BSBRSK501 Manage Risk

ASSESSMENT SUMMARY SHEET

This form is to be completed by the assessor and used a final record of student competency.
All student submissions including any associated checklists (outlined below) are to be attached to this cover
sheet before placing on the students file.

Student results are not to be entered onto the Student Database unless all relevant paperwork is completed
and attached to this form.

Student Name:

Student ID No:

Final Completion Date:

Unit Code: BSBRSK501

Unit Title: Manage Risk

Please attach the following documentation to this form Result

Assessment 1 Risk Review Report S / NYS / DNS

Final Assessment Result for this unit C / NYC

Feedback is given to the student on each Assessment task Yes / No

Feedback is given to the student on final outcome of the unit Yes / No

Student Declaration I have been assessed in a fair and
flexible manner. I understand that the Institutes Student
Assessment, Reassessment and Repeating Units of
Competency Guidelines apply to these assessment
tasks.
Assessor Declaration: I declare that I have conducted a
fair, valid, reliable and flexible assessment with this student,
and I have provided appropriate feedback.

Name: Name:

Signature: Signature:

Date: Date:

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ASSESSMENT 1 COVER SHEET

Details of Assessment
Term and Year Term 2, 2017
Assessment Type Risk Review Report
Due Date 28/4/2016 Class Room Lecture Hall 2, 5 & 6

Student Name:

Student ID No:

Date:

Qualification : BSB50215 Diploma of Business

Unit Code: BSBRSK501

Unit Title: Manage Risk

Assessors Name

Student Declaration: I declare that this work has been
completed by me honestly and with integrity. I understand that
the Sydney Metro Colleges Student Assessment,
Reassessment and Repeating Units of Competency Guidelines
apply to these assessment tasks.
Assessor Declaration: I declare that I have conducted a
fair, valid, reliable and flexible assessment with this student,
and I have provided appropriate feedback.

Name: Name:

Signature: Signature:

Date: Date:

Student was absent from the feedback session.

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Assessment/evidence gathering conditions

Each assessment component is recorded as either Satisfactory (S) or Not Yet Satisfactory (NYS). A student can only achieve
competence when all assessment components listed under procedures and specifications of the assessment section are
Satisfactory. Your trainer will give you feedback after the completion of each assessment. A student who is assessed as NYS is
eligible for re-assessment. Should the student fail to submit the assessment, a result outcome of Did Not Submit (DNS) will be
recorded.

Resources required for this Assessment

All documents must be created using Microsoft Office suites i.e., MS Word, Excel, PowerPoint

Upon completion, submit the assessment printed copy to your trainer along with assessment coversheet.
Refer the notes on eLearning to answer the tasks
Any additional material will be provided by Trainer

Instructions for Students

Please read the following instructions carefully

This assessment is to be completed according to the instructions given by your assessor.

Students are allowed to take this assessment home.

Feedback on each task will be provided to enable you to determine how your work could be improved. You will be provided
with feedback on your work within 2 weeks of the assessment due date.

Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will
be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.
If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.
Please refer to the College re-assessment and re-enrolment policy for more information.

Procedures and Specifications of the Assessment

The candidate must demonstrate the ability, knowledge and skills to manage risks in a range of contexts across an organisation or
for a specific business unit or area in any industry setting.
The candidate is to write and present a report on the risk management relating to the case study in this assessment. The full report
should address the risks and potential risks in the workplace evaluation of all components within the marketing mix and marketing
performance. The report is to be presented to the class.
The report and the presentation should consider the key characteristics of the product, the promotion methods and each component
of the adjusted marketing mix. The report needs to evaluate the contribution made towards the organisations marketing objectives,
strategies and desired positioning.
You must provide:
o a written report
o Structure of the report must consist:
o title of report (concise heading indicating what the report is about)

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o your report is titled Risk review

o your report is in order, with attachments on the back of your report as follows
o it includes notes from meeting with your manager
o it includes draft communication
o your report is submitted as required by your organisation (your training provider).
o all relevant workplace documentation to support your research (to be attached as appendices where applicable)
Your assessor will be looking for a report that:
o addresses each point of the procedure described above
o establishes the risks and potential risk within the organisation
o evaluates each component of risk.
o Determine scope of risk management processes
Candidates must demonstrate their knowledge of:

o Outline the purpose and key elements of current risk management standards
o outline the legislative and regulatory context of the organisation in relation to risk management
o outline organisational policies, procedures and processes for risk management.

