ASSESSMENT TASKS

SBTA Term reference: LMD-20_3.1_Business Risks

Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:

ASSESSMENT TASK 1: PRACTICAL ACTIVITIES

Assessment task instructions:
This is the first assessment task which consists of 6 activities which include a research, written task and role-play. You must complete all the knowledge questions at the
required level to get a “Satisfactory” outcome.
Purpose of the assessment task:
The purpose of the assessment task is to assess your knowledge in the following:
 the purpose and key elements of current risk management standards, legislative and regulatory context of the organisation in relation to risk management and
organisational policies, procedures and processes for risk management including document storage as well as tools and techniques to identify risks to scope risk
management processes
 analyse information from a range of sources to identify the scope and context of the risk management process, including: types of business risks, options for treating
risks and risk management process, stakeholder analysis, political, economic, social, legal, technological and policy context, current arrangements, objectives and
critical success factors for the area included in scope and risks that may apply to the scope
 consult and communicate with stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management
processes and develop and implement an action plan to treat risks
Assessment conditions and resources:
Assessment will be conducted in a safe simulated environment where you will have access to:
 technology, resources, workplace documentation and templates relating to risk management, scenarios, workplace information to complete this assessment task
 access to others (e.g. other students to complete role-plays)
 access to legislation, regulations, standards and codes relating to risk management

Activities:
Case Study 1
Read the Case Study - Coffeeville Coffee Shop and complete all activities as indicated.
Case Study 1 - COFFEEVILLE Coffee Shop
Siblings Rufus and Emma have both trained and worked in the hospitality industry over
many years. They decided to open Coffeeville in 2009.  Since then, the siblings have been
providing quality products to the busy CBD population. The family-oriented siblings
understand the importance of healthy communities and they endeavour to run a business
that values and supports communities on a local and global scale.
CoffeeVille only serves certified fair-trade coffee. The coffee shop provides a friendly
environment for staff and customers. Where possible, CoffeeVille sources local
ingredients and products and the coffee shop also aims to provide healthy choices:
 the coffee shop sources organic ingredients and products; and
 vegetarian and gluten-free options.
Now CoffeeVille is entering its third year of business operations. Due to effective positioning, the cafe has been well-received by the
local community and the consumer market.
According to the company mission, CoffeeVille provides a unique and compelling cafe experience for the socially aware city coffee
drinker.
CoffeeVille provides:
 high quality, fair trade, coffee
 superior hot and cold gourmet food and beverages
 consistently high level of expert and knowledgeable, fast and friendly service.
According to the CoffeeVille vision, within five years, the company will have established itself as a premier provider of gourmet
coffee and food for the ethically and socially aware coffee drinker. CoffeeVille will have expanded in the CBD to open additional
locations and in the current location open shifts open evening trading to capture workers who are working long hours, e.g.
professionals with no children at home, that wish to have healthy dinner options prior to driving home to the suburbs.
CoffeeVille aims to achieve company mission and vision through the implementation of several key strategic directions:
 increase revenue through targeted marketing campaigns
 control direct and indirect operational costs
 maintain superior product and service quality standards
 establish CoffeeVille brand as ethical and environmentally responsible company
 maintain highly trained and motivated staff.
As the current location is successful and prior to opening any other coffee shops, Rufus and Emma have decided to open and trade in
the evenings. It is important that prior to opening the coffee shop’s new times and shifts and employ new staff that the siblings

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |1

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

consider risks associated with changing of their services.

