Assessment Task 2 BSBRSK501 Manage risk

Analyse and treat risk

Submission details

Student’s name Student no.

Assessor’s name Phone no.

Assessment site

Assessment date/s Time/s

The assessment task is due on the date as told to you by your assessor. Any changes to this
arrangement must be approved in writing by your assessor.
Submit this document with any required evidence/proofs attached. See specifications/details
below for details.

Performance objective
For this task you are to analyse the risks you identified in the simulated/pretend business
scenario/setup to assess/judge the likelihood/possibilities and consequence/penalties of risks,
evaluate and prioritise/re-order risks, and determine options for treatment. You are also
required to develop a risk management action plan for the treatment of risks and communicate
it to relevant stakeholders/shareholders.

Assessment description
For the MacVille Pty Ltd simulated business scenario provided, you are required to assume
the role of Brisbane store Assistant Manager, Ash, who has just been promoted to be Manager
of a new store. Ash has been tasked with conducting a risk management analysis of this new
venture.
There are three stages to this project: (1) review, (2) analyse and plan, and (3) monitor. This
project is divided into three assessment tasks as follows:

Assessment Task 1 Assessment Task 2 Assessment Task 3

 
Risk review report,
Risk analysis report,
email to
action plan and risk Monitoring report
stakeholders and
treatment
meeting with CEO

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Assessment Task 2 BSBRSK501 Manage risk

For this task, you are to use the information you gathered in Assessment Task 1, along with
the simulated/pretend business information provided, to examine the likelihood/possibilities
and consequence/penalties of identified risks, prioritise the risks and determine options for
treatment of each risk. Using this information you are required to develop a risk management
action plan for implementing risk treatment, document the plan as required, and communicate
the risk management plan to relevant parties.

Procedure

Part A
1. Review the MacVille simulated business scenario information and documentation
provided in the Appendices of this task and in Assessment Task 1.
2. Develop a report for the CEO (your assessor) that includes the following:
a. For each risk (i.e. the four identified in the scenario for this task), assess the
likelihood of the risk occurring/happening again.
b. For each risk, assess the consequence of the risk occurring.
c. Develop a risk matrix 1 to assist in prioritising the treatment of the identified
risks, including numerical values (e.g. risk matrix in the Student Workbook).
d. Once you have prioritised the risks, for each, outline at least two suitable options
for treatment.
e. Include an explanation of the process you used to identify risks and assess
likelihood, consequence and priority. Also include an explanation of why the
options you have suggested for treating the risks are:
i. likely to be effective
ii. feasible for the organisation.
Note: Ensure your report is written in a style appropriate to your stakeholder audience,
for example, using appropriate language and including appropriate illustrative material
(such as checklists, diagrams or flow charts) and attachments to support your findings
and process.
3. Develop an action plan (you may use the Risk Management Action Plan provided in
Appendix 3 of this task) for implementing risk treatment and attach it to your report.
4. Communicate your analysis/study to the Board of Directors by submitting your risk
analysis report, along with your risk management plan, to the CEO (your assessor) for
internal distribution.

Part B

Risk Matrix - A risk matrix is a matrix that is used during risk assessment to define the level of risk by
considering the category of probability or likelihood against the category of consequence severity.
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Assessment Task 2 BSBRSK501 Manage risk

1. Implement your risk management treatment of one key risk, such as decreased brand
recognition2, in accordance with the requirements provided to you by the CEO (your
assessor). You will need to discuss and agree with your assessor how to provide
evidence of your implementation.
2. Submit the required documents for assessment as per the specifications below. Be sure
to keep a copy for your records.

Specifications
You must:
● submit a risk analysis report, including a risk matrix

● submit a completed risk management action plan

● implement one risk treatment and submit evidence as agreed with your assessor.

Your assessor will be looking for evidence of:

● reading skills to gather, review, interpret/understand and analyse text-based business
information from a range of sources in order to evaluate risk
● written skills to organise and deliver information to effectively communicate risk
management analysis and plan to a range of stakeholders
● numeracy skills to interpret mathematical data when reviewing and analysing scenario
business information and evaluating risks and treatment options
● ability to work independently to evaluate risks and make decisions about treatment
options
● ability to interact/engage with others using appropriate conventions/structures when
communicating to, and consulting with, stakeholders
● ability to sequence/in order and schedule activities and manage communication

● ability to analyse relevant/related information to identify and evaluate treatment options

● ability to use familiar digital technology 3 to access information, document findings and
communicate them to stakeholders.

