Knowledge Test

Question 1. What are three ways that research can be conducted for risk-related issues, and for each way, briefly describe how it may be done. Answer 1. Research can be done the following ways

Past records Data and statistical information Relevant published credible literature The result of public consolation Market research.

First of all I would like to describe first part of the research. Interviews Interviewing can be used to identify the underlying reasons and motivations for peoples attitudes, preferences or behaviour. They can be individual or group-based. How it can be done? A focus group is an interview conducted by a trained moderator in a non-structured and natural manner with a small group of respondents. The moderator leads the discussion. The main purpose of focus groups is to gain insights by listening to a group of people forum the appropriate target market talk about specific issues of interest. Questionnaires Popular means of collecting data, but are difficult to design and often require many rewrites before an acceptable questionnaire is produced. How it can be done? Observations. Observation involves recording the behavioural patterns of people, objects and events in a systematic manner. Observational methods may be: Structured or unstructured Disguised or undisguised Natural or contrived Personal mechanical

 Diaries

Non participant Participant with the participant taking a number of different roles.

A diary is a way of gathering information about the way individuals spend their time on professional activities. They are not about records or engagements or personal journals of thought! Diaries can record either quantitative or qualitative data, and in management research can be provide information about work patterns and activities.

Question No 2. Fishbone checklists and brainstorming are both tools that can be used in risk management. Describe each of these and when they would best be used. Answer No. 2. Brainstorming may be done around the following questions to attempt to identify risk to organisational objectives. What: Might happen, is the impact, are the existing controls? How: could this arrive? When: In the life of activity. Beyond the life of activities? Who: is involved, in affected? Why will there be: changes and uncertainties, causal factors and triggers? Fishbone Diagrams Fishbone diagrams are cause and effect diagrams. Use of the fishbone diagram encourages a systematic approach to identifying risks that looks beyond the obvious causes of a problem. The starting point for creating the diagram is identification of a problem. This is stated as the effect. The Bones show the types of variables that might play a part in the root cause. Causes are usually grouped into major categories, which typically include the following. People anyone involved with the process. Method how the process is performed and the specific requirement for doing it, such as political, procedures, rules, regulations and laws. Machines any equipment, computers, tools etc. Required to accomplish the job. Materials Raw materials, parts, pens, paper, etc. used to produce the final product. Measurements data generated from the process that are used to evaluate its quality.

Environment the conditions, such as location, time, temperature, and culture in which the process operates.

Question 3. Determine likelihood of risk. Answer 3. The first step in risk analysis is to determine the likelihood of risks. Likelihood refers to the probability that a risk will occur, and is measured in terms of the following scale. Note that the classification of risk must take into account the specific circumstances, for example, the flooding of a ware house may range from rare if it is located to a region that receives little rain to frequent if it is located in somewhere that is often subject to flooding. Question 4. Evaluate and prioritise risk Answer 4. Now that we have determined both the likelihood and consequence of risk, the two are combined to determine the rating. The most effective method of risk analysis is to generate a risk matrix. A Risk matrix is shown below, where the identified consequence meets the identified likelihood, a risk rating is given.

Very High High Moderate Likelihood Low

Moderate Moderate Low Low Low

High Moderate Moderate Low Moderate

Very High High High Moderate High

Very High Very High High Moderate Very High

Consequence

Question 5. What needs should be considered when treating risk. List and describe three treatments that could be considered. Answer 5. There are several ways by which to manage risk. The Australian standards outlines the following. Avoid the risk. This may be done by ending the activity that gives rise to the risk. In appropriate risk avoidance may result in an increased significance of therisk or result in the loss of opportunity. Reduce the likelihood of the risk