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Learner Guide

BSBRSK501 Manage risk

Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Table of Contents

Table of Contents 2
Overview 3
Resources 3
Preparation 5
Conducting Lessons 6
Induction 8
Introduction 10
Topic 1 Understanding Risk 11
Topic 2 Understanding the risk-management framework 16
Topic 3 Managing Risks 21
Topic 3 Managing Risks 26
Topic 3 Managing Risks 31
Topic 3 Managing Risks 36
Review and Assessment 41

Page 2 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Overview
BSBRSK501 Manage risk

This learner guide is provided to you to use whilst you are studying this unit. Your trainer/assessor will got
though all of the theory and you will complete a number of activities to prepare you for assessment at the
end of the unit.

Duration
5 weeks Content delivery: 3 weeks
Assessment: 3 weeks

Week 1 Session 1: Introduction


Session 1: Topic 1 Understanding Risk

Session 2: Topic 2 Understanding the risk management framework

Week 2 Session 3: Topic 3 Managing Risks

Session 4: Topic 3 Managing Risks

Week 3 Session 5: Topic 3 Managing Risks

Session 6: Topic 3 Managing Risks

Week 4 Review and assessment


–6

Page 3 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Resources

Recommended texts
Cole, K. Management Theory and Practice. 6ed. Cengage Learning (2016)
Chapter 23 Identifying and Managing Risks.

PowerPoint slideshow
The following slideshows can be used to support the delivery of this lesson: BSBRSK501 Slideshow.pptx
Each topic for the unit is summarised, following the content presented in the lesson plan, with notes for the
trainer/assessor where appropriate. Trainer’s can adapt the slideshow to suit his or her own teaching
methods.

Web links
Internet links to sources of information, videos or documents are also provided throughout the lesson plan.
If the links are broken, copy and paste them into your web browser.

Page 4 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Preparation

Lesson Preparation
Before you commence delivery of these lessons, take the time to undertake the following:
 Read through this document from start to finish. If you have any queries about how an activity can
best be carried out at your RTO, contact your supervisor for advice.
 Read through the recommended texts.
 Conduct further research on the Internet if any concepts are not clear for you.
 Perform each of the activities and homework or self-study that you will give the students.

Before giving each session, read through each day’s plan, as some preparation may be required.
 Sourcing videos
 Checking web links
 Preparing any technical resources required
 Planning role-plays
 Setting up activities such as presentations
 General planning

Equipment
To carry out the Lesson Plan for this unit, the following equipment will be needed:
 Computers with appropriate software and Internet access
 Headsets
 Whiteboard
 Projector

Industry expertise
To enhance the industry relevance of this classroom-based training approach, we recommend that you
identify an industry expert or experts, and invite them in to give short presentations to students.

These industry experts are not trainers, but are people who can provide expert industry information to
students to assist them with their learning. Their presentation could last up to one hour, and be provided
from week 2 onwards.
Page 5 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Conducting Lessons

Lesson Context
A simulated work environment is to be used when carrying out these lessons.
Therefore, session activities:
 Reflect real life work tasks.
 Are required to be performed within industry standard timeframes as specified by assessors in
relation to each task.
 Are assessed using assessment criteria that relate to the quality of work expected by the industry.
 Are performed to industry safety requirements as relevant.
 Use authentic workplace documentation.
 Require students to work with others as part of a team.
 Require students to plan and prioritise competing work tasks.
 Involve the use of standard, workplace equipment such as computers and software.
 Ensure that students are required to consider workplace constraints such as time and budgets.

Written activities
Activities provided throughout the lesson plan can be undertaken as homework and submitted to the
trainer/assessor and/or conducted within the lesson as an observed task.

Plagiarism, cheating and collusion


Where a trainer/assessor believes there has been an incident of academic misconduct involving plagiarism,
cheating, and/or collusion, they should report this along with reasons for the allegation. Assessors should
refer to their RTO’s policy and procedures regarding training and assessment for further information.”

Practical observations
 Practical observations provide opportunities for students to demonstrate both knowledge and skills.
 Observe performance from an appropriate position.
 Record appropriate comments and use for feedback purposes.