Task A Risk Review Report (Draft)

For the provided case study, you will assume the role of the risk manager/assessor.
1. Review the provided MacVille Risk Management Policy and Risk Management Strategy and
complete a written report for your manager (your assessor) that addresses the following steps.
a. Scope Identify the scope of risk management required in your identified role.
b. Goals Identify and describe the critical success factors, goals or objectives for areas
included in scope.
c. Stakeholders Identify internal and external stakeholders, their role in the process, and
any issues or concerns they have. Present this using the table format provided.
d. Analysis Complete a PEST analysis and a SWOT analysis for risks associated with the
scenario. Include reference to relevant legislation.
e. Research Review and summarise the research information provided in the case study,
as well as any literature available that is relevant to this scenario.
f. Describe Complete the analysis of risk for the scenario by summarising the scenario
and associated risks, accompanied by checklists, diagrams or flowcharts that support the
summary.
2. After you have completed the above steps, you need to meet with your manager and discuss the
draft report you have developed, especially your understanding of the critical success factors and
goals (you should check that your manager agrees with your findings).
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3. As part of your discussions, you also need to discuss and identify how you can communicate with
stakeholders about the risk management processes in this scenario and invite them to participate
in discussions to further identify risks associated with the scenario.
a. Summarise: In dot-point form, summarise the discussions with your manager.
i. This should include any recommendations they made to you.
b. Develop: a draft of the communication your manager suggested you use for consultation
with a stakeholder or particular group of stakeholders.
i. For example, if stakeholders desire a phone call, you should include a draft script
of information that you need to share with stakeholders.
ii. Whatever the form of communication, it must clearly ask stakeholders for input,
and invite them to assist in the identification of risk for this scenario.

When submitting the report and accompanying documents, you need to ensure that:
your report is titled Risk review

your report is in order, with attachments on the back of your report as follows

it includes notes from meeting with your manager

it includes draft communication

your report is submitted as required by your organisation (your training provider).

Specifications

You must provide:

a completed report as outlined above in steps 16, using the headings provided for each step

summary notes from your meeting with your manager

summarise in dot-point form the discussions with your manager and include any
recommendations they made to you
a draft communication to be used with stakeholders

develop a draft of the communication your manager suggested you use for consultation
with stakeholders
i.e. if they suggested a phone call, you should include a draft script of information that you
need to share with stakeholders
whatever the form of communication, it must clearly ask stakeholders for input, and invite
them to assist in the identification of risk for this scenario.

Your assessor will be looking for:

evidence that you analysed and identified the needs of the case study and have clearly reflected
these in the risk report.

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Case Study: Business plan (excerpt)

MacVille business plan FY 2011/12

Mission
MacVille cafes serve competitively priced, high quality coffee and gourmet food in a safe and
comfortable cafe-style environment. Our friendly, well-trained staff provide superior customer
service.

Vision
MacVille aims to deliver our valued customers the very best cafe-going experience. In three
years, the business will have established a presence across the Queensland and NSW, with
the opening of additional cafes.

Values
Customer-focus

Safety

Teamwork

Performance excellence.

Strategic directions
The strategic context in which MacVille will achieve its mission and vision is through:
engaging with customers and customer research

developing and improving products and quality

expansion of operations across Queensland and NSW

creating a high-performing organisation.

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Case Study: Scenario

As part of their overall strategy in the Australian beverage market, MacVille Pty Ltd have developed a
chain of cafes in the Central Business District (CBD) of Brisbane, Queensland and the CBD of Sydney,
NSW. The board of directors have made the decision to expand their operations in Queensland with the
purchase and re-branding of the existing Hurleys cafe in Toowoomba, 130km west of Brisbane.
You are currently the assistant manager of their flagship store in Queen Street, Brisbane, and have
been given the opportunity to manage the new store in Toowoomba. The CEO for MacVilles cafes in
Queensland is Paula Kinski.
You are a member of the Finance, Audit and Risk Management (FARM) Committee described in the
MacVille Risk Management Policy.
Paula has assigned you the task of managing the risks involved with the operational aspects of this
take-over. A copy of her email is attached.

Email from CEO Paula Kinski

From: CEO P.Kinski
To: Assistant Manager Queen Street
Re: New Toowoomba store
Congratulations on your new appointment. Prior to taking up your position as manager of our
Toowoomba store located in Ruthven Street, the board has asked that the risks in this project be
appropriately managed. I want you to undertake this task as it will give you significant insight into the
stores operations, it will ensure a smooth transition to the MacVille systems and will encourage you to
give ongoing support for our risk management initiatives.
I would like you to approach this task in three stages and meet with me at the end of each phase to
review your work and discuss your plans for the subsequent phases. The three stages in this risk
management task will include:
1. Review.
2. Analyse and plan.
3. Monitor.

