BSB60407 ADVANCE DIPLOMA OF MANAGEMENT

ASSIGNMENT BSBRHS501 MANAGE RISK

Submitted by : Gurkirat Singh
Assesment Part A Knowledge Test
1 What are three ways that research can be conducted for risk-related
issues, and for each way, briefly describe how it may be done?
Three ways in which research can be conducted for risk related issues
are as follow.
1 Qualitative analysis may be useful as an initial screening to identify if
further analyse of risk is required, when the analysis is appropriate for
decisions, when numerical data or resources are inadequate.
2 Semi-quantitative analyses sets values to the risks in order to produce
a more expanded ranking scale than that which is usually achievable
from qualitative analyse. These values are not the predicted realistic
figures calculated in quantitative analysis. It is important that the
limitations of this form are recognised and is combined with a formula or
explanation.
3 Quantitative analyse of risks uses numerical values (as opposed to
words)to analyse both the consequence and likelihood of risk. The
quality of this analysis is dependent on the data from witch it was
initially sourced. The outcomes may be expressed in terms of monetary,
technical, or human impact.
2

Fishbone, checklists and brainstorming are both tools that can be used
in risk management. Describe each of these and when they would best
be used.
Fishbone diagram: Also called a cause and effect diagram. Is a
visualization tool for categorizing the potential causes of a problem in

order to identify the root causes. Its ideal to use it when there are many
possibilities causing a problem to occur.
Checklists: This risk checklist serves as a thinking tool or discussion
prompt to ensure the team has looked at the project and its environment
from all angles when they sign off on the risk list. Thorough
consideration can help you avoid getting blindsided by foreseeable risks
like staffing changes at a critical vendor or shifting regulatory
requirements. Its ideal when we try to identify the risks within a specific
context, it is important to interrogate the components
Brainstorming: It is solely used for generating ideas; it does not involve
analysis.
It is used to generate a variety of ideas in a short time . we can use one
of the following brainstorming techniques: structured brainstorming
free-form brainstorming, or silent brainstorming.
3

What are the five stages of risk likelihood? Briefly describe each one?
Five stages of risk likelihood are as follow
1
2
3
4
5

Almost certain : Highly likely to happen , most frequently.

Likely: Will happen probably but not a persistent issue.
Possible : May happen occasionally.
Unlikely : Not expected to happen but is a possibility.
Rare: Very unlikely this will ever happen.

4 List and give examples description of each five levels of consequences

for risk.
List and example description of each level of consequence of risk:
1 Extreme Consequences: It has adverse impact on key areas example
huge loss/ reduction in student enrolment in a college
2 Major consequences: loss of government funding due to low
enrolment but can be controlled by better management

3 Moderate consequences: short term damage to partnership which can

be repaired
4 Minor consequences: Moderate reduction in student enrolments
5 Insignificant consequences: Minor reduction in student enrolments
5 What needs should be considered when treating risk ? list and describe
three treatments that should be considered.
1 Modifying the likelihood of the risk to increase possible beneficial
outcomes.
2 Trying to manipulate possible consequence to increase the expected
gains.
3 Sharing the risk with other parties that may contribute by providing
additional
Resources which could increase the likelihood of the opportunity or the
expected
Gains.
4 Retaining the residual risk.
6 How does international risk management standard As/NZS ISO 31000;2009
principle and guideline help organisation in risk management.
The International Risk Management Standard AS/NZS ISO 31000:2009 (the
Standard) provides the principles and guidelines for risk management
The Organisation adopts the principles of risk management as set out in the
Standard and actively works toward complying with these principles to ensure
that risk management is effective.
8 For each of the piece of legislation listed describe the intent and how it
could imPact managing risk of organisation.
Privacy law
Privacy Act is an Australian law which regulates the handling of personal
information about individuals. This includes the collection, use, storage and
disclosure of personal information, and access to and correction of that
information. The Office of the Australian Information Commissioners (OAIC)
can take regulatory and enforcement action to encourage and ensure
compliance with privacy obligations by all organisations in Australia.

WHS regulations
WHS legislation includes a model WHS Act, regulations, Codes of Practice and a
national compliance and enforcement policy. Work Health and Safety (WHS)
Act forms the basis of the WHS Acts being enacted across Australia to
harmonise work health and safety law. Organisation is required to meet the set
standards otherwise penalty may be imposed in case worker get injured due to
non-compilation of law by organisation.
Contract law
Contract law encompasses any laws or regulations directed toward enforcing
certain promises. In Australia contract law is primarily regulated by the
'common law', but increasingly statutes are supplementing the common law of
contract - particularly in relation to consumer protection. Contract law is
broadly divided into five categories:

contractual formation

scope and content of contracts

avoidance of contractual obligations

performance and termination of contracts and

Remedies for breach of contract.

Each and every contracting party is bound by contract law and penalty can be
imposed in case of breach of contract.
9 Name and give three examples for adjustments that can be made in work
place to assist a person with disability.
1

Providing equipment

a tape recorder to take and leave messages for some physically or sight
impaired people

a telephone typewriter (TTY) machine for a hearing impaired employee

Computer software such as voice recognition or a speech synthesiser.

