BSBOPS504 Assessment Task 1 Written Question Template

Assessment Task 1 Instructions
Provide answers to all of the questions below:
1. Explain the risk management process. You may answer using a labelled diagram or in words (or
both) and must include:
 a definition of risk management.
 a list or illustration of the steps in a risk management process.
 a description of what each step involves.
The risk management procedure acts as a road map for the steps that must be taken. The risk
management process is divided into five steps that must be completed in order to effectively
manage risk. It begins by identifying potential threats, then analyzes them, prioritizes them,
executes a solution, and finally monitors the danger. A manual approach demands a large number of
documentation and management at each stage.
Step 1: Identify the Threat
The first stage is to identify the threats that the company is currently dealing with in its existing
operational area. There are many different types of risks, such as legal hazards, environmental
concerns, market variables, regulatory issues, and so on. It's vital to be aware of as many of these
risk factors as possible.
Step 2: Evaluate the Risk
Once a vulnerability has been identified, it must be investigated. The scope of the danger must be
determined. It's also critical to understand the connection between risk and other internal factors.
It's critical to determine the risk's severity and significance by examining how many company's
operations it affects.
Step 3: Evaluate or rate the threat.
Risks must be ranked and prioritized. Several risk management solutions feature multiple risk classes
based on the intensity of the issue. Dangers that may cause minor pain are rated low, while risks
that could result in catastrophic loss are given the highest grade. Ranking hazards is beneficial since
it provides a full picture of the firm's risk exposure across the board.
Step 4: Handle the Danger
To the maximum extent possible, all risk must be reduced or eliminated. This is done by reaching
out to experts in the field where the risk exists.
Step 5: Stay informed about the risk and assess it.
Some risks will always remain; not all threats can be entirely eliminated. Market and environmental
issues are two examples of risks that must be monitored on a regular basis.
2. Describe a current risk management standard. In your answer:
 name the standard.
 explain the purpose of the standard.
 list key elements of the standard.
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The old Australian and New Zealand risk management standard AS/NZS 4360: 2004 was revised in
November 2009 by AS/NZS ISO 31000: 2009. AS/NZS ISO 31000:2009 (the Standard) establishes
concepts and general guidance for implementing risk management plans and activities by Fund
Member Agency. The following organizations endorse the Standard:
 International Standard ISO/IEC 31010:2009–Risk Management;
 IEC/FDIS 31010 Risk Management–Risk Assessment Techniques; and
 ISO Guide 73:2009–Risk Management–Vocabulary.

Risk management guidelines were developed to serve as a guide for those who should carry
out risk management procedures. These standards help to achieve international agreement
on how to address certain dangers and provide standardized guidance on how to comply
with others.
The ISO 31000 standard outlines the following fundamental areas of risk management:
 Identifying the danger: recognizing the obstacles that may impede us from attaining our
goals
 Risk assessment: recognizing the sources and causes of recognized risks; analyzing
probability and implications in light of available controls in order to determine the level of
residual risk
 Risk assessment: determining if the residual risk is reasonable by comparing risk analysis
outcomes to risk requirements
 Treatment for the risk: To obtain a net gain in advantage, change the amount and
probability of both good and bad impacts.
 Keeping things in perspective: The extent of the risk management process, the firm's goals,
and the risk evaluation criteria are all defined in this action, which was not mentioned in
previous risk management process explanations.
 Monitoring and evaluation: Inspecting for variations from the risk management plan,
determining if the risk management framework, strategy, and plan are still suitable in light
of the firm's external and internal setting, documenting on risk, advancement with the risk
management plan, and how well the risk management policy is being accompanied, and
evaluating the risk management framework's efficacy are all part of this process.
 Discussion and interaction: Such activity aids in understanding stakeholders' interests and
needs, as well as ensuring that the risk management process is concentrating on the
relevant parts and explaining the reasoning for choices and risk treatment options.
3. Complete the table below to describe the types of business risk
Type of risk Description Example Key responsibility