Note: base your activities using CoffeeVille virtual organisation or refer to your own organisation. If you are to use your own
workplace and stakeholders, you must discuss the organisation and its services with the assessor who will check if the scenario can be
based on your workplace or communicate with Student Services team. The assessor will also be able to determine if any of the
stakeholder meetings, required by this assessment task, can be role-played in front of the assessor using colleagues or if the student can
to use own workplace managers or other suitable individuals and records, collect and supply evidence of all communication and
meetings. All meetings not conducted in front of your assessor MUST be recorded and uploaded with your assessment task.
Refer to the virtual company website “Coffeeville” – website link is: http://coffeeville.simulations.australiantrainingproducts.com.au/.
Activities:
Using the virtual company, read all the questions below and provide answers to each question.
1.1 Review the CoffeeVille website and access the intranet. Locate CoffeeVille’s policies and procedures and the
business plan and establish:
a) The coffee shop’s internal and external stakeholders
b) Identify who would be responsible for establishing a risk management process and procedures and explain why?
c) Identify what policies, procedures, strategies and information is available for the organisation for staff to access.
(guide: 80+ words)
a.In internal stakeholders, workers are the most important resources. So, it is crucial for the organizations
to adopt successful selection/recruitment and induction process. Staff will be selected through word-of-
mouth, through trade publications, and through online recruitment offices. Staff performance will be
continually observed and managed in accordance with the CoffeeVille performance management policy.
Managers and workers will collaborate to produce work plans to build skills and guarantee alignment of
employees efforts and abilities with company strategic directions. The partners and business owners are
very responsible for guaranteeing that safe systems of work are stablished, implemented and maintained.
b. Management and workers of CoffeeVille have obligation for implementing aspects of this policy.
CoffeeVille recognises that risk management is an fundamental component of good management practice.
CoffeeVille 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
CoffeeVille's internal controls and corporate governance arrangements.
c. The process for developing a risk management profile.
 . Define and identify the environment, characteristics and stakeholders, their goals and
objectives, and the scope of the specific risk management process.
 Identify and describe risks
 Conduct current risk analysis and estimate their probability and consequences. This analysis
provides the basis for working on the ‘right’ risks.
 Conduct risk evaluation
 Develop and implement proposed risk treatments
 Monitor, report, update and manage risks. As risks change constantly, the risk profile is
continuously monitored, review 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.
1.2 Access the organisation’s risk management information from the intranet and:
a) review the and explain the strengths and weaknesses of the coffee shops business risk that Rufus and Emma are
aware of for their current structure.
b) list your identified strengths and weaknesses about the coffee shop in the space below and
c) add others that you believe would be relevant for the coffee shop that Rufus and Emma may have not identified.
(guide: 50+ words)

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |2

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

Strengths / Opportunities Weaknesses / Threats

 Great location  Limited space to serve more customers
 Hight Customer loyalty  High cost of sales associated with choice to
 Excellent staff, highly skilled at coffee making provide fair trade and organic food and coffee.
and food preparations.  A limited marketing budget to develop brand
 Coffee and food offerings that exceed awareness.
competitors offering in quality and speed.  Uncertainty of worldwide coffee supplies.
  Potential shifts in Population when building and
streets are developed.
 There are no such established process to deal with
the injuries that could be happened in the
workplace.
 To deliveries of the bakery product from the
central plant to the store makes the delivery of the
fresh bakery products very much impractical
 The banking of all of the cash is not done every
day that premises the cash on the cash register
overnight. Therefore, it increase the risks related
to the safety of the cash.
 Lack of professionalism in handling the business
because the business is currently run by the family
and some of the employees are the family members
as well.
1.3 Explain how Rufus and Emma should communicate the Risk Management Strategy Plan and risk management
requirements with the staff and other relevant stakeholders and invite them to participate in future risk identification
for the coffee shop. Your answer must provide good detailed points. (guide: 50+ words)
Rufus and Emmas should determine what types of risk are acceptable and which are not and approve major decisions
affecting CoffeeVille’s risk profile or Exposure. They also need to perform annual review of CoffeeVille’s approach to
risk management and approval of changes or improvements to key elements of its processes and procedures then
monitor the management of significant risks to reduce the likelihood of potential organisational risks and threats or
failure. Their employees should familiarise themselves with the content of the risk management policy and clarify any
aspects necessary with a senior team member and 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 management/partners of their concerns.
It is important that Rufus and Emmas undertake an annual review of the effectiveness of systems of internal control and
provide an annual report for partners, including a summary review and respective recommendations.
1.4 If Rufus and Emma decide to open in the evenings, the coffee shop’s risks will increase. Read the scenario below and
answer.
Scenario 1
Emma and Rufus have accumulated the following data through their research:
Large percentage of office workers (80% of daytime trade) / 50 % of office workers leave their offices after 6pm in the city and these
are the ones the business wishes to attract.
 Area population for office workers is growing at 8% per year
 Immediate geographic target is the area of within 500 meters of the cafe.
 The total area population is estimated at 45,000.
Demographics - male and female.
 Ages 20–60; this is the age-group that makes up 83% of the available daytime market.
 Full-time employment.
 An income over $50,000 plus.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |3

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

Behaviour factors
 Eat out most times for lunch in a week
 Seek fast service cafes
 Enjoy a high-quality meal
 Eat dinners in local pubs or restaurants occasionally for dinner prior to going home
 Are worried that eating out each day or night is not healthy
 Value quality of food
 Value healthy eating
 Value ethical and sustainable practices