Page 6 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Homework/Self-study
At the end of each session homework/self-study can be set at the discretion of the Assessor. Suggested
activities are also provided.

Page 7 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Induction

The following slideshow outlines the induction information provided below for this unit:
Induction.pptx. The trainer/assessor can adapt the information as relevant.

Induction and administrative procedures


Provide your RTO’s induction and housekeeping procedures, or follow the suggested outline:
Cover any general housekeeping such as:
o college administration
o emergency procedures
o location of toilets and fire exits
o WHS, security
o break times
o plagiarism and any other policies and procedures that the college requires the student to
acknowledge or read and agree to, such as mobile phone policies or Internet usage
policies.

Folder management and naming documents


Discuss and demonstrate where and how you would like students to save their work.
As a guide, students should keep all their work for this unit in a folder that has the unit code as its name,
along with the student’s name. Any activities and assessment tasks should then be saved to this folder.

Students should name documents logically within the folder structure, it should include:
 Unit code
 Task number
 Task name
 Student last name (optional)
 The date or version number (optional)

Back up
Students should always have a back up of their work on a different device. If the college has a network
drive encourage students to use the drive and then back up to a USB or removable hard drive. If they are
using a USB to save files then they should keep a back up on their laptop or home computer.

Lesson overview
Provide the students with an overview of the unit and how it will be structured and delivered.
Page 8 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

An outline of the suggested delivery is provided on the slide.

Assessment
The assessment is provided in a separate document and should be made available to the students once
the content has been delivered, along with the deadlines and procedures for submission.

Page 9 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Session 1: Introduction

Brainstorm: What is Risk?

Risk can include:

- commercial relationships
- economic circumstances and scenarios
- human behaviour
- individual activities
- legislation
- management activities and controls
- natural events
- political circumstances
- technology.

Risk Management includes:

AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines

Legislation, codes of practice and national standards, for example:

- Duty of care
- Company law
- Contract law
- Environmental law
- Freedom of information
- Industrial relations law
- Privacy and confidentiality
- Legislation relevant to organisation’s operations
- Legislation relevant to operation as a business entity

Organisational policies and procedures, including:

- Risk management strategy


- Policies and procedures for risk management

Overall operations of organisation

Page 10 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Reasonable adjustment in the workplace for people with a disability

Types of available insurance and insurance providers.

Topic 1 Understanding Risk

Recommended text
Management Theory and Practice
Chapter 23 Identifying and managing risks
Topic 1: Understanding risk

Video Clip: What is risk management?


Watch this 5 minute clip introducing the concept of Risk Management:
http://www.youtube.com/watch?v=YAQdwkfQkss

Activity: Brainstorm
Think about the concept of risk. How would you define “Risk”?

Class discussion/research:
Consider the following terms, can you provide a concise definition for each?

- Risk analysis
- Risk assessment
- Risk appetite
- Residual risk

Page 11 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

- Risk context
- Risk management
- Risk treatment

Video Clip: Risk or hazard?


http://www.youtube.com/watch?v=VF-8QksiU7c

Video Clip:
Chris Davenport at TEDX talks about the risks of climbing and skiing which provides a good analogy of
analysing risk. http://www.youtube.com/watch?v=zyet9fPS24k (10mins)

Activity: Australian Standard for Risk Management


i) Look up the Australian Standard for Risk Management. Note down the seven elements in the risk
management process: http://www.iso.org/iso/home/standards/iso31000.htm

ii) For each of the following resources, provide an example of each:

Human
Financial
Physical
Intellectual property
Organisational excellence
Intangible

Class discussion: Risk Management Policies

Page 12 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Comparetwo organisations’overall approach to risk management:

Woolworths:
http://www.woolworthslimited.com.au/icms_docs/130476_Risk_Management_Policy.pdf

Southern Cross University:


http://scu.edu.au/risk_management/

Page 13 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Class activities
Complete the following activities. You can work in small groups. Create a short report on your findings.
This should be submitted to the trainer/assessor.

