BSBRSK501 Manage Risk

Assessment Task 1 Instructions

1. Discuss the purpose of risk management standards. Include an example of a risk management standard in your answer.

2. Outline the AS/NZS ISO 31000: 2009 Risk Management Principles and Guidelines and each of the 11 principles.

3. Explain the requirements of WHS legislation in relation to risk management.

4. List the factors that must be taken into account in determining risk control measures for hazardous manual tasks as stated in the model Work Health and
Safety Regulations 2011.

5. Explain the purpose of risk management policies and procedures in the workplace.

6. List three examples of the impact of risks for a workplace if risks are not identified or actioned.

7. Outline a step-by-step procedure that companies can use for analysing risks.

8. Outline three sources of information that a company could use to gather information on potential risks.

9. Describe three examples of tools or techniques that a company could use to identify risks
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as part of a risk assessment process.

10. Explain four options that a company could take to control risks.

11. Explain four procedures that a company could use to minimise risk.
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Assessment Task 2
Submit
 Risk briefing report
 Risk management plan

You are the Operations Manager of a medium-sized Australian company, Nature Care Products, based in Brisbane. The company commenced business in
1996, and manufactures eco-friendly, high quality beauty skin care products.
The business was established to cater for a growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on
eco-friendly packaging. The company makes all its products in a small factory.
The company sells its products direct to a chain of health food shops across Australia, as well as online through its own web site. Products ordered online are
shipped directly to customers from the factory. Products provided to health food shops are provided to the health food shop distributor who then distributes the
products to all its stores. The relationship with the chain of health food shops is a long-standing one (ten years).
The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of their customers are
professional women aged 25 to 55.
Nature Care Products’ strategic priorities focus on business diversification and growth. They aim to increase their market share by 10%, and to expand the
existing product range to attract more customers.
At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail
outlets. The idea is to initially set up one retail outlet in central Sydney, Brisbane and Melbourne. Products will continue to be made in the company’s factory
and shipped to the retail outlets.
The CEO has asked you to investigate this, undertaking a risk analysis on establishing a chain of retail outlets. The CEO and shareholders are keen to get the
business expansion started as soon as possible, so you need to get your risk management plan in place immediately.
Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service
representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.
The company currently has a Risk Management Policy and Procedures in place that incorporates the AS/NZS ISO31000:2009 Risk Management Principles
and Guidelines.
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1. Develop a risk briefing report.

Review the case study information provided to you, as well as the company’s risk management policy and procedures to determine the scope of the risk
management process required.
Use the internet to search for relevant information on risk management standards.
You should also review the recent Team Meeting Minutes on the business expansion project to inform your report.
Use the Risk Briefing Report Template to guide your work.
Your report will be sent to the CEO for initial feedback and then you will meet with your team to brainstorm further risks associated with the business
expansion project.
Your report should include the following:
 Introduction, including the purpose of the risk analysis
 The scope of the risk management process, any risks that may apply to the scope, and objectives and critical success factors for the area included in the
scope
 An outline of the risk management process as per the organisation’s policy and procedure, as well as how the organisation’s process aligns with the risk
management standards as identified in the link provided to you.
 A PESTLE analysis identifying the key factors that impact on the environment in which NatureCare Products operates and their relevance to the risk
management process. You should also use this analysis to identify important factors that may influence consumer needs and desires as part of analysis of
external stakeholders, as well as to inform the key risks you identify below.
 You are also required to identify at least five risks identified with the expansion, and at least one potential risk treatment option for each of the risks you
identify.
 Identification and analysis of internal and external stakeholders and the issues they may have that are likely to impact on the risk management process.
 An analysis of the strengths and weaknesses of the company’s existing retail approach namely, online and through health food shops.
 Analysis of critical success factors, goals or objectives for the business expansion project.

Develop risk briefing report

INTRODUCTION

“Nature care” is a well-established company from 1996 that produces skin care products. The products that are being produced by the company are
eco-friendly and sustainable. The company produces a wide variety of natural products such as cleansing creams, moisturizing creams and facial
scrubs. The company also sells its products through its website where its sales are good enough and is looking forward to improve the sales in the
future.
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The company is now financially stable but has recently found their competitors selling the same sort of products in the market. So, the company
decides to improve its sales by at least 20% in the next three years. So, the marketing manager is required to come up with recommendation based
on his analysis and research.