 Review the information available for the coffee shop and identify the business risks for the additional opening
hours and address the following common business risks in the table below.
 Prior to deciding the overall risks address each of the following categories and explain what risk would be
associated with each that the coffee shop owners should be aware of.
(guide: review all information available and complete the table – 100+ words)
Financial risk; Moving operations from the normal working hour is a big jump in terms of logistics and
costs. The management must offer their employees who will be working after 6pm more
money for the night shift job. They also need to invest for the healthcare of their night
shift employees because workers on the night shift have to face the pros and cons of
working odd hours while also attempting to preserve their work-life balance; such a
drastic change of schedule can work both ways, after all.
Management risk; Rufus and Emma need to hire extra store managers that can work after 6pm to manage
the business. They need to create and implement the proper safety guidelines in working
at night.
Staffing risk; CoffeeVille employees working after 6pm may not perform their duty correctly and
eventually left their job to find a better job opportunity. Some employees accepted the job
because of higher compensation or benefits but eventually they will get tired of working at
night. The CoffeeVille management must hire and train more competent candidates.
Social risk; Your own schedule will undoubtedly contradict your family’s schedule. If you enjoy the
hustle and bustle of a busy day, the silence will bore you. Most of the people prefer to
have their dinner at home with their families. Lack of social media advertisement about
the opening of business at night.
Legislative risks; The Work Health and Safety Act. There are several types of risks that are incorporated
with the organization that are involved in selling food product. Therefore, the government
generally had taken an effective part in the risk management by implementing different
food safety law. Along with that government, also implement some employment law and
safety at work law so it can protect employee in the workplace.
Safety risk; More prone to health issues and it may cause.
Technological risk; The computer in the store was not password protected so anyone can access the details of
the employee and the financial record. The management need to hire more I.T that can
make a new system for CoffeeVille because all takings from the cash registers are not well
recorded. The company should use internet advertising method to promote its vacancies
and to reach the talented and skilled candidates. This will ensure that the company is
hiring best candidates who will be most beneficial for the business in future.
Customer Service delivery Some staff might feel tired, lazy and sleepy at night. Good customer service reflects the
risk; company. The speed of service will be affected because some employees will become lazy
because they are sleepy.
Reputation risks; Employees are the critical factor of any company’s reputation. The behavior and attitude
of the employees toward the customer creates a brand identity of the CoffeeVille,

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |4
 ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks
Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:
Managers and staffs may not meet the expectations of their customers. It will lead to
potential loss of customers.
1.5 Using the risks, you identified in question 1.4, now you are to: (guide: 80+ words)
a) analyse each risk; and
b) assess the impact or consequence of the risks occurring; and
c) list the likelihood of the risks occurring; and
d) explain the reasons for coming to the conclusions you have.
Note: one risk has been completed to be included in the form and as an example.
Factor impact or consequence
Financial; Ongoing Financial problem because
the business is small and not achieving
the targeted income.
Management; They might hire an incompetent
managers and staff
Staffing; Staff should be trained competently but
they are having difficulties on sourcing
and training skilled staff because of
lacking in financial assistance.
Social; Most of the families prefer to have
dinner at home so they may not want to
attend an evening dinner on the
restaurants or café.
Fire safety certificate for the building is running out
and will be out of date in 2 months.
.Legislations &safety; The health of employees will be
compromised due to night shift duty
Technological; The computer in the store was not
password protected so anyone can
access the details of the employee and
the financial record.
Customer Service; Some staff may become lazy because of
their night shift job.
Business Reputation; Staffs cannot meet the expectations of
their customers
1.6 Role-play 1
You will be required to organise meeting and participate in the meeting with Rufus, Emma and other employees from
the coffee shop. You are to discuss each point listed below and invite your colleagues to provide comments and
feedback; and complete a meeting minutes’ template.
LMAD_3.1 – BSBOPS504 Assessment Tool
likelihood of the risks occurring explanation
High. Because they are new to this kind of
business, and they need to allocate new budget
for the business operation
High – because it will lead to failure of
business operations.
Medium- short of skills and failed to perform
their duties and responsibilities.
High- Insufficient advertisement, promotion
and information campaign about the Coffee
shop’s new offer of late-night dinner for those
who does not have to cook dinner at home.
Very high and needs to be organised as soon as possible so the fire
plan can be re-registered and the coffee shop can be opened.
High- If the employees don’t have enough
sleep, it can affect their overall medical
conditions.
High- Company and employees’ confidential
information can be easily access by anybody
and it will compromise the confidentiality of the
company. Management must hire an IT
specialist to make a new protected computer
system
High- It will affect the business and some
customers will complain about the service. The
employees need proper seminar and training to
be able to give good customer service.
High- In order to maintain the quality of service
and to fulfill the demands of customers,
management must retrain their night shift
workers.
Version 1 dated: 16 July 2021
P a g e |5

