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BSBOPS504 Assessment Task 1

The document discusses various aspects of risk management including: 1. The risk management process which involves identifying risks, analyzing them, prioritizing them, implementing solutions, and monitoring risks. 2. Key elements of ISO risk management standards including communication, establishing context, risk identification, analysis, evaluation, treatment, and monitoring. 3. Types of risks like strategic, compliance, financial, and operational risks and examples of each. 4. Risk management techniques like SWOT analysis, documentation reviews, and checklist analysis. 5. Ways to control risks like reviewing control systems, developing risk management plans, employing consultants, and performing quality control tests.

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652 views4 pages

BSBOPS504 Assessment Task 1

The document discusses various aspects of risk management including: 1. The risk management process which involves identifying risks, analyzing them, prioritizing them, implementing solutions, and monitoring risks. 2. Key elements of ISO risk management standards including communication, establishing context, risk identification, analysis, evaluation, treatment, and monitoring. 3. Types of risks like strategic, compliance, financial, and operational risks and examples of each. 4. Risk management techniques like SWOT analysis, documentation reviews, and checklist analysis. 5. Ways to control risks like reviewing control systems, developing risk management plans, employing consultants, and performing quality control tests.

Uploaded by

tuners baluarte
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Answer

1.
Risk management, is the process of managing potential risk/s. In other words, it is a procedure on how to
effectively handle risk either potential or existing and subsequently mitigate the recurrence of such.
Procedures of the risk management process:
1. Identification of risks
This involves the determination of risks that may produce in the system or in the chosen investment vehicle.
2. Analysis of the risks
By analysis, causes and effects may be identified in order to be engaged to how to resolve the identified
risks.
3. Priority of risks
It is important to list the risks identified from the most important or one that will have a significant impact to
the least one. It also include the set of alternative courses of action to address the corresponding risks.
4. Solution implementation
The implementation phase is important because it neefs to be effective to achieve the main objective and
that is to attenuate the risk and avoid its reoccurrence.
5. Risk monitoring
Once the implementation stage is done, we should monitor or evaluate the addressed risk if it has been
avoided or reduced to the lowest tolerable level.

2. ISO Standard Risk Management, the risk management standards provides a form of consistency and reliability
that covers most types of risks. It’s purpose is to support organizations to provide guidelines which will help them
to cope up with whatever risk related with their busines.
Key Elements:
1. Communication and consultation
2. Establishing the context
3. Risk identification
4. Risk analysis
5. Risk evaluation
6. Risk treatment
7. Monitoring and review

3.
Type of Description Example Key responsibility
risk (at least two people)

Strategic Happens when a business A company sells natural or ● CEO


risk does not operate organic face moisturizer in ● Managing Director
according to its business lotion form
model or plan. but over time people’s
preference for lotion
drops and more
people wants a gel form
of facial moisturizer.

Compliance risk Compliance risk primarily Complying to all ● Compliance Officer


arises in industries and Regulations, restrictions, and ● Head of
sectors that are highly protocols for Covid 19 Operations
regulated.

Financial Risk Affects the financial health Customers not paying on ● Head of Finance
of a company (cash flow, time (or paying in ● CFO
liquidity, financial position, instalments)
debt burden etc.

Operational Risk Operational risk Product production and ● COO


summarizes the metrics are not being met ● Head of
uncertainties and hazards because of a broken Operations
a company faces when it equipment or lack of man
power
attempts to do its
day-to-day business
activities within a given
field or industry.

4.

Technique/tool Description

SWOT Analysis This tool is designed to identify and analyse internal


and external elements that may have a favorable or
negative impact on the business.

Documentation Reviews This technique involves reviewing and analyzing


documents and data to determine the information flow.

Checklist Analysis It can be used effectively to identify risk because all you
have to do is list the tasks and then review the criteria.
During that process, you can easily determine if the
procedures are being carried out correctly.

5. Risk control measures are an important tool for preventing workplace accidents and injuries. Accidents can be
avoided by doing the following:
1. Review existing systems of internal control.
This assists in identifying gaps and determining their effectiveness. This occurs after a predetermined period for
system review.
2. Develop risk management plan.
It is a document used by managers to identify potential risks in the organization, estimate the impact and
likelihood of occurrence, and define a response.
3. Employ services of internal control consultant.
To prevent risk occurrence, policies and procedures, as well as daily activities within the internal system, must be
followed.
4. Perform quality control test.
This entails conducting tests to determine whether the risk's occurrence rate is within safe limits. Determines the
corrective actions required in the risk management process.
6. Two Legislative and Regulatory Requirements
● Disclosure of information for the person highest with concern/interest
● Employer's responsibility to promote workplace health and safety

Relation to Risk Management


1. Disclosure of information for the person highest with concern/interest
○ Risks may exist when an individual with access to critical information fails to disclose that
information to the person with the greatest concern/interest. The reason for this is that that
person's life, health, or wealth may be jeopardized if he or she has no prior knowledge, or if
important information was not disclosed, allowing him or her to anticipate what might happen.
2. Employer's responsibility to promote workplace health and safety
○ In any organization, the leader or employer is responsible for the welfare of the employees or
workers he or she has hired. A leader or employer also has an ethical obligation to ensure
that each employee or worker has a healthy working environment because they are one of
the most important stakeholders in the business.

Examples

1. Disclosure of information for the person highest with concern/interest


○ The Competition and Consumer Law of 2010 (CCA) emphasizes the importance of suppliers,
wholesalers, retailers, and businesses developing fair and ethical relationships with their
customers. Its mission is to improve the well-being of Australians by encouraging fair trading
and competition and providing consumer protection. For example, suppose a customer wants
to order food from a restaurant. He mentioned that he has a nut allergy and that eating even a
small amount of it could kill him. However, the person who took his order failed to mention
that the food he had ordered contained a nut as one of its ingredients. As a result, this can
result in a very dangerous situation.
2. Employer's responsibility to promote workplace health and safety
○ If the employer does not create policies regarding employee health and safety and does not
allow employees to wear safety protective equipment as needed, this can lead to a very
dangerous situation at work. According to the Workplace Health and Safety Act, employers
should be responsible for promoting workplace health and safety in order to protect the
welfare of their employees, as they are one of the most important stakeholders in the
business.

7. The risk management policy's main purpose is to provide guidelines for risk management in order to support
the achievement of company/corporate objectives, protect employees and business assets, and ensure
financial sustainability. It is part of the governance framework and applies to all employees, contractors, and
volunteers.
8.

Policy/procedure Description

Record keeping policy and It is critical in business to have an accurate and


procedure reliable source of record as the foundation for
providing information and making future decisions. It
can also be used as evidence to help protect the
company if problems arise.

WHS policy and procedure These policies are critical in the organization for
efficient and effective employee management. It
serves as a guide for risk management and creating
a safer working environment.

Confidentiality It is critical in the workplace that no private or


policy/procedure confidential information of employees or the company
itself be disclosed to others without permission.

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