Activity 1: Search a risk management policy to and study the structure and contents. Try
http://policies.uws.edu.au/view.current.php?id=00172 or search on Google for “Risk Management Policy”.
Activity 2: Write down a general structure for a risk management policy for a human resources
department.
Activity 3: Threats to a business. Have a look at
http://blogs.sfweekly.com/foodie/2012/01/theres_a_reason_we_think_lard.php or search for “Who killed
lard? This illustrates how the loss of a product or an organisation’s good reputation can represent a
serious threat to business. Q. What other factors contributed to the decreased use of lard in cooking?

Class Activity: Case study - Risk Types


For this activity you are looking at an example from a fictitious business, Accessorise Me, and accessories
store with five outlets. Their main store is in Smith Street, Melbourne.
Divide into small groups. Read through the information provided below, and create a table as below, listing
down under each heading the related risk identified. Then for each explain how you could manage the risk.
The following has been identified from the Accessorise Me Smith Street store: Broken floorboards, leaky
roof, large amounts of cash stored on premises overnight, some brackets are broken and have sharp
edges, banking is done by one staff member who balances the cash registers, prepares the bank deposits
book and banks the cash, sometimes a junior member of staff will bank large amounts of cash, staff
records are kept in the bottom drawer of a cabinet, some timesheets are sent to head office that are not
authorized, a question on the staff record sheet asked for a full medical history of employees.

Identified Certain Uncertain Speculative risk Pure risk


Issue

Broken An injury can


floorboard definitely occur at
some point in time

Management
of risk

Page 14 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Page 15 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Topic 2 Understanding the risk-management


framework

Recommended reading
Management Theory and Practice
Chapter 23 Identifying and managing risks
Topic 2 Understanding the risk management principles and framework

Risk management framework


The risk management framework is there to ensure information about any risks, derived from the risk
management process, is sufficiently reported and then used as a basis for managerial decision making and
accountability throughout an organisation.
The design of the risk management framework must take into consideration:
- organisational activities
- accountabilities
- risk management policy
- integration of organisational processes
- establishing communication and reporting mechanisms
- adequate resources needed

Web link
The Queensland Government’s, Department of Science, Information technology and Innovation, have a
risk management framework, which provides an overview of the key concepts for managing risk within their
department and guidance on how the process can be integrated within processes and responsibilities:
https://www.qld.gov.au/dsiti/assets/documents/risk-management-framework.pdf

The Australian standards followed by most organisations: AS/NZS ISO 31000:2009 Risk Management –
Principles and Guidelines, outline the principles, framework and process for risk management. The
relationship between these elements are shown in the following diagram.
Source: Australian/New Zealand Standard, Risk management—Principles and guidelines (AS/NZS ISO 31000:2009)

Page 16 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

The Principles, framework and processes AS/NZS ISO 31000:2009:

Activity: Risk management tools


Conduct
onduct an Internet search for two electronic tools or software programs that can facilitate and assist in risk
management. Describe the tools and compare key functions and make a recommendation about the type of
organisation or project each tool would be most suited for use in.

Consider your workplace or a previous workplace. Describe how risk management practices in the organisation
adhere to, or do not adhere to the principles listed above. If no workplace experience, then use AccessoriseMe Smith
Street
et store risk information. How could practices be improved?

Page 17 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity: Documentation

Using either the organisation that you work for, one you are familiar with or one researched on the Internet, examine
the following documentation if it is available:

- strategic directions, mission, vision, statements of organisational values


- risk management policies and procedures
- risk management strategy
Q. Do the policies and procedures consistently reflect organisation values, mission and vision and support strategic
goals? If so explain how.

Q. How do the organisation’s risk management policies and procedures provide practical guidance to employees to
reduce and control risk that is applicable to the particular work environment and organisational aims?
Q. How does the organisation’s risk management strategy address the identification and control of risk?

Class discussion/Brainstorming: Stakeholders


Consider typical stakeholders in a business.
How can you identify stakeholders?
Stakeholders can include:
- staff
- internal and external suppliers, clients, contacts
- senior management
- specific teams or business units
- Technical experts.

Activity: Stakeholders
Using the following scenario, identify the internal and external stakeholders and the types of input they are
each are likely to provide.

