BSBRSK501 Manage risk

Learner Assessment Guide

BSBRSK501_Learner Assessment Guide V2.0 (11sept18)
Richmond School of Business. CRICOS Code: 03717E |RTO Code: 45432

UNIT OVERVIEW
BSBRSK501 Manage risk

Unit Description
This unit describes skills and knowledge required to manage risks in a range of contexts
across an organisation or for a specific business unit or area in any industry setting. It
applies to individuals who are working in positions of authority and are approved to
implement change across the organisation, business unit, and program or project area.
They may or may not have responsibility for directly supervising others.

ELEMENT PERFORMANCE CRITERIA

Elements describe the Performance criteria describe the performance needed to
essential outcomes. demonstrate achievement of the element.
1. Establish risk 1.1 Review organisational processes, procedures and requirements
context for undertaking risk management in accordance with current risk
management standards
1.2 Determine scope for risk management process
1.3 Identify internal and external stakeholders and their issues
1.4 Review political, economic, social, legal, technological and policy
context
1.5 Review strengths and weaknesses of existing arrangements
1.6 Document critical success factors, goals or objectives for area
included in scope
1.7 Obtain support for risk management activities
1.8 Communicate with relevant parties about the risk management
process and invite participation

2. Identify risks 2.1 Invite relevant parties to assist in the identification of risks
2.2 Research risks that may apply to scope
2.3 Use tools and techniques to generate a list of risks that apply to
the scope, in consultation with relevant parties
3. Analyse risks 3.1 Assess likelihood of risks occurring
3.2 Assess impact or consequence if risks occur
3.3 Evaluate and prioritise risks for treatment
4. Select and 4.1 Determine and select most appropriate options for treating risks
implement treatments 4.2 Develop an action plan for implementing risk treatment
4.3 Communicate risk management processes to relevant parties
4.4 Ensure all documentation is in order and appropriately stored
4.5 Implement and monitor action plan
4.6 Evaluate risk management process
ASSESSMENT EVIDENCE

To achieve competency in this unit a student must demonstrate their ability to:

Performance Evidence
Evidence of the ability to:
• 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
• risks that may apply to scope
• consult and communicate with relevant stakeholders to identify and assess risks,
determine appropriate risk treatment actions and priorities and explain the risk
management processes
• develop and implement an action plan to treat risks
• monitor and evaluate the action plan and risk management process
• maintain documentation

Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must:
• outline the purpose and key elements of current risk management standards
• outline the legislative and regulatory context of the organisation in relation to risk
management
• outline organisational policies, procedures and processes for risk management

Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered
demonstrates consistent performance of typical activities experienced in the regulation,
licensing and risk - risk management field of work and include access to:
• relevant legislation, regulations, standards and codes
• relevant workplace documentation and resources
• case studies and, where possible, real situations
• interaction with others

INFORMATION FOR STUDENTS

Assessment Information

Prior to Assessment
Your Trainer/Assessor will advise you of your rights before and after assessments, including
the right to appeal.
Your Trainer/Assessor will provide you with all relevant information relating to the
assessments prior to commencement, and of the appeals procedure that can be utilised if
you wish to appeal against the assessment outcome or make a complaint.

Results
You will be informed of the outcome of your assessment as soon as possible from the date
the assessment was submitted. Prompt feedback will be offered to you on the outcome of
the assessment. Feedback will be delivered in written and where possible, verbal form to
you.

AQF Specifications for Assessments

This assessment is set in accordance with the criteria for AQF Level 5. Diploma
qualifications must be designed and accredited to enable graduates to demonstrate the
learning outcomes expressed as knowledge, skills and the application of knowledge and
skills specified in the level 5 criteria.

Diploma descriptor
Summary
Graduates at this level will have specialised knowledge and skills for
skilled/paraprofessional work and/or further learning

Knowledge
Graduates at this level will have technical and theoretical knowledge in a specific area or a
broad field of work and learning

Skills
Graduates at this level will have a broad range of cognitive, technical and communication
skills to select and apply methods and technologies to:
• Analyse information to complete a range of activities
• Provide and transmit solutions to sometimes complex problems
• Transmit information and skills to others

Application
Graduates at this level will apply knowledge and skills to demonstrate autonomy,
judgement and defined responsibility in known or changing contexts and within broad but
established parameters.

ACSF Specifications and Foundation Skills

The term ‘Foundation Skills’ is currently used to include the core skills defined in the
Australian Core Skills Framework (ACSF) as well as the employability skills identified by
employers as critical for effective performance in the workplace. The core skills of the ACSF
include reading, writing, oral communication, numeracy and learning.

Foundation skills encompass the core skills of reading, writing, oral communication,
numeracy and learning as described by the Australian Core Skills Framework (ACSF),
and the Employability Skills/Core Skills for Work. They exist on a continuum from very
basic skills to highly-developed and specialist skills.
Assessment Process
To demonstrate competence in this unit, you must undertake all tasks in this assessment
booklet and complete them satisfactorily and in addition, also satisfactorily complete the
practical assessment, including demonstrating communication skills during the practical
activities. After you have demonstrated consistency in performance you will be awarded
this unit.

Should a student be deemed ‘Not Competent’, the student will be offered the opportunity to
undertake a supplementary assessment or appeal the result.

As part of the assessment process, you must abide by any relevant assessment policies
as provided to you. If you feel you are not yet ready to be assessed or this assessment is
unfair, please discuss with your assessor all options that are available to you to enable
you to complete the assessment.

Submitting Assessments
You should submit assessment tasks with the provided cover sheet.

Assessments should be submitted on or before their due date. Extensions for individual
assessment tasks may be negotiated in specific circumstances. Consultation on this must
occur prior to the due date and extensions due to illness will require a medical certificate.
Extensions must be confirmed by the Trainer/Assessor in writing.