Brand recognition - the ability of a consumer to recognize one brand over other brands.
3

Digital technology - Digital technologies are electronic tools, systems, devices and resources that
generate, store or process data. Well known examples include social media, online games, multimedia
and mobile phones. Digital learning is any type of learning that uses technology.
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Appendix 1: Scenario – MacVille Pty Ltd simulated

business

Background
The MacVille Board has reviewed the previous report you developed, and has requested
further information for four of the identified risks, including options for reducing the risk
levels. These risks are as follows:
● Banking risk – theft of cash left on premises.

● Manager’s travel risk – physical injury.

● By-law compliance risk – reputation/brand loss and fines

● Loss of brand recognition risk – brand non-compliance of staff not wearing the
MacVille uniform, or altering MacVille processes and service expectations.

Timelines to consider are based on risk priority levels and include the following:
● Pre-settlement – date of legal transfer of the business.

● Opening week – first week of company operations.

● Within three months – after the opening week.

● Within six months – after the opening week.

Responsibilities for actions include the following.

● Financial, insurance and banking issues – Financial Controller.

● Legal issues – Goldsmith Partners.

● Expenditure >$5,000 – MacVille Board of Directors.

● New policy – CEO with MacVille Board of Directors.

● On-site management, training – Store Manager.

● Changes to MacVille Café Queensland operations – CEO.

● External audits – CEO with MacVille Board of Directors.

Develop a report for the Board of Directors that examines these risks and describes ways that
each can be treated, and forward a copy of your report to the CEO to table at the next Board
meeting.

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Appendix 2: Revised notes from previous meetings

Site visit – New Toowoomba store (the existing Hurley’s Café)

Meeting with James Mansfield
You revise your notes from the meeting with James Mansfield and identify the
following points.

● In the context of MacVille’s investment here, $4,000 would be considered to be of

minor consequence if it were burgled from the closed premises overnight.
● One or two of the staff at Hurley’s pride themselves on being on-trend and well-
dressed; they are going to struggle with being required to wear a MacVille uniform.
It will be difficult to make them comply with the uniform requirement. The rest of
the staff are generally very responsive to employment requirements. The
consequence of initial non-compliance would be minor.

Meeting with Ron Langford

You revise your notes from the meeting with Ron Langford and identify the following points.

● He also said that the Toowoomba Council water patrols meant that it is likely that
stores not complying with the by-law would be discovered.

Senior management team meeting

You go back over your notes compiled with the senior management team and note
the following.

● Further feedback from Paula included that the water compliance risk was one where
significant time and resources would be required and the Board would view it having
moderate consequences for MacVille’s cafés in Queensland. She also indicated that
while the Board views the risk of a serious accident unlikely, any potential risk that
could result in the death of an employee would have a catastrophic consequence.

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Brainstorming ideas
Looking at the hierarchy/order of control, the senior management team were able to give you
some good brainstorming ideas to pursue. These include the following.
● Installing native/natural plants to cut down water use.

● Making it a company policy to bank every day and eliminate/remove the need to carry
overnight.
● Install a teleconferencing system.

● Install a water tank and reduce dependence on council water.

● Change banks to the nearer one to avoid the long walk.

● Install dual-flush toilets.

● Insure overnight cash holdings.

● Finish management meetings at 3.00 pm.

● Introduce new processes on water use and conservation.

● Change assistant manager training times to the morning.

● Write new policy and procedures for water use in Toowoomba.

● Install a water-usage graph in the staff room.

● Give the manager an excusal letter allowing them to leave any meeting at no later than
3.00 pm every day.
● Replace the dishwasher with one that has a 5–6 star (WELS) rating.

● Have Goldsmith Partners apply for time to ‘make good’.

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Appendix 3: Risk management action plan template

Assess Action
risk priority
Risk (score) Controls Monitoring (1–5) Timelines Responsible

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Assess Action
risk priority
Risk (score) Controls Monitoring (1–5) Timelines Responsible

© Innovation and Business Industry Skills Council Ltd 1st edition version: 2
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