BSBRSK501- Manage Risk

Task:

Performance Objective

Students will demonstrate the knowledge and skills needed to manage risk across an organisation.

Specifications

Your assessor will be looking for evidence of the ability to do the following tasks.

1.Analyse information to identify the scope and context of risk management.

2.Consult and communicate with stakeholders to identify and assess risk, and determine appropriate risk management processes.

3.Develop an action plan for implementation and monitoring.

Case Study

Refer to the Support Document and conduct external research to prepare your responses. Please provide all the links and references of the sources you use for your research.

Greenville Enterprises started as a small company and has grown into a national retail business specialising in a range of exclusive products. Greenville has more than 150 retail, online, and phone order outlets across Australia. Business has been good, but management is always wary of risks on the horizon, especially given the situation over the past three months. Over this period, there have been significant international, national and organisational incidents that have affected the business.

On the international front, five key suppliers of our top selling range of products have received global condemnation about using toxic or banned chemicals in their products, and polluting the environment through their unsustainable production methods. Floods have affected some Asian suppliers so that the manufacture and transport of numerous top-selling lines has been interrupted for the past three months. This is affecting online sales.

On the national front, Australian consumers are spending less due to the uncertain global financial solution, and rumours of government tax increases that are likely to decrease household disposable incomes. Furthermore, there has been recent political uncertainty with leadership challenges and allegations of corruption. These issues and the impending federal election are leading customers, businesses and investors to take a wait-and-see approach. Federal consumer legislation was introduced in 2011, so there is a need for all states to be brought up to date, especially with increased consumer knowledge of rights such as the product safety law. Uniform WHS laws have also been introduced by most of the states.

There are some issues arising within the organisation. There has been an increase in complaints from customers about online purchasing system problems/disconnections, goods not being delivered on time and allegations that confidential customer information is being passed on to other companies. Customers have also complained that the company website and online purchasing links are ‘glitchy.’ As well as these complaints there is also rising social media pressure about claims that Greenville’s major suppliers use sweatshops, child labour and manufacturing processes that cause environment destruction.

Information systems and warehousing/logistics systems are more than 10 years old. Management is contemplating downsizing and adopting rigorous budgetary cuts across all sections of the organisation. Staff morale has dropped, with many conflicts between staff and complaints about hours worked and a lack of sufficient training.

1.Scope and context of risk management process

Objective

In this task, you will analyse information from the case study and other sources to establish a context for risk management. 

Instructions

Write a research paper, including at a minimum the following topics.

1.A minimum of six examples of legislation, regulations, standards and codes that are relevant to the current situation at Greenville Enterprises

2.A summary of the key risks that the organisation may apply, listed under the scope headings: political, economic, social, legal, technological and policy.

Essential Evidence

A research paper

2.Draft risk register

Objective

In this task, you will produce a DRAFT risk register to identify and assess risks, prioritise them, determine appropriate risk treatment actions, and prepare for risk monitoring and review. 

The register needs to be developed in an appropriate format (table or spreadsheet), and either uploaded as a separate file for assessment, or copied and pasted into this document.

Instructions

1.Produce a risk register for Greenville Enterprises, including at a minimum the following sections.

Risk identification, including risk ID, date, who raised the risk, a description of it, the cause and consequence

Risk assessment, including likelihood, consequence and risk rating, and treatment action

Risk treatment, including the treatment action, plan, owner and deadline

Risk monitoring and review, including the method/s for monitoring and review points, progress and compliance reporting, and the current status

2.Populate the Risk Register for Greenville Enterprises, with a minimum of eight risks.

Essential Evidence

DRAFT Greenville Enterprises Risk Register (you can prepare a separate file and upload it with your submission, you can include the table/spreadsheet into this document, or you can take screenshots and insert them into this document)

3.Consultation and communication

Objective

In this task, you will consult and communicate with stakeholders to evaluate the risk register, and make adjustments to the risk register as required. 

Instructions

Ask at least two work colleagues, friends or family members to help with this activity. 

Part 1: Consultation

Follow these steps for each person. The communication and consultation task can be conducted as a group or individually.

1.Summarise the case study, and go through the risk register in detail.

2.Ask them for feedback, comments and suggestions on the risks, the ratings, treatments and suggested actions. 

3.Document responses.

Part 2: Summary Report

4.Prepare a summary report (below or as a separate file submission) including the names and contact details of who you consulted with, the suggestions and feedback they provided, as well as your decision on whether to accept or reject their suggestions and related justifications.

Part 3: Summary Report

Update the Greenville Enterprise Risk Register according to the outcome of the consultation.