Plagiarism and Referencing

All students are reminded that plagiarism will not be tolerated. Information, ideas etc.
quoted or paraphrased from another source, must be acknowledged with “quotation
marks” around the relevant words/sentences or ideas and cited at the end of the
document. Sources of information, ideas etc. must be provided in alphabetical order by
author’s surname (including author’s full name, name of document/ book/internet etc. and
year and place of publishing) or may be included in brackets in the text.

Assessment Outcomes
There are two (2) outcomes of assessments: Satisfactory and Not Satisfactory (requires
more training and experience).

You will be awarded a ‘Competent’ grade on completion of the unit when the
trainer/assessor is satisfied that you have completed all assessments and have provided
the appropriate evidence required to meet all criteria. If you fail to meet this requirement you
will receive the result of Not Competent and will be eligible to be re-assessed.
Re-assessment
Students will be allowed two (2) further attempts at an assessment for which the outcome
is Not Satisfactory, within the timeframe of a course (unit of competency). No additional
fees will be charged.

Students who require re-assessment beyond the delivery timeframe of a unit or due date
of an assessment, unless it is due to medical reasons, will be given the opportunity to
request additional time to resubmit and in this time, they can request a mentoring session
as required.

Reasonable Adjustment
RTOs and trainer/assessors are obliged by law to make reasonable adjustment to ensure
maximum participation of students with disability in teaching, learning and assessment
activities. This includes:
• Ensuring that course activities are sufficiently flexible;
• Providing additional support where necessary; and
• Offering a reasonable substitute within the context of the course where a student
cannot participate

Reasonable adjustment is defined in section 4 (1) of the Employment and the Disability
Discrimination Act as ‘an adjustment to be made by a person is a reasonable adjustment
unless making the adjustment would impose an unjustifiable hardship on the person’.

Reasonable adjustment as it applies to participation in learning and assessment activities

may include:
• Customising resources or activities within a training package or accredited course;
• Modifying a presentation medium;
• Providing additional support;
• Providing assistive or adaptive technologies;
• Making additional information accessible both before enrolment and during the
course; and
• Monitoring these adjustments to ensure that the student’s needs continue to be met

Examples of reasonable adjustment:

Category Possible issue Possible Strategies

• Verbal assessment
• Speaking
• Presentations
• Reading
LLN • Demonstration of a skill
• Writing
• Use of diagrams
• Confidence
• Use of support documents such as word lists
• Knowledge and • Culturally appropriate training
Indigenous understanding • Explore understanding of concepts and practical
• Flexibility application through oral assessment
• Services • Flexible delivery & using group rather than
• Inappropriate individual assessments
training and • Assessment through completion of practical
assessment tasks in the field after demonstration of skills
and knowledge.
 • Discuss with the student and supervisor
whether language, literacy and numeracy are
likely to impact on the assessment process
• Use methods that do not require a higher level
of language or literacy than is required to
perform the job role
• • Use short sentences that do not contain large
• Speaking amounts of information and clarify information
• Reading by rephrasing, confirm understanding
Non-English • Writing Cultural • Read any printed information to the student
Speaking background • Use graphics, pictures and colour coding
Background • Confidence instead of, or to support, text
• Offer to write down, or have someone else write,
oral responses given by the candidate
• Ensure that the time available to complete the
assessment, takes account of the student’s
needs
• Educational • Make sure font size is not too small Assessor
background Age • should refer to the student’s experience
• of the assessor Ensure that the time available to complete the
Age
Limited study • assessment takes account of the student’s
• skills needs

• Reading • Discuss with the student their previous learning

• Writing experience
• Numeracy • Ensure learning and assessment methods meet
Educational the learner’s individual need
• Limited study
background
skills and /or
learning
strategies
• Speaking • Identify the Issues
• Reading • Create a climate of support & ensure access
• Writing • Appropriately structured assessment
Disability
• Numeracy • Using other’s expertise
• Learning
Strategies

An individual’s access to the assessment process should not be adversely affected by

restrictions placed on the location or context of assessment beyond the requirements
specified in the training package. Reasonable adjustments can be made to ensure equity
in assessment for people with disabilities. Adjustments include any changes to the
assessment process or context that meet the individual needs of the person with a
disability, but do not change competency outcomes.

When assessing people with disabilities, trainer/assessors are encouraged to apply good
practice assessment methods with sensitivity and flexibility.
The assessment process must:
• Provide for valid, reliable, flexible and fair assessment
• Provide for judgement to be made on the basis of sufficient evidence
• Offer valid, authentic and current evidence

Access and Equity

Please speak to your trainer/assessor if you require assistance with any access and equity
concerns you may have.

Recognition of Prior Learning

If you can demonstrate that you have the skills and knowledge within this unit, you should
speak to your trainer/assessor about this and apply for recognition of prior learning.
ASSESSMENTS
There are three forms of evidence gathering methods for this unit of competency. Students
are required to complete them all.

Your assessor will advise students when assessments are due, make arrangements for the
practical demonstration and ensure all necessary resources are available.

1. Written Questions
This assessment consists of 20 short answer questions to assess the student’s knowledge
of BSBRSK501 Manage risk. Students must answer all questions. Most questions require
short answers although some require a more detailed response. A word length is given for
each question. Students may use various sources of information including: text books,
learning workbooks, other documents and the internet and they must list their sources.

2. Case Study & Practical Demonstration

Students are required to respond to a case study which includes undertaking the entire risk
management process and writing a report. Students are also required to demonstrate their
communication and consultation skills and knowledge of the risk management process by
organising and facilitating a meeting.

STUDENT ASSESSMENT INSTRUCTIONS

To demonstrate your competency in this unit you must successfully complete both theory
and practical assessment tasks. The practical assessment will be conducted at a date and
place to be advised by your Trainer/Assessor.