Scenario: Assume you are the new operations manager for the chain of outlets AccessoriseMe (five
outlets). Your previous experience was in sales management, specifically departmental areas of
management. You have never had the role of operations manager of a chain of stores. You note that one
of your specific responsibilities is to manage the risks that are likely to pose a threat to this particular
organisation. Before attempting to identify the organisation’s risk, you first take time to review the concepts
of risks, risk management and the organisational context. From your previous roles you are very aware of
the risks of non-compliance with relevant laws, and so you decide to also review the legislative
environment in which this organisation operates.
Page 18 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Stakeholder Internal or External Input

Q. Describe briefly the attributes that qualifies a person as a stakeholder in the risk management
process.

Q. Describe how you would take a consultative approach to risk management to obtain support and,
(where relevant) achieve legal compliance.

Legislation
Visitwww.safeworkaustralia.gov.au and look at the WHS Act 2011.

Page 19 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity I: WHS Legislation, Standards and Codes of Conduct


Research a business/organisation or use one that you are familiar with. Research WHS legislation,
Standards and Codes of Conduct in Australia (relevant to the business example you are using). Describe
how you think these influence risk management processes for the organisation.

Activity II: The Privacy Act


i) Research the Privacy Act and list down the principles listed with a brief explanation for each.
ii) Consider the privacy laws and identify which of the national privacy principles should be applied in the
following circumstances:
a) a member of staff asks for the number for an employee’s partner’s mobile phone.
b) A website asks for personal details but does not have a displayed privacy statement
A client asks for personal contact details of a work colleague Continue with Legislation and Policies

Activity III: Law and compliance


a) Contract Law
Research Australian contract law. What risks might be presented to an organisation when entering into a
contract?
b) Company Law
Research Australian Company Law. Visit the ASIC website and review the section on running a company.
Review the checklist provided for company officers and describe three risks for an organisation if
compliance is not maintained.
c) Australian Securities and Investment Commission (ASIC)
Search the ASIC website “your company and the law”. Name two directors’ responsibilities listed under the
heading “What does the law expect of you personally?; for each describe a process or mechanism that you
could put in place to help ensure compliance with this directive.
c) Company records compliance
Tax Law and corporation law require that financial records are kept between five and seven years, which
can present logistics problems for an organisation if there is a large amount of physical records. Search
the ATO website to determine if past records can be kept electronically, and, if so, how they recommend
that it can be managed.

Page 20 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity IV: Fair work


What risks are there for a business with regard to unfair dismissal legislation? How can a business manage
occurrences of these risks?

Activity V: Awards
Research the Fair Work Ombudsman - find out a) how a business would need to comply for leave
entitlements; b) download the applicable award to ensure your business’s pay were consistent with legal
requirements (assume you are working in the retail industry).

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Topic 3 Managing Risks

Recommended text
Management Theory and Practice
Chapter 23 Identifying and managing risks
Topic 3 Managing Risks

Video Clip:
See below YouTube clips on risk management:
http://www.youtube.com/watch?v=AskktIDYe3A
http://www.youtube.com/watch?v=lrCOIRGpeeM
http://www.youtube.com/watch?v=2AAa0gd7ClM

Page 21 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity: External Environment


Following on from the AccessoriseMe scenario, examine the following internal and external environment
points below and then undertake the tasks that follow.

 The manager understands that a new law being introduced will impact on the way that staff are
being paid, with some of their pay being earned via commission.
 A report from a survey showed that people rated accessories as being the second most important
aspect of a dress item, particularly stating bags as being the current popular fashion item.
 Jefferson Accountants have discussed the latest point of sale cash registers with the manager –
stating it would improve stock and cash control in AccessoriseMe outlets.
 The AccessoriseMe stores are always located in the highly trafficked parts of shopping centres.
 The internal accountant has mentioned that he was not able to get all the staff records for pays and
employee details from the outlet managers and this made processing difficult and also meant that
they were not compliant.
 Jefferson Accountants explained that the old cash registers did not have the features that could
help eliminate fraud.
 Loose floorboards in some of the stores are covered by mats but it is still a WHS issue.
 It has been suggested that a large chain, BagsRus will be opening in the same area as the main
AccessoriseMe branch in the next 12 months.
 There are a possible further 10 store locations where AccessoriseMe stores could possibly open.
 Most of the outlets need some type of refurbishment as they are looking a little shabby in the
décor.
The growth in the younger age bracket of the area where the AccessoriseMe stores are located is a
positive indicator for the business.

