Student Name : PRAKASH PANDEY
Student I’D : AIA220750
Subject : Diploma in Leadership and Management
Name of the unit : BSBOPS504
1. Explain the risk management process. You may answer using a
labelled diagram or in words (or both) and must include:
•a definition of risk management.
•a list or illustration of the steps in a risk management process.
•a description of what each step involves.
ANSWER:
In terms of business, risk management is the way of identifying,
monitoring, managing and solving the risks of the company to neutralise
the negative outcome which can hamper the company. For instance,
breaches of security system, loss of data, cyber attacks and system
failures and so on. This risk management system helps to identify these
kinds of problems and helps the company to deal with the problem.
The risk management steps are as follows:
A. Risk assessment and Analysis: This step evaluates the exposure of
the risk the company is facing on the daily basis which can impact
the daily operations of the company. After effective drawing of the
risk it helps to save the assets, make improvement in decision
making and save the money and time of the board.
B. Evaluation of risk: When the risk is notified, a risk evaluation process
need be carried out. It compares the estimated risk with the risk
criteria the company already had.
C. Risk treatment and response: This step is the process where the
problems are solved. Here, the system implements and regulates
the policies and process of the company’s to mitigate the risk. The
risk management polices need to be monitored in order to keep upto-date.
2. Describe a current risk management standard. In your answer:
•name the standard.
•explain the purpose of the standard.
•list key elements of the standard.
ANSWER:
Risk management standard is prepared to make the specific set of
strategic process which begins with the overall aspirations ad motives of
the company and is there to identify the risk and focus on solving of the
issue in the best possible way. RMS are normally established and
created to function the company with best operations behaviour. RMS
usually uses checkpoints and examples to help the company to comply
with the situations.
The name of the standards are : ISO 31000:2009- Principles and
Guidelines on implementation, ISO/IEC 31010:2009- Risk management
- Risk assessment techniques, ISO Guide 73:2009 - Risk Management Vocabulary.
The main purpose of the company is to run the risk management
procedure to guide the companies on how to operate without any
obstacles. These standards helps the company to provide the
international consensus on dealing with the issues raised. It helps the
company’s to use the best tied and implemented and proved strategies.
The key elements of risk management standards are: identification of
risk, analysis of risk, planning for response, solving of risks and
monitoring of risk.
3.Complete the table below to describe the types of business risk.
ANSWER:
Type of risk
Description
Example
Key responsibilities ( at
least two people)
Strategic risk
The internal and external
matters which make it very
hard or even impossible,
for an organisation to
success their long-term
plans and goals.
Covid-19 pandemic ,
accelerating new digital
transformation.
It is determined by the
board decision about eh
prospectives and directions
of the company. Significant
acquisitions, disposal of
assets, capital projects need
to be established. Risk
officer, CFO, CEO,
General counsel are the
responsible candidate for
all the risks.
Type of risk
Description
Example
Key responsibilities ( at
least two people)
Compliance risk
This risk deals with all the
legal and financial penalties
when the company is
failing to act under the
regulations and legislature.
Fail to conduct the due of
diligence on new
consumers, failure to
support and report the
suspicious transaction. A
business or company can
performs action or hire
someone for looking onto
this.
Give chance to the team to
develop and promote their
understandings on risk that
their department faces.
Uses of data and software
analytical tools to manage
the assets and project
against the risk. Make sure
that the each of the
employee understands and
carry out their role and
responsibilities. The CCO
and other compliance staffs
are responsible for the
risks.
Financial risk
The probability of losing of
the money on an
investment and business is
regarded as the financial
risk.
Credit risk, liquidity risks
and operational risk are
some of the examples. Over
all it is the loss of money in
different ways. It is also
applicable for the
government bodies that
defaults on its bonds.
Financial risk manager and
CFO are the responsible
person. Additionally,
professional money
mangers, traders, investors
often uses the hedging
ideas to eradicate the
various risk.
Operational risk
A type of risk which is
resulted from breakdown of
the internal proceedings ,
peoples and systems as
opposed to the issues from
external bodies like
political or economic
events, market fluctuation,
etc.