Your primary risk management focus is directed to the ongoing operations of the Toowoomba cafe. The
strategic and investment risks of this project are being managed by the board. To this end, you are to
consider any risks that could impact on human resources management, financial operations, WHS, our
supply chain and the local governance and overall compliance issues.
By way of background, MacVille has agreed to employ all existing staff on three months probation. The
current supervisor James Mansfield, has been offered the position of 2nd in charge and he has accepted.
While settlement on the purchase of the business is not for another few weeks, the seller has agreed to
grant us full access to the stores operational processes and store information. You should liaise weekly
with the Finance, Audit and Risk Management (FARM) Committee here at head office concerning the
marketing, finance and store management functions that you are investigating. I will set up a regular
meeting for you.
Head office has a report on a similar expansion conducted by the NSW team that may help you in your
research. You may need to review other statistical information and engage specialists to help you with
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your investigation. The legal firm Goldsmith Partners are advising MacVille on the Hurley cafe
acquisition and would be available to help you with legal or any compliance issues.
The landlord of the shop in Toowoomba, Ron Langford, is also a local councilor and has offered his
assistance in getting established in Toowoomba. He has offered his email address for correspondence
(ron.langford@tcc.com.au).
Once I have received and discussed your risk review report, we can move onto the next stage of the risk
management process.
Regards
P.Kinski
CEO MacVille Cafes (Qld)

Site visit Toowoomba

You received permission from Paula to travel to the Toowoomba store to start your research. Paula had
cleared it with James Mansfield the current senior supervisor who will spent most of the day with you
helping answer your queries.
You arrived at the cafe and noted the two hours of drive time that it took to get to the cafe from the CBD
of Brisbane. You met with James who took you through a complete overview of the store and the
surrounding area. He was OK with the idea that you needed to take notes in preparation for a report.
Paula had also arranged for you to meet with Ron Langford in his office later that afternoon.

Hurleys Cafe
After lunch, you went over your notes to revise and edit key concerns and significant events that you
had written down earlier.
The location of the store on the corner of the two main streets of the city makes easy access for
local customers and highly visible for tourists. STRENGTH
The long drive from Toowoomba to Brisbane would make attending the weekly managers
meeting difficult considering many meetings did not finish until into the evening after
refreshments. There is also manager training sessions that need to complete over the next 6
months in conjunction with a few other assistant managers. Navigating the steep narrow climb up
the range with trucks blocking the way is quite difficult even in daylight hours. Being a competent
driver you feel that it would be unlikely that you would be involved in an accident, but it still
concerns you considerably. WEAKNESS
The two hour delivery would make fresh pastry deliveries from the companys central bakery
plant impractical. The pastries would arrive after the morning rush. These are a key part of the
MacVille assortment. WEAKNESS
There is also a concern about getting the company branded supplies through as quickly as a
CBD Brisbane store could. WEAKNESS
Hurleys cafe was a family run store and some family members were employed on the staff.
James was engaged by the family to supervise the operations of the store and Mr. Hurley as
manager would authorise wages but anyone can authorise deliveries. WEAKNESS

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When asked about written policy and procedures manual, James said that Mr. Hurley set the
policy and procedures verbally and on the few days each week he was in the store he would
show the staff how to do things the way he wanted them done. WEAKNESS
Water use Running the dishwasher when only half full. Washing fruit and vegetables under a
fast running tap. Toilets all used the single flush system. Dual flush would cost about $7,500 to
upgrade. The dishwasher was always set to full wash and had a Water Efficiency Labelling and
Standards Scheme (WELS) rating of 3. The more water efficient 5-6 star dishwashers cost about
$6,000 and above. James explained that Mr Hurley instructed the staff to keep the non-native
flowering plants in the courtyard fully watered. The store currently uses 41,500lt a week.
WEAKNESS
James spoke about the cafe attracting a large % of retirees because of the easy access to
busses and the stores central location. OPPORTUNITIES/ SOCIAL
The same staff member that completed the cash register balancing also completed the bank
deposit form and did the banking as well. The banking was not done every day and often $4,000
was kept on the premises overnight in the cash register. There was no safe. There is a bank two
shops away but the Hurley family bank is a couple of blocks away and there was not always time
to do the banking. WEAKNESS
James replied to you question about the possibility of break-ins saying that there was a 50%
chance of it happening and the risk was moderate. THREAT
Not all takings from the cash register by family staff members were recorded. WEAKNESS

The fit-out in parts looked old and unattractive, with some chairs unstable and broken and some
parts of the worn carpet was simply taped over with gaffer tape. WEAKNESS
One of the staff was a qualified chef who had developed an innovative and popular range of rice
wraps that were tasty, gourmet and healthy. None of the other cafes in the area offered these.
STRENGTH
No established process for dealing with injuries that happened at work. WEAKNESS

James gave a brochure about an innovative frozen par-bake cooking system that was under the
limit set by council for an exhaust system yet it cooked fresh bakery items in 30 minutes from
frozen par-baked pastries. TECHNOLOGY
The computer with all the stores employee details, and financial records was not password
protected and anyone could access the information. Weakness
Jamess response to your question about the lack of sales promotion techniques was that he
could not get the staff interested in the activity so he stopped trying to make it happen.
WEAKNESS
The employee detail form requested information about the employees entire past health issues.
POLITICAL
The wage and superannuation records seemed to be incomplete with many calculations being
worked out by the number of hours worked multiplied by a set in the hand amount. WEAKNESS
James also provided a brochure about a company that could come and set up WIFI in the cafe
so that customers could use their computer notebooks and connect to the internet while they
were dining in the cafe. TECHNOLOGY

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Meeting with Ron Langford

In the afternoon you met with Ron Langford in his office to discuss the cafe, council by-laws and aspects
concerning the surrounding district. You took notes that included the following significant information.
Ron explained that there were opportunities for opening more cafes in the surrounding shopping
centres like Wilsonton, Clifford Gardens and K-Mart Plaza. OPPORTUNITY
Ron handed you an extract from a government report Economic Brief.