Activity I: PEST analysis


Identify one item for each of the following in the PEST analysis.

Political
Economic
Social
Technological

Q. Describe briefly how a PEST analysis can help identify risks for an organisation.
Q. Describe a process you could introduce that could help obtain information from stakeholders.

Page 22 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Identification of Risks
Risks can be identified using various tools and techniques such as checklists, brainstorming, fishbone
diagrams or flow charts.

Activity I: Brainstorming
i) brainstorm a list of approaches that could be used to encourage staff and stakeholders to
provide input and participate in the development of risk management strategies for an
organisation
ii) describe how each of these can be effective.

Activity II: The 8 P’s


Using the Internet, find the 8 P’s of the service industry and create a fishbone diagram for them. Use a
software tools that you have access to. Ensure you include at least one variable for each category
included on the ‘bones’ of the diagram. (You may find it easier to create the diagram on paper first).

Activity III: Flowcharts


Using an appropriate software tool, create a simple flowchart to show the process for dealing with a light
that won’t function. You will need to consider the reasons why the light may not be working and address
these and appropriate responses or actions in the flowchart.

Page 23 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity IV: Tools


Research online tools or templates that you could use in risk management processes in an organisation.
Identify three that you think you could use and describe why and how you think these could be helpful.
Include a brief description of each tool as well as the URL source.

Tool #1 URL source

Description of what the tool does:

How could this tool be helpful:

Tool #2 URL source

Description of what the tool does:

How could this tool be helpful:

Tool #3 URL source

Description of what the tool does:

How could this tool be helpful:

Page 24 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Research
Consider various forms of research for risk identification such as past records, statistical information,
documentation, market research.
Consider Primary and secondary data collection techniques and the advantages and disadvantages of
each method.
Consider the quality of information being accurate, relevant and reliable: the code of conduct for data
collection.

Activity: Research
Identify at least three different ways that risk in a business environment can be researched and describe
the types of information you are likely to gather from each approach.

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Page 25 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Topic 3 Managing Risks

Recommended reading
Management Theory and Practice
Chapter 23 Identifying and managing risks

Communication and Consultation


Involving others in risk identification should take place at every step of the risk management process with
both internal and external stakeholders.
Some of the key skills required: Active Listening, Encouraging feedback, facilitating discussion, effective
questioning.

Activity: Staff involvement


Refer to the AccessoriseMe information provided. Who would be the most beneficial to involve in the
process of risk identification and why would you include them in gathering input to risk identification?

Determine the likelihood of risk


These could be classified as Rare, unlikely, possible, likely or frequent.

Page 26 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activities: Identifying risks


Undertake the following tasks, either using the information provided for AccessoriseMe, or from your own
place of work. Document your findings and submit to your trainer/assessor for feedback.

Research Findings for AccessoriseMe:


Broken floorboards, leaky roof, large amounts of cash stored on premises overnight, some brackets are
broken and have sharp edges, banking is done by one staff member who balances the cash registers,
prepares the bank deposits book and banks the cash, sometimes a junior member of staff will bank large
amounts of cash, staff records are kept in the bottom drawer of a cabinet, some timesheets are sent to
head office that are not authorized, a question on the staff record sheet asked for a full medical history of
employees.

Activity I: Review the Research Findings


Select the issues you think would occur rarely and which is likely to occur almost certainly. Provide
reasons for each:

Likelihood Reasons

Rare

Almost Certain

Activity II: Information for risk management


Some organisations assess risk and apply a control, then reassess risk immediately (rather than waiting for
a review period some time later). How could this provide relevant information for risk management to the
organisation? State your reasons.

Activity III: Risk Management tools


Using the Internet, research risk management tools that include two layers of assessment in this way.
(Some risk management organisations use the term ‘residual risk). Briefly describe the tool and include a
URL link to the source.

Page 27 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Assessing the consequence of risk


Levels of consequence could be classified as: Catastrophic, Major, Minor and Insignificant. In the next
step of risk analysis, potential consequences or impacts of the risk on the organisation and its objectives
need to be assessed.