All questions must be answered correctly for each assessment task to be completed
satisfactorily. There is no restriction on the length of the question responses, or time
restriction in completing the assessment, unless specified.

You must complete all questions unassisted by the assessor or other personnel, but may
refer to reference material as needed.

If the practical assessment activities are not appropriate for you, please discuss this with
your assessor who will seek to provide alternate activities that will allow you to provide
evidence for the assessment. Your assessor will document any alternate activities that you
undertake.

ASSESSMENT 1: WRITTEN QUESTIONS

Students are to answer the following questions.
Questions
1 List two examples of each of the following types of risk: (5-20 words each)
a. Operational risks
Fraud (both internal and external).
Digital vulnerabilities in the form of hackers, viruses, etc. that threaten all forms
of technology.

b. Strategic risks
Risks involved in marketing of both products and services.
Merger and acquisition risks both for the company being absorbed and the
company buying it out.

c. External risks
Market conditions at any given moment.
The political climate of a business area of operations.

2 Describe the six key steps of the risk management process. (200-300 words)
The risk management process begins by first identifying an area, or areas of risk.
This could be as simple as an unstable supply chain to something as big as the
imminent collapse of the entire organization.
The identification of risks then allows for analysis of the risk to happen. This
involves and in-depth look into how likely each risk is to happen and the effects of
the occurrence. The analysis stage allows risk assessors to gain understanding into
risks surrounding projects and the consequences of actions and decisions.
After this step is the risk evaluation stage where the magnitude of a risk to the rest
of the business is determined by combining the likelihood as well as effects of a
given risk. Based on the evaluation, a risk is then either acceptable or big enough
to warrant immediate response to resolve it.
Risk treatment involves planning and implementing strategies to minimize or
completely remove the likelihood of the scenarios that would be a result of high-
priority risks actually happen. The plans could be preventive, efforts to mitigate risk
or even contingency plans for worst case scenarios.
Along with the treatment stage comes the monitoring phase where risks that have
already been identified and analyzed are kept track of and monitored to act as an
early warning system for the company in order to leave more than enough time to
react to risks that may be identified at inopportune time or were simply too low-level
to be of any danger before.
Finally, this process ends with reviewing; where all the steps taken and measures
implemented are comprehensively looked at to seek ways to improve the risk
management process.

3 What are the two components of risk management that must occur continually
throughout the process? (2-5 words)
Risk Probability Analysis
Updating of the Risk Register
4 List three sources of information that you might use in order to understand your
organisation’s objectives. (5-10 words)
Financial reports; which show what the organization aims for financially.
Documents about the organization released by independent bodies.
Journalistic reports and other pieces done on the organization.
5 Explain and describe two items that might be considered for each of the
components of a PESTL analysis. (250-350 words)
PESTLE analysis is a corporate framework that allows an organization to study the
external factors that influence it. These factors are Political, Economic, Sociological,
Technological, Legal and Environmental.
When looking at political factors, some of the factors to consider include any
elections that will occurs in any of its countries of operations (political climates tend
to change drastically during elections and these have compounding effects on the
operations of an organization) and the legislative changes occurring within a
country (laws tend to either affect business activities positively or negatively).
Economic factors such as the state of the economy and the disposable income of
people in the organization’s area of operations affect how a certain business will
operate.
Sociological factors arise from the social and cultural ways of a certain population
which in term will affect their association with an organization and all its products.
For example, is the generational shifts experienced in a population over time and
religious and lifestyle beliefs of the population’s people.
Technological factors are as a result of changes in technology and potential
changes in the technology within the world around an organization. For example,
release of new technology would affect both the company and customer actions
relating to business, such as the cropping up of mobile applications by
organizations, or how changes in infrastructure affect business operations, such as
the increased potential for remote working and customer access.
Legal factors, as would be expected, affect the laws which influence a company’s
actions in order for it to remain a legal entity. These include business and corporate
laws where the company operates or changes in legislature that influences how a
company operates (eg. Changes in organization policing or reporting requirements
changes even how a company relates to its clients).
Environmental factors are those that are mostly brought on by natural causes within
the environment an organization is situated in. The meteorological nature of an
area influences business decision in a big way (weather phenomena such as
tornadoes and storms prevent almost all operations within a certain area) and while
disease epidemics and pests such as locusts affect business activities in much the
same way.

6 Explain what a stakeholder is and what methods you might use to identify internal
and external stakeholders? (200-250 words)
A stakeholder is any entity (person, organization, group or community) that has a
stake (has an interest in the business and can be affected or affect an organization)
within a business. Each stakeholder is defined by their engagement to the
organization which define their specific relationship with the organization (some of
 the engagements are short-term and only last the duration of one or more projects
while other are in a state of permanency).
The identification of a stakeholders engagement is done in the stakeholder analysis
process by exhaustively looking into the stakes of each and from this information
separating the internal and external stakeholders. A stakeholder is categorized by
their specific impact on the organization, their specific involvement, the cohesion
between the stakeholder and the organization as a whole, their level of influence on
the organization, among others.
Some organizations use the ‘above’, ‘alongside’ and below framework to help
identify internal and external stakeholders and differentiate between the two. Any
stakeholder characterized as ’above’ usually refers to a body that has massive
influence on the decision-making process of an organization but is not a direct part
of the organization, such as governments, legislative bodies, etc. These are all
external stakeholder but their engagement is described higher in the company
hierarchy that other external syakeholders.
A stakeholder labelled ‘alongside’ is one who works hand in hand with the
organization both in its day to day operations as well as being involved in their long-
term planning. These are usually the internal stakeholders and include people such
as investors, executives, etc.
Any engagement defined as ‘below’ is usually a short-term engagement between a
stakeholder and an organization and refers to external stakeholders who are non-
critical to business operations.