OBJECTIVES

 Increase the number of people who make a purchase while visiting the online store by 20%.
 Increase the number of retail outlets selling NatureCare Products by 150.
 To increase product awareness amongst the target market by 20%.
 To increase market share to 15%.
 To expand into at least one international market.
 To identify new products and new markets.
 To attain annual growth of at least 10% over the next three years.

SWOT ANALYSIS

STRENGTH

The company produces high quality eco-friendly products.

The company is well established with a strong financial position and can afford upto $150,000 to expand its business.

WEAKNESS

Limited product range

The company doesn’t produce products for men, infants and teens.

The company also doesn’t produce sun screen lotions or creams in a country like Australia where the temperatures are too high in summer.

OPPORTUNITIES
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Based on the recent researches regarding the international market, the marketing manager has found that there is a good market in JAPAN;

 As of the recent population statistics of Japan, its population is approx. 126 million. Which is further segregated into 68 million women and 58
million men?
 As our company targets women aged 25-55 yrs, the population of the women in these ages is around 42 million which makes JAPAN
a huge market.

THREATS

As the marketing manager of this company, I discovered that there are new competitors in the market namely JURILIQUE and BOTANI which produce
the same kind of products.

Based on the recent stats, these companies are well established as of now and are financially stable as well.

PESTLE ANALYSIS

POLITICAL

The political factors include the rules and regulations of the country in which the company is working. As the company is established in Australia, it has
to abide by the political laws of Australia.

The political factors in Australia would have a positive impact on the nature care products as the government is committed for the sustainability of the
companies and the environment. The most recent elections resulted the Liberal Government which is very much for the business growth and had
been facilitating the small to large enterprises by tax cuts and other facilities. The bill presented in 2016 progressively reduces the corporate tax rate
from 30% to 25% for all corporate entities. The recent news polls are indicating another win of Liberal Government which would be encouraging for
the nature care future investment of $150,000.

ECONOMICAL

The economical factors include the exchange rates in the state where the company is working. Australia has a large economy with a per capita GDP
on par compared to other western European countries.

Australia has high natural resources and also encourages foreign investments.
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The Australian economy grew for 17 consecutive years before the global financial crisis.

LABOUR LAST REFERENCE PREVIOUS FREQUENCY

Unemployment
rate 6.3% Dec 2017 6.1% monthly

Employment rate 11 million Dec 2017 10.5 million monthly

Full time
employment 6 million Dec 2017 6.2 million monthly

Wages 1129/week Dec 2107 1008/week quarterly

Population 26 million Dec 2017 25.5 million yearly

Minimum wage 640AUD Dec 2017 610AUD weekly

Wage growth 2.5% Dec 2017 2% quarterly

SOCIAL

The social factors emphasises the technical trends in the society. The modern society is more into the skin care eco-friendly products to maintain their
skin with a good hygiene. The society tends to use the best and natural ways to protect their skin in this atmosphere. The company nature care
produces products that are highly sustainable and natural. Based on the view and thinking of today’s generation towards the skin care, nature care
products have a higher demand comparatively to other products in the market. Mostly the women ageing 25-55 years are likely to be the most
interested.

TECHNOLOGICAL

Technology has its own influence in today’s world in all the sectors of life. In a company like nature care trust and recognition play a major role in the
progress and development of the company. The company is always looking forward to develop its products and rather introduce new products to meet
the requirements of the customer and satisfy them accordingly. With the help of technology, it is quite easier to develop a good relationship with the
customers. Technology provides a basic mean in between the company and the customers making it easy for them to access all the newer products
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and upgraded information of the products. The company’s website is easily accessible by any individual and the technical team of the company
always strives forward to keep it up to date with no errors and defects. Customer Relation Management

A customer relationship management (CRM) system is an integral part of every marketing, sales, and business development department as well as
CRM companies. Organizing and maintaining relationships with clients and maintaining a fantastic customer relationship management system is
extremely important from small business CRM to big business CRM. A CRM system, in the form of top CRM software, helps users organize,
categorize, and prioritize contacts, as well as monitor relationships with previous, current, and prospective clients and customers. The address books
and rolodexes of the past have transformed into the CRMs of today. The “R” in CRM does exactly what you think it does: helps you keep a track of
your relationships. It helps you keep a focus on customer relationship management.