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

Note: if you are meeting online using MS TEAMS, you must also record your session. If you can attend the Academy and conduct
the role-play in front of your assessor, you will receive feedback from the assessor and you do not need to record the role-play.
Your assessor will be required to give you a completed Assessor Observation Checklist (AOC)
(guide: organise group for you to conduct your role-play. Each student must take notes during the meeting and complete own
meeting minutes as evidence of attending the meeting which must be in their own words and not copied from others from the
meeting – minimum of 15 minutes – as long as it takes)
The meeting will address discussions about current processes and procedures and requirements for understanding risk
management at the coffee shop. You will be required to review all company documentation and:
 discuss and determine with the group everyone’s understanding of the risk management process for the
coffee shop
 review the finding from the tables you identified in question 1.4 and 1.5 and confirm with the other team
members if they agree with the risks you identified and the impact or consequences and likelihood.
 during the meeting you will also be required to address the following points and discuss and confirm:
a) how the coffee shop management and staff should communicate business risks identified;
b) processes on how risk management policies and procedures are to be implemented;
c) how risk management procedures and communication processes should be implemented into the existing
risk management strategies and plans;
d) how to continuously maintain ongoing monitoring program of the coffee shop’s risk management; and
e) how Rufus and Emma should ensure that monitoring and review processes are achieved;
f) confirm and ensure that all staff, stakeholders and management support the risk management strategies,
activities and plans
 Use the template provided to complete the meeting minutes’ document based on all topics discussed in the
meeting.
Use the following table to take own notes from the meeting to demonstrate own contribution to the meeting. These notes can be
handwritten and attached to the task or typed below. If you choose to handwrite you must advise if your notes are attached so it
explains why this table was left empty.
Do all staff understand the current risk management process Coffeeville risk management framework design to gain good
for the coffee shop management practice and committed so ensuring the implementation
of risk management process that focus on the proactive management
of risks across the organization. Its helps to identify, evaluate,
control and manage risk without having any future problems. Assign
correct roles and responsibilities to directors, senior management
and all other staff members, not only that it also helps to get an idea
about potential threats and opportunities that will going to happen in
future. The risk management process is dynamic and is designed to
adapt to CoffeeVille’s developments and any changes in the risk
profile over time. Compliance measures are used as a tool to address
identified risks. The risk management system is based on a structured
and systemic process which takes into account CoffeeVille’s internal
and external risks.
The main elements of the risk management process are as follows:
 Establish the context – establish the external, internal and
risk management context in which the rest of the process
will take place – the criteria against which risk will be
evaluated should be established and the structure of the
analysis defined.
 Identify risks – identify where, when, why and how events
could prevent, degrade, delay or enhance the achievement

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |6

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

Does the team agree with the risk’s impact/consequences and
likelihood of the risks from table 1.4 and 1.5
a) how does the coffee shop management and staff should
communicate business risks
b) how to implement processes needed to manage risk
management policies and procedures
c) what procedures and communication processes should
be implemented into the existing risk management
strategies
of CoffeeVille’s objectives.
 Analyse risks – identify and evaluate existing controls.
Determine consequences and likelihood and hence the
level of risk by analysing the range of potential
consequences and how these could occur.
 Evaluate risks – compare estimated levels of risk against
the pre-established criteria and consider the balance
between potential benefits and adverse outcomes. This
enables decisions to be made about the extent and nature
of treatments required and about priorities
 Treat risks – develop and implement specific cost-effective
strategies and action plans for increasing potential
benefits and reducing potential costs.
Yes
Our managers are committed and trained to provide you with the
tools
and positive working environment for you to do your job to the best
of
your ability. You will be treated with respect and dignity by all of our
management personnel and we will try our best to recognise and
reward your hard work and accomplishments. CoffeeVille
recognises that risk management is an essential component of
good management practice. CoffeeVille is committed to ensuring the
implementation of risk management processes that focus on the
proactive management of risks across the organisation. Coffeeville
risk management framework facilitate effective and efficient
operation, its helps business to react variety of operational,
financial, commercial and strategic risk. It includes policies and
procedures, monthly reporting, business planning and budgeting,
risk management review and external audit.
As the manager the main goals and objectives of situation of
Coffeeville in the risk management procedure is identification of the
effectiveness of the current risk management procedure. If there is
any problem in the current risk management strategy is identified by
as the manager, then it is manages responsibility to advice board
members some strategy by which this problem can be resolved.
According to all the risk related issues can be solve using effective
risk management strategy. Need to implement more risk policies
regarding the issues and do more internal control procedure to
overcome to those issues. During the research I identified several
risk environments and how to avoid those areas by doing better risk
management practice. First need to do some modifications and
update the current Coffeeville risk management framework and
apply it to current situation, then we can understand which area
need to be improve during this phase and how we can manage risk
according to newly updated Coffeeville risk management framework.
It is possible to identify the areas of the risk management that are not
correctly addressed. Therefore, it helps for the manager to provide
effective advice to the director so appropriate can be taken.
 Support and effective level of commitment from the top
level of management.
 Effective level of communication among the higher

