Student Assessment Manual

BSBRSK501
Manage Risk

Assessment Method One – Case Study

 Assessment Method 1: Case Study
Task Summary
For this task you are required to review the risk context of the organisation and conduct research; and then
develop a briefing report for the CEO and shareholders of an organisation.

Resources and equipment required to complete this task

• Access to textbooks and other learning materials.
• Computer and Microsoft Office (or similar program).
• Access to the internet for research and to access publications about risk management standards
such as:
http://www.finance.gov.au/sites/default/files/COV_216905_Risk_Management_Fact_Sheet_FA3_23
082010_0.pdf
• Risk Management Policy and Procedure (provided by the assessor as a separate document).

When and where should the task be completed?

• This task is to be done in your own time as homework.
• Your assessor will provide you with the due date for this assessment.

What needs to be submitted?

Email to CEO (Assessor) with risk management briefing report attached.

Instructions

You are the Operations Manager of a medium-sized Australian company, NatureCare Products, based in
Brisbane. The company commenced business in 1996 and manufactures eco-friendly, high quality beauty
skincare products. The business was established to cater for a growing demand for skin products that
contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging.
The company sells its products in health food shops across the country, as well as online through its own
website. The company targets customers that want high quality, eco-friendly products. Market research
has identified that around 70% of customers are professional women aged 25 – 55.
Strategic priorities focus on business diversification and growth, specifically to increase market share by
10% and to expand the existing product range to attract more customers.
At a recent board meeting, the two company shareholders and the CEO discussed options for expanding
the business, including establishing a chain of retail outlets. The CEO has asked you to investigate this by
undertaking a risk analysis on establishing a chain of retail outlets. The idea is to initially set up a retail
outlet in central Sydney, Brisbane and Melbourne. The CEO and shareholders are keen to get the
business expansion started as soon as possible so you need to get your risk management plan in place
immediately.
Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing
Assistant, Sales Manager, four customer service representatives, Office Manager and Administration
Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.
The company currently has a risk management policy and procedure in place that incorporates the
AS/NZS ISO 31000:2009 Risk Management Principles and Guidelines.

1. Review the risk context and conduct research.

Review the case study information provided to you to determine the scope of the risk management
process required, as well as the company’s risk management policy and procedure and information on
risk management standards. Make notes for use in your report that address:
• Legislative and regulatory context of the organisation in relation to risk management.
• Identification of internal and external stakeholders with whom you will need to consult to identify
potential risks, as well as issues they are likely to raise as part of the risk management process.
• An analysis of the strengths and weaknesses of the company’s existing retail approach namely,
online and through health food shops.
• Analysis of critical success factors, goals or objectives for the business expansion project.
• Following, this you are required to conduct a PESTLE analysis for NatureCare Products in order to
identify key factors that impact on the business environment in which the company operates and
their relevance in identifying risks. Make notes for use in your report.
• When you have completed your PESTLE analysis, you will be ready to write an initial report for the
CEO as outlined in the next activity.
Ans-

·       Introduction
Nature Care is a Skincare company that goes established in 1996. The company manufactures
varieties of skincare products. The products manufactured by Nature Care are eco-friendly as
the company focuses on sustainable development. The varieties of natural products are
moisturizing creams, facial scrubs, and cleansing creams.  The company sells its product
through its own online websites. They have incorporated technology in their day-to-day
operations due to which there is higher growth in sales. The firm is looking forward to
broadening its horizon to maximize sales.
Currently, the company is financially stable however, there is an increasing number of
competitors in the market. The competitors are selling similar products, so the company decides
to increase and improve its sales by 20% in the next three years. Hence, analyzing such a
situation the marketing manager has come up with recommendations based on the presented
analysis and research.
 
·       Objectives
-        To increase the number of customers by 20% who purchases via online sources i.e
online store
-        To increase the product reach and awareness among the target market by 20%
-        Increase the number of retail outlets of the franchise of Nature Care
-        To increase the market share and market capitalization by 15%
-        Expand the company into one international market
-        To allow the company to search for new ideas and products
-        Increase the annual growth by 10% over the next three years
·       The company uses risk management policies and procedures that are based on
the AS/NZS ISO 31000:2009 Risk Management Principles and Guidelines.
·       The major Stakeholders are- Suppliers, Customers, Pharmacists
The potential risks can be- Increase in competitors in the market
Technological breaches like cybercrime, customer data leakage, etc
There will always be risks associated with the product liability. Customers can have
reactions to certain chemicals, herbs, natural products. There might be an occurrence of
products liability in the future.
 