A good business, whatever that may be, especially those that are CRM companies are overly reliant on well-formed and cultivated customer
relationships. When a product is purchased, a lot more happens than a simple credit-debit transaction. Where did the customer find information about
the product? How much time did it take for the customer to make the purchase? When was the last time the customer made a purchase? Answers to
questions like this lay the foundation of the data that is stored in the CRM.

LEGAL

NaturecareCompany has grown big very fast and also has developed a few competitors in the process. So in order to stay in the market and maintain
its profits and not lose their customers, it needs to follow all the legal legislations of the country in which it is established. The people of today’s
generation are very much aware of the legal aspects. As the company is bound by a few rules and regulations, it’s very important to meet all the
requirements and thereby develop their products satisfying all the legal legislations.

Product safety in Australia is governed by the Australian Consumer Law (ACL). The ACL is contained in a schedule to the Competition and Consumer
Act 2010 (CCA). Relevant provisions can also be found in state and territory fair trading legislation.

ENVIRONMENTAL

The environmental factors leadto various global environment safety laws that must abide by the global standards. The World has now taken pledge to
make the planet beautiful and pollution free. In this way, all the international brands are playing their role in showing their support to the world. So
Nature Care can also play its part by supporting such campaigns and following the norms of the world. The company has been one of the leading
skin care brands in Queensland, Australia. It is always best to understand the external as well as the internal factors that affect the company on the
whole. The factors that are mentioned before depict the analysis done for the brand. Therefore, it is always a good strategy to consider these factors
while determining the policies for the company. In the same way, the future policies of the company could also be made as per the on-going trends.
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2. PESTLE Analysis for NatureCare Products

P E S T L E

Political Economical Social Technology Legal Environmental

Potential changes Access and

to the legislation for changes in Regulations and
Economic growth. Lifestyle factors. Industry regulations
Beauty or Care information restriction.
products. technology.

Global influences
and new politics to
Final deposition
regulate processes Employment rates. Income distribution. Health and safety.
politics.
or raw material
market.

Employment politics
TAX policies.
and procedures.

3. Internal and external stakeholders

Internal: Managers, Employees and internal supervisors.

External: Government organisations, risk consultants, external advisors, risk auditors.

The above internal and external personnel will have responsibilities in the hazard identification process. They need to be skilled at identifying a risk
and determining the exact nature of a problem. They need to be able to view the situation objectively and have the ability to communicate any advice
they have in regard to handling the risk.

The challenge for them is to agree in the way they like to have information communicated, in an open manner.

4. Strengths and weaknesses

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Strengths Weaknesses

Eco-friendly products. Poor product variety.

Experience with online marketing. Non-qualified staff for new retail shops.

Experience with natural care and beauty products. Partial understanding about risk policy and procedures.

Government support

Politic and procedures align with current standards.

5. Critical success factors

The main objective of NaturalCare Products is to become in the number one retail store company in Australia, by selling the highest quality and better
price natural products, using ecofriendly manufacture processes, expanding its product range in 10 % and having a minimum customer satisfaction of
95%.

The strategic objectives of NaturalCare are to:

 Expand the market in 20%, opening a new retail shop in Melbourne, Sydney and Brisbane.
 Achieve 100% ecofriendly suppliers to guarantee high quality products.
 Sustain a customer satisfaction rate of 95%.
 Expand product range to attract more customers.
 Improve the management processes and training within the organisation.
 Have sufficient store space to accommodate the range of products according with the expected demand.

Objective Candidate Critical Success Factors

Expand the market in 20%, opening a new retail shop in Increase competitiveness versus other local stores.
Melbourne, Sydney and Brisbane.
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Attract new customers.

Achieve 100% ecofriendly suppliers to guarantee high quality

Sustain successful relationships with local suppliers
products.

Sustain a customer satisfaction rate of 95%.

Retain staff and keep up customer-focused training

Expand product range to attract more customers.

Source new products and presentations.

Improve the management processes and training within the

organisation. Use of internal and external stakeholders to improve policies and
training procedures.

Have sufficient store space to accommodate the range of

Secure financing for expansion
products according with the expected demand.