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |7

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

authority, the staffs and the customers.

d) how do you continuously maintain ongoing monitoring
program of the coffee shop’s risk management
e) how Rufus and Emma should ensure that monitoring
and review processes are achieved
f) how best to communicate about risk management with
relevant stakeholders and invite future participation
when designing risk management strategies and plans
g) how to gain ad establish support from management and
staff when conducting risk management activities in
future
 Good organizational culture that facilitates collaboration
and the cooperation.
 Effective organizational culture that facilitates a good flow
of information
 Good utilization of the information technology.
By conferences and the printed documents, supervisors will be aware
about the risk management. Feedback will be gathered whether staff
have understood the information or not. Staff communication will be
on the priority as they are the part of business.
By implementing effective performance review system within the
office including performance appraisal and performance policies.
The system should manage individual performance and
communication between manager and employees.
With respect to employees as stakeholders, there are collectively or
individually affect risks that could have an impact on business
operations. Therefore, effective communication, honest and free
information exchange environment, active contribution to a clear
reward system will result in high productivity and motivate
employees to work toward goals and achieve objectives. This is to
say better decision making executing will be enabled by the culture
of risk understanding.
All their issues should be identified as it helps in coming up with a
risk management plan especially for those stakeholders who are
closest to various risk areas, their issues should be identified in
order to come up with a thorough risk management plan. Identifying
stakeholder’s issues would also help solve any problems arising in
the organization. This would also help leaders in coming up with
strategies and responses.

Meeting Minutes Template:

Meeting Minutes
Meeting name CoffeeVille Risk Management Meeting Date: / /
Chair 46830 LUCILYN LATOSA Minute taker
Attendees Student names and student IDs Other students’ names and ID’s
Topics discussed General comments discussed and agreed on and confirmed at the Responsibility for changes or
meeting implementation or other
Add rows as required by the meeting feedback
1.7 You will be required to have the meeting minutes checked by your supervisor (assessor or someone appointed to act
as your supervisor) prior to moving into the next task. Use the following to copy and paste a return email to show that
feedback and approval to share the meeting minutes has been done. (guide: receive feedback via email from
supervisor and paste below)
Email from supervisor to demonstrate approval and feedback on the meeting minutes

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |8
 ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks
Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:

ASSESSMENT TASK 2: DEVELOPING RISK MANAGEMENT PLAN

Assessment task instructions:
This is the second assessment task which consists of 6 activities which include a research, written task and role-play. You must complete all the knowledge questions at the
required level to get a “Satisfactory” outcome.
Purpose of the assessment task:
The purpose of the assessment task is to assess your knowledge in the following:
 lead at least one risk management process for an organisation or work area and during the above, the candidate must:
 analyse information from a range of sources to identify the scope and context of the risk management process, including: stakeholder analysis, political, economic,
social, legal, technological and policy context, current arrangements, objectives and critical success factors for the area included in scope and risks that may apply to
scope
 consult and communicate with stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management
processes and develop and implement an action plan to treat risks
 monitor and evaluate the action plan and risk management process and maintain documentation.
Assessment conditions and resources:
Assessment will be conducted in a safe simulated environment where you will have access to: technology, resources, workplace documentation and templates relating to
risk management, scenarios, workplace information access to others to complete practical activities and access to legislation, regulations, standards and codes relating to
risk management