2 Training and development

 Audio notes for a visually impaired employee.

3

Accesses to workplace
lifts have lowered control panels
Emergency mobile phones

10 List two type of insurances organisation should consider , for each type
describe risk cover and benefit to organisation
1. Volunteers Workers Personal Accident
This covers accidental injury or death, resulting from involvement in authorised
volunteer activity and may cover the payment of weekly benefits while
engaged in various voluntary activities. Organisation does not require to
compensation in case of accident of volunteer.
2. Public Liability
This policy protects the named organisation, paid workers and volunteers for
their legal liability to third party property damage or personal injury. Coverage
should be organised to protect the paid workers and volunteers, and to include
legal action against them from clients and other third parties. It protect the
organisation and benefits by providing cover against third party liability.
3. Directors and Officers/Professional Indemnity Liability and Voluntary
Boards of Management
This policy can cover:
Action for alleged negligence or breach of duty
Any negligent advice given by a volunteer
Defamation and slander
Sexual harassment
Misleading advertising
This insurance protects directors etc. from indemnity liability arising due to any
act of them.
.

Assessment Part B: Risk review

Scope covers the following
a. Project MacVille to expand their operations in Queensland and
purchase and re-brand an existing cafe in Toowoomba.
b. Business unit MacVille Cafes Queensland.
c. Risk in relation to functions human resources management,
financial operations, OHS, supply chain, local governance and
compliance issues.
Goals
a To appropriately manage the risks involved with the operation of
store
b. To give the new manager significant insights into the stores
operations.
c. To ensure there is a smooth transition to the MacVille systems.
d. To encourage the new manager to give ongoing support for risk
management.
See stakeholder feedback table in Appendix.
Analysis.
PEST analysis
I Political federal legislation concerning efficient water usage,
by-law allowing cafes to expand their footpath dinning.
ii. Economic gross regional product growth of 8.9%, number of
visitors down 18%.

iii. Social place for retirees, population growing.

iv. Tech Technology - WIFI in cafe, an innovative frozen parbake cooking system, Federal Governments National Broadband
Network.
SWOT analysis
1. Strengths store on the corner of the two main streets of the city,
innovative and popular range of rice wraps.
2. Weaknesses the lack of sales promotion techniques, fit-out in parts
looked old
3. Opportunities opportunities for opening more cafes in the surrounding
shopping centres, by-law allowing cafes to expand their footpath dinning.
CBD legislation concerning efficient water usage.
4. Threats international chain of coffee shops opening a store in the
Toowoomba
Research information
Source

Primary /secondary data

Key information
gathered
Store operations(fit out,
cash handling, water
usage, employment)
External environment(by
laws, government
legislations , economic
expansion, competition,
technology plans)

Visit with James

Mansfield

Primary

Interview with Ron

Langford

Primary

Extract from
Toowoomba regional
council

Secondary

Economic
indicators(tourist
numbers, unemployment
,population growth,
regional growth)

Extract from Macville

NSW

Secondary

Key problems (problem

with acquiring and
rebranding exciting
stores)

Checklists
Human resources management risk.
i. No written policy and procedures manual and limited staff training could
lead to errors and inappropriate actions.
ii. Authorisation system not clearly defined could lead to fraud.
iii. Lack of sales promotion techniques impacts of the stores financial
viability.
b. Financial operations risk
i. No separation of duties could lead to fraud.
ii. The banking was not done every day and was kept on the premises overnight
without a safe assets not protected could lead to thief.
iii. Not all takings from the cash register by family staff members were
recorded unacceptable behaviour in a company store and could lead to
misappropriation of funds.
OHS risk.
i. Manager two hour drive to and from weekly managers meeting could
lead to physical injury.
ii. Unstable and broken chairs customers injured compliance breach and
customer suing, reputation loss
iii. No established process for dealing with injuries happening at work staff
need a
quick and organised response to injuries staff work loss, unions suing,
reputation loss.
Supply chain risk
i Impractical to deliver fresh pastry from the companys central bakery plant in
timely manner brand loss, quality service loss.
ii. Supply of company branded supplies brand loss.
Local governance and compliance risk over.
I. Water use company could be fined reputation/brand loss.
ii. Incomplete employment records unions could sue government penalties
reputation/brand loss, $50,000 fine.
iii. Confidentially of records not guaranteed privacy law breach
Appendix Stakeholder feedback table

Stakeholder The board

stakeholder
The board

Internal/external
Internal

Paula kinski

Internal

Queensland
Internal
management team

Ron Langford

external

James manfeild

internal

Role in process
Responsible for
risk management
CEO
Assist in
transition and
ongoing
management
Councillor and
landlord
Hurleys store
supervisor

concerns
Potential asset
loss
Potential loss of
reputation
Potential loss of
prospect and
reputation
Potential loss of
tenant
Potential loss of
promotion

2 EMAIL COMPLETION

Thank you for the opportunity to become manager..formal report.

I propose to include

NO written set of policy and procedures.