2. Develop a Risk Management Plan

The final part of the assessment task requires you to develop a risk management plan using the Risk Management Plan Template.
Your risk management plan should include:
 The risks you have identified based on your research and brainstorming session. You must include at least five risks.
 An assessment of the likelihood of the risk occurring, as well as the severity of the risk should it occur.
 Identification of at least one suitable treatment measure for each of the five risks Priority rating (high, medium or low) to show the order in which risks must
be treated.
 A risk action plan that sets out for each risk including:
o Risk description
o Impact of risk
o Recommended actions
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o Resource requirements
o Timelines
o Responsibilities
o Monitoring processes
BSBRSK501 Manage Risk

Assessment Task 3
Submit
 Staff training report
 Completed usage record
 Customer questionnaire
 Risk monitoring report

Assume that the CEO of Nature Care Products has indicated that he wants you to prioritise treatment of a number of risks as follows:
 Inability to attract sufficiently qualified staff

One of the risks identified in the risk management plan is the inability to attract sufficiently qualified and knowledgeable staff to manage the new retail stores.
The risk treatment identified is to invest in the training and development of existing staff to fulfil this role, at least in the short term.
It has been identified that at least two of the existing customer service representatives are interested in taking on this new role. Neither of the two customer
service representatives have managerial skills nor knowledge, but they both have excellent company and product knowledge, as well as customer service
skills.
 Unsustainable workplace

Another risk identified in the risk management plan is increased costs to the business through inefficiencies in resources usage. Given that the business is set
to expand, it is of key importance that resources are used sustainably and efficiently. The CEO wants to implement the risk treatment of measuring the
company’s environmental sustainability and resource usage, commencing with the head office location.
 Low customer satisfaction

A further risk identified as a priority is the any threat to customer satisfaction. Given that the business is expanding, customer satisfaction will be crucial. The
risk treatment identified is to develop a customer questionnaire that can be used to measure customer satisfaction.

1. Write a report on staff training options

Review the case study information and then research a range of potential training options for the customer service representatives, including both on and off
the job options. Identify at least three suitable options.
Then develop a short report outlining your recommended option/s for the training, including a rationale for each recommendation.
Include the details of each recommended training option, including a summary of the training to be provided and outcomes, location, costs and duration as
applicable.
Save this document as Staff Training Report.
As a guide, your staff training report should be 1 to 2 pages long.
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Develop a customer questionnaire.

Develop eight questions that measure customer satisfaction and can be answered on a sliding scale from 1 (which is don’t agree at all) to 10 (which is totally
agree).

Try to develop questions that encompass as many aspects of the customer’s experience as possible.

Use language that is polite and friendly.

There should be a space under the questions for responders to give written feedback.

Create a new Word document for this activity and save it as Customer Questionnaire.

The questionnaire should fit on one side of an A4 page.

It is six months later, and you are monitoring the implementation of the risk treatments to ensure sufficient qualified staff, a sustainable and efficient
workplace and high customer satisfaction.

Assume also that both managers participated in a formal, nationally recognised course in management, which they completed over the last six months.

You have been provided with the following information by your team, which you will use to monitor the implementation of the action plan:

 The new Human Resources Manager has provided you with performance review information for the two Managers in a Performance Review Results
Memo, as well as a staff survey conducted to assess employee satisfaction in a Staff Survey Results Memo.

 The Marketing Manager has provided you with sales analysis for the last six months in a Sales Data Analysis Memo, as well as a memo about a recent
customer survey. Customer Survey Results Memo

 The Office Manager has provided you with a Sustainability Report.

Write a risk monitoring report.

In order to monitor the implementation of your action plan you are required to review the following documents:
 Customer Survey Results Memo
 Sales Data Analysis Memo
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 Staff Survey Results Memo

 Performance Review Results Memo
 Sustainability Report

Develop a risk monitoring report that provides a summary of the data provided to you and document what the data shows in relation to the effectiveness of the
action plan.
Identify any additional risk control measures, which you believe should be put in place as relevant.
Your report should be 1 to 2 pages long.
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Assessment Task 4
Submit
 Risk management evaluation report and screen shot.

This assessment task requires you to evaluate and report on the risk management process that you have completed in the previous two
assessment tasks.
Review all of the following questions and prepare a short report of approximately 1 to 2 pages that addresses each question.
A. Evaluate the overall risk management process.

Identify risk is a complex process because it demands a complete review of the organisational processes, procedures and requirement, understanding
all those factors in a particular political, social, legal , technological and policy context.

In-house strategies to assist in the identification of risk are really important, inviting the internal staff to share comments or concerns about a specific
situation is a highly effective resource because they know the organisation in detail and their accurate comments make the identification risk process
relatively simple and straightforward.

