Nature Care Products in order to identify key factors that impact on the business environment in which the company operates and their relevance in identifying risks. Make notes for use in your report. When you have completed your PESTLE analysis, you will be ready to write an initial report for the CEO as outlined in the next activity. Develop a risk briefing report. This part of the assessment task requires you to develop an initial report for the CEO about the risk management project and processes and to seek approval to proceed. Your report should address: Introduction, including scope of the risk management process and an outline of the risk management process as per the organisation’s policy and procedure, as well as how the organisation’s process aligns with the risk management standards as identified in the link provided to you. It must also include any legislative and regulatory context of the organisation in relation to risk management that you have identified in your research. PESTLE analysis identifying the key factors that impact on the environment in which Nature Care Products operates and their relevance to the risk management process. Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process. An analysis of the strengths and weaknesses of the company’s existing retail approach namely, online and through health food shops. Analysis of critical success factors, goals or objectives for the business expansion project. When you have completed your report, send it to the CEO (your assessor) via email (upload your email to Canvas). In the email you should provide a brief overview of the risk management project and seek approval to proceed with the process. Your assessor will send you an email in the role of the CEO providing you with feedback and approval to proceed. Consider any feedback provided to you by the CEO in the next part of the assessment.

Nature Care Products Risk Management Policy and Procedure

1. Purpose

To provide information and guidance on Risk Management.

2. Scope

This Policy applies to all Nature Care Products employees.  The policy extends to all current and future activities, and new opportunities.

3. Recognition of the need for risk management

Nature Care Products recognizes the need for risk management to feature as a consideration in strategic and operational planning, day-to-day management and decision making at all levels in the organisation.

4. Risk Management Principles

The following principles form the foundation of the Nature Care Products Risk Management Policy and Procedures.

• A commitment to implement risk management effectively:

Nature Care Products is committed to managing and minimizing risk by identifying, analyzing, evaluating and treating exposures that may impact on the Nature Care Products achieving its objectives and/or the continued efficiency and effectiveness of its operations. Nature Care Products will incorporate risk management into its planning and decision-making processes. Risk management must also be included as a consideration in operational planning as a delegated line management responsibility. Nature Care Products staff must implement risk management according to relevant legislative requirements and appropriate risk management standards.

• A commitment to training and knowledge development in the area of risk management:

Nature Care Products is committed to ensuring that all staff, particularly those with management, advisory and decision making responsibilities, obtain a sound understanding of the principles of risk management and the requisite skills to implement risk management effectively.

• A commitment to monitor performance and review progress in risk management:

Nature Care Products will regularly monitor and review the progress being made in developing an appropriate culture of risk management and the effective implementation of risk management strategies throughout the organisation as a basis for continuous improvement.

5. Responsibility for Risk Management

Risk must first and foremost be managed at the corporate level as part of the Nature Care Products good governance and corporate management processes. Risk management is considered an integral part of all management and decision-making functions within Nature Care Products. The responsibility for the identification of risk and the implementation of control strategies and follow up remains a delegated line management responsibility. All stakeholders have a significant role in the management of risk. This role may range from initially identifying and reporting risks associated with their own jobs to participation in the risk management process.

6. Objectives of and Rationale for Risk Management
7. Nature Care Products in its need for risk management, aims to:

• integrate risk management into the management culture of the Nature Care Products; and
• foster an environment where staff assume responsibility for managing risks.

1. To secure its commitment to implement risk management effectively, Nature Care Products aims to:

• implement risk management across all aspects of Nature Care Products in accordance with best practice guidelines.

1. To secure its commitment to training and knowledge development in the area of risk management, Nature Care Products aims to:

• ensure that performance in risk management is a consideration in the Nature Care Products ‘s performance management systems; and
• ensure that staff and other stakeholders have access to appropriate information, training and other development opportunities in the area of risk management.

1. To secure its commitment to monitoring performance and reviewing progress, Nature Care Products aims to:

• ensure that appropriate monitoring, review and reporting processes are in place in the area of risk management.

1. The objectives of risk management are to:

• provide a structured basis for strategic, tactical and operational planning across Nature Care Products;
• enhance Nature Care Products’ governance and corporate management processes;
• enable Nature Care Products to effectively discharge its statutory and legislative financial management responsibilities;
• provide a practical framework for managers to assess risks inherent in the decisions they take;
• assist and motivate decision makers, at all levels, to make good and proactive management decisions that do not expose Nature Care Products to unacceptable levels of risk of unfavorable events occurring which adversely impact on the attainment of organisational goals; encourage and commit decision makers to identify sound business opportunities that will benefit Nature Care Products without exposing the company to unacceptable levels of risk;
• minimize the risks of not identifying sound business opportunities;
• protect Nature Care Products from unacceptable costs or losses associated with its operations;
• safeguarding of Nature Care Products ‘s resources – its people, finance, property and reputation;
• assist Nature Care Products in achieving its strategic objectives; and
• create an environment where all staff assume responsibility for risk management

7. Procedures

Whole of Organisation Risk Management Process

Risk must first and foremost be managed at the corporate level as part of Nature Care Products’ good governance and corporate management processes. This process, coordinated and facilitated by the CEO will involve the following key steps:

• an annual risk identification exercise undertaken by the CEO which involves assessment of the consequence and likelihood of risk, the development and/or review of individual risk management plans for the risks identified which exceed the Nature Care Products ‘s defined acceptable risks;
• wherever practicable the inclusion of a Risk Management Assessment for all business activities;
• the incorporation of risk management into strategic planning, and operational and resource management planning processes;
• ensure risk management processes are incorporated into the quality assurance and improvement systems of Nature Care Products;
• • clearly define and document escalation procedures for risk management;
  • ensure a consistency in approach of responses to the same risk by different sections of NatureCare Products;
  • document all risks with a potentially high impact, as assessed on the basis of their likely occurrence or impact; and
  • test documented risk management procedures at appropriate intervals.

  Risk Management as a Delegated Line Management Responsibility

  Risk management is a delegated line management responsibility. It is the responsibility of all line managers to continually monitor their areas of responsibility to ensure that risks are identified and managed. Line managers should ensure that a contribution is made to NatureCare Products risk management process, on behalf of their areas of responsibility, that identifies risks at all levels.

  The sharing of documented responses to risks and knowledge of risk management principles and procedures will be fostered between line managers to ensure consistency across the NatureCare Products.

  On an annual basis, line managers should review all activities to ensure that any unacceptable risk exposures are identified and managed at an appropriate level. All operational sections will be required to report on risk management as part of the NatureCare Products’ annual operational and resource management process.

  Individual

  Each employee or other stakeholder throughout NatureCare Products has a role in the risk management process and is responsible for actively participating in the risk management process as appropriate to their position within the company.

  Management of Risks Associated with New Opportunities

  In addition to the risks that already exist, NatureCare Products is continually exposed to new risks particularly from the introduction of new activities. The new risks should be incorporated into the initial planning and assessment processes conducted prior to undertaking the activity and, subsequently, into the annual risk management assessment at the appropriate level(s) of activity and management.  A risk management plan must be developed.

  Principles to be applied

  The principles of risk management shall be applied to all areas of risk exposure, insurable and non-insurable, and shall include, but not be limited to the following areas:

Review

The CEO will regularly monitor and review the progress being made in developing an appropriate culture of risk management and the effective implementation of risk management strategies throughout the organisation.

Guidance on Acceptable Risk

Through its monitoring, review and reporting functions, the CEO will ensure that NatureCare Products maintains a consistent approach to its assessment of acceptable risk.

Documentation

Each stage of the risk management process shall be appropriately documented. The extent of documentation required is dependent on the nature of the risk. Documentation will be controlled so as to inform part of an auditable quality management process.

Compliance

A representation and compliance statement should be provided by each manager as formal acknowledgement of their responsibility to comply with risk management policies and procedures. Each employee should have included in his/her Position Description a responsibility for risk management, and Annual Performance Appraisals should include an appropriate assessment thereof.

Staff Development

Management shall ensure that staff have available to them appropriate information and training opportunities in risk management as appropriate to their position and role within NatureCare Products.