Case Study 2
Read the Case Study - Coffeeville Newtown Coffee Shop and complete all activities as indicated.
Case Study 2 - COFFEEVILLE Newtown Coffee Shop
Rufus and Emma have both decided that they will open another coffee shop in Newtown in the next 3 months.
The reason for selecting Newtown is because one of their friends, Stanislav, who owns the “Newtown Bubbles Bar” is moving and
needs to sell because he is moving to Queensland. The bar is in a very busy location on the main street. It is currently open for from
lunch time to midnight from Thursday to Saturday and from lunch to 9pm on Sundays.
The bar is well established and is well known by the locals. It has a kitchen which is used for preparing small snacks, the bar has a
coffee machine already and a display cabinet which has soft drinks in it. Rufus and Emma could use this to display they food. The bar
also has a large glass door fridge for takeaway drinks, wine and other alcoholic drinks.
The kitchen is old but operational. There is limited cooking required for the bar so the kitchen lacks pots, pans and some utensils but
otherwise is okay.
Stanislav will close the bar in 2 months. This will give Rufus and Emma one month to prepare the bar and transfer it into a coffee
shop, refresh the look and brighten it up so the establishment does not look like a night club. Now the colours on the wall are dark.
Rufus and Emma are quite happy with keeping the license for the bar (in case they wish to expand their service in the future) and the
lease for another 2.5 years.
Stanislav is selling the licensed business for $30 thousand and the rent is $500 per week. Rufus and Emma are happy to pay this if
they can take up the lease, do not need to change too much and can open the coffee shop with the current kitchen until they make
enough to cover the cost for an upgraded kitchen in approximately 8 months’ time.
If Rufus and Emma will purchase the bar they will need to establish different trading hours. Also, Newtown has a different customer
demographic and has other restaurants close by but are mostly open for lunch and dinner but not breakfast.
CoffeeVille aims to source local ingredients and products and the coffee shop provides healthy choices and sources organic
ingredients and products and provides vegetarian and gluten-free options. This means that they will also require to seek local
producers and contractors for ingredients.
CoffeeVille provides a unique and compelling cafe experience for the socially aware city coffee drinker with high quality, fair trade,
coffee, superior hot and cold gourmet food and beverages and consistently high level of expert and knowledgeable, fast and friendly
service.
Opening another coffee shop goes in line with their 5-year business plan which has listed that CoffeeVille will expand and open
additional sites. CoffeeVille aims to achieve company mission and vision through the implementation of several key strategic
directions which includes increase of the company revenue, increase direct and indirect operational income while maintaining
superior product and quality services and maintain highly trained and motivated staff.
It is important that prior to opening any new coffee shops in the chain, the siblings must consider risks associated with altering their
new structure.
Note: For this task, you will need to refer to the virtual company website “Coffeeville” – website link is:
http://coffeeville.simulations.australiantrainingproducts.com.au/.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e |9

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

Note: This task is an individual activity where you will be required to “Develop a Risk Management Plan” for CoffeeVille’s new coffee
shop which will be opened in Newtown. (or if you wish to use the workplace for this assessment please check with your assessor who
must approve it and check it for suitability).
Review all company documents and complete activities below.
Task guide:
 all tasks must be typed
 the length of the project must be no less than 8 to 10 A4-size pages;
 written as a report with bibliography and references to any researched information.
 use the style guide which is:
o Font: Arial or Century Gothic
o Use of company logos and document styles
o The font sizes are:
 Main heading/cover heading: Size 16pt or 18pt Bold
 Other main headings: Size 12pt Bold
 Subheadings: Size 12pt or 11pt (underlined optional)
 Normal font: Size 10pt, 11pt or 10 Normal
 Action Plans and Risk Management Matrix can be included within the 10 pages.
 You may refer to the example template *appendixes A and B below or create your own Risk Management Plan
Activities:
The Risk Management Plan you are developing should include the following sections that are relevant to determining your
competency, knowledge and skill level for this unit.
2.1. Establish the Risk Context.
Review the Business Plan, Risk Management Strategies, Policies and Procedures and Marketing Plan for
CoffeeVille and address the following points,
a) Who are the internal and external stakeholders relevant or / and responsible for the risk management plan?
b) Determine the general scope of risk for the coffee shop plans and determine existing strengths and weaknesses
of existing arrangements
c) Design a communication strategy to communicate to relevant parties (internal and external stakeholders) about
the risk scope and risk management process. Cover how you will invite stakeholders for partition in assessing
and managing risks and how you will gain the support for the risk management process from the stakeholders
and managers.
d) Document the critical factors, goals and objectives to be included in the risk management plan.
e) Identify and summarise the appropriate legislations concerning business risk, both state and federal, that applies
to the business;
f) Review all critical success factors, goals, legal, technological factors and policies relevant to the coffee shop.
2.2. Identify Business Risks associated with the coffee shop (or selected business)
a) Identify the causes of the business risks by identifying the risk categories;
b) Create your Risk Matrix to assist in the identification of each risk;
c) Determine the severity of each business risk and prioritise on the Risk Matrix;
2.3. Analyse and evaluate the Business Risks in your selected business:
a) Using the Risk Matrix, (you have completed in section 2 above), analyses the potential impact each risk has on
your business;
b) Identify the top 5 risks and explain the likelihood of those risks happening in the future
c) Evaluate and priorities the business risks for treatment;

