BSBRSK501 Manage Risk Formative Assessment

BSBRSK501 Manage Risk Formative Assessment

Activity 1

This is a Diploma level unit. At this level there is an expectation that you can extrapolate answers to the questions from the text, other readings and independent research.

1

In a short sentence for each, explain the meaning of these terms:

a.      Risk.

b.      Risk management.

c.       Risk appetite.

d.      Risk capacity.

2

Why should risk management policies and procedures be periodically reviewed? (100 words)

Activity 2

·         Scenario:

You work for Australia Wide Taxations Solutions—a company of 1,500 employees offering taxation services in different cities across the country. The company offers five services: personal taxation, small business taxation, corporate services, personal wealth creation and corporate asset management.

It is working in a highly regulated and legislated industry.

You have been asked to work with the team conducting a risk assessment for the entire organisation.

How will you identify the risk management scope—what things do you need to look at? What challenges does a scope of this size pose and how would you approach the risk assessment process? (350–400 words)

Activity 3

·         Who are an organisation’s stakeholders and why should they and their issues be identified? (300–350 words)

Activity 4

·         When considering organisational risk it is important to review the political, economic, social, legal, technological, and policy context. Comment on the influence/ impact each of those factors has on an organisation’s risk profile—the risk scope and context. (500–700 words)

Activity 5

·         Why is it necessary to review existing risk management arrangements and standards?

Activity 6

·         Scenario:

Nautilus Boat Hire is a small family-owned and operated business. It operates from a marina at the mouth of a major river and has been operating for five years.

The business is based on:

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

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

o    hire of fishing gear

o    sale of bait and scuba tank refills

The business is considering an expansion that will include purchase of three houseboats for hire to families and groups of young adults.

They recently conducted a survey revealing 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, the company identified the following risks to the new business offerings:

5.      people who are not strong swimmers, especially children, drowning

6.      houseboats getting lost and/or driven on to sandbars

7.      clients finding the houseboats difficult to control—resulting in damage to the houseboat and/or land structures when, for example, mooring

8.      clients being sunburned and dehydrated on hot, sunny days

Using the information provided, describe the goals, objectives and targets that Nautilus Boat Hire should include in their risk management plan. These are the critical success factors relevant to the safety of the new operation. (A total of 350–370 words)

Activity 7

·         How can support for risk management policies and procedures be encouraged? What skills might be used when garnering support and with whom should you communicate the risk management intentions? (230–250 words)

Activity 8

·         1

The organisation for which you work is planning an extension to the premises and an increase in staff numbers with a view to expanding into new markets. You have been asked to conduct research that will identify any risks or contingency requirements for the department that you head. What parties might be invited to assist with the risk identification and what contribution could they make? (150–170 words)

·         2

Why should employees be invited to participate in risk management consultations? (150–170 words)

Why should employees be invited to participate in risk management consultations? (150–170 words)

·         3

What is the danger of attempting to manage risks without properly researching them? (30–40 words)

·         4

List 12 aspects of risk that might contribute to new research processes.

Activity 9

·         1

A number of tools can be used to collect risk related information and data ready for analysis. List eight.

·         2

From your list select two methods. Explain what they are and how they work. (Approx. 200 words each)

Activity 10

·         1

Plotting business risks on a risk matrix is recommended. What are the benefits of doing this? (80–100 words)

·         2

List four questions that might be asked when assessing and prioritising risks.

·         3

How does categorising risk help? List four benefits of categorising risk.

·         4

List six factors that might contribute to financial risk.

Activity 11

·         1

A number of different risk treatments will be applied depending on the industry in which an organisation operates its structure and the risks it faces. Explain what risk treatment is and the categories of risk treatment options that could be applied. (130–150 words)

·         2

Under what circumstances might it be appropriate to accept risks, without applying controls? (70–80 words)

·         3

Insurance is valuable and necessary, but why is it not a real risk control? (70–80 words)

Activity 12

·         1

Why are risk management plans necessary? (220–250 words)

Risk management plans should be accompanied by action plans. What information is contained in an action plan? (50–60 words)

Activity 13

·         1

List six methods that could be used to communicate risk management plans to relevant parties.

·         2

The senior accountant at Abacus Accounting, a small accountancy firm, has their laptop stolen from an interstate restaurant where they were conducting a dinner meeting with clients. The laptop contains nearly four weeks of data that has not been backed up to the main server. This is a significant loss. In addition, the accountant is now without use of a laptop and still has much client work to conduct.

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

Abacus Accounting decides to develop a risk management plan that will mitigate or minimise such losses in the future.

Amongst other things, the plan contains details of:

o    protocols for safeguarding laptops whilst travelling

o    protocols for backing up data

o    procedures for updating the asset register with laptop warranty and insurance details

o    procedures for reporting the loss of the laptop and how to

o    practices to follow in order to expedite replacement

To whom should the plan be communicated and what communication procedures would be effective? (100–120 words)

Activity 14

·         Why should risk management data and plans be documented and appropriately stored?

Activity 15

·         It is important to monitor and evaluate an action plan once it has moved into its implementation phase. How does monitoring and evaluation help and what sorts of things might come under scrutiny? (200 words)

Activity 16

·         1

Explain who should be involved in the evaluation of risk management treatments. (30–40 words)

·         2

Sometimes external auditors can be called in to evaluate risk management plans and strategies. What are three advantages of using external auditors?