Activity I: Consequence of Risk


Using the Research Findings for AccessoriseMe, select an issue you think would have an insignificant
consequence and an issue you think would have catastrophic consequences. Provide reasons.

Consequence Reasons

Insignificant

Catastrophic

Activity II: Examples of risk


Thinking about your community or workplace, provide an example of each of the following risks:
- Rare and catastrophic
- Frequent and insignificant
- Possible and moderate

Page 28 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Evaluating and Prioritising

The risk matrix method of risk analysis can help prioritise risks into categories of low, medium, high and
extreme. When it is placed in a table it makes it visibly clear as to which risks must be handled first and
what the priority is for each. Options for action include:

 avoiding the risk


 changing the consequences
 changing the likelihood
 retaining the risk
 sharing the risk with a third party.

Consequence

Insignificant Minor Moderate Major Catastrophic

Almost certain HIGH HIGH EXTREME EXTREME EXTREME

Likely MEDIUM HIGH HIGH EXTREME EXTREME


Likelihood

Moderate LOW MEDIUM HIGH EXTREME EXTREME

Unlikely LOW LOW MEDIUM HIGH EXTREME

Rare LOW LOW MEDIUM HIGH HIGH

Activity III: From low to extreme


Using the Research Findings for AccessoriseMe, select an issue you think would be rated ‘extreme’ and
an issue you think may be rated ‘low’. Give reasons.

Priorities Reasons

Extreme

Low

Page 29 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Class Activity:National Geographic


Take some time to look at the following site:
http://braingames.nationalgeographic.com/episode/14/
Read through the information provided and undertake the activities.

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Page 30 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Topic 3 Managing Risks

Recommended reading
Management Theory and Practice
Chapter 23 Identifying and managing risks

Types of Analysis

1. Consider qualitative, semi-quantitative and quantitative analysis of risks.

2. Consider the risk of financial loss:

Financial Loss x Annual Frequency of Loss – Expected Loss

3. Consider the fatality risk calculation: (giving a value of 0-1 – the closer the value to one the greater
the risk.

Number of deaths per annum from activity


___________________________________ fatality risk
Exposed Population

4. Financial Loss x Annual Frequency of Loss = Expected Loss

Activity I:Financial loss


Using the formula above for financial loss, calculate the expected loss for a car wash that loses $500
in wages for every day it rains. The car wash is located in Brisbane where it rains on average 122 days per
year and on days when it is not raining it makes $300.
Q. If the same business with the same loss and profits was moved to Melbourne with an average of
148 rainy days, explain what could happen to the business.

Page 31 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity II: Extreme situations


Name a situation at work or at home you would rate as ‘extreme’.

Determine risk treatment options

- Acceptability to all
- Administration efficiency
- Capacity compatibility
- Continuity of effects
- Contracts
- Cost effectiveness
- Economic and social environment
- Equity
- Individual freedom
- Jurisdictional authority
- Objectives
- Regulatory
- Risk creation
- Timing

Hierarchy of control for WHS risk management

Class activity: Codes of Practice


Visit the Safe Work Australia website, model code of practice for further information on managing WHS
risks in the workplace. Look for examples of how control measures can be implemented:
https://www.safeworkaustralia.gov.au/doc/model-code-practice-how-manage-work-health-and-safety-risks

Page 32 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity I: Applying hierarchy of control


Using the Research Findings for AccessoriseMe, select an issue and then apply the hierarchy of control to
develop options.

Issue:

Hierarchy of control Options

Can you eliminate the risk?

Can you reduce the risk? (E.g. by substitution)

Can you isolate the risk? (e.g. with guards and


barriers)

Can you reduce the risk by administrative control


(e.g. safe operating procedures)

Provide personal protection according to the


AS/NZ standard

Activity II: Reducing risk in retail


As a manager of a retail store you know you cannot always be in the front of the till, so there is a risk that
cash could be mishandled by store staff. Describe how you could:

 Reduce the risk


 Isolate the risk
 Introduce control of some form

Activity III: Hierarchy of control


Using the hierarchy of control as a reference, decide which option is the best treatment for each of the risks
you have identified earlier.
When selecting the most appropriate treatment options for risk, the costs and benefits of each treatment
must be carefully considered.