7 Describe the meaning of ‘risk criteria’ and its purpose? (50-100 words)
Risk criteria, often referred to as risk acceptance criteria, is the level at which a risk
to the organization is declared to be either acceptable or unacceptable. This criteria
plays a large part in the risk management process as it defines the risks large
enough to require immediate response within the company and those that would be
a waste of resources to handle at the given moment.

8 List three reasons why continual communication is critical to good risk

management. (150-250 words)
Communication ensure all parties involved understand the risk in question, the
likelihood of it happening and the impact it would have on the business as a whole.
Such communication ensure that the risk management process moves forward with
all involved parties aware of everything they are doing and why it is being done
ensuring uniformity when solutions are being made.
Continual communication is necessary as it creates a platform where uncertainties
can be address and looked at. Without communication, it is possible for plans to be
made which are made from a single perspective and feed only the opinions of some
people which is a danger to proper risk management as it could lead to bigger risks
being ignored for others that the leading team felt were more influential.
Communication ensures transparency and credibility is maintained throughout the
entire risk management process. While risk management may not seem critical in
many people’s opinions, poor risk management often has catastrophic effects on an
organization. Maintaining proper communication channels ensures the organization
 can track every step of the process and in turn make sense of every action
performed during and even after the entire process is done.

9 Identify and explain five tools that you might use in order to identify risks. (100-200
words)
Brainstorming – This is when a group of individual sit and look over the organization
as a whole to identify and analyze possible risks within it. Brainstorming is usually
done by selected teams whose sole purpose is to mitigate risks posed to an
organization.
Delphi Technique – This tool is used by organizations who hire anonymous teams
(thus ensuring no bias) to study the organization and hence identify risks to the
organization.
Interviews – Interview are done with stakeholders of an organization to get their
take on the organization and hence identify areas with risks involved based on the
opinions of the people who interact most with the organization.
SWOT analysis – Analysis of an organization’s strengths, weaknesses,
opportunities and Threats is on of the most commonly applied tools to identify risks
within an organization as weaknesses and threats are more often than not risks.
Risk register – The register of risks which is updated throughout the organization’s
or project’s life identifies not just active risks but also potential ones and plans put in
place to minimize them.

10 What are the main components of a risk analysis? (5-15 words)

Risk assessment
Risk management
Risk communication

11 What is the difference between qualitative and quantitative risk analysis? (200-250
words)
Qualitative risk analysis is a technique used to evaluate the risks faced by an
organization based on verbal qualifiers. Risks are documented based on their
probability and impact against a pre-defined scale which is often simply theoretical
rather than a measurable one. A risk could hence be described as having high or
low likelihood of occurring, being a one or four on a scale of one to five, etc.
Qualitative risk analysis is hence very subjective and is based almost completely on
the perceptions of the people undertaking the risk analysis. It is used as a tool to
create awareness of risks in a way that is easily comprehended by all the
stakeholders of an organizations.
Quantitative analysis, on the other hand, is the numerical evaluation of the effects
of risks on an organization or project. This form of risk analysis creates realistic
target in terms of cost and time in order to calculate the effects of a potential risk.
While not always a hundred percent accurate, this method of risk analysis creates
visible and quantifiable metric on which evaluation of risks is done. However,
quantitative risk analysis is a long and drawn-out process and is only viable on the
most likely and most threatening risks to an organization or project.

12 Why would you use a likelihood and consequence table? (40-80 words)
 A likelihood and consequence table is a tool used in risk analysis created in the
form of a matrix with likelihood of a risk against the consequences of the risk
occurring. This table plays an important role in risk management as it allows risks to
be looked at in a way showing their effects on the organization as well as the
priority they should be given based on their likelihood of occurrence.

13 Explain five options for risk treatment. (40-80 words)

Removing the risk altogether – The most obvious choice when dealing with risks
and involves abandoning the source of risk or trying to completely remove it.
Change the likelihood of the risk – By changing factors that resulted in the risk.
Changing the consequences of the risk – By moving risk factors so that they affect
a different area rather than the most obvious consequences.
Sharing the risk – By creating partnerships and agreements to shre risk with other
parties.
Mitigating the risk – By making a plan that minimizes the risk and its consequences
to the organization.

14 What is a cost–benefit analysis? (20-30 words)

This is the systematic approach used to calculate strengths and weakness offered
by any action an organization takes part in in order to estimate the benefits
resulting from the cost involved.

15 What factors should be considered when conducting a cost–benefit analysis? (20-

30 words)
Tangible factors – such as labor costs, manufacturing costs, cost of inventory, and
other expenses.
Intangible factors – such as costs of risks involved, regulations, competition,
environmental factors, etc.

16 Identify and explain five items that should be documented in a risk management
plan. (200-250 words)
Budgeting – The risk management plan should include estimates of the costs
involved in both planning and implementing the plan. The budget should show the
tangible costs of the plan such as labor costs and intangible ones such as costs
due to changes made by the plan.
Timing – This defines when the initial risk assessment will be made and the stages
in the plan’s execution. This includes the phases of implementation and the actions
to be performed during each phase and contingencies of possible scenarios where
the risk (or risks) in question is involved.
Communication – Every risk management plan is not complete without
documentation of the communication channels put in place to ensure all information
on the risks is documented and made available to all relevant stakeholders as well
as future teams of experts.
Auditing – This is usually done as the final entry into the risk management plan and
is an analysis of the steps taken to ensure the success of the plan as well as the
lesson learnt and decisions made that would guide teams in future to make better
plans in terms of risk management.
 Roles and responsibilities – This part of the document outlines all the roles
necessary for the success of the plan, their division as well as the people who will
take them. Even when a team of specialists is hired to do the risk analysis and
management, the roles needs to be clearly outlines and allocated.