Ron explained that the Federal Government was now introducing legislation that backs up the
local by-law concerning efficient water usage, particularly by industries. The current by-law has
fines of up to $50,000 for excessive water breaches. Ron did explain that the council was giving
some time to make good under certain circumstances on a case by case basis. Ron also agreed
with the idea of installing a water tank in the court yard for the cafe to use and would help get it
built. POLITICAL
Ron explained that Toowoomba was obviously a place for retirees and the population was
growing. SOCIAL
Ron spoke about the Federal Governments National Broadband Network being rolled out in
Toowoomba that would allow efficient and effective video streaming and teleconferencing.
TECHNOLOGY
Ron spoke about the current by-law that was due for implementation on the 1st of next month
allowing cafes to expand their footpath dinning and so put more tables and chairs outside their
premises. POLITICAL
Ron also spoke of the fact that representatives of a large international chain of coffee shops had
been making enquiries around town about opening a store in the Toowoomba CBD. THREAT

Senior Management Team and Finance, Audit and Risk Management (FARM) Committee
meetings
Soon after you got back from your research trip to the Toowoomba store, you attended two
teleconferences. First, you met with the senior management team. At this teleconference, you discussed
issues raised by James Mansfield and Ron Langford and the report on previous NSW expansion, which
head office had given you: Report into the acquisition and re-branding of the NSW expansion store.
Paula said that there may be some things to learn from the NSW experience.
Key problems identified in the report were as follows:
1. Lack of internal controls, particularly over cash handling, monitoring and recording.
2. Failure to meet compliance standards in WHS, Privacy and industrial relations law.
3. Lack of written policy and procedures to guide staff in carrying out their duties.
4. Lack of a professional business culture in the family run business.
5. Failure of the business to monitor the external environment and find opportunities and threats to
the business.

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The team agreed that similar issues would pose a risk to the Toowoomba expansion.

You then held a teleconference with the FARM Committee. At the teleconference, you relayed the
concerns of the senior management team. The FARM committee decided to allow you time to complete
your review and then would include discussion of your review in the monthly board meeting.

Case Study: Risk management policy

Introduction
MacVille recognises that risk management is an essential component of good management practice and
is committed to ensuring the implementation of risk management processes that focus on the proactive
management of risks across the organisation.
This risk management policy forms part of MacVille's internal controls and corporate governance
arrangements. The risk management policy is designed to:
identify, evaluate, control and manage risks

ensure potential threats and opportunities are identified and managed

inform directors, senior management and staff members about their roles, responsibilities and
reporting procedures with regards to risk management
ensure risk management is an integral part of planning at all levels of the organisation. Policy

MacVille is committed to achieving its vision, business objectives and quality objectives by the proactive
management of risk at all levels of the organisation.
MacVille will identify, evaluate, control and manage risk throughout the organisation in accordance with
the MacVille Risk Management Framework. See risk management strategy for framework details.

Responsibility and Authority

Directors, management and employees of MacVille have responsibility for implementing aspects of this
policy.

Role of the Directors

The directors have a governance responsibility in the management of risk. This includes:
determining what types of risk are acceptable and which are not

setting the standards and expectations of staff with respect to conduct

approving major decisions affecting MacVilles risk profile or exposure

monitoring the management of significant risks to reduce the likelihood of potential organisational
risks and threats or failure
being satisfied that risks are being actively managed, with the appropriate controls in place and
working effectively
annual review of MacVilles approach to risk management and approval of changes or
improvements to key elements of its processes and procedures.

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Role of the Senior Management Team and Store Managers

Key roles of the senior management team are to:
implement policies on risk management and internal control where this is deemed appropriate

identify and evaluate areas of significant risks potentially faced by MacVille for consideration by
the directors
identify areas where risk management is not adequately addressed and advise the directors
accordingly
review and update the Risk Management Strategy

undertake an annual review of the effectiveness of systems of internal control and provide an
annual report to the directors, including a summary review and respective recommendations.

Role of Cafe Employees

Key roles of the employees are to:
familiarise themselves with the content of the risk management policy and clarify any aspects
necessary with a senior team member
consider any risks they feel could impact on them meeting their objectives and either manage the
risk if it is in their control to do so, or inform a management team member of their concerns
advise senior management, in the first instance, or the Board, if concerned about any fraud or
unethical behaviour.

