Bruna BSBOPS504 Student Assessment v1.1

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Student Assessment Cover

Sheet
Course Code BSB50120 Course Name Diploma of Business
Unit Code BSBOPS504 Unit Name Manage business risk
Due Date Assessment Name Business Portfolio

Part A: Questions
Part B: Case study
Part C: Project
Student No. 0000199601 Student Name Bruna Samuel Moreno dos Santos
Student Phone 0434 901 706 Student Email bruhsamuel@gmail.com
Student Declaration
I declare that this assessment is my own work and where my work is supported by documents from
my workplace placement/employer permission has been granted.
Note: Filling out this coversheet as part of an electronic submission and approving the above information will
operate in the same way as physically signing this cover sheet.
Student name or signature:

Office Use Only
Date/s Received: ___/___/___ ___/___/___ ___/___/___

Date/s Assessed: ___/___/___ ___/___/___ ___/___/___
Result of Assessment: ___________ ___________ ___________
Entered on Training Plan Moderation Signature
Note for Assessors: Filling out the above Office Use Only section as part of an electronic submission will operate in
the same way as physically signing this cover sheet. If not physically signed, Assessor must print their name in
signature box.
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Assessment Questions
Part A
Course Code and Name: BSB50120 Diploma of Business
Unit Code: BSBOPS504
Unit Title: Manage business risk
Answer the following questions in the spaces provided.

1. Research the following TERMS and PHRASES. These are linked with your assessment. Attach
your definition or explanation to each word. Please remember to Reference.
/conversion/tmp/activity_task_scratch/728785279.docx
a) Risk
Risk is the chance of something happening as a result of a hazard or threat which will impact on
your business activity or planned event. Risk is measured by determining the likelihood of
something happening, and the consequences if it does happen. Keep in mind that risks can also be
an opportunity for business profit
b) Risk Management
Risk management is the identification, evaluation, and prioritization of risks (defined in ISO 31000
as the effect of uncertainty on objectives) followed by coordinated and economical application of
resources to minimize, monitor, and control the probability or impact of unfortunate events or to
maximize the realization of opportunities.
c) Quantitative risk analysis
Quantitative risk analysis numerically evaluates the effect of potential project risks on project
targets. It is focused on creating realistic time and cost targets and calculating the probability of
achieving project objectives.
d) Qualitative risk analysis
Qualitative risk analysis is a technique used to quantify risk associated with a particular hazard.
Risk assessment is used for uncertain events that could have many outcomes and for which there
could be significant consequences. Risk is a function of probability of an event (a particular hazard
occurring) and the consequences given the event occurs. Probability refers to the likelihood that a
hazard will occur.
e) Risk identification
Risk identification is the critical first step of the risk management process depicted in
Figure .The objective of risk identification is the early and continuous identification of events that,
if they occur, will have negative impacts on the project's ability to achieve performance or
capability outcome goals. They may come from within the project or from external sources.
f) Scope
The scope of the risk management activities being undertaken and their intended outcomes
g) Duty of care
Duty of Care Risk Analysis (DoCRA) evaluates risks and their safeguards and considers the
interests of all parties potentially affected by those risks.
h) Stakeholder
Internal and external and their circumstances from book
i) Risk Control Measures
The control of workplace risk is a practical, evidence-driven process; employers assess the work
environment to identify risks present in the workplace—as well as the specific individuals at risk—
before taking appropriate action to control those risks.
j) WHS Record Keeping
The workplace health and safety(WHS) coordinator, who report, is responsible for assisting all
employees to identify WHS risks and implement controls. WHS risk assessment are tabled at the
RMC and WHS committee meeting
k) Risk Insurance
The control of workplace risk is a practical, evidence-driven process; employers assess the work
environment to identify risks present in the workplace—as well as the specific individuals at risk—
before taking appropriate action to control those risks.
l) Company Law
Legal Governance, Risk Management, and Compliance or "LGRC", refers to the complex set of
processes, rules, tools and systems used by corporate legal departments to adopt, implement and
monitor an integrated approach to business problems. While Governance, Risk Management, and
Compliance refers to a generalized set of tools for managing a corporation or company, Legal GRC,
or LGRC, refers to a specialized – but similar – set of tools utilized by attorneys, corporate legal
departments, general counsel and law firms to govern themselves and their corporations, especially
but not exclusively in relation to the law. Other specializations within the realm of governance, risk
management and compliance include IT GRC and financial GRC. Within these three realms, there
is a great deal of overlap, particularly in large corporations that have legal and IT departments, as
well as financial departments.
m) Environmental Law
Environmental law, also known as environmental and natural resources law, is a collective term
describing the network of treaties, statutes, regulations, common and customary laws addressing the
effects of human activity on the natural environment. The core environmental law regimes address
environmental pollution. A related but distinct set of regulatory regimes, now strongly influenced
by environmental legal principles, focus on the management of specific natural resources, such as
forests, minerals, or fisheries. Other areas, such as environmental impact assessment, may not fit
neatly into either category, but are nonetheless important components of environmental law.
n) Contract Law
contract is an agreement that is enforceable at law. It is the primary tool through which Institution’s
govern relationships and understanding with the other party.
o) Industrial Relations
Industrial relations or employment relations is the multidisciplinary academic field that studies the
employment relationship; that is, the complex interrelations between employers and employees,
labour trade unions, employer organizations and the state.
p) Privacy Law
Privacy law is the body of laws dealing with the regulation, storage and use of personally
identifiable information, personal health information and financial information of individuals,
which may be collected by governments, public or private organizations or other individuals.
q) Freedom of Information
The Freedom of Information Act 1982 gives any person the right to: access copies of documents
(except exempt documents) we hold ask for information we hold about you to be changed or
annotated if it is incomplete, out of date, incorrect or misleading
2. To determine the scope for risk management process, what are the three (3) main types of risk
that your organisation would have to deal with?
Planning risks
Quality risks
Third-party risks
3. Research the Risk Management Principles and Guidelines. AS/NZ ISO 31000:2009
http://www.finance.gov.au/sites/default/files/COV_216905_Risk_Management_Fact_Sheet_FA
3_23082010_0.pdf and give a definition of the 11 principals of risk management
 it is base on the best available information
 it is clear and inclusive
 it creates value for the organisation
 its is dynamic, ongoing and
4. Stakeholders can be either internal stakeholders or external stakeholders. Complete the table
below by identifying whether the stakeholder is internal or external
Example of a stakeholder Internal or external