(at least two people)
Strategic Hazards of this nature Senior executives CEO
risk can occur at any time changes frequently.
Head of operations
and are tied to a
business's or firm's BOD
strategy. Proprietor
Type of risk Description Example Key responsibility
(at least two people)
Compliance The harm given to a Infringement of privacy HRM
risk business's performance, laws
CEO
organizational, or brand
status as an outcome of
infractions of
legislation, rules, codes
of conduct, or
institutional standards
of practice is known as
compliance risk.
Financial The danger of incurring Clients that do not pay Manager of Finance
risk losses on an investment on time (or in
CEO
or business initiative is installments).
referred to as financial
risk. Credit risk, liquidity
risk, and operational
risk are some of the
more prevalent and
diverse financial
hazards.
Operational Such threats are linked Non-compliance with Director of Operations
risk to a company's or firm's internal policies
Executives
structures and
procedures.
4. Complete the table to explain three different tools and techniques that may be used to identify
risk. The first row has been completed as an example for you to follow.
Technique/tool Description
Brainstorming A group discussion to produce as many ideas or solutions to
problems in a pre-determined amount of time.
Delphi Technique A committee of anonymous experts is consulted. Experts are
given a list of data needed, their responses are compiled, and the
results are provided to them for further review until an
agreement is reached.
Risk Data Quality Data is obtained for the risks mentioned. In order to
Assessment conduct the risk evaluation, the project leader will seek
consistency in the material that must be examined. For
each danger in the Risk Data Quality Assessment, the task
Technique/tool Description
manager must evaluate the aforementioned:
• The degree to which the threat is comprehended
• Information can be found.
• Reliability and validity of information
• The accuracy of the information
5. Explain four options that a company could use to take to control risks.
Accept Risk:
The parties that are liable for a risk may accept or decline it. For example, if a project is critical
from a strategic standpoint, the chance of loss may be tolerable. An acceptable risk
authorization procedure could be part of risk management.
Mitigate Risk:
Steps are taken to reduce risk to a tolerable level. To reduce the chances of a project collapsing,
for example, the corporation assigns a high-performing project management team to it. The
threat that remains after treatment is known as residual risk. Residual threats are also kept at
bay (Accepted, mitigated, eliminated or transferred).
Eliminate Risk:
It is feasible to reduce a risk to zero. The only way to do so is to quit doing whatever is putting
you in danger. Selling a risky investment, for example, eliminates the risks associated with it.
Transfer Risk:
A risk could be passed to another organization or individual. For example, fire insurance lessens
the risk of property loss due to a fire.
6. Explain how legislation and its related regulatory requirements relate to risk management. In
your answer:
 identify two different legislative and regulatory requirements that may apply to risk
management.
 for each legislative requirement, explain how it relates to risk management.
 provide one example of how regulations support one of the legislation.
Multiple parties will have unique requirements that must be taken into account during the risk
management process. This is certainly relevant in circumstances involving the environment or
people's lives.
Legislators and federal bodies are involved in every risk management strategy.
Laws have been passed to ensure that organizations and individuals follow a minimum standard of
care to ensure that their acts do not harm or harm others. Violations of these statutes may result in
charges, prison sentence, or both.
Furthermore, the local government will have a set of rules that must be followed. Agencies will be in
control of things like construction / building regulations, planning, traffic control, and social activities
that have an impact on society but aren't covered by broader legislation. Authorities may impose
additional or distinctive responsibilities in addition to legal requirements. For example, laws may
require you to manage risks, but the government may impose a condition on this requirement,
requiring you to provide proof that the threat has been addressed before it would provide the
necessary licenses. If municipal ordinances are broken, penalties may be applied.
Legislation dealing with the environment is an instance of a laws and regulations necessity.
- natural disasters and other calamities
- Workplace health and safety
- the surroundings
- opportunities for equitable work
- personal space.
criteria for local authority coping with
- strategy for land usage

- Permissions for construction and development
- business licenses
- connection within the society
- Sound restrictions
- control of congestion
- Function approvals and usage of social amenities
safety standards
 operational methods
 In the event of an emergency, processes should be followed.
 Management techniques
The prerequisites for the association will be determined during the development of the
catastrophic risk panel configuration. At this time, alliance members' criteria may also be
mentioned.
As the conversation proceeds, the summary of partner groups' criteria will be enhanced.
Every brokers, contract employees, vendors, customers, and others will be expected to
understand and adhere to the statutory, organizational, and authoritative standards.
Destruction or death can arise from a collapse in authoritative arrangements and approach,
as well as civil proceedings initiated by an impacted associate or a partner association
withholding their support.
7. Explain the purpose of risk management policies and procedures in the workplace as they relate
to risk management.
The purpose of the risk management policy is to provide guidance on risk management in order to
help the firm achieve its goals, protect personnel and corporate resources, and ensure financial
health. List the people who are protected by this policy. In the event of a threat, the procedure
spells out the steps that must be performed. It is supportive of the policy.
1. Complete the table below to summarise how three policies and procedures relate to risk
management.
Policy/procedure Description
Record keeping policy and It reduces the risk of data theft and data leaking.
procedure
WHS policy and procedure It aids the firm in delivering a risk-free working environment
for employees.
Policy/procedure Description
Confidentiality It protects personal information from reaching undesired
policy/procedure users and stops data from being shared without permission.
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Assessment Task 1 Instructions

Provide answers to all of the questions below:

 a definition of risk management.

 a list or illustration of the steps in a risk management process.

 a description of what each step involves.

2. Describe a current risk management standard. In your answer:

 name the standard.

 explain the purpose of the standard.

 list key elements of the standard.

3. Complete the table below to describe the types of business risk

Type of risk Description Example Key responsibility

• The degree to which the threat is comprehended

• Information can be found.

• Reliability and validity of information

• The accuracy of the information

 for each legislative requirement, explain how it relates to risk management.

 provide one example of how regulations support one of the legislation.

- strategy for land usage

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