MacVille Risk Management Framework

This framework encompasses a number of elements that together facilitate an effective and efficient
operation, enabling MacVille to respond to a variety of operational, financial, commercial and strategic
risks. These elements include:
Policies and procedures A series of policies underpin the internal control process. These policies are
endorsed by the directors and are implemented and communicated by the senior management team to
all staff. These policies include:
Human Resources Policies

Staff Travel Policy

Harassment Policy
WHS Policy
Return to Work Policy
Work/Life Balance Policy
Equity/Discrimination/Diversity Policy
Parental Leave Policy
Organisational Culture Policy
Financial Policies

Bad Debt Policy

Cash Reserving Policy
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Revenue/Expenditure Recognition Policy

Finance, Audit and Risk Management (FARM) Committee Terms of Reference including
delegations
Corporate Governance Policies

Board Protocol
Sitting Fees Policy
Directors Remuneration Policy

Monthly reporting Decisions to rectify problems are made at regular meetings of the senior
management team. Comprehensive reporting at board and sub-committee meetings is designed to
monitor key risks and their controls.
Business planning and budgeting The business planning and budgeting process is used to set
objectives, agree on action plans, and allocate resources. Progress towards meeting business plan
objectives is monitored regularly by the senior management team and by directors at board meetings.
Risk Management review The Finance, Audit and Risk Management (FARM) Committee are
required to report at board meetings on internal controls. The Finance and Audit Committee pay
particular attention to risk management. It is the CEOs responsibility to brief the directors periodically
and as appropriate on the development of policies and procedures to ensure effective and efficient
operations, risk management strategies and implementation. In addition, the FARM committee oversees
internal audit, external audit and management as required in its review of internal controls. The
committee is therefore well placed to provide advice to the board on the effectiveness of the internal
control system, including MacVilles strategy for the management of risk.
External audit The final audit of financial statements is controlled by an external chartered accountant
who provides feedback to the Board through the Finance and Audit Committee.

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Procedure: Development of a Risk Management Profile

The following outlines the process for developing a risk management profile.

1. Establish the context

Define and identify the environment, characteristics and stakeholders, their goals and objectives,
and the scope of the specific risk management process.
Develop criteria against which risks are evaluated and identify the structure for risk management.

2. Identify and describe risks

Risks are best identified through a collaborative approach involving a cross section of
stakeholders.
All conceivable risks must be considered. Ensure any certainties are identified as problems and
addressed in the risk management profile.

3. Conduct current risk analysis

An analysis of the risks is conducted to determine their causes, and estimate their probability and
consequences. This analysis provides the basis for working on the right risks.

4. Conduct risk evaluation

Risks are considered and prioritised according to their potential impact, and each risk is
assessed to determine its level of acceptability.

5. Develop and implement proposed risk treatments

Risk treatments are developed to cost-effectively reduce, contain and control risk.

Formal risk management reporting mechanisms are defined and documented.

Categorise the risk likelihood.

6. Monitor, report, update and manage risks

As risks change constantly, the risk profile is continuously monitored, reviewed and updated by
management. New risks may be identified as more information becomes available and existing
risks may be eliminated through the effectiveness of the risk treatments/actions. Record risks
identified through regular audit on the risk audit log. Record risk management activities on the
risk management register.

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MacVilles Risk Areas

The following are four broad areas where potential for risk to MacVille has been identified. Under each
area, examples of possible risks are detailed.

Operational/Organisational
Legal and regulatory compliance

Technology

Insurance

Resources: human, physical

Logistics

Marketing

Product quality

Communications

Infrastructure, plant and equipment

Customer interaction

Market needs

Financial
Accountability

Fraud or theft

Capital investment

Interest rates

Loss of income, funding/finance

Governance
Conduct of board

Conflict of interest

Project Management
Procedures and tools for project management

Stakeholders strength of relationships/conflict of interest

Human resources

Financial resources

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Case study: Risk management strategy

Introduction
MacVille recognises that risk management is an essential component of good management practice and
is committed to the proactive management of risks across the organisation. The strategy is designed to:

identify, evaluate, control and manage risks

ensure potential threats and opportunities are identified and managed

inform directors, senior management and staff members about their roles, responsibilities and
reporting procedures with regards to risk management
ensure risk management is an integral part of planning at all levels of the organisation.

Guiding Principles
MacVille is committed to achieving its vision, business objectives and quality objectives by the
proactive management of risk at all levels of the organisation, acknowledging that embracing
innovative ideas and practices carries with it risks, but that these are identifiable and measurable
and therefore capable of being subject to realistic risk mitigation processes.

Responsibility and Authority

The directors have responsibility for ensuring that risk management is in place.

The Finance, Audit and Risk Management (FARM) Committee has the responsibility of reviewing
the Risk Action Plan on a six-monthly basis.
The CEO and the senior management team have responsibility for managing risk and advising
the Board on appropriate controls.
The CEO and the senior management team support and implement policies approved by the
directors.
Key risk indicators will be identified, closely monitored and action taken where necessary, by the
staff and directors.