17 Why is it important to ensure continual reviewing of the risk management plan? (80-
150 words)
Risk management is usually a continuous and ever-changing process which
requires constant changing in order to remain relevant and on top of the risks which
appear all the time. Reviewing (often call auditing in risk management plans)
therefore becomes a necessary part of the risk management process as it allows
plans to be continuously modified in order to meet the needs of an organization in
terms of risk management. This makes it so that continuous reviewing is a
necessity and not simply an added bonus to the process of risk management.

18 Describe three mechanisms that can be used to ensure continual monitoring and
Risk Register – This is a document kept to keep track of all the risks and the plans
put in place to mitigate them.

19 In your own words, describe the following types of the legislation, codes of practice
and national standards which relate to risk management in an organisation and
provide two (2) examples of how they apply: (15-25 words each)

Legislation Description and Examples

(a) Duty of Care This is a legal obligation to avoid actions that would lead
others to harm. For example, teachers should not bring
harm to their students and organizations should not put
their employees in harm’s way.
(b) Company Law This is the body of laws governing the rights, relations and
conduct between all corporate bodies.
(c) Contract Law This is the legal obligations enforced on all parties
involved in a legally binding contract as well as what
constitutes a contract.
(d) Environmental These are the group of legislations that govern how
Law human beings interact with their environment eg. pollution,
deforestation, etc.
(d) Privacy Law The are the laws governing the regulation, storing and
using of individuals’ personal data, eg. preventing use of
personal data obtained in illegal ways even in legal cases.

20 Why are risk management standards necessary for risk management and how are
they applied in the workplace? (80-160 words)
Risk management standards are a set of strategically created processes that
govern the risk management process. The act as a way to ensure risk management
 processes are carried out in a high-quality way. They are created to provide
consensus on how to deal with risks and offer advice that would be hard to come by
through experience on how to deal with said risks.
Risk management standards are usually implemented at the beginning of the risk
management process since they offer more holistic guidance than a blind stumble
in the metaphorical dark.

Assessment Task 1: Written Questions

RESULTS SHEET
Student Name:

Trainer/Assessor
Name:
Date of Assessment:

Unit of Competency: BSBRSK501 Manage risk

Response
Question Not Comments
Satisfactory
Satisfactory
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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20
Feedback to Student:

Student’s overall  Satisfactory  Not Satisfactory

performance is:
Is re-assessment  Yes  No
necessary?
Trainer/Assessor Date:
Signature:
Student Signature: Date:
ASSESSMENT 2: CASE STUDY & PRACTICAL DEMONSTRATION

This assessment requires the completion of the Town and Country case study and
participating in a role play meeting.

Instructions to Assessor
Place the students into project teams of a minimum of five people, comprising the Risk
Manager (the student) and four stakeholders. At least two people shall be external
stakeholders and two people shall be internal stakeholders.

Stakeholder roles Internal stakeholders

• Human Resources Officer - responsible for recruiting and inducting new staff
• Marketing Manager – responsible for a media campaign for the launch of the new
innovative building technique.

External stakeholders
• Owner, Orange Building Supplies – has a contract to provide all the building
materials for TCS jobs for the first 12 months
• Owner, Orange City Real Estate – has a contract to locate appropriate premises and
arrange lease documents. Will also be a good network source.

Students may nominate different stakeholders that are more appropriate to their specific
situation.

The project teams will meet twice and will be briefed by you on how they are to participate.
The stakeholders will need to draw on their knowledge of the risk management process,
especially the role and responsibilities of stakeholders and information they have found
during their research for this assessment. You can coach team members in their role if
necessary to ensure they contribute to the process. The Risk Manager (student) will use
tools and techniques, such as brainstorming and fish bone diagrams to generate a list of
risks.

You must observe the meetings, either in person or by using technology (e.g. Skype,
recording) and complete the decision matrix in Appendix 1. During the meetings students
must establish and use appropriate conventions and protocols when consulting and
negotiating with stakeholders about risk management.

Instructions to the student

For this assessment you are required to conduct a review of the Town and Country Services
case study (provided below) and then complete the tasks that follow.

Resources required for this assessment

• Research materials such as books, the Internet, etc.
• Learning materials for the unit BSBRSK501 Manage risk
• The Town and Country Services Risk Management Policy and Procedure and AS/NZ
ISO
 13000 Risk Management Overview will be provided by your assessor
• Access to a computer.

Please note that although you will be working with a team for some assessment activities,
and the assessment tasks may require the inclusion of team responses/ideas, all answers
much be your own work.

The assessment is to be undertaken on the date specified by your assessor. Your assessor
must approve any variations to this arrangement in writing.

Town and Country Services

Regional Expansion Project

As part of Town and Country Services’ (TCS) strategic plan, it will open an office in the large regional
city of Orange, NSW to provide a range of architectural services. These services are:
▪ providing a panel of consultant architects who will visit the office 1 day per week
▪ making appointments for local people to meet with the consultants
▪ drawing plans for owners and builders
▪ supervising construction projects
▪ conducting dispute mediation between the individual and the local authorities about planning
and building matters
▪ collecting fees and charges for services delivered.

Orange was selected because it is a large regional population and employment centre with sound
economic growth. In addition, local government is very supportive of new business opening up in the
area and typically facilitates planning approvals within the stated customer service timeframe
standards.
BSBRSK501 Learner Assessment Guide

It is planned to rent an office at street level that has sufficient space to enable meetings
with the visiting consultants & private rooms for mediation services. The office will also
need video conferencing capacity as an alternative communication method for remote
clients. This will ensure that TCS can provide dispute mediation for individuals who do not
wish to appear in person or who may be living some distance from the town. It is expected
that the office will require a full high-spec fit-out to make them suitable for TCS and reflect
the company’s values as a quality provider of design services.

Four full-time and four part-time staff will need to be recruited. Full time staff require
previous experience in working with architectural services and local government.