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 10

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

2.4. Select and implement treatments and monitor the “Action Plan”
a) Create your Action Plan;
b) Implement the treatment of each business risk. Discuss the procedures need to be implemented to ensure the risk
is unlikely to happen;
c) How will you communicate the risk management procedures and Action Plan to the relevant parties (internal
and external stakeholders);
d) Describe how you will monitor the Action Plan and evaluate the ongoing risk management process;
e) Briefly describe why it is important for all records to be kept and stored appropriately; and based on the
scenario, discuss and determine where all relevant documents would be kept (e.g. in the head office in the CBD
or in Newtown and why?)
2.5. You are now to complete the following template below and present it to the management [and relevant stakeholder
team] (your assessor or appointed colleague).
Select and implement treatments and monitor the “Action Plan”. You will be communicating the risk management
process to all relevant parties.
a) Risk Management Plan - Establishing the Risk Context
Ensure your plan is revised by your Supervisor (guide: appointed colleague, workmate, another student or assessor) you can use email to
communicate with your supervisor and paste the feedback below with this activity)

Risk Management Plan Name and overview

Risk Management Plan objectives
Role of the stakeholders their responsibility towards Risk
management and WHS
Internal External
Communication process with each of the stakeholders listed
below.
Who are the most appropriate methods of communication to these stakeholders.
Internal
a) owners
b) staff
c) Managers
d) Supervisors
e) Employees exposed to risk.
f) Employees exposed to lower or minimal risk.
g) WHS Safety Officers
External
h) Contractors
i) Customers
j) Suppliers
k) Government representatives (e.g. WHS and Health).

Laws, legislations, codes of practice relevant to this industry, the

organisation and risk management plan.
Ensure you research Federal, State and Territory Laws and Legislations.

Business Risks associated with the business both Internal and

External.
RISK MATRIX
Identify and Analyse the above Risks using the Risk Matrix-
(Minimum 4 Risks on the Matrix must be included)
ACTION PLAN
Including person responsible, time and action taken.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 11
 ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks
Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:

how will the plan impact on the café’s current activities e .g.
training, staff inductions and the ongoing development of employees.
Include all staff-those directly related to risk areas and those who have limited
exposure to Risk.

Development of Policies and Procedures from the Actions

identified. How would you implement these policies and procedures?

Are all internal staff trained recognising the impact Risks or

Hazards on environment and what training is available to assist in
the development of staff in this area? What Legislation applies to
Environmental Risk Impact if any (e.g. oil grease)

Process to communicate, Implement and Monitor the

introduction of the Risk Management Plan-How / when / by whom.

Comments or other areas of the plan to be covered.

Include: Budget, Data Management Past Failures of Risk Management Compliance

Compliance with records – how are the records safely kept for
security and future use
b) Risk Management Matrix
Please note that risk one has been placed into the risk management matrix for you as an example. (50+ words)
Rating key is as follows:
 Rating of Likelihood – 1 = least likely and 5 = most likely
 Rating of Consequences – 1 = minimal and 5 = severe
 Rating of Risk level – L = Low, M = Medium and H = High
Inherent risk Risk treatment

Mitigation
Consequence
Identify risk/hazard
Likelihood

Risk Level
Ref Describe risk/hazard

The building will be non-compliant and the 5

5 Organise Council or
Building fire plan is due to renew next coffee shop will not be able to open and trade Sever 5
1 Most fire contractor to
month by council until the building is fire plan is updated and e high
likely register by next month
registered with the council

2
3
4

c) Risk Management Action Plan

Please note that risk one has been placed into the risk management matrix for you as an example.
Describe the risks/hazards. What action is to be Timeline Persons responsible Comments on the
taken to mitigate or outcome of the action
control the risk taken

Rufus will be required to contact

The building will become non-compliant in Organise Council or fire the council and organise The council will be coming in
one month until fire plan is updated and contractor to register by next 2 weeks professional to come in and to check the building prior to
registered with the council. month check the building and update the old fire plan expiring.
records.

Add rows as required

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 12

SBTA Term reference:
Units of competency:
Student’s ID and name:
Assessor’s name:
ASSESSMENT TASKS
LMD-20_3.1_Business Risks
BSBOPS504 Manage business risk (BSBRSK501 Manage risk)