MacVille Risk Management Framework

This framework encompasses a number of elements that together facilitate an effective and efficient
operation, enabling MacVille to respond to a variety of operational, financial, commercial and strategic
risks. These elements include:

Policies and procedures: A series of policies underpin the internal control process.

Reporting: Decisions to rectify problems are made at regular meetings of the senior management
team.
Business planning and budgeting: The business planning and budgeting process is used to set
objectives, agree on action plans and allocate resources. Progress towards meeting business
plan objectives is monitored regularly by the senior management team and by directors at board
meetings. Contingency planning is undertaken as required.
Risk Management review: The Finance, Audit and Risk Management (FARM) committee is
required to report at Board meetings on internal controls.

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CEO: The CEO has responsibility to brief the Directors periodically and as appropriate on the
development of policies and procedures to ensure effective and efficient operations, risk
management strategies and implementation.
External audit: The final audit of financial statements is controlled by an external chartered
accountant who provides feedback to the Board through the FARM Committee.

Definitions
Risks are identified on a scale of likelihood of occurring in the next 12 months and assigning an impact
or consequence to the risk as high, medium or low. High includes either a significant shortfall of around
40% in achieving budget or a significant reduction in ability to function. Medium includes either a
shortfall of budget of between 10% and 20% or some reduction in function. Low indicates minor
reductions in achieving budget or minimal reduction in performance.

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Assessment Answers

Risk Review Report

(Draft)

Prepared by <your name>

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Table of Contents Page

Executive Summary

1. Review the provided MacVille Risk Management Policy and Risk Management
Strategy and complete a written report for your manager (your assessor) that
addresses the following steps.

1.1 Identify the scope of risk management required in your identified role.

1.2 Goals Identify and describe the critical success factors, goals or objectives
for areas included in scope.

1.3 Stakeholders Identify internal and external stakeholders, their role in the
process, and any issues or concerns they have. Present this using the table
format provided.:
1.4 Analysis Complete a PEST analysis and a SWOT analysis for risks
associated with the scenario. Include reference to relevant legislation.

1.5 Research Review and summarise the research information provided in the
case study, as well as any literature available that is relevant to this
scenario.

1.6 Describe Complete the analysis of risk for the scenario by summarizing
the scenario and associated risks, accompanied by checklists, diagrams or
flowcharts that support the summary.

2. After you have completed the above steps, you need to meet with your manager
and discuss the draft report you have developed, especially your understanding
of the critical success factors and goals (you should check that your manager
agrees with your findings).

Conclusion

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Executive Summary
This report is intended to provide MacVille senior management and FARM committee about the risk review on taking over
Hurley Caf in Toowooba.

1. Review the provided MacVille Risk Management Policy and Risk Management Strategy and complete a written
report for your manager (your assessor) that addresses the following steps.

1.1 Identify the scope of risk management required in your identified role.

1.1.1 Impact on human resource An estimated 70 percent to 90 percent of all M&As fail to achieve their anticipated strategic
management and financial objectives.1 This rate of failure is often attributed to various HR-related factors,
such as incompatible cultures, management styles, poor motivation, loss of key talent, lack of
communication, diminished trust and uncertainty of long-term goals.

1.1.2 Financial operations

1.1.3 WHS

1.1.4 Supply chain

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1.1.5 Local governance

1.1.6 Overall compliance issues

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1.2 Goals Identify and describe the critical success factors, goals or objectives for areas included in scope.

Scope for risk Critical success factors Objectives

management (What do you expect?) (What you should do?)

To ensure that the employees at Hurley Caf
would be open-minded toward adapting to new
changes to be implemented by new business
Impact on HR owner.
When taking over the caf, existing employees
must have a good understanding of how
MacVille will be running the business and in
this case, organizing a meeting with the staff
initially is important so that management and
employees can have a good working
relationship.

Before taking over the business from the
Hurley family, MacVille needs to know if the
Finance financial management of the business is done
accordingly, i.e. following appropriate process
of financial reporting.
A due diligence/ feasibility report must be
implemented so that there can be a detailed
report on how the business finances are being
managed.

WHS

Supply Chain

Local governance

Environmental
compliance issues

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1.3 Stakeholders Identify internal and external stakeholders, their role in the process, and any issues or
concerns they have. Present this using the table format provided.

Stakeholder Key interests Level of Present Stakeholder Key points for

Name/Group: or stake in the influence over attitude to the management Stakeholder
change and the change (H, change (in strategies Engagement and
degree of M or L?) favour, neutral Management Plan
impact (H, M or or opposed?)
L?)