Page 33 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Action Plans
Effective action plans are those that are part of the operations of the organisation. Problems that can start
small can escalate into large threats or a risk may appear suddenly that threatens the reputation of the
entire organisation. Action plans outlines how the risk is to be managed and provides a timeline for this
process.

Activity I: Timeline for implementation


Create a draft flow chart of a timeline for implementing a new product within an organisation (for example
AccessoriseMe). Identify at what points of phases risk assessment would take place.

Activity II: Risk Action plans


Research on the Internet for a risk action plan. (Try Volunteering Australia). Review the form and
describe when or how you could use a similar form in an organisation where you are the risk manager.
The key issue to describe is whether you think this form is suitable for all risk planning and management
process, including your reasoning.

Internal control procedures


Completeness, accuracy, authorization, validity, existence, handling errors, segregation of duties,
presentation and disclosure.

Class discussion: Internal controls


For each of the internal controls listed, consider what could go wrong if the control is not implemented
correctly or thoroughly.

Physical Controls
These relate to security devices and measures that are designed to eliminate unauthorized access to
physical assets.

Activity: Supply process


As the operations manager, you have been asked to appoint a stores person to monitor the movement of
supplies and make sure physical stock takes mirror the balances calculated from the source documentation
of supply movement. Explain how having a stores person appointed to the supplies process creates a
physical control over the supplies. What other controls should be in place?

Page 34 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Insurance
Insurance to manage risk includes insurance required by legislation.

Activity: Research Task


i) Using the Internet, investigate types of insurance available for business risks (eg theft, staff injury,
compliance issues, fraud, fire, etc) and briefly describe the different types of insurance available.
ii) Briefly describe what is covered in the following insurance policies:
Worker’s compensation, motor vehicle comprehensive, motor vehicle third party, contents insurance,
consequential loss, professional indemnity, building insurance, public liability, manufacturers liability.
III) Describe some common requirements that are expected of bank cardholders in order to qualify for the
bank’s insurance cover (try searching ANZ security protection).

Workplace adjustment
Adjustments in the workplace may be necessary to accommodate people with a disability. Consider what
these may be.

Activity: Adjustments in the workplace


Conduct online research to find three examples of a disability within a work environment and an adjustment
that was made to allow for the disability.

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Page 35 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Topic 3 Managing Risks

Recommended reading
Management Theory and Practice
Chapter 23 Identifying and managing risks

Implementation
Consider the organizations role in implementing the action plan, including:
- Communication of the plan
- Documentation; and
- Training

Project: Implementing the action plan


Work in pairs to create a report containing responses to the following tasks:
Part 1: Using an example, how could you effectively communicate an action plan to the relevant
stakeholders?
Part 2: Support of senior management when implementing a risk management plan is essential for its
success. Provide three ways in which a manager could obtain the support of staff.
Part 3: List down approaches you would use to communicate an organisation’s risk management
processes to staff and stakeholders.

Part 4: Documentation of procedures can include new development of policies. An organization needs to
have a risk management policy framework that allows documentation of the processes and procedures
required.
i) Search the internet to find examples of policy documents.
ii) Download one example of a policy document for an organisation and list down the elements
included in the document (most will have purpose, scope, procedure, roles and responsibilities
and legislation/standards).
Part 5: Find a risk management policy for a college of further education.
i) How does the policy assist the management of risk for the organization?
ii) Find the record keeping policy for Mosman Council (search online). Provide a brief overview.
Part 6: Keeping documents secure and using correct naming conventions helps an organization to have
continuity and follow best practices.
i) Using examples, discuss why an organisation should have protocols for naming documents.
ii) List the issues that can arise from storing documents in both electronic and in paper format.

Page 36 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Part 7: Training is usually carried out if new practices or changes are implemented into an organization. If
it was your responsibility to provide training to new staff, how would you ensure that they had the same
awareness of the required safe work practices and risk management processes within the organisation?

Part 8: Risk management responsibilities for AccessoriseMe - list down who would be responsible for the
following tasks and describe why you think they are most suited.