Manager Internal
The community External
Suppliers External
Supervisor Internal
Customer External
WHS officer Internal
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Case Study
Part B
Read the Case study below and answer the questions using the case study and your own
workplace context to supplement the case study and assist in maintaining relevance to your
work role.
KNC Power is a leading energy company. Part of KNC’s strategy is to deliver cleaner, affordable,
secure energy supplies, while improving profitability.
KNC Power has over 1000 employees across 20 sites. It provides more than 100,000 business
customers including large corporations, schools and hospitals. Customers can choose from several
suppliers to get the best service and price.
KNC Power relies on its engineers to make appropriate and timely decisions at all levels. KNC
also encourages all employees on all levels to be part of decision-making for any ideas for
improvement.
Steve is a young graduate mechanical engineer and has been working for KNC Power for only a
short time. Steve has the role of making decisions based on assessment of risks linked to spare
parts, such as what parts are critical and the best way of managing their supply. In particular he
must assess:
• What parts are best kept in stock
• The cost of maintaining and re-ordering this stock
• Timeframe of delivery – production loss to companies (customers) waiting for parts
• Comparisons of costs to the costs of breakdown and loss of supply.
Questions:
1) Explain how Steve would evaluate the risks involved.
you have established the level of risk, you then need to create a rating table for evaluating the
risk. Evaluating a risk means making a decision about its severity and ways to manage it.
2) Demonstrate how Steve might make decision in regards to the risk of production
loss to companies and costs of stocking items. Justify this.
To manage your stock, you need to find a balance between the costs and benefits of holding
stock. The costs of holding stock include the money you have spent buying the stock as well as
storage and insurance. The benefits include having enough stock on hand to meet the demand
of your customers.
3) Identify internal and external risks.
Project managers must identify and prioritise risks to the project at hand that are internal to
the organization. When looking internally, risks to the project may involve the financial
solvency of the company, the ability for the company to have required equipment and other
resources on hand in time to support the project.
External risks are outside the control of the project team and its host organization. Because of this,
external risks are generally more difficult to predict and control.
4) What stakeholders/co-workers would Steve speak to in regards to these issues and
decision making?
Customers, employees, suppliers
5) What tools could Steve use to evaluate stock levels and supply?
When you are managing your stock, consider quantities, sales and storage. If you have slow-moving stock,
consider reducing your stock levels by returning items to suppliers. You may also try to sell slow-moving
items in a sale. This may reduce your profitability but free up your storage and improve cash flow.
6) Develop an action plan Steve might use for risk treatment.
1- Record the lessons learned and use the knowledge of the process, developing an Operating Procedure.
2- Identify the work risks that may result from the activity performed by the worker.
3- List the hazards (root causes) that can cause losses or increase the worker's exposure to risks.
4- Think of strategies (preventive, corrective and proactive actions) that reduce or eliminate the root
causes of danger.
5- Develop an emergency plan to manage each of the identified risks or losses.
6- Establish goals and objectives for Safety and Health at work, specifying the key results to follow,
performance metrics aligned with the actions.
7- Continuously monitor Occupational Health and Safety, introducing a systematic view of evaluating new
risks and risk management practices.
8- Communicate and train the team of professionals who are responsible for Occupational Health and
Safety.
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Project
Part C
Please read through the following and answer all of the questions:
Scenario – Joe’s Fruit Shop
Joe’s Fruit Shop, a fruit shop chain, operates 15 stores in the CBD and suburbs of Brisbane, and the Gold
Coast Queensland. The CEO, Peter Chang, has appointed you as the operations manager. You are no
stranger to management but mostly at departmental level for international organisations, with some time
spent in sales and marketing management. One role specifically required in your job description is to
manage the risks that could impact on the Joe’s Fruit Shop operations.
A meeting with Peter in the first week confirmed his requirement of you to review, analyse, plan and
monitor the risks of the Joe’s Fruit Shop organisation. Peter wants you to report directly to him on the risk
management process but also encouraged you to also speak with the stores liaison person Hayley Pattern
and the accountant John Fisher. Peter thought it may also be beneficial to contact his accountant Smith
and Smith and of course the store managers, although they were only really concerned about achieving
their sales budgets and getting their commissions.
Hayley was constantly reminding the store employees about the WHS issues relating to other staff and
customers. John did the payrolls and was constantly pushing the managers to provide the appropriately
authorised paperwork. Peter said that the accountants were keen to see safe guards instigated for cash
control.
Peter wanted you to undertake this task so that you could get significant insight into the Joe’s Fruit Shop
operations and develop and implement a plan to reduce the risk exposure of the organisation. He also said
that he needed an ongoing risk monitoring process instigated as well.
According to Peter, the areas that had been underperforming and were primary areas of risks concern
were the human resources management, financial operations and WHS. These are the areas he wanted you
to focus on in your management.
Internal and external environment