Provide directives and Time-to-time meetings

Paula Kinski (CEO) H H Favour
monitor progress with the manager

YOU (new
manager)

James Mansfield
(2nd in charge)

FARM Committee
(representing HQ)

Goldsmith Partners
(legal firm)

Ron Langford
(landlord of the
shop)

Hurley Caf staff

Toowooba Local
Council

Local customers

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1.4 Analysis Complete a PEST analysis and a SWOT analysis for risks associated with the scenario.
Include reference to relevant legislation.
Current legislation of
criteria examples
ecological/environmental
current legislation
future legislation
international legislation
regulatory bodies and
processes
government policies
government term and change
trading policies
funding, grants and initiatives
home market pressure-
groups
international pressure- groups
wars and conflicts
Toowooba township is a
criteria examples
lifestyle trends
demographics
consumer attitudes and
opinions
media views
law changes affecting social
factors
brand, company, technology
image
consumer buying patterns
fashion and role models
major events and influences
buying access and trends
ethnic/religious factors
advertising and publicity
ethical issues
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Political
Potential opportunities for
Toowooba Council about
efficient water usage
place for retirees and the
population was growing
Social
Economic
growth in the surrounding
shopping centres like
Wilsonton, Clifford Gardens
and K-Mart Plaza.
Technological
criteria examples
home economy
economy trends
overseas economies
general taxation
taxation specific to
product/services
seasonality issues
market/trade cycles
specific industry factors
market routes trends
distribution trends
customer/end-user drivers
interest/ exchange rates
international trade and
monetary issues
criteria examples
competing technology
development
research funding
associated/dependent
technologies
replacement
technology/solutions
maturity of technology
manufacturing maturity and
capacity
information and
communications
consumer buying
mechanisms/technology
technology legislation
innovation potential
technology access, licencing,
patents
intellectual property issues
global communications
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criteria examples Strengths Weaknesses

criteria examples

Advantages of proposition? MacVille has a chain of Continuity, supply chain Disadvantages of proposition?

Capabilities? cafes in Brisbane and robustness especially it takes Gaps in capabilities?

Sydney 2 hours to travel from
Competitive advantages? Lack of competitive strength?
Brisbane CBD to Toowooba
USP's (unique selling points)? Reputation, presence and reach?

Resources, Assets, People? Financials?

Experience, knowledge, data? Own known vulnerabilities?

Financial reserves, likely returns? Timescales, deadlines and

pressures?
Marketing - reach, distribution,
awareness? Cashflow, start-up cash-drain?

Innovative aspects? Continuity, supply chain robustness?

Location and geographical? Effects on core activities,

distraction?
Price, value, quality?
Reliability of data, plan
Accreditations, qualifications,
predictability?
certifications?
Morale, commitment, leadership?
Processes, systems, IT,
communications? Accreditations, etc?

Cultural, attitudinal, behavioural? Processes and systems, etc?

Management cover, succession? Management cover, succession?

Philosophy and values?

criteria examples

Market developments? criteria examples

Competitors' vulnerabilities?
Political effects?
Industry or lifestyle trends?
Legislative effects?
Technology development and
innovation? Environmental effects?

Global influences? IT developments?

New markets, vertical, horizontal? Competitor intentions - various?

Niche target markets? Market demand?

Geographical, export, import? New technologies, services, ideas?

New USP's? Vital contracts and partners?

Tactics: eg, surprise, major Sustaining internal capabilities?

contracts?
Obstacles faced?
Business and product
Insurmountable weaknesses?
development?
Loss of key staff?
Information and research?
Sustainable financial backing?
Partnerships, agencies,
distribution? Economy - home, abroad?
Volumes, production, economies? Seasonality, weather effects?
Seasonal, weather, fashion
influences?
Opportunities Threats

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1.5 Research Review and summarise the research information provided in the case study, as well as any
literature available that is relevant to this scenario.

MacVille Case Review Summary

1.5.1 Business plan

1.5.2 Email from Paula Kinski

1.5.3 Site visit Toowooba

1.5.4 Hurleys Caf

1.5.5 Meeting with Ron Langford

Senior Management Team

1.5.6
& FARM

Role of Directors
Risk Management Policy

Role of Senior
Management
1.5.7
Team and Store
Managers

Role of Caf
Employees

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Policies &
procedures

Monthly reporting
MacVille Risk Management Framework

Business
1.5.8 planning and
budgeting

Risk
Management
Review

External Audit

Operational/
organizational

Financial
MacVilles Risk Areas

1.5.9

Governance

Project
Management

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Describe Complete the analysis of risk for the scenario by summarizing the scenario and associated risks, accompanied by checklists, diagrams or flowcharts
1.6
that support the summary.

Spot the Hazard Assess the Risk Fix the Problem Evaluate Results

Is the risk Revised risk level

associated with the If the risk is deemed unacceptable for the
Identify the work task What are the hazards By (Go through the first 3 steps
hazard low, task, what will be done to reduce or remove By when?
or activity? associated with each activity? moderate, whom? again to ensure risk levels are now at
the risk?
significant or high? an acceptable level)

Travelling to Toowooba Employees who attend this Significant Provide a night stay at a local hotel so that the CEO, Next month Low
from CBD Brisbane for meeting may be fatigue and too employees can travel the next day. Manager
meetings tired to travel back safely.