Initial research suggests that due to solid economic growth in the regional centre, 70% of
the services will be for architectural projects, including both domestic and commercial
buildings with up to 40% of projects employing TCS to manage the build. In addition to the
range of architectural services currently provided, TCS is going to launch its innovative
approach to building techniques. The new approach, although 20% more expensive than
traditional building methods, reduces the building time by 35%; however, specialist
building products are required at specific periods during the build.

Traditionally, local councils have long approval times and make conservative planning
decisions; however, changes to the planning regulations have resulted in a change to the
planning and approval procedures. This means that Council is obliged to operate within its
stated customer service timeframe standards.

Initial costings have been developed and it is expected that at the end of the first 12
months of operation the new office will be cost neutral. Town and Country Services has
not budgeted for any profit until the end of the second year.

Everything needs to be ready in 5 months from today to meet operational deadlines and
the launch of planned media campaign about Town and Country Services’ innovative time
saving building techniques.

This assessment is in two parts. For Part 1 you are required to manage risks in a range of
contexts across Town and Country Services and complete a number of written documents.
For Part 2 you are required to participate in a meeting.

You must demonstrate your ability to:

1. Establish the risk context
2. Identify risks
3. Analyse risks
4. Select and implement treatments.
The Town and Country Services Risk Management Policy and Procedure and AS/NZ ISO 13000
Risk Management Overview will be provided by your assessor.

BSBRSK501_Learner Assessment Guide V2.0 (11sept18)

Richmond School of Business. CRICOS Code: 03717E |RTO Code: 45432
Page 15 of 31

Part 1
You must submit a report with appropriate sections, headings and tables, charts, diagrams
or flowcharts including: (4-5 pages)
▪ Description of the business, goals, analysis of external factors and critical success
factors
▪ Identification and analysis of external factors
▪ Identification of stakeholders
▪ PESTL and SWOT analyses
▪ Risk Assessment Table (and supporting Likelihood and Consequence table and
Consequence Criteria)
▪ Risk Management table
▪ Action Plan
▪ Strategy for implementation of the risk management plan
▪ Report on implementation of your risk management action plan and process ▪ List
of sources of information used and any supporting documents.

The report should be a formal, typed document with detailed information organised into
sections with appropriate headings, and risk tools and supporting documents included as
appendices.

Assessment Criteria – Part 1

Your performance for this assessment will be assessed against the criteria and evidence
requirements in the following ‘Decision Matrix Marking Guide’ at the end of this assessment.

Part 2
The second part of this assessment requires you to participate in a meeting, during which
you must demonstrate your ability to communicate details of, invite participation in, and
obtain support for the risk management process. Your assessor will place you into a project
team of a minimum of five people, comprising the Risk Manager (you) and the four
stakeholders. At least two people shall be external stakeholders and two people shall be
internal stakeholders. The meeting will be in a simulated workplace, which will be organised
by your assessor. Your assessor will brief the meeting attendees on their role.

The purpose of the meeting is to:

▪ Communicate the risk management process
 ▪ Invite participation in the risk management process, including identification of risks
▪ Obtain support for risk management activities.

During the meeting, you are to:

1. Establish and use appropriate conventions and protocols when communicating with
stakeholders about risk management
2. Use tools and techniques to generate a list of risks – such as brainstorming, fish
bone diagram
3. Consult and negotiate with stakeholders about risk management processes,
including identification of risks and outcomes
4. Obtain support for risk management activities.

The meeting must be observed by the assessor either in person or by using technology
(e.g. Skype, recording).

Assessment Criteria – Part 2

▪ Your performance for this assessment will be assessed against the criteria and
evidence requirements in the ‘Decision Matrix Marking Guide’ found at the end of
this assessment.
Town and Country Services
As the Risk Manager, it is your responsibility to identify and manage the risks in the
regional expansion project. The Board of Directors of Town and Country Services will be
responsible for strategic and financial risks and will monitor the project budget.

Develop a risk management plan which includes:

▪ a detailed stakeholder analysis
▪ explanation of the risk context
▪ identification of critical success factors
▪ identification of risks
▪ analysis of risks
▪ treatments for prioritised risks
▪ details of monitoring arrangements
▪ reporting mechanisms for the risk management plan
▪ an evaluation of the risk management plan’s efficacy in treating risks.

Complete a written report of 4 to 6 pages for your manager (your assessor) that
addresses the following 4 Stages of the risk management process.
 BSBRSK501 Learner Assessment Guide

Stage One: Establishing the risk context and identifying risks

1. Context
Political Factors
Orange City is known to have local authorities that are supportive to businesses starting
up in the area. This support for new businesses extends to facilitating approvals for the
businesses in an accelerated manner. However, the local government is also known to
previously have long periods of waiting for approvals to pass through and despite
regulations being put in place to reduce this time to a more acceptable amount, this poses
a potential threat to the business.

Economic Factors
The main incentive for TCS opening a new office in Orange City is the economic growth
the region has been experiencing which has resulted in a more financially able population
willing to spend on the specialized building techniques offered by the company.

Social Factors
Orange City is not only a promising customer base because of its steady economic
growth, but also because it had a large population which represents a large potential
clientele for TCS. These large population also means the company will have a much
easier time finding highly skilled employees for its new offices ensuring excellence right
from the start.

Technological Factors
TCS has found a new method of building that takes less time to complete the building
while being slightly more expensive and having to use specialized materials. This
technology puts the company ahead of its competition as none of them will be capable of
competing in the same field for a while allowing TCS to be established.
These technological advances, however, will probably require the company to source
experts in the technique which adds to the costs already piled up on the company.

Strengths and Weaknesses of any Existing Arrangements

The company’s plan to have teleconferencing options for its clients means it will be able to
reach even clients that would be hindered from reaching the company by factors such as
distance.

