Running head: Assessment Task 4 1

Assessment Task 4

Q 1:

The three ways through which research can be conducted for risk-related issues are

market research, past records, and data and statistical information.

Market Research: Market research is used to evaluate the data about markets and the

competitors, and also helps to enhance consumer satisfaction with services and products. The

firms easily collect information about the needs of customers and risk-related issues through

market research.

Past Records: The past records are included in secondary data and it is the best way through

which research can be conducted for risk-related issues. The past records are the collection of

best and already existing information. The research study starts and ends at a specific time and

point through past records.

Data and statistical information: In quantitative data analysis, the data is collected in figures

and it is analyzed using the specific statistical information. The statistical information and data

are reviewed for identifying risk-related problems. The statistical data is manipulated with the

precise set of data with the evaluation of specific subsets.

Q 2:

Fishbone

Fishbone diagram is also known as a cause-and-effect diagram, and it aids the managers

to analyze the ins and outs for variations, failures, and imperfections. The fishbone diagram

looks like a fish and bone to show the kinds of variables. The initial point of the diagram shows
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the identification of the issue. The fishbone diagram includes the cause types such as

measurements, people, machines, environment, etc.

A checklist is used to verify the various particular outlines of actions and investigations

by a researcher. These are used to organize the projects and to authenticate the crucial tasks

easily Checklists are used to decrease errors and confirm the extensiveness and consistency to

promote the duty. It helps the management to find out the major risks in a particular context.

Brainstorming

Brainstorming is the process to produce a thesis or idea for a topic and classify keywords

and Qs. It denotes to the quick and simple methods for focusing and producing ideas and to

create contacts among perceptions. The management rapidly identifies and generates the risk

through brainstorming.

Q 3:

The five stages of risk likelihood are explained below:

1. Recognize the threats

Risk management must walk around the location and try to recognize the threat by asking

Qs from people. The hazard must be identified through the verified website and trade

association, while the threats may occur in extraordinary circumstances.

2. Resolve who and how might be damaged

It is essential for risk management to identify the type of ill health or who and how it

might be damaged. The groups of people are made to resolve the damage. For instance, the

employee may suffer from a bad injury due to continuous and tough work.
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3. Evaluate the hazards and resolve the precautions

After identifying the risks, evaluate the hazards, and resolve the precautions. Risk

management can use laws to save people from major risks. For instance, providing goggles and

clothing to the employees for their safety.

4. Record and implement the findings

The risk management must pen down the consequences of risk likelihood and then

implement these findings. The risk management might add the staff in the process to produce

reasonable precautions.

5. Review and update the risk likelihood

Reviewing the risk likelihood is essential for risk management as it gives the detail but

what is happening in the management. If there is a need for updating, then risk management must

update the changes.

Q 4:

The important step in the risk analysis is to evaluate the potential importance or impact of

a threat to the firm and its aims. The five levels of consequences for risk are described below:

Small Consequences

It includes a short period and restricted risk consequences such as asset damage, breach

of internal process, and environmental threat. For instance, no consequence on health or

insignificant economic loss that can be easily restored.

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Moderate Consequences

It involves moderate damage in a firm that can be restored through the inconvenience and

through requiring attention. For example, moderate law violation which produces a result in loss

of economy and command.

Major Consequences

It includes the factors that cause earlier events, for example, environmental risk,

stakeholder opening of regulation and license, damage to status at a multinational level.

Catastrophic Consequences

It includes the big catastrophe that badly damages an organization, for instance, economic

loss which is non-restorable, permanent loss of status of the firm through the leakage of

information.

Insignificant Consequences

It includes the factors that are insignificant and there is no loss, for example, no income

loss, insignificant environmental impact, and no breach of strategies and license.

Q 5:

There are five needs that should be considered when treating the risk such as accept, avoid,

transfer, mitigate, and exploit the risk. The explanation of the treatments is given below:

The first way is to accept the risk after identifying it and then plan about how to deal with

the risk. This is the best plan to solve the small threats that do not have a much worse

impact on the firm and these risks can easily resolve.

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The transfer of risk is a strategy that is common in schemes which have several parties.

Risk management and its impact are transferred to other parties. For instance, a

management transfer the risk to the third party that works as a software code writer.

The mitigation of risk involves limiting the effect of risk if the problem is small and

easily fixable. For instance, if the sales team doesn’t understand the reliability of products

of the company then it is called mitigation of risk.

Q 6:

The risk action plan is an action that a firm carries out to illustrate potential threats and to

decrease the likelihood and chances of the threats. The firm creates a risk action plan to ensure

the correct actions that take place in an appropriate manner. The organization must present

negative undesired consequences that are capable to avoid the results. The management must

control, reduce, or accept the risks. The risk action plan should include:

 Timeline, risk, monitoring preparation, responsibilities and roles that are involved,

treatment control or activity, risk ratings

Q 7:

The AS/NZS ISO 31000:2009 provides specific guidelines and principles to risk

management. It is used to correspond to the management risk procedures in future and existing

standards. It is not fixed for any sector or industry and it can apply to the life of the firm and a

broad range of services, operations, assets, functions, decisions, and processes. It has both

negative and positive results and it provides general guidelines and it does not endorse the

consistency of hazard management across the firms. It is not envisioned for the goal of
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documentation. It helps to manage and identify the risks that are concerned with the attainment

of operational and planned objectives. It can be applied to various kinds of risks such as project,

financial, and safety risks and any type of firm can use it.

Q 8:

a. Privacy law

The privacy law provides protection to the personal information of the organization therefore

the threat of disclosing the important information to the third-party decreases. It deals with

storing, personal healthcare data, storing, financial data of persons of management. The privacy

law provides communication, health, online, and financial privacy laws to the management

through which the chances of threats decrease.

b. WHS regulations

WHS regulations are Australian laws that confirm the safety and health of the employees and

defend them from the risks. There is a positive impact of WHS regulations on the process of

managing risk because it decreases the chances of health risks.

c. Contract law

It includes enforcing and making agreements through the contract. It is the law that works to

make the contract and to carry and fashion the solution of the risk. It involves the legal contract

made between three or more groups which include the exchange of information, data, or goods.

Q 9:

The three adjustments that should be made in the workplace to assist a person with a

disability are given below:

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If the disabled workers are suffered from arthritis, then the company must provide the

equipment like a special keyboard. The disabled workers may feel pain while working

due to the lack of special equipment and their power to do work may lack. He or she may

leave the job due to the lack of special tools at the workplace.

The company must arrange a ramp for disabled workers so that they can easily go to the

workplace by using a wheelchair. It is difficult for disabled workers to go through stairs

with wheelchair therefore this adjustment is compulsory for the disabled workers.

The organization must provide opportunities for training, refreshment, and recreation to

relax disabled workers. The disabled workers are sensitive and they don’t bear

continuous stress of the work.

Q 10:

There are many types of insurance that an organization could consider purchasing. The

management adopts various insurance policies to decrease the danger. Two types of insurance

that a firm could consider while purchasing are explained below:

The business disruption insurance is the insurance policy for an organization. The sudden

disaster may interrupt or damage the operations of an organization. This can result in

income loss, the inability of staff in the organization to do work. The business disruption

insurance recompenses an organization for the loss and due to sudden damage. The

organization does not face major financial loss due to business disruption insurance.

The work’s compensation insurance provides the death and disability benefits, remedial

treatment to the employees. If the employees of an organization suffer from sudden injury

then work’s compensation insurance also provide benefit to them. When the employees
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become a member of an organization then the organization applies this policy to the

employees.