BSBRSK501 – Manage risk
This unit describes the performance outcomes, skills and knowledge required to manage risks in a range of contexts across the organisation or for a specific business unit or area. It applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, program or project area. They may or may not have responsibility for directly supervising others.
All assessment tasks must be completed to pass the unit.
Assessment task Word limit
Assessment 1: Auto mark quiz N/A
Assessment 2: Risk management plan requires the learner to complete a detailed risk management plan 650 words + templates
Assessment 3: Action plan, implementation and monitoring, and evaluation evidence requires the learner to submit video evidence of a consultation 200 words+ action plan and record log templates
You are required to complete Part 2 with reference to:
1. a workplace project, or
2. the MacVille cafes Case study provided.
Once you feel confident that you have covered the learning materials for this unit, you are ready to attempt this assessment. Construct your assessment in a commonly used software program such as Microsoft Word, or you can download a Microsoft Word copy of this assessment from the relevant study period of your course in OpenSpace.
To help Open Colleges manage your assessment, please use the following file-naming convention when you save your Microsoft Word document.
Your file should be named and saved to your computer’s hard drive using your [student number]_[assessment number].doc
For example, 12345678_21850a_01.doc
When you are ready to submit your assessment, upload the file in OpenSpace using the Assessment Upload links in the relevant module of your course. The Student Lounge provides a 'Quick Guide to Uploading Assessments' if you need further assistance. Uploading assessments in OpenSpace will enable Open Colleges to provide you with the fastest feedback and grade on your assessment.
It is important that you keep a copy of all electronic and hardcopy assessments submitted to Open Colleges.
Alternatively, you can print and post your assessment to Open Colleges, PO Box 1568, Strawberry Hills, NSW 2012. Please ensure that you use the Open Colleges Assessment Cover Sheet (available in the Student Lounge in OpenSpace). Where assessments are submitted by post, grades and feedback will be released in OpenSpace. Please note that assessments submitted by post may take up to 21 days from the date received by Open Colleges to grade and are reliant on the efficiency of the postal service.
Note: Please submit all assessment components in one file, or with as few attachments and separate documents as possible; ie. do not include templates or emails in separate documents – place them all in the one document.
Assessment 2 – Risk management plan
You are a new recruit from AMPLITUDE management consultancy. Co-owner Sarah McCarthy has sent you on assignment to the client firm ‘MacVille Cafes’.
You are to develop a risk management plan for MacVille’s new café site. It is a strategy and should be developed in conjunction with key stakeholders. Developing this plan will include:
• identifying current and potential risks
– current risk management standards, policies and procedures
– the internal and external operating environment.
The information for the scenario is supplied in the file ‘MacVille Cafes Case Study Scenario’ found in the ‘Additional Resources’ icon on the top left of OpenSpace.
Your evidence must include each of the parts specified below.
Your plan must include the following as a minimum:
Part A – Scope
The scope of your risk management should set out the parameters of the risk management system by including:
• risk management standards used (review Topic 2.1.2 in the Module)
• relevant business policies and procedures that were reviewed (review Topic 2.2.1 in the Module)
• legislation, codes of practice and national standards that are relevant to your organisation’s operations, and its operation as a business entity (review Topic 2.2.1 in the Module).
In the scope, you should identify what is included and what is not included, especially in relation to suppliers and vendors. Your scope must also list all relevant internal and external stakeholders.
If you are using the case study, look closely at the MacVille Risk Management Strategy and Risk Management Framework.
Copy and paste the Appendix 1 template, and fill out the blank fields to complete the plan. (300 words)
Part B – Goals and critical success factors
Provide an explanation of the goals (what your system will address, i.e. reduce workplace injuries) and critical success factors (i.e. staff complete mandatory training) of the risk management system. If you are using the case study, look closely at the strategic directions for the business to assist you. (100 words)
• Goals are the broad aims of the risk management process. They are the overarching outcome that you want to achieve.
• The critical success factors are the things that you must be able to achieve in order to fulfil your goals and objectives.
Refer to Topic 2.2.2 in the Module for more information on critical success factors.
Part C – PESTEL analysis
Complete a PESTEL analysis for the organisation. (150 words)
Refer to Topic 2.2.1 in the Module and u
see the template in Appendix 2 to help you.
A PESTEL analysis is used to scan an organisation’s environment and identify each of the above external factors that are currently impacting the business or may impact the business in the future.
Part D – SWOT Analysis
Complete a SWOT analysis for the organisation. (100 words)
Refer to Topic 2.2.2 in the Module and use the template in Appendix 3. Under each heading, list points relevant to the current risk management system.
A SWOT analysis is a useful business tool for understanding your current business situation. This analysis can be applied to your organisation’s existing risk management processes to help you identify their strengths and weaknesses.
Part E – Risk Assessment & Treatment Plan
Using the template in Appendix 4 refer to the example provided then prepare a plan covering each of the following points:
• identify five separate risks relevant to the organisation - provide a detailed explanation of the risk you are addressing and the treatment you have chosen for it
• detail all the activities required to implement the treatment. Also detail the timeframe, required resources and roles and responsibilities.
• include an overview of the performance measures and monitoring arrangements for the risk treatment plan
• list the stakeholders that will be consulted to confirm risks identified, implement the risk management system; and how consultation with stakeholders will occur
• complete the consequence rating scale and assign a numerical value (1 to 5) to each level of the scale
• a likelihood rating scale and assign a numerical value (1 to 5) to each level of the scale
Identifying risks - Risk is the probability of threat or damage, injury, liability, loss or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through pre-emptive action.
Refer to Topic 2.2.2 in the Module for more information on how to identify stakeholders. If you are using the Case study, review the roles the senior management team, store managers and café employees to help you identify relevant people to consult. (100 words)
A risk assessment is the identification, evaluation, and estimation of the levels of risks involved in a situation, their comparison against benchmarks or standards, and determination of an acceptable level of risk.
Appendix 1: Scope plan template
Product areas of the business within scope
Risk management standards
Relevant business policies and procedures
Current risk management system
Suppliers and vendors concerned and how
Internal stakeholders and relationship to the scope
External stakeholders and relationship to the scope
Business and product areas out of scope
Appendix 2: PESTEL template
Current and emerging technology
Appendix 3: SWOT template
Appendix 4: Risk Assessment & Treatment Plan
Risk Description Stakeholders Stakeholder Consultation Methods Consequence Rating Likelihood Rating Treatment Activities/Timeframes/Resources How to measure success/milestones
Example: Budget Reduction expected next financial year. GM’s & Line Managers • Updates via weekly steering group meeting
• Follow up email to each GM weekly
• Fortnightly 1:1 meeting with each Line Manager 4 3 Treatment
• Confirm actuals required
• Write business case document
From 1 July – 31 July
1 fulltime employee
GM’s to approve actuals required
Line Managers to provide feedback on business case Confirm actuals required – by 6 July
Write business case by 14 July