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2 After you have completed the above steps, you need to meet with your manager and discuss the
draft report you have developed, especially your understanding of the critical success factors
and goals (you should check that your manager agrees with your findings).

Assessment on MacVilles ability for

Critical Success How does it influence the risk
effective risk mitigation plan (your
Factors management plan? (Describe)
opinion)

Yes, we can see that Mac Ville has provided

Commitment support in terms of setting up the Finance, Audit
and support and Risk Management (FARM) Committee and
2.1 this means that they would like to ensure that any
from top
risk activities is to be addressed with mitigation
management strategies.

2.2 Communication

2.3 Culture

Organization
2.4
structure

2.5 Trust

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Information
2.6
technology

2.7 Training

Conclusion

End of draft report

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3 a. Summarise: In dot-point form, summarise the discussions with your manager.

i. This should include any recommendations they made to you.

MacVille Risk Review Checklist

Prepared by: Position: Signature: Date:

Inspected by: Position: Signature: Date:

Risk Review Element Y/N/NA Comments

Y = Up to standard (adequate), N = Below standard (action required), NA = Not Applicable

1. Scope of risk management

2. Goals and objectives
3. Stakeholders analysis
4. PEST analysis
5. SWOT analysis
6. Case review
7. Risk analysis

8. Critical Success Factors

General recommendations:

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3 b. Develop: a draft of the communication your manager suggested you use for consultation with a
stakeholder or particular group of stakeholders.

Memo
To: <recipients names and job titles>

From: <writers names and job titles>

Date: <complete and current date>

Subject: <description of what the memo is about>

<Begin with a brief introductory paragraph that contextualizes the memo for your readers and describes the
main point or course of action that readers should take after reading the memo. The introduction should not
have a heading>.
<After the introductory paragraph, the body of the memo should be broken into sections with informative
headings at the start of each section. These headings should not consist of generic words like "Problem" but
specific phrases like "Avoiding Cost Overruns in Sector 7.">

<Remember that if there are others who will receive copies of memo, aside from the recipients, add cc: after
the memo subject line with the names of those individuals>.

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Assessment Task A
Feedback Evaluation Sheet
Students Name:

Assessors Name : DATE:

Unit Name: BSBRSK501 Manage Risk

Has the learner proven they can: YES NO

1.1 Review organisational processes, procedures and requirements for undertaking

risk management in accordance with current risk management standards

1.2 Determine scope for risk management process

1.3 Identify internal and external stakeholders and their issues
1.4 Review political, economic, social, legal, technological and policy context

1.5 Review strengths and weaknesses of existing arrangements

1.6 Document critical success factors, goals or objectives for area included in scope
1.8 Communicate with relevant parties about the risk management process and
invite participation

2.1 Invite relevant parties to assist in the identification of risks

2.2 Research risks that may apply to scope
2.3 Use tools and techniques to generate a list of risks that apply to the scope, in
consultation with relevant parties

3.1 Assess likelihood of risks occurring

FEEDBACK TO STUDENT:

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Assessment
Outcome
Satisfactory Not Yet Satisfactory Re-assessment required

Student
Signature ____________________________ Date: ______________
STUDENT SIGNATURE

ASSESSORS DECLARATION:
I hereby certify that the above student has been assessed by myself and all assessments are carried
out as required by the Principles of Assessments (Clause 1.8 of the Standards for RTO 2015).

Assessor
Signature
____________________________ Date: ______________
ASSESSOR SIGNATURE

APPEAL PROCESS

I would like to appeal the outcome of this assessment.

Students signature: _______________________ Date: __________________

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Assessment Receipt

Students Name:

Unit: BSBRSK501 Manage Risk

Assessment: Task A

Term: 2 2017

Assessors Name:

Assessors Signature:

Submission Date:

Resubmission Date:

Assessors Signature on
Resubmission:

Important Notes: This is your evidence that you have handed in your assessment to your trainer. It is your
responsibility to keep this document by the end of the term. This Assessment Receipt is not to be considered that the
assessment has a positive outcome.
Student Declaration
Your trainer and assessor is required to discuss the following matters with you.

Purpose and outcomes of the assessment process

Relevant unit/s of competency
Recognition of Prior Learning
Appeals process
Confidentiality and security of information
Special need/ Additional information
Signing of Student Declaration

In signing this form the Student acknowledges that the assessment process has been fully explained by this units
Trainer and Assessor Sydney Metro College. This declaration verifies that copies of the Assessment Plan and Unit of
Competency have been provided and that the candidate understands and agrees to the assessment process as
described. The candidate also confirms that she/he agrees that Sydney metro College has removed the weighting and
marking as part of its assessment evaluation. This competency based training (CBT) assessment is part of Sydney
metro College continuous improvement policy and compliance upgrade.

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