2. Scoping
The regional expansion project is part of the Town and Country Services strategic plan to
open more offices to improve its provision of services to more areas. The new office, which
will be located in Orange City, will provide the following services:
• provide a panel of consultant architects once a week
• handle appointments for local people to meet consultants
• drawing plans for owners and builders
• supervise construction projects
• mediate disputes between individuals and the local authorities about planning and
building matters
 BSBRSK501 Learner Assessment Guide

• collect fees for services provided

SCOPE: Orange City and all the surrounding regions

The growing population of Orange

OBJECTIVES: • provide a panel of consultant architects once a week

• handle appointments for local people to meet consultants
• drawing plans for owners and builders
• supervise construction projects
• mediate disputes between individuals and the local
authorities about planning and building matters
• collect fees for services provided

CRITICAL Support from the local government of Orange City

SUCCESS Positive reception by the populace of Orange City
FACTORS: Continued economic growth in Orange City and the surrounding
environment
Continued availability of the specialized building products needed to
build

3. Stakeholders
Identify internal and external stakeholders, their role and responsibility in the process, any
issues or concerns they have and what they aim to achieve. Stakeholders should be
considered as any individual, group or entity that the project will affect, and may include but
not be limited to:
• Clients or customers
• Suppliers and contractors ▪ Internal personnel ▪ A project funding body.

Present this information in the Table of Stakeholders template below.

Stakeholder Internal / Role in process Stake in process

External
HR Officer Internal Recruitment and induction of Salary and monetary
new staff gains
Marketing Internal Media campaign for launch of Salary and monetary
Manager new building technique gains
Owner, External Provide building materials to
Orange TCS jobs
Building
Supplies
Owner, External Locate premises and arrange
Orange City lease documents
Real Estate
Clients External Purchasing TCS products High quality products
Specialists Internal Offering expert advice to Payment
 BSBRSK501 Learner Assessment Guide

clients

Communication between staff will be ensured by internal memos and emails, calls on the
company’s internal voice network and bulletin boards within the company offices. External
stakeholders such as suppliers will be reached using either emails or phone calls and the
same methods will be used to reach experts outside the company offices and other teams
that may eother be in the field or working away from the company offices.

4. Analysis
PESTL Analysis
Political
The political climate in Orange City plays favorably towards the company’s wish to expand
with the local authorities being extremely helpful and supportive of new businesses.

Policy
Policies in place within Orange City make it easy for a new business to obtain approval and
permits though it had not been as easy before the new regulation were put in place within
the local councils. This means TCS will have a much easier time gaining all the required
documents for the new office and its operations within Orange City.

Economic
Orange City and the regions around it have shown solid economic growth for a while and
this in turn favors TCS’s move to create new, innovative yet slightly more expensive
building solutions.

Social
The population of Orange City is large providing a reliable base for both staff and clients for
TCS.

Technological
The main business model TCS relies on is based on new and completely different building
technology. The company also plans to use new technology to maintain their edge over
competition as well as increase their customer base both in terms of reach and leveraging
new technology in its market of choice.

Legal
The laws in Orange City seem to favor the creation and continuity of new businesses
hence TCS will have a comparably easier time compared to places with more restrictive
laws.

SWOT
Strengths
1. The company is opening offices in an economically string region.
 BSBRSK501 Learner Assessment Guide

2. The authorities in the area are much more helpful and seek to attract more companies to
the region.
3. A city the size of Orange City (in terms of size and economic growth) will have more skill
people whom the company can employ to improve its service delivery.

Weaknesses
1. There remain the likelihood that the populace of Orange City will shy away from the new
techniques the company want to introduce.

Opportunities
1. The leveraging of new technology by TCS within Orange City could prove to be a huge
opportunity for growth and development in the region.
 BSBRSK501 Learner Assessment Guide

Stage Two – Analysing the risks

Analyse the risks identified in Stage One, develop an action plan for the treatment of risks
and communicate it to relevant parties. (2-4 pages)

You need to analyse the potential risks from various viewpoints. Look at the likely
consequence of the risk event and the likelihood of the risk event occurring. Finally, look at
the level of risk and decide which risks need treatment.

Consult with your project team of stakeholders (including colleagues) to help you identify
the risks.

• Risk Assessment table - Develop a report for your stakeholders. Use the table
below to develop a risk assessment plan, including:
o Likelihood of the risk occurring.
o Consequence for each risk.
o Priorities – use a risk calculation table to assist in prioritising the risks.
o Options – for each prioritised risk outline at least two (2) suitable options for
treating the risk.

For your risk calculation, you can use the Risk and Consequence table shown below or a
similar format. You must also include the Consequence Criteria that is appropriate for the
project.

RISK ASSESSMENT:
Risk/Priority Risk Action Plan
Rating

1 Lack of support from the
local government of Orange
City
2 Lack of positive reception by
the populace of Orange City
10 Not much can be done on this front by
due to the low likelihood of the
supportive government withdrawing its
support, this risk does not have
immediate consequences on the
business.
12 Ensure the marketing plan reaches as
many people as possible and get
feedback before the opening day so
that awareness is created
 BSBRSK501 Learner Assessment Guide

3 Lack of continued economic 4 Growing the other products offered by

growth in Orange City and
the surrounding environment
4 Lack of the specialized
building products needed to
build
the company so that rejection of one
does not mean collapse of the company
5 Stockpiling on building supplies so that
the business can run on inventory alone
for at least a while.

Stage Three – Identifying measures to treat the risks

1. Risk Management Plan – develop a risk management plan by completing the table
below. At this stage, you are to exclude estimated costings (currently being dealt with by
the Board of Directors for Town and Country Services).

