BSB60407 ADVANCE DIPLOMA OF MANAGEMENT
ASSIGNMENT BSBRHS501 MANAGE RISK Submitted by : Gurkirat Singh Assesment Part A Knowledge Test 1 What are are three three ways that that researc research h can can be conduct conducted ed for risk-r risk-relat elated ed issues, and for each way, briefly describe 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
Fishbon Fishbone, e, checkl checklists ists and brainsto brainstorming rming are both both tools tools that that can can be used in risk management. Describe each of these and when they would best be used. Fishbone diagram: 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. It’s 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 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. It’s ideal when we try to identify the risks within a specific context, it is important to interrogate the components components Brainstorming: It is solely used for generating ideas; it does not involve analysis. It is used to generate generate a variety of ideas in a short time time . we can use one of the following brainstorming techniques: structured brainstorming free-form brainstorming, or silent brainstorming. 3
What are are the the five stage stagess of risk likelih likelihood? ood? Brief Briefly ly descri describe be each each one? one? Five stages of risk likelihood are as follow 1 Almost certain : Highly likely to happen , most frequently. 2 Likely: Will happen probabl probably y but not a persistent persistent issue. 3 Possible : May happen occasionally. 4 Unlikely : Not expected to happen but is a possibility. Rare: Very unlikely this will ever happen. 5 Rare:
4 List and and give exampl examples es descript descriptio ion n of each five five levels levels of consequ consequence encess for risk. List and example description description of each level level of consequence consequence of risk: 1 Extreme Consequences: Consequences: It has adverse impact on key areas example huge loss/ reduction in student enrolment in a college 2 Major consequences: consequences: loss of government government funding due due to low low enrolment but can be controlled by better management
3 Moderate consequences: consequences: short term damage to partnership which which can be repaired 4 Minor consequences: Moderate reduction in student enrolments 5 Insignif Insignifican icantt consequen consequences: ces: Minor Minor reductio reduction n in student student enrolment enrolmentss
5 What needs should be be considered when treating risk ? list and describe three treatments that that should be considere considered. d. 1 Modifying the likelihood likelihood of the risk to increase possible beneficial beneficial outcomes. 2 Trying to manipulate manipulate possible consequence consequence to increase the expected gains. 3 Sharing the risk with other parties that may contribute by providing additional Resources which could increase increase the likelihood of the opportunity 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 management The Organisation Organisat ion adopts the principles of risk management as set out in the Standard and actively works works toward complyin complying g with these these principle principless to ensure ensure that risk management is effective. 8 For each of the piece piece of legislation legislation listed listed describe describe the intent intent and how it could imPact managing risk of organisation. 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 Commissioner’s (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 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 contract - particu particularly larly in relatio relation n to consu consumer mer protec protection tion.. Contract Contract law 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 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 recognition or a speech synthesiser. synthesiser.
2 Training Training and developme development nt
3
Audio notes for a visually impaired employee.
Accesses Accesses to workplace 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 not require 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 them from clients and and other third third parties. It It protect the 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
following Scope – covers the following a. Project Project – MacVille MacVille to expand expand their their operatio operations ns in Queensla Queensland nd and and purchase and re-brand an existing cafe in Toowoomba. b. Business unit – MacVille Cafes Queensland. c. Risk in relatio relation n to functions functions – hum human an resource resourcess managem management, ent, 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 store’s 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 analy analysis sis I Political – federal legislation concerning concerning efficient water water usage, by-law allowing cafes to expand their footpath dinning. dinning. ii. Economic – gross regional product product growth of 8.9%, number of visitors down 18%.
iii. Social – place for retirees, population growing. growing. iv. Tech Tech Technolog Technology y - WIFI in cafe, cafe, an innovativ innovativee frozen frozen par bake cooking system, Federal Government’s Government’s National Broadband Network. SWOT analysis 1. Strengths – store on the corner of the two main streets of the city, 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 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 opening a store in the Toowoomba Research information
Source
Primary /secondary data
Key information gathered Store operations(fit out, cash handling, 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 written policy and and procedures procedures manual manual and limited staff staff training 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 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 protected could lead lead to thief. iii. Not all takings from the cash ca sh register by family staff members were recorded – unacceptable behaviour in a company store and could lead to misappropriation of funds. OHS risk. i. Manager Manager two two hour drive to and and from from weekly manager’s manager’s meeting meeting – could lead to physical physical injury injury.. ii. Unstable Unstable and broken broken chairs – customers customers injured injured – compliance compliance breach breach and customer suing, reputation loss iii. No established process for dealing with injuries happening at work – staff need a quick and organised response response to injuries – staff work loss, unions suing, reputation loss. Supply chain risk
i Impractical to deliver fresh pastry from the company’s 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 Water use – company company could be fined fined – reputation/ reputation/brand brand loss. ii. Incomplete Incomplete employm employment ent records records – unions unions could sue sue – governm government ent penalties penalties – reputation/brand loss, $50,000 fine. iii. Confidentiall Confidentially y of records records not guaranteed guaranteed – privacy privacy law breach breach
Appendix Appendix – Stakeholder Stakeholder feedback feedback table
Stakeholder The board stakeholder The board
Internal/external Internal
Paula kinski
Internal
Queensland management team
Internal
Ron Langford
external
James manfeild
internal
Role in process Responsible for risk management C EO Assist in transition and ongoing management Councillor and landlord Hurley’s 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 r isk 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 f rom 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. Manager’s travel risk . Physical Physical injury.injury.- catastrophic catastrophic c. By -law Compli Complianc ancee risk risk . Reputation/ Reputation/ brand loss and and fines fines – likely. likely. Consequence
a. b. c. d. e. f.