Employee conduct ad
employee error are the best
examples. It is the failure to
take a material send by
mail, and was not sent
through the secured way.
Senior management officer
is the one who is
responsible for this.
The role may include
seeing of the priorities to
control systems and list the
internal audits to make sure
that audit cover all of these
risks.
4. Complete the table to explain three different tools and techniques that
may be used to identify risk. The first row has been completed as an
example for you to follow.
ANSWER:
Technique/tool
Description
Brainstorming
A group discussion to produce as many ideas or solutions
to problemsin a pre-determined amount of time.
Stakeholder Interviews
The people who have the interest in your project or the
business and having interviews with them might assist
you to better understand what they believe are the highest
risks. This viewpoint can help to learn and understand
what are the concerns your investor have.
Project plans
A project plan is considered as the basic outline of the
project and how it is going to achieved. This includes
material and labour needs, project timeline and any of the
risk coming forward. Detailed project plan helps to
understand the nature of the project and the process of the
project to reach the goal.
Checklist Analysis
It is used to come up with the number of risks for the
project.
5.Explain four options that a company could use to take to control risks.
ANSWER:
Risk audit : Project teams might be defined about the risk responses.
The manager of the project does the auditing of the risks and and its
effectiveness and response according to the requirement. The team
undergoes the process of identification, evaluation , responding and
controlling of risks.
Variance and trend Analysis: Here we look for the difference between
schedule and base lines of the expenses and provide the actual results.
Increase in variances increases uncertainty and risk. Need to watch the
trend before anything goes extreme.
Technical and performance measurement: It measures the technical
accomplishments if you are performing any works at a time -at the end
of the fourth sprint, end of phase 1, or milestone.
Reserve analysis: while planning of the cost, contingency and
management are added in the budget as essential. As there is risk then
the reserve is reduced. Depending on the requirements of the company
project managers requests for the additional reserves.
6.Explain how legislation and its related regulatory requirements relate
to risk management. In your answer:
•identify two different legislative and regulatory requirements that may
apply to risk management..
•provide one example of how regulations support one of the legislation.
ANSWER:
Work health and Safety Act 2011(Work Health and Safety: How to
Manage Work Health and Safety Risks Code of Practice 2015) and
regulations requires an individual who has the responsibility of ensuring
the healthy and safety to manage risks by reducing the health and
safety risk as close as possible. And if it is very hard to do so then try to
bring it lowers far as it is reasonably possible.
Food act 2001( food regulation 2002) — If the company is working on
food and intended for sale or sells food . The main thing over here is to
make sure that the food is extremely safe and good for the human
consumption. Some of the food businesses might get the assumption if
they handle and deals with the selling ad handling of the foods.
7. Explain the purpose of risk management policies and procedures in
the workplace as they relate to risk management.
ANSWER:
The main purpose of the risk management in the companies and
business are to make sure that each and every of the employee are
working in the safe environment. Some of the jobs comes with the risk
but each of the employer must use the company’s policies and
procedures for risk management to ensure that the risk amount among
the employees is lower.
8. Complete the table below to summarise how three policies and
procedures relate to risk management.
ANSWER:
POLICY/PROCEDURE
DESCRIPTION
Record keeping policy and procedure
Management of risk in this complex business
environment is very hard. The risk linked with the record
keeping and management of the information are not
transparent to cope with the risk mangers. This step adds
an additional dimension to the risks in business. It is
because business information is very important during
transaction, to make the link between business risk and
record keeping risk. But keeping record risk as an
identifier helps the organisations to become more focused
and goal oriented in managing risk.
WHS policy and procedures
The strong evidence in doing the good work is absolutely
awesome for mental and physical well being. The healthy
workplace is sound for minimising the work incident
during operations. It is one of the best way of creating
healthy environment in between employee and employer.
Confidentiality policy/procedure
Companies must follow the data protection law while
handling and performing the sensitive information. And
also more vital in dealing with the criminal records where
strict code of confidentiality is performed. Failure in
doing so results in losing of contract and customers in the
business. Sometime might give a tagline of fraud and
illegal.