The level of confidence in the risk identification process is high because it has been the internal staff who has provided details and comments that
were used as a direct input in the risk report. Most of the people who participated in the process knew the risk policy within the organisation and how
the Business works. The collected information was responsibility of an external consultant, who provided one last risk analysis from a neutral
perspective.

 Was it easy or difficult to identify risks?

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It was difficult at start but after conducting surveys and research to manage risks at the outset of the project, and continue to do so throughout the
performances. At each point during the project, I have come to identify risks by recognizing project’s risk factors, using my project phases as well as
overall project plan helped me to identify risk factors.

A risk factor is a situation that may give rise to one or more project risks. A risk factor itself doesn’t cause you to miss a product, schedule, or resource
target. However, it increases the chances that something may happen that will cause you to miss one.

Let’s say for example, the fact that you and your organization haven’t undertaken projects similar to the present one is a risk factor. Because you have
no prior experience, you may overlook activities you need to perform, or you may underestimate the time and resources you need to perform them.
Having no prior experience doesn’t guarantee you’ll have these problems, but it does increase the chance that you may.

 Was staffs input helpful?

Personally I do believe that staff input was very helpful and mandatory for sustaining organizational transformation.Employee Input is a valuable
business resource respected by any profound organization which is interested to be strong on the market, that’s because voice of employees is one of
the primal sources for a company to generate new ideas, highlight and resolve existing problems, and find out loads of new opportunities to reach
excellence in quality of their service. In fact, nobody knows the situation with a process better, than a person who immediately works at this process
daily, so it is desirable for a company to interrogate their workers on what they think about managerial methods, utilized technology, current business
strategy, and other attitudes, these efforts may result into tons of discoveries and fresh ideas.

 How confident are you that all the risks have been identified?

Identifying, evaluating and understanding risks are a very important aspect of business management. Businesses can also suffer dreadful
consequences if risks are not appropriately managed. The most widely understood risks according to me are occupational health and safety risks.
Most people generally associate the word RISK with injury, health risks and death, but there are many other types of risk faced by any business other
than those aspects. So I am fully confident that all the risks associated with any business organizations can be identify with the policy, political,
environment, social and legal respectively.
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B. Consider whether the process indicated in the NatureCare Products’ current Risk Management Policy and Procedures is sufficient to
guide the risk management process used for the business expansion project. Explain why or why not.
The process indicated in the NatureCare Products current risk management policy and procedures was partially sufficient because they used
a PESTLE analysis to identify the key factors that impact on the environment in which NatureCare Products operates and then as an input in the risk
report, they included the internal staff comments regarding the new managerial position issues, which is a high-effective risk identification resource.
The only issue was the delay putting in place the performance management system, making hard to follow up the performance of the employees filling
the new positions.

C. Explain whether the principles of risk management in the NatureCare Products risk management policy and procedure is consistent
with AS/NZS ISO31000:2009 Risk Management Principles and Guidance.
The principles of risk management in the NatureCare Products risk management policy and procedure were consistent with AS/NZS ISO31000:2009
Risk Management Principles and Guidance because they engaged internal staff throughout the risk management process, showing that
communication was a key to identifying, analysing and monitoring risk.

Also, the company recognised and included the contribution from new staff with a deep understanding of the policy and procedures policy of the
company, helping to have a complete identification and measure risk process.

D. What changes would you recommend to the risk management process.

I would recommend having an external consultant to assist in the identification of risk process. They can help to identify risk at a global level and not
only in a specific area, in this case the new opening stores issue. Also, the consultant will provide a neutral perspective that can be used to manage
discussion and debate about the risks within the organisation, without any bias or favour from internal staff.

Secondly the Communication and Communication Planning,many managers assume that if they communicate clearly with their employees, their job is
done. However, there are many reasons why employees may not hear or understand what their managers are saying the first time around.Initial
communications are typically designed to create awareness around the business reasons for change and the risk of not changing. Likewise, at each
step in the process, communications should be designed to share the right messages at the right time.

Communication planning, therefore, begins with a careful analysis of the audiences, key messages and the timing for those messages. The change
management team or project leaders must design a communication plan that addresses the needs of frontline employees, supervisors and
executives. Each audience has particular needs for information based on their role in the implementation of the change.
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