Banking Banking risk. risk. Theft of cash cash left on on premises premises – minor. minor. Manager’s travel risk. Physical injury - catastrophic By-law By-law Compli Complianc ancee risk. risk. Reput Reputatio ation/b n/bran rand d loss loss and and fines fines – mo moder derate ate.. Banking Banking risk. Theft Theft of of cash cash left on premises premises – mo moderate derate.. trav travel el risk risk.. Phy Physica sicall inju injury ry By-law By-law Compli Complianc ancee risk. risk. Reputa Reputatio tion/b n/bra rand nd loss loss and high high fines fines
Options include following
a. Banking risk risk – theft of cash left on premises. premises. i. Change Change banks banks to a closer. closer. ii. Instal Installl a safe. safe. iii. Take out insurance insurance for for cash on premises. premises. b. Manager’s travel risk – physical injury. i. Allow for overnight stay in Brisbane. ii. Allow Allow mana manager ger to fly fly inste instead ad of of drive. drive. iii. iii. Finish Finish the manager anagerss meeti meeting ng early early.. Iv . Allow Allow the Toowoo Toowoomba mba to use use video video confe conferen rencin cing. g.
By-law By-law complian compliance ce risk – reputation reputation/bra /brand nd loss loss and fines.
i. Install a water tank for store use and change to native plants. ii. Introduce Introduce water water saving saving devices devices – dual flush toilet, toilet, 5-6 star star rated rated (WELS) (WELS) dishwasher. iii. Change Change work practices practices – wash fruit fruit and vegetables vegetables in still water, water, only run dishwasher when full, select economy cycle if only a light wash required. r equired. iv. Apply to the 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 Insurance on ‘cash ‘cash on premises’. premises’. ii. Open an account account with closest closest bank. bank. iii. Policy and procedure requirement to bank daily. daily. b. Manager’s travel risk – physical injury – initially rated as extreme. i. Managemen Managementt meetings to finish 3:00pm. 3:00pm. ii. Install Install teleconferenc teleconferencing. ing. iii. Management training shift to morning morning half day sessions. By-law Compli Complianc ancee risk risk – reputation/brand loss and fines – initially rated as c. By-law high.
i. Apply for time to ‘make ‘make good’. good’. ii. Policy and procedures to change work practices.
iii. Install water saving devices such such as native plants, tank, 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 had taken out $5,000 $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 about 4 weeks opening at the bank two shops down the street. iii. The training on daily banking has been successfully completed. b. Manager’s Manager’s travel travel risk – physical injury – initially rated as extreme.
i. The weekly management meetings meetings are finishing close to 3:00pm. ii. The assistan assistantt manageme management nt training training has has been been shifted shifted to the the mornings mornings allowing the manager to leave before 1:00PM. d. By-l By-law aw Comp Compli lian ance ce risk 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 the Toowoomba by-law on water conservation. iii. The plants plants have been changed changed to natives. natives. Iv .The dual flush toilets toilets are ordered ordered and in stock. stock. v. The 5 star star rated (WELS) dishwasher was installed. installed. vi. The application to make-good make-good by Goldsmith Partners on behalf of MacVille, MacVille, was accepted by the Toowoomba City Council. vii. There has been one internal audit arranged arranged by the store. Viii .A water tank had been built in to the courtyard.
ix. There is a weekly water usage monitor monitor in the staff staff room Outcomes : statement of of current risk and reasons. a. Bankin Banking g risk 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. Manager’s Manager’s travel travel risk – physical injury – initially rated as extreme still high. Likelihood reduced to rare with the change in time travelled. c. Evalua Evaluatio tion. n. By-law By-law Compliance 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. Bankin Banking g risk risk – theft of cash left on premises – initially rated as moderate reduced to low. Could be made more effective by 100% compliance compliance with the the daily banking directive and removal of expensive insurance on overnight cash on premises.
physical sical injury injury - initially initially rated rated as extreme extreme and b. Manager’s Manager’s travel travel risk – phy 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 By-law Compli Complianc ancee risk 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 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.