Receiving deliveries is not properly assigned.
Lot of cash kept at premise high risk of robbery.
Lack of sales promotion.
Wastage of resources like water and human resources.
Financial transactions are not recorded properly.
Long drive for manager.
No proper way to avoid and deal with injuries.
A fresh pastries cannot be delivered from central bakery practically.
High risk of breach of privacy act.
Would you please advice of any other issue.

Regards
Amanda

Assessment Task C: Risk analysis Report

Outcomes
Submit a completed written report?
Submit a risk management table?
Submit report and accompanying table in agreed timeframe?

Performance indicators
Likelihood
a. .Banking risk Theft of cash left on premises moderate.
b. Managers travel risk. Physical injury.- catastrophic
c. By -law Compliance risk. Reputation/ brand loss and fines likely.
Consequence
a.
b.
c.
d.
e.
f.

Banking risk. Theft of cash left on premises minor.

Managers travel risk. Physical injury - catastrophic
By-law Compliance risk. Reputation/brand loss and fines moderate.
Banking risk. Theft of cash left on premises moderate.
travel risk. Physical injury
By-law Compliance risk. Reputation/brand loss and high fines

Options include following

a. Banking risk theft of cash left on premises.
i. Change banks to a closer.
ii. Install a safe.
iii. Take out insurance for cash on premises.
b. Managers travel risk physical injury.
i. Allow for overnight stay in Brisbane.
ii. Allow manager to fly instead of drive.
iii. Finish the managers meeting early.
Iv . Allow the Toowoomba to use video conferencing.

By-law compliance risk reputation/brand loss and fines.

i. Install a water tank for store use and change to native plants.
ii. Introduce water saving devices dual flush toilet, 5-6 star rated (WELS)
dishwasher.
iii. Change work practices wash fruit and vegetables in still water, only run
dishwasher when full, select economy cycle if only a light wash required.
iv. Apply to the council for time to make good as the new owners.
ASSESMENT PART D
MONITORING REPORT

Submit a completed written report? Submit report in agreed timeframe?

Performance indicators
Plan should include:
a. Banking risk theft of cash left on premises initially rated as moderate.
i. Insurance on cash on premises.
ii. Open an account with closest bank.
iii. Policy and procedure requirement to bank daily.
b. Managers travel risk physical injury initially rated as extreme.
i. Management meetings to finish 3:00pm.
ii. Install teleconferencing.
iii. Management training shift to morning half day sessions.
c. By-law Compliance risk reputation/brand loss and fines initially rated as
high.
i. Apply for time to make good.
ii. Policy and procedures to change work practices.

iii. Install water saving devices such as native plants, tank, dual flush toilet
systems, 5-6 star (WELS) dishwasher.
Implementation should include:
a. Banking risk theft of cash left on premises.
i. The financial controller had taken out $5,000 the insurance cover on cash held
on premises overnight from the opening week as planned.
ii. The company bank account was opened about 4 weeks
opening at the bank two shops down the street.
iii. The training on daily banking has been successfully completed.
b. Managers travel risk physical injury initially rated as extreme.
i. The weekly management meetings are finishing close to 3:00pm.
ii. The assistant management training has been shifted to the mornings
allowing the manager to leave before 1:00PM.
d. By-law Compliance risk reputation/brand loss and fines initially rated
as high.
I .An external audit was completed and presented to the board 6 months after
settlement.
ii. The board and CEO included a new policy regarding compliance with the
Toowoomba by-law on water conservation.
iii. The plants have been changed to natives.
Iv .The dual flush toilets are ordered and in stock.
v. The 5 star rated (WELS) dishwasher was installed.
vi. The application to make-good by Goldsmith Partners on behalf of MacVille,
was accepted by the Toowoomba City Council.
vii. There has been one internal audit arranged by the store.
Viii .A water tank had been built in to the courtyard.

ix. There is a weekly water usage monitor in the staff room

Outcomes : statement of current risk and reasons.
a. Banking risk theft of cash left on premises initially rated as moderate
now low due to insignificant consequence (insurance cover) and unlikely
likelihood because cash rarely kept on the premises.
b. Managers travel risk physical injury initially rated as extreme still
high. Likelihood reduced to rare with the change in time travelled.
c. Evaluation.
By-law Compliance risk reputation/brand loss and fines initially rated as
high now moderate due to unlikely likelihood with the installed water saving
devices and processes.
a. Banking risk theft of cash left on premises initially rated as moderate
reduced to low. Could be made more effective by 100% compliance with the
daily banking directive and removal of expensive insurance on overnight cash
on premises.
b. Managers travel risk physical injury - initially rated as extreme and
reduced to high because of the continued travel. Introduction of teleconferencing would reduce this risk to nil. CEO should provide an excusal letter
to ensure the manager leaves at the appropriate time.
c. By-law Compliance risk reputation/brand loss and fines - initially rated as
high and reduced to moderate but could be reduced again to low by having
Brisbane plumbers install the tank and the dual f flush toilets in the next 14
days. Monitor should be constantly updated to keep staff motivated and a
procedure should be written. More internal audits are required.