Identify risk and plan risk management

BSBRSK401 task 1

Identify the internal and external context for the risk management (including
organizational policy, procedures and processes for risk management)
Organization policy
The company is aiming to engage clients with excellent services to increase sales volume;
reduce expenditure and achieve financial control over expense; support staff innovation,
performance and leadership skills via training.
1. Internal context
- Goals and objective
- Structure, function and key processes
- Physical and technological infrastructure and maintenance arrangements
- Locations of business sites and other operations
- Details of internal stakeholders
- The prevailing culture and workforce morale
- Resource capabilities such as people, systems, procedures, and policy
2. External context
- Environmental: business, social, regulatory, cultural, competitive, financial and
political situation
- SWOT: strengths, weaknesses, opportunities and threats
- External stakeholders
- Political
- Economic
- Law and legal
Internal context have to manage and find solution to minimize risk that can interrupt
operation of expanding while external context could not be controlled by without
supporting operational and risk management plan.

Identify three risks using tools

checklist
Categories checked risk Non risk
Economic and political
Regulations
Financial, economic
Law and legal
Environmental and sustainability

Physical conditions
Community
Social
Workplace safety
Operations and maintenance
Ethical and moral

Three risks
 1. Lack of human resources management leading to inability to respond marker
demands/ low productivity
2. Non-compliance with legal and regulatory requirements
3. Budge underestimated regarding to savings

Analyse each identified risk to determine the likelihood and consequence of each
Risk Risk Risk Risk level controls
consequence likelihood
Lack of human Moderate 10- Unlikely Medium - Aligning human
resources 20% of resource plans
management revenue with the overall
leading to business
inability to strategy and
respond risk framework
marker - Monthly
demands/ low performance
productivity evaluations

Non- Major 20-40 % Rare Medium - Implementation

compliance of revenues of a compliance
with legal and program where
regulatory compliance
requirements obligations are
identifies and
assessed
Budget Moderate 10- Possible Medium - Budget
underestimate 20% of contingency
regarding to revenue plan
savings

Consult with three stakeholders to assist the analysis and evaluation of risk
1. Stakeholder 1
There is important to train the leader of villagers about the process and how to use
the machine before we expand the business. We need to ensure that village will
accept to new knowledge and be able to work alone. You can send Australian human
resource manager and training manager to PNG to keep training and ensure that
those people are skilled. This is also important to monitor their performance closely.
Sending out experiences staffs there will be another option but it pretty costly.
2. Stakeholder 2
For techonology issue, it is quite hard to import and install new machine in PNG. I
suggest to use low technology but still can roast the beans. High technology machine
requires higher skill and cost. It is also difficult to fix if there is existing problem. Most
new machines are using digital to control but for villagers who are not familiar with
this so it may create uncomfortable for them to use. Anyway, Geoffery, who is PGN
 quality and production officer, will help monitor stand of quality to meet standard of
company.
3. Stakeholder 3
In my opinion, to be honest, communication is a vital issue in this condition. if we
cannot communicate each other properly it might lead to miscommunication.
Communication including language and culture use with villagers. At PNG, there
have several official languages which mean not all people can use English as main
communication language and we have different background, religion, culture. There
is an issue that we need to considered.

Weight possible control measures for each risk, assessing strengths and weaknesses of
each measure. Determine control measures for each risk.
Risk Control Strengths Weaknesses
Lack of skill Send the Maintain standard of - Costly for
and knowledge staff to procedure and quality training and
head office of performance accommodation
to receive - Partly staff can
training participate to the
training
Send the All the staff can join the - Hard to convince
trainer to training and monitor staff to move to
the local their performance PNG
officer for closely
training
staff
Lack of Using Maintain high quality of - High cost
technology highest roasted cooffe beans - Risk to fail to use
technology due to low
machine skilled
and
prepare
place to
instakk
Using old - Easy to use - Not standard
model - Cheaper procedures as
head office
- Lack of quality
Lack of Using - No time and - High
communication traditional place limitation international call
method via cost
phone call
Install - Face to face - Lack of internet
internet in communication signal in some
a office - Fast and easy to situation
site at PNG call
 Determine resource and responsibilities for control of risks
Financial resource Human resource
3000 for allocation (research, planning - Trainer
and prepare place for install roast - Human resource manager
machine - Operation manager
- Communication and training
officer
- PNG quality and production
officer
- Australian human resources ad
training manager