After discussing Joe’s Fruit Shop with the key stakeholders and doing some external research you identify
the following significant issues:
• Peter spoke about a new law that was being introduced by the Federal Government that will impact
on the way that he has been paying his staff with some of their pay earned on commission.
• Peter showed a report from a survey claiming that healthy eating includes eating at least five
portions, and ideally 7-9 portions, of a variety of fruit or vegetables each day. Fruit and vegetables
include fresh, frozen, tinned, or dried varieties, and fruit juice. On average, people who eat lots of
fruit and vegetables tend to be healthier and live longer.
• Smith and Smith spoke about the latest Point of Sale cash registers that would improve stock and
cash control in the Joe’s Fruit Shop stores.
• You noticed that the location of the Joe’s Fruit Shop stores was always in the prominent and highly
trafficked parts of the shopping centres
• John said that he was not able to get all the staff records for pays and employees details from the
store managers and this made processing difficult and meant that they were not compliant.
• Smith and Smith explained that the old cash registers did not have the features that could help
eliminate fraud.
• Hayley spoke about the flooring where the staff worked and customers were sometimes required to
access. The ceramic tiles were broken and covered up with a thin mat, but still presented a trip
point to customers and staff alike.
• Smith and Smith had spoken about a large chain in Victoria that were planning to expand into
Brisbane in the next 12 months.
• Peter said that while 15 stores was a good number, there are another 20 good locations in Brisbane
that want Joe’s Fruit Shop as part of the shopping centre assortment.
• You noticed that the stores were looking old and the decor has been out of fashion for over 5 years.
• Smith and Smith explained that the growth in the suburbs of the Brisbane population was a positive
indicator for the Joe’s Fruit Shop business.
Research findings
Store manager reports, together with your interviews with the other key stakeholders identifies the
following risks:
• Broken floor tiles creating a trip point for staff and customers
• Wet floors on rainy days making it slippery for staff and customers
• The store has extremely sharp knives used to cut fruit and vegetables
• Banking not always done every day leaving cash on the premises
• The staff member balancing the cash registers also prepared the bank deposit book and banked the
cash
• Some stores had sizable banking amounts that were banked by the junior staff member
• Staff records were kept in the individual stores in the bottom draw of an unlocked filing cabinet
• One question on the staff records asked for a full medical history of the employee
• Timesheets sent to head office were not always authorised.
Question 1
Look at the Scenario above under “Research findings” and select an issue and then
apply the hierarchy of control to develop options.
Hierarchy of control Options
Can you eliminate the risk? yes
Yes by administrative control

