BSBRSK501 -Risk Management Action Plan Task - Create a Risk Management Action Plan A Risk Management Action plan is the course of action which an organisation agrees upon to help them to address...

BSBRSK501 -Risk Management Action Plan

Task - Create a Risk Management Action Plan

A Risk Management Action plan is the course of action which an organisation agrees upon to help them to address potential risks, reduce the likelihood of these risks occurring and to lessen the impact of these risks if they do occur. A Risk Management Action Plan is a document that a manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix. A risk is "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives and it is created to ensure that the right actions are carried out in a timely manner.

Case Scenario

Candidates should complete either Scenario A or B:

Scenario A:You MUST first get approval from your trainer to use a scenario of your own choice. It could be the company or business you are currently working for or a business that you are in the process of establishing.

YouMUSTfirst get approval from your trainer to use a scenario of your own choice. It could be the company or business you are currently working for or a business that you are in the process of establishing.

Scenario B:You have convinced ten (10) investors, friends and family, to invest $5,000 each into a business that you want to start-up. But before they hand over the money, they want to see that you have a Risk Management Action Plan in place that is sound and that shows that you are taking this venture seriously. They want to be convinced that you will succeed and that you have planned this business venture properly and taken everything into consideration.

You are opening a small restaurant located in Canberra City. The name of the Restaurant will be: Spicy Delights.

The Action Plan

To get a satisfactory grade (S) - your action plan MUST be a professionally formatted single document. It MUST to be a professionally formatted "Report" that could be used! It MUST contain a TITLE and have NORMAL size and style font, have page numbers and must NOT contain blank pages! References are not required but the words have to be yours, DO NOT PLAGIARIZE, don't just copy and paste words from the internet. It MUST also contain ALL of the followingheadings(each heading should have as a minimum one paragraph of 125-200 words)

Cover-page -It must contain: Name and location of College, Student Name, Student Id, Unit Code, Unit Name, Assessment Name, Assessment Submission Date and Name of Trainer.

Introduction- Introduce and explain the purpose and objective of the Action Plan and also review current risk management arrangement strength & weaknesses

(If you are doing Scenario B: since this business doesn't have an existing risk management plan, you must review the strengths and weaknesses of the risk management plan that you are suggesting to implement. It doesn't have to be too in-depth, as long as you address a few main points.)

Stakeholder and Risk Analysis -Identify internal and external stakeholders and their issues. Also, do a risk analysis in the following areas:

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  Political –this can include organisational politics and the wider political climate
  
  


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  Economic –how the organisation may compete in the economic market
  
  


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  Social–how organisational culture may impacts on workers and may include societal influences that may impact on trends or innovations in business
  
  


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  Legal –this is about compliance to legislation and regulations of the specific business industry you work within
  
  


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  Technological –this can involve how technology is used
  
  


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  Policy –this involves legal compliance and may also refer to government policy that affects business
  
  

Participation and Goals -List critical success factors, and objectives. Also, seek support and participation from your stakeholders to assist in risk management activities. Provide information on the support that you will need and how your stakeholders can participate.

Risk Matrix -A risk matrix categorisation provides an overview of the potential risks to show areas of concern and any priorities that need to be worked on. This is a useful way to assess any probabilities of risk and to determine the level of impact they may have. For this heading you MUST:

1. Generate a list of risks and, if possible, link them with relevant parties
   
   


2. Assess the likelihood of the risks occurring and also assess the impact or consequence if the risks occurs (plot the risks in the matrix)
   
   


3. Determine and select most appropriate options for treating risks
   
   


4. Set specific times to regularly evaluate your risk controls
   
   


5. Prioritise the risks -list the risks in order of priority
   

Monitoring-Describe how the process will be monitored over an extended period of time

Evaluate Risk Management Process- To evaluate implemented risk controls, for this heading you MUST:

• Consider which risk control measures are the most effective
  
  


• Consider which risk control measures you can afford
  
  


• Consider which risk control measures are realistically workable
  
  


• Consider whether your organisation has the employees with the required skills and experience to use a particular risk control measure
  
  


• Consider whether new changes to the workplace or working practice necessitate new risk control measures

The Assessment

Team-work or group-work isNOTpermitted for this assessment (this is to ensure authenticity of the work, that the learners has actually done it themselves and not relied on others).Plagiarism isNOTpermitted and willNOTbe tolerated. Plagiarism will result in a NYS (Not Yet Satisfactory) mark and a written warning (see student handbook which is available on the Home Page for further details).

If you are unsure of the requirements of a question, activity or project – please contact your trainer for clarification. Reasonable adjustment options are available however this must be arranged with your trainer prior to assessment. If you have existing relevant work experience or completed existing previous studies that show competency in this unit, you may apply for recognition of prior learning (RPL). If you wish to apply for RPL, upload supporting documents and evidence to the evidence of prior learning folder (which can be found in: Profile | Learning Plan |Evidence of prior learning) and then notify your trainer/assessor.

Evidence Criteria

This exercise is about you demonstrating that you are able to; produce a professional document and incorporate appropriate vocabulary and grammatical structure; create a risk matrix; 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.

To Satisfactorily(S)complete this assessment, you need to demonstrate that you are able to; comprehend a variety of relatively complex texts; gathers, interprets and analyse textual information from a range of sources to identify relevant information; develop textual material and organise its content in a manner that effectively documents risk management analysis and assessment priorities and processes; use numerical tools to assess risk and use numerical data to review plans; systematically analyse information to decide on appropriate risk management treatments and able to effectively communicate.

Observation Checklist

In order to satisfactorily (S) pass this assessment, an assessor will check to ensure that ALL of the following points form part of your written report presentation. As such, in the report you MUST:

• In the introduction describe the general purpose of risk management


• In the introduction describe the objective of this risk management plan
  
  


• Identify internal and external stakeholders, and include an analysis of how risks relate to stakeholders
  
  


• Look for risks in the following areas: political, economic, social, legal, technological and policy-based context
  
  


• Identify risks, assess the risks, suggest risk treatment actions and prioritise risks for treatment
  
  


• List one or more critical success factors for effective risk management (e.g. staff training)
  
  


• Create a risk matrix and place each identified risk in the matrix as a visual representation of the risk
  
  


• Evaluate the action plan and the risk management process addressing all required five points
  
  


• Develop textual material and organise its content in a manner that effectively documents risk management analysis and assessment priorities and processes
  
  


• Produce a professional document and incorporate appropriate vocabulary and grammatical structure(e.g. the document must have a title, paragraphs must have the same style, size and font, it must not have blank pages, it must have page numbers, it must not have blank carriage returns, it must have normal margins, it must be in A4 and it must look good)
  

Submission status