document your process and outcomes of identification, analysis, and evaluation of

risk
Risk
Risk consequence
Risk likelihood
Risk level
Control/s
Lack of skill and knowledge
Major
Likely
Extreme
Send trainer to teach local at PNG
Lack of technology
Moderate
Possible
High
Use old machine
Lack of communication
Moderate
Likely
High
Install internet at PNG office
Review and maintenance requirement:
Send trainer to teach local at PNG: will provide better outcome as we have our own staffs at
the site. This person will help control quality and report to head office.
Use old machine: cheapest to install at PNG. Our trainer also expertise is using this machine
and local people can learn how to use quicker.
Install internet at PNG office: can use internet to work in several areas. It provide more
benefit to company in long term.

Risk treatment activity

Resources required
Person responsible
Timelines

Provide additional training and coaching session for staffs

- Experienced staff
- Time
- Training manual
- Australian HR and Training Manager
2 months

Provide machine instruction in local language

- Machine manual
- Translator
Consultant in PNG
1 month

Setting internet connection before expand to PNG site

- Internet connection
- Internet accessories
PNG Quality and production officer
1 month
review and maintenance requirements:
as we have to communicate with local language so it would be better if we have a
interpreter and translator to translate ducoment into their language.

Risk Risk Risk Risk level Control/s

consequence likelihood
Lack of skill and Major Likely Extreme Send trainer
knowledge to teach local
at PNG
Lack of Moderate Possible High Use old
technology machine
Lack of Moderate Likely High Install
communication internet at
PNG office
Review and maintenance requirement:
Send trainer to teach local at PNG: will provide better outcome as we have our
own staffs at the site. This person will help control quality and report to head
office.
Use old machine: cheapest to install at PNG. Our trainer also expertise is using this
machine and local people can learn how to use quicker.
Install internet at PNG office: can use internet to work in several areas. It provide
more benefit to company in long term.

Reflection
reference to specific legislation and regulations and the key provisions relevant to
risk
I would apply fair trading into MacVille business. This is to protect company,
customer and suppliers from unfair trading practices. These laws, together with
industry Codes of Practice, help business operate fairly and competitively, and make
sure customers are properly informed and protected. For this issue, I will
acknowledge customer for source of product. I will label it with Made in Australian
or PNG. All staffs will receive standard salary and compensate and customer will
receive highest quality of products from our company.

explanation of how your process was consistent with organisational requirements

and AS/NZS ISO 31000:2009, and comment on the purpose and key elements of
current risk management standards, including audit requirements
ISO 31000:2009 provides principles and generic guidelines on risk management.
MacVille has risk assessment process to identify risk in expanding project. We have
purpose to minimize risk and finding way to prevent risks. Our staffs will continually
monitor and audit on process to ensure that we maintain high standard as head
factory.

identification of the tools you used and explanation of your use of tools to identify
risks
Risk Matrix tool was implement in risk assessment. It provides likelihood and
consequence and level of each risk. Hence, we can prioritise risk and prepare to
support them. A risk assessment matrix is easier to make, since most of the
information needed can be easily extracted from the risk assessment forms. It is
made in the form of a simple table where the risks are grouped based on their
likelihood and the extent of damages or the kind of consequences that the risks can
result in.

explanation of how you used research and information-gathering skills to identify

risks and determine the acceptability of risk
I use research and information-gather skill by finding more information via many
formal source on Internet. I collected information then analyse and integrate with
MacVille case study to interpret to risk management plan as above.

explanation of how information from consultation with stakeholders informed

your analysis and evaluation of risk
When consult with stakeholder, I would gain many ideas and recommendation.
These group of people are relevant to company so they know company, project and
willing to make company success. Hence, they will help identify gap, adjust my plan
and giving more information which is useful to enhance effective of risk
management plan.

explanation of how you weighed control options’ strengths and weaknesses and
determined controls.
I chose control option based on the possibility of acquire. I analyse our own resource
and chance of success between options then select one that I think it will bring the
most benefit to company. Every options have both strength and weakness but which
strength can provide more benefit and which option will have less effect to company
in long term so I selected it.