Can you reduce the risk? For example- by
substitution.
Banking not done every day is a big issue that
Can you isolate the risk? For example- with must be solve and not covered or replaced
guards and barriers
Yes adapting closing procedures with proper

Can you reduce the risk by control? For example- documentation and receipts documented. Also
safe operating procedures. adding training on opening and closing
procedures, safe procedures and banking
procedure.
Yes as we are involved with cash handling and

Provide personal protection according to AS/NZ the security of a person
standard
Question 2
An action plan formalises the risk management process. The specific format of the risk management action
plan will vary from one organisation to another. Using the following methodology, develop an action plan
from one of the above issues under “Research findings”
ACTION PLAN ANSWER

Risk Broken floor tiles creating a trip point for staff and customers
Date Identified 22.02.2020
Level of Risk high
Reason for risk Against safety protocol and regulation
rating
Risk priority/ risk Likelihood high insignificant as simply solvable
ranking
Action (what is to Replace or fix floor tiles
be done)
What resources Hiring a tiling company
are required
Who is Health and safety manager
responsible for
the action
Timeframe (when 1 week timeframe based on what discussed with the company
should the action
be completed
Strategy for Send an email to all the staff and use barrier to avoid accidents from
informing customers or staff
stakeholders
Question 3
The next step of the risk assessment is to determine or estimate both the likelihood of a risk arising
and its potential consequences. All available date sources should be used to understand the risks.
Consider 5 risks above under “research finding” and complete the table below by sourcing the risks
and identifying their possible causes.
Scale for assessing Meaning of term Risk
likelihood
Almost certain minor Wet floors on rainy
days making it
slippery for staff and
customers
Likely minor Broken floor tiles creating a
trip point for staff and
customers
Moderate moderate Some stores had sizable
banking amounts that were
banked by the junior staff
member
Unlikely moderate The staff member balancing
the cash registers also
prepared the bank deposit
book and banked the cash
Rare moderate One question on the staff
records asked for a full
medical
history of the employee
Question 4
The next step in the risk analysis is to assess the potential impact or consequence. Consider a
number of risks that exist in your workplace. Complete the table below by sourcing the risks and
identifying their possible causes.
RISK: POSSIBLE CAUSE:
Increasing client compliant complaints Untrained staff
Unhealthy or unsafe environment
Workplace accidents Structure not stable or malfunctions of tools or