Task 1: Preparation of a new policy containing procedures to eliminate broken brackets being left up on
display.
Task 2: Organising insurance to cover keeping money on site overnight.
Task 3: Training staff on how to complete and authorize a timesheet correctly.
Task 4: How to keep records safe and secure.
Task 5: Maintenance of the property such as fixing the leaking roof.

Part 9: An organization will ensure that allocation of appropriate resources for risk management are in
place. List down some examples of resources that could be considered. (this could include people, skills,
experience, information, knowledge, documentation of processes and procedures.

Part 10: Referring to AccessoriseMe, identify two areas of development that you might outsource
professional development training for staff. Explain why you would outsource the training.

Submit your responses in a professionally typed word document and submit to your trainer/assessor.

Monitor & Review


The risk management processes should be cyclic and will include the monitoring of activities. Responsibility
for risk management would be given to one or more people within an organisation with an overall manager,
dependent on the size of the organisation.

Page 37 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity: Reviewing and reporting risk


Find a risk management action plan, which outlines what managers and supervisors are required to record
and review for risk. Assume you are a manager for this organization – outline the procedure you could set
up and follow to help you fulfil your role in reviewing and reporting risk.
Explain why procedures should be kept up-to-date.
List down the typical documentation required in risk management and explain how it should be stored or
saved within an organization.

Class discussion: Reviewing risk will require the action plan to be kept up-to-date. What type of legislation
would perhaps require review in the case of AccessoriseMe?

Activity: Using the following issues, estimate the review period for each listed and explain why this has
been allocated:

Maintenance such as fixing broken floorboards


Insurance for money kept overnight
Banking procedures
Storage of staff records
Audit of timesheets
Compliance of legislation

Page 38 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Activity: Reporting
Find your own risk management report and create a template.

Part 1: As a risk manager it is your role to report all risks. Consider that in the course of your work you
identify a risk to the organization and eliminate the risk entirely. Describe why you would still need to report
this risk, even though it has been dealt with.

Part 2: Research a few risk management policies online. For each, download a copy, and complete the
table below:

Name of organization Name of policy List the people How do you think the
responsible for the risk risk control strategies
control strategies are monitored?

Part 3: Research a few approaches that can be used to monitoring risk management strategies. Describe
the advantages and disadvantages of each for the business environment.

Page 39 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Evaluating
Measures of success could be a decline in risk values, progress towards a specific objective, decline in the
total cost of risk, support of senior management.

Activity: Performance metrics


List some performance metrics that would identify a successful implementation and monitoring of the risk
management process.

Homework/Self-Study
Undertake the required homework, this can include completing any activities, questions or reading from the
day’s session set by the trainer/assessor.

Page 40 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F
www.alphainstitute.edu.au

Session 7, 8, 9 and 10: Review and Assessment

The content of this unit has now been covered. The next three weeks have been allocated for
trainer/assessor review and student completion of assessment tasks.

Review and completion


Allocate time for students to complete any outstanding activities, reading, role-plays, meetings,
presentations or further tasks that require observation or submission to the trainer/assessor.

The trainer/assessor should allow time to review any topics or activities undertaken by students to
consolidate their learning.

Discuss the Assessment Tasks


Take time to discuss each task in detail if required, and ensure that the students understand the
assessment procedures, submission instructions and deadlines.

Students should use these sessions to work on their assessment tasks, with support from the
trainer/assessor where relevant. Reasonable adjustment should be made where appropriate.

Support
The trainer/assessor should provide as much support as is appropriate for students whilst they undertake
their assessment tasks. The trainer/assessor may have to timetable meetings or role-play’s that require
observation for assessment so it is important to ensure that this has been considered into the lesson
planning over the last two weeks of assessment.

Housekeeping
Provide some time at the end of the last session for housekeeping such as administrational duties, student
feedback and farewells.

Page 41 of 41
Leaner Guide
Sydney Campus: 8 Figtree Drive Sydney Olympic Park NSW 2127 • Canberra Campus: 17 Oatley Ct, BELCONNEN ACT 2617
Phone: 0404 462 384 • Email: Info@alphainstitute.edu.au
ABN: 99 620 543 688 • RTO CODE: 45413 • CRICOS CODE: 03708F