This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
NatureCare Products
Risk Management Plan
The risk management process will be used by the management team to ensure risk control methods are
included in all organisational planning, management of operations and governance.
Definitions
ISO 35000 is a family of standards relating to risk management codified by the International Organization for
Standardization. ISO 31000:2018 provides principles and generic guidelines on managing risks faced by
organizations
Risk
Opening a chain of retail stores may lead to insufficient liquidity. Insufficient liquidity can easily lead to
difficulties in other work, which in turn has a series of impacts on the company.
Likelihood
50% probability of occurrence
Consequence
First of all, if the opening of chain retail stores is too fast, it will lead to liquidity breaks, and the break of
liquidity will affect the healthy development of the company. By then, not only will the turnover decline, but it
will also lead to the company's other businesses not doing well.
If the chain retail store has achieved remarkable results, it can increase the company's liquidity, enhance the
company's visibility, and steadily increase the company's turnover for a long time.
Risk assessment
Therefore, the risk of opening a chain retail store is mainly due to the stability of liquidity. If there is no
problem with liquidity, it can achieve a 10% increase in turnover and at the same time enhance the
company's image. However, there are problems with joining liquidity, which requires further risk
management.
Risk treatment/control methods
Selection and implementation of appropriate options for dealing with risk.
Conceptually, treatment options will involve one or a combination of the following five strategies:
 Avoid the risk.
 Reduce the likelihood of occurrence.
 Reduce the consequences of occurrence.
 Transfer the risk.
 Retain/accept the risk.
Risk management process
The systematic application of management policies, procedures and practices to the tasks of establishing the
context, identifying, analysing, evaluating, treating, monitoring and communicating risk.
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 1 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk management procedure
This risk management plan template should be used. The following procedure should be followed for risk
management:
1. Gather information about potential risks and risk treatments or controls using a range of risk
management tools and techniques. The preferred method is brainstorming potential risks
with key staff members and conducting a PESTLE analysis to identify external risks.
2. Confirm key risks and risk treatments or controls to be documented in the risk management
plan. For each risk, indicate the consequence of the risk e.g. loss in sales, loss in profits,
business closure, lack of qualified staff, etc.
3. Identify key risks and document them in the risk register.
4. Using the risk legend within the risk management plan, assess and document the likelihood
of the risk occurring.
5. Using the risk legend within the risk management plan, assess and document the severity of
the risk occurring.
6. Identify and document the agreed treatment or control method for each risk.
7. Assign a ranking to the risk using the risk assessment legend. The ranking of the risk will
determine its importance in terms of risk management.
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 2 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk assessment legend
Source:
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 3 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk register
See risk management procedure.
You must document at least five risks and treatment measures using your research and review of team minutes, feedback from CEO and brainstorming meeting.
Evaluate each risk as to whether it is high, medium or low priority and assign an order for treating risks.
Scope of assessment:
Establish retail outlets in Brisbane, Sydney and Melbourne
Critical success factors:
Increase competitiveness
Increase repeat business from existing customers
Expand product range
Attract new customers
Internal & external stakeholders:
Risk
Consequences
Nature Care Products staff, distributors, suppliers and customers
Severity Rating
Likelihood Rating
Treatment or control
methods
Priority rating (high, medium or low)
Order of priority
Insufficient
Budget
Expansion process
will be delayed
4
2
Develop budget allocation
plan
Medium
Poor Performance
from New
Employed staff
Low Quality of
Service
3
3
send experience staff from
the head office to oversee
everything during trading
time
Medium
Product is not
reaching all the
market in the
destinated city
Sales do not reach
the expected
number
4
3
Try to learn the market, see
how similar, business
manage their market
Medium
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 4 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Scope of assessment:
Establish retail outlets in Brisbane, Sydney and Melbourne
Critical success factors:
Increase competitiveness
Increase repeat business from existing customers
Expand product range
Attract new customers
Internal & external stakeholders:
Risk
Consequences
Nature Care Products staff, distributors, suppliers and customers
Severity Rating
Likelihood Rating
Treatment or control
methods
Priority rating (high, medium or low)
Order of priority
Expansion is not
excepted by retail
store back in the
main city
Retailer will cancel
the contract
3
3
Propose more beneficial
contract proposal
Medium
Competitors in the
area
Insufficient number
of customers
4
3
Develop new marketing
strategy
Medium
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 5 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Risk action plan
Each of the risks identified above should be included in the table below and actions shown. The table should be copied and pasted for each risk.
Description of risk
Insufficient Budget
Summary of recommended response and impact
Impact:

Expansion process will be delayed
Recommended Response:

Budget allocation plan

operate within the budget
Proposed actions
Allocate the budget properly
Resource requirements
Hire good accountant
Responsibilities
Finance manager and accountant
Timing
1 month
Reporting/Monitoring
Finance Head/accountant Monitor the budget allocation plan
Description of risk
Poor performance from new staff
Summary of recommended response and impact
Impact

Low Quality of Service
Recommended Response

Send an experienced staff from the head office to train the new staff

Send an experienced staff from the head office to oversee operation until the new staff is trained
properly
Proposed actions
Send an experienced staff from the head to oversee operation until new staff is ready
Resource requirements
Experienced staff
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 6 of 7
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Responsibilities
Operational manager and HR
Timing
1 months
Reporting/Monitoring
CEO, operational manager, HR Monitor the new employee performance
Australian Training School trading as Southern Academy of Business and Technology
Version : 2.0
Level 1 and 4 Bathurst Street Sydney NSW 2000 | Phone: 1300 852 205 | RTO Code: 31595 | CRICOS Provider Code: 03602E
This document is Risk Management Plan Template.
It is part of the supporting assessment resources for Assessment Task 2 of BSBRSK501.
Last Updated : 07 May 2018
Next Update: 07 May 2019
Page 7 of 7