Risk Management Plan

Risk Assess Controls Monitoring Timelines Responsible

Risk

Lack of Unlikely Continuous First month Board of

support from before official Directors
the local opening
government of
Orange City
Lack of Medium Minimal Period Marketing
positive likelihood assigned to officer
reception by marketing and
the populace advertisement
of Orange
City
Lack of Unlikely Minimal First year of Financial
continued (unless operations officer
economic reported
growth in otherwise)
Orange City
and the
surrounding
environment
Lack of the Unlikely Continuous Second year TCS Stores
specialized after contract controller
building with supplier
products ends
needed to
build
 BSBRSK501 Learner Assessment Guide

Assessment 2: Case Study

Decision Matrix Marking Guide & Results Sheet

Student Name:

Assessor Name:

Date of Assessment:

Unit of Competency: BSBRSK501 Manage risk

Trainer/Assessor to complete. S = Satisfactory, N = Not Satisfactory

Did the student satisfactorily: S/N Comment

Complete the practical demonstration requirements (refer to Appendix 1).

Stage One: Establishing the risk context and identifying risks

1. Conduct research into the project area to:
▪ review the political, economic, social,
legal, technological and policy context

2. Identify the scope of risk management

required in the project?

Identify and describe the critical success

factors, goals or objectives for areas
included in scope?

3. Identify internal and external

stakeholders, their role in the process,
and any issues or concerns they have,
using the template provided?

4. Complete a PESTL analysis for risks

associated with the project?

Complete a SWOT analysis for risks

associated with the project?
 BSBRSK501 Learner Assessment Guide

5. Review and summarise the research

information found, as well as any
literature available that is relevant to this
scenario?

6. Complete the analysis of risk for the

scenario by summarising the scenario
and associated risks, accompanied by
checklists, diagrams or flowcharts that
support the summary?

Stage Two: Analysing the risks

1. Develop a risk management plan using
the provided standard risk
management table?
1a. Assess the likelihood – for each risk,
assess the likelihood of the risk occurring.
1b. For each risk, assess the consequence
of the risk occurring?
1c. Use a risk calculation table to assist in
prioritising the risks?
1d. For each prioritised risk, outline at least
two suitable options for treating the risk?
2. Obtain feedback from colleagues and
stakeholders?
Submit risk assessment documents to
manager?
Stage Three: Identifying measures to treat the risks
1. Develop a risk management plan

2a. Develop an action plan for

implementing risk management plan?
2b. Ensure all documentation is in order
and appropriately filed and stored?
2c. Describe the process to evaluate risk
management on an ongoing basis?
3. Develop a strategy for implementing and
monitoring the action plan?

Stage Four: Implementing and monitoring the risk treatment plan

 BSBRSK501 Learner Assessment Guide

1. Write a report of approximately 1.5

pages, examining the ongoing
implementation of the risk management
action plan. Include the following:
• a summary of the initial risks and
the plan implemented to manage
it?
• a summary of all actions taken to
date in attempting to manage
identified risks?
• a statement identifying continued
and/or reduced risks, based on the
information provided?
• a statement about the risks not
identified and the planned actions
for mitigating them or avoiding
them?
• proposal for amendments to the risk
management plan?
• an analysis of the effectiveness of
the risk management plan, by
comparing the implementation with
the outcomes?
2. Provide documents of the work
undertaken and kept used during the
process into a neat portfolio of all
documents produced as part of the risk
management process to assist in future
strategies?

Feedback to Student:

Student’s overall  Satisfactory  Not Satisfactory

performance is:
Is re-assessment necessary?  Yes  No

Trainer/Assessor Signature: Date:

 BSBRSK501 Learner Assessment Guide

Student Signature: Date:

Assessment 2 - Practical Demonstration

Decision Matrix Marking Guide & Results Sheet

Student Name:

Assessor Name:

Location of
Observation:
Unit of Competency:
BSBRSK501 Manage risk

Date:

Trainer/Assessor to complete. Demonstration Result

S = Satisfactory, N = Not Satisfactory
S/N Comment
Did the student:

1. Consult and communicate with group members

to identify and assess risks, decide appropriate
risk treatment actions & priorities?
2. Explain the risk management processes

3. Actively engage with group members to obtain

their participation in the risk management
process
4. Establish and use appropriate conventions and
protocols when communicating with stakeholders
about risk management
5. Use appropriate tools and techniques to identify
risks and used good communication skills to
elicit opinions and check understanding
6. Consulted and negotiated about risk management
processes and outcomes?
 BSBRSK501 Learner Assessment Guide

Feedback to student:

Students overall  Satisfactory  Not Satisfactory

performance is:
Is re-assessment  Yes  No
necessary?
Trainer/Assessor Date:
Signature:

Student Signature: Date:

 BSBRSK501 Learner Assessment Guide

ASSESSMENT SUMMARY & FEEDBACK

Student Name: Student ID:

Trainer/Assessor’s Date of
Name: Completion:

Unit of Competency: BSBRSK501 Manage risk

Assessments Student Results
Satisfactory Not Satisfactory Not Completed
1. Written Questions
  

2. Practical Demonstration &

Observation   

Feedback to Student:

Result:  Competent  Not Competent

Is re-assessment  Yes  No
required:
Trainer/Assessor Date:
Signature:

Student Signature: Date:

Assessment Cover Sheet

Student Name:

Student ID:

Contact Number:

Email:

Trainer/Assessor Name:
 BSBRSK501 Learner Assessment Guide

Qualification:

Unit of Competency: BSBRSK501 Manage risk

Assessment: ☐ 1. Written Questions

☐ 2. Practical Demonstration and Observation
Due Date: Date Submitted:

If your assessment is being submitted after the due date, please attach a copy of the written
confirmation of extension received from the Trainer/Assessor.
Declaration: I have read and understood the following information at the
beginning of this assessment (please tick):
☐ General assessment information
☐ Submitting assessments
☐ Assessment results
☐ Plagiarism and referencing

I declare this assessment is my own work and where the work

is by others, I have fully referenced that material.

Name (please print) Signature Date