 ·       Performing SWOT analysis
-        Strength
-         The company focuses on sustainable development and produces eco-friendly products
-        The company is financially stable and can afford upto $150,000 to expand their business
-        Weakness
-        They have a limited range of products
-        The company has products related to women only, they don’t produce products related
to kids and men
-        They don’t have essential skincare products like sunscreen, or other UV lotions because
the temperature in Australia gets high during summer
-        Opportunities
-        There are high opportunities in the international market. The marketing manager also
recognized that there are potential opportunities in the market of Japan
-        The segregated population of Japan has 68 million women and 58 million men. It
signifies that there are more women than men in the country
-        The company Nature Care targets women from the age group 20-55, the population of
women around the particular age group are 42 million. Through these researches, we can
identify that Japan could be one of the potential markets.
-        Threats
-        New competitors and them selling similar products is one of the major threats to the
company
-        Most of the competitors these days focus on sustainability in the business. Hence, they
manufacture nature-friendly and eco-friendly products
·       Conducting PESTEL Analysis
-        Political Analysis
-        The political factors that can affect the company are the government’s rules and
regulations. Since the company has it headquarter in Australia, it must follow political laws
of Australia. The political source of Australia always supports sustainable companies that
are focusing on eco-friendly products. The government is also committed to sustainable
development in business. The recent elections also generated the result that the Liberal
Government supports and facilitates small to large enterprises with tax cuts and other
varieties of facilities.
-        The government has decreased the tax rate by 5%. The Liberal Government is
encouraging nature-friendly products and those businesses that support sustainable
development.
-        Economic Analysis
-        The economical factor incorporates exchange rates. The company might affect by
economic factors if it establishes business or outlets in an international market like Japan.
The exchange rates may affect the profitability of the business as well. Australia also
encourages foreign investments and it possesses lots of natural resources.
-        The economy of Australia has been growing drastically
-        Social Analysis
 -        The social factor depends upon the technological trends in society. Modern society and
trends are more inclined towards eco-friendly products. People want to invest more in
skincare products and maintain their health and hygiene. Society tends to use natural
products rather than chemical bounded products. Based on the trend and thinking of today’s
generation, most people use skincare and natural products. These products are high in
demand. People are more inclined towards self-pampering and self-care.
-        Technological Analysis
- Technology has an influence on the society and convenience of people. With the help of
technology, customers can buy products via online mediums. It has made their work easier.
With the help of technology, companies can position themselves in a larger market. The
technology provides basic means or intermediation between the company and customers
which has made them convenient to access each other. The customer relationship
management system is also one of the crucial factors to the company. It helps to organize
and maintain relationships among the customers and allows customers to build trust with the
company. CRM is also responsible to keep track of customer records.
-        Legal Analysis
-        The company Nature Care focuses on all the legal and regulatory guidelines. There is
adherence to such standards shown by the company. It also follows the standard of product
safety that is monitored by Australian Consumer Law. It is crucial to look after all the legal
and regulatory requirements in the organization. The company must follow free trading
legislation.
-        Environmental Analysis
-        Environmental factors that comply with various global standards and safety laws. The
world is focus on making the planet sustainable and develop eco-friendly developments that
are highly beneficial to all the factors present on this planet. Similarly, Nature Care is also
focused on environmentally friendly products, the environmental factors can positively
impact business operations. The firm can conduct campaigns that sell environmentally
friendly products to increase brand awareness and increase consumer reach. The company
can also collaborate with nature-friendly companies and increase its reputation. 

 
Thank you

2. Develop a risk briefing report.

This part of the assessment task requires you to develop an initial report for the CEO about the risk
management project and processes and to seek approval to proceed.
Your report should address:
 Introduction, including scope of the risk management process and an outline of the risk management
process as per the organisation’s policy and procedure, as well as how the organisation’s process
aligns with the risk management standards as identified in the link provided to you. It must also
include any legislative and regulatory context of the organisation in relation to risk management that
you have identified in your research.
 PESTLE analysis identifying the key factors that impact on the environment in which NatureCare
Products operates and their relevance to the risk management process.
 Identification of internal and external stakeholders with whom you will need to consult to identify
potential risks, as well as issues they are likely to raise as part of the risk management process.
  An analysis of the strengths and weaknesses of the company’s existing retail approach namely,
online and through health food shops.
 Analysis of critical success factors, goals or objectives for the business expansion project.
When you have completed your report, send it to the CEO (your assessor) via email. In the email you
should provide a brief overview of the risk management project and seek approval to proceed with the
process.
Your assessor will send you an email in the role of the CEO providing you with feedback and approval to
proceed. Consider any feedback provided to you by the CEO in the next part of the assessment.
Ans-
Risk Briefing Report
·       Introduction
The risk management policy and procedures of Nature Care outline the principle that includes organizational
objectives aligning with the effective risk management process. The policy also ensures all the activities and
operations that got developed in the suitable culture of risk management process in the organization.
The management principles of the firm are:
-        A commitment that implements risk management effectively
-        To ensure proper training and development of knowledge-based on the area of risk management
The risk management of the company aligns with the standard related to the risk management procedures
and policies. It is appropriately documented as it provides formal acknowledgment of all the responsibilities
that comply with the policy and procedure related to risk management.
·       PESTLE Analysis for the Nature Care Products
The PESTLE analysis of the company incorporates Political, Economic, Social, Technological, Legal, and
Environmental factors.
-        Political Analysis
-        Political analysis incorporates potential changes that may arise in the legislation for beauty products.
-        Global influences like new policies and regulatory standards can affect the company
-        Economic Analysis
-         It covers factors like economic growth, tax policies, and employment rates
-        Social Analysis
-        Factors related to the lifestyle of the consumers, market trends, and the inclination of customer’s
preference towards specific market affects the company
-        Technological Analysis
-        It incorporates access to the internet. Use of services and products through online purchase. The
technological change can affect the existing operations in the business
-        Legal Analysis
-        It covers the change in industry regulations, health and safety standards, and policies
-        The procedures related to employment politics
-        Environmental Analysis
-        Restrictions and regulations based on environmental global standards
-        Final deposition politics
 What do I need to hand in for this task? Have I completed this?

Email to CEO (Assessor) with risk management briefing report

Feedback for Assessment Method One – Case Study
Feedback to Student (Add pages as required)

Feedback from Student (Add pages as required)

The following signatures are to validate that the result and that feedback has been provided. They do not
mean agreement with the outcome.

Result  Satisfactory  Not Yet Satisfactory

Student Signature Date

Assessor’s Signature Date