d) When you are finished with the action plan, seek feedback from you supervisor using your email. Amend the plan
as per the feedback. Paste the email exchange in the space below
Student exchange emails evidence to be pasted here to demonstrate feedback on the action plan
2.6. Role-play 2
a) Read the scenario below and complete as indicated.
Scenario 2
The action plan has been implemented. However, Rufus had a very busy schedule and was not able to contact the
Council within the 2 weeks to sort out the building fire-plan and update the records.
It was only last week that Rufus contacted someone to check the building to review and re-register a new fire-plan with
the Council.
The Council representative came and checked the building.
As the building is very old and new fire requirements have updated and changed in NSW the building fire plan was not
passed. This means that the coffee shop will not be able to trade until the building fire plan is fully compliant with the
Council has approved it.
Rufus realises that the coffee shop opening will be delayed as the building has timber fire stairs to the 2 nd floor of the
building which houses the store room.
The stairs must have metal cladding to make them compliant which will require a trades person to come and then the
Council needs to come back.
In addition, the current kitchen needs a new range hood and ventilation addition to the stairs. This is something that
Rufus and Emma did not realise. They were hoping to update the kitchen in a few months but it looks like that they will
have to update at least some of the kitchen before they will start trading to ensure the building is compliant with the
Council.
b) You are to communicate with your manager and team members up with your team again and adjust the risk
documentation and paste the new documents below. For this you are to re-attach the updated Action Plan and the
Risk Management Plan to demonstrate your adjusted documentation because of the changes of the implemented
action plan. (guide: ensure to put a new version control onto the new document)
Note: you can use MS TEAMS to meet or emails and paste them below
Paste the new risk documents below with version control clearly displayed on the document.

Email exchange and feedback – if you wish to use MS TEAMS the meeting must be recorded, use this space to advise the name of the recording.
c) Advise where the new action and amended plans are to be saved and explain the process and why? (guide: 30+
words)
Advise where the new plans are to be saved and about the security and access for staff to ensure access but also risk of
security of the document is not breached.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 13
 ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks
Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:

ASSESSMENT TASK 3: REVIEW KNOWLEDGE QUESTIONS

Assessment task instructions:
This is the third assessment task which consists of 5 review questions and a report based on a scenario. You must complete all the knowledge questions at the required level
to get a “Satisfactory” outcome.
Purpose of the assessment task:
The purpose of the assessment task is to assess your knowledge in the following:
 legislative and regulatory context of the organisation in relation to risk management
 organisational policies, procedures and processes for risk management, including document storage
 types of business risks, options for treating risks and risk management process
 purpose and key elements of current risk management standards
 tools and techniques to identify risks to scope risk management processes.
Assessment conditions and resources:
Assessment will be conducted in a safe simulated environment where you will have access to:
technology, resources, workplace documentation and templates relating to risk management, scenarios, workplace information access to others to complete practical
activities and access to legislation, regulations, standards and codes relating to risk management

Review the CoffeeVille case study, scenarios and all work you have completed and answer the following questions.
Scenario 3
You and your team discussed and adjusted the risk documentation and updated the Action Plan and the Risk
Management Plan which was again implemented.
Emma and Rufus want to ensure and confirm that the café continues to be compliant they asked you to develop a new
report and review:
 And advise them of any additional requirement resulted from the improved amended action plan and risk
management practices relevant to legislative and regulatory frameworks
 the café’s policies, procedures and processes for risk management, including document storage, and meet the
regulatory requirements
 all relevant types of business risks including any new business risks identified witnin the new action plan
 additional options for treating risks and risk management process that the café can implement now that the new
action place is implemented
 and confirm the purpose and key elements of current risk management standards and how the café complies
 any additional and available tools and techniques to identify future risks to scope risk management processes.
Review questions:
3.1. Review the legal framework in relation to the café’s risk management against the new implemented action plan and:
a. List all legislative and regulatory risk management responsibilities relevant to the updated action plan
b. List organisational policies, procedures and processes for risk management, including document storage relevant
to the new implemented action plan
3.2. List all types of business risks and options for treating risks that are relevant to the new action plan
3.3. List any new risk management processes that have been implemented since the new action plan was implemented
3.4. Explain the purpose and key elements of current risk management standards relevant to the new action plan
3.5. List available tools and techniques to identify future risks to scope risk management processes to ensure the café
maintains compliant with their risk management practices.
Use the report template below
CoffeeVille Report
Report name Date
Report author Report for Rufus and Emma
legislative and regulatory risk management responsibilities
relevant to the updated action plan
(advise which are new and why they were added)

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 14
 ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks
Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name:
Assessor’s name:

organisational policies, procedures and processes for risk

management, including document storage relevant to the new
implemented action plan
(advise why these are needed and if they needed to be amended for future)

purpose and key elements of current risk management

standards relevant to the new action plan
types of business risks and options for treating risks that are
relevant to the new action plan
any new risk management processes that have been
implemented since the new action plan was implemented
What available tools and techniques are there available for the
café to use which will help staff and management to:
 identify future risks
 to scope risk management processes and practices

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

P a g e | 15