instruments
Theft Lack of security scan machine Lack in control

and checks of stock
High staff turnover Bad management Team issue
Question 5
After you have identified the risks, the next step is to develop a treatment plan that will either
eliminate or minimise the impact of the risk. Use three (3) of the identified risks from the “research
findings”
Identified Risks Risk Treatment- what can you do to eliminate or minimise the
impact of the risk?
Hire a flooring company which can fix the issue meanwhile
Broken floor tiles barricade the are to avoid accident with staff or customers
creating a trip point
for staff and
customers
ADDING BANKING PROCEDURE

Banking not ANS SAFETY PROCEDURE WHEN HANDLING AND BANKING
always done every NEW TRAINING IMPLEMENTED
day leaving cash
on the premises
Reviewing safety policies

The store has
extremely sharp Using knife covers and attaching knifes to a small cord which must be
knives used to cut placed adult high for safety reasons
fruit and
vegetables
Question 6
What is the purpose of a communication plan and why should we inform relevant parties?’
Is to mitigate risks, facilitate development, communication is easier, meetings motor and to satisfy
stakeholders and that is also why we should inform the relevant parties.
Question 7
Explain at least three (3) things you need to consider when documents are stored in relation to risks.
o Regular controls and checks

o Files must be kept based on the type of risks using WHS guidelines
o Software and programs must me upgrade constantly
Question 8
Identify the ways Joe’s Fruit Shop could review its risk management system.
o Must match the outcomes of a risk management plan with its objectives
o Reviewing and evaluate all the activities in the plan that are effective. Each activity must
be deeply investigate
o Asking support of an account expertise for payroll and legal requirements
Question 9
Review the scenario of Joe’s Fruit Shop and complete a SWOT Analysis based on the information
provided.
STRENGHTS WEAKNESSES
High traffic and good location on shopping INstored very old furniture and lack of structural
maintenance
mall Good profits
WHS policy are not well followed as shown on
15 stores are already running and a possible the use of harmful items in store
expansion is being planned
OPPORTUNITIES THREATS
Advantage of new building sites for new shops Possibility of big cash loss due to lack of cash
control
Offers from 20 different location to open a
branch with the liaison Hazard risk from customer or staff if safety
mainentace procedure are not taken in place

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Student Assessment Cover

Due Date Assessment Name Business Portfolio

Student name or signature:

Date/s Received: ___/___/___ ___/___/___ ___/___/___

Answer the following questions in the spaces provided.

c) Quantitative risk analysis

d) Qualitative risk analysis

Internal and external and their circumstances from book

j) WHS Record Keeping

 it is base on the best available information

 it is clear and inclusive

 it creates value for the organisation

 its is dynamic, ongoing and

Example of a stakeholder Internal or external

3) Identify internal and external risks.

Customers, employees, suppliers

6) Develop an action plan Steve might use for risk treatment.

5- Develop an emergency plan to manage each of the identified risks or losses.

Internal and external environment

Hierarchy of control Options

Can you eliminate the risk? yes

Yes by administrative control

Yes adapting closing procedures with proper

Yes as we are involved with cash handling and

ACTION PLAN ANSWER

Date Identified 22.02.2020

Level of Risk high

Workplace accidents Structure not stable or malfunctions of tools or

Theft Lack of security scan machine Lack in control

High staff turnover Bad management Team issue

ADDING BANKING PROCEDURE

Reviewing safety policies

o Regular controls and checks

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Date/s Received: _/_/_ _/_/_ _/_/___