Task summary

• Students need to answer all of the written questions correctly.
• Answers should be provided on a separate sheet of paper with the assessment task number clearly indicated, the students name and each question clearly marked. Answers must be word-processed and sent to the assessor via email.
• As a guide answers will generally be one paragraph or more.

Assessment Task 1 Instructions

Provide answers to all of the questions below:

1. Provide a definition of risk as identified in the Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009).

Risk is the chance of something happening which will have an impact upon objectives. It is measured in terms of consequence and likelihood. Also, risk is defined as the effect of uncertainty on objectives. It is the threat that an event, action or non-action could affect a firm’s ability to achieve its business objectives and execute its strategies successfully. Risk is an inherent component of all business activities and includes positive as well as negative impacts.

Risk management involves the identification, assessment, treatment and ongoing monitoring of the risks and controls impacting a organization. The purpose of risk management is not to avoid or eliminate all risks. It is about making informed decisions regarding risks and having processes in place to effectively manage and respond to risks in pursuit of an organization’s objectives by maximising opportunities and minimising adverse effects.

2. Discuss the concept of risk management.

Risk management enables organisations to identify potential risk situations, analyse the dimensions of the risk and assess the organisation´s capacity to cope with and/or manage that risk.

In fact we all take risks everyday quite lightly. We do things knowingly that there is a risk involved. For example, we know that there is a risk involved in driving a car, or riding a bike, or going on a skiing holiday. We accept the level of risk because in our minds, although the potential consequences can be death or serious injury, we think that if we are careful, the chances of something dreadful happening are very low.

When we evaluate a risk, therefore, we take into account two factors – the probabilityof something happening that we don’t want, and the consequences if it does.

3. Outline at least 5 benefits of risk management.

The benefits of risk management include:

• Minimal disruption from uncontrolled or unexpected events
• Exploitation of opportunities
• Improved performances outcomes due to effective planning and informed decision making.
• Optimal efficiency and economy.
• Improved relationships with stakeholders.
• Improved reputation and protection for directors, managers and staff through effective governance and accountability.

4. Explain the purpose of the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines.

The purpose is to provide generic guidelines on the implementation of risk management plans and frameworks needs of a specific organization, its particular objectives, context and structure. It provides a common approach in support of standards dealing with specific risks and/or sectors.

5. Discuss 2 of the 11 principles of risk management as per the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines.

Creates and protects value: Good risk management contributes to the achievement of an organisation´s objectives through the continuous review of its processes and systems.

Be part of decision making: The process of risk management assists decision makers to make informed choices, identify priorities and select the most appropriate action.

6. Give three examples of potential impacts of risk.

Three potential impacts of risk could be: business interruption, loss of investor confidence or penalties and compensations because of employee issues.

7. Explain the steps for analysing risks.

Identify the risk: It is important to identify what the risk is, using for example data analysis in a risk register.

Analyse the risk: It is about determine how likely each of those risk identified are to happen.

Prioritise the risk: It is important to evaluate the risks to know what resources the organisation is going to assemble towards resolving them.

Assign an Owner to the risk: Identify the person responsible for a risk, identifying it when and if it should occur and then leading the work towards resolving it.

Respond to the risk: It is about decide which plans the organisations has to create to resolve the risk, depending if it’s a positive or negative one.

Monitor the risk: The organisation has to stay updated to have an accurate picture of the project’s overall progress to identify and monitor new risks.

8. Outline three sources of information that you could use to gather information on potential risks.

Brainstorming: Use conversational groups to identify risks for the project from different perspectives.

Delphi Technique: With this technique a group of experts is consulted anonymously about certain queries. Responses and results from the company are sent back to them for further review and advice.

Root Cause Analysis: They are determined for the identified risks. These root causes are further used to identify additional risks.

9. Explain the five options for controlling risk.

The five options for controlling risks are:

1. PPE: Protect the worker with personal protective equipment.
2. Administrative controls: Changing the way that people work.
3. Engineering controls: Isolating people from the hazard.
4. Substitution: Replace the hazard.
5. Elimination: Physically remove the hazard.

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10. Explain five ways in which an organisation can minimise risk.

The five ways to minimise risk are:

1. Identification of the risks earl in the project.
2. Improve communication about risks.
3. Consider opportunities as well as threats when assessing risks.
4. Prioritizing of risks.
5. Fully understand the reason and impact of the risks.

11. Outline three examples of tools or techniques that could be used to identify risks as part of a risk assessment process.

1. SWOTAnalysis 🙁 STRENGTH, WEAKNESS, OPPORTUNITIES AND THREATS), Strengths and weaknesses are identified for the project and thus, risks are determined.
2. Checklist Analysis: The checklist of risk categories is used to come up with additional risks for the project.
3. Risk register: It includes in the historical records that will be used for future projects.

Assessment Task 1 Checklist

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BSBRSK501 Manage Risk Student Assessment Tasks

BSBRSK501 Assessment Task 2: Risk Management Project

BSBRSK501 Assessment Task 3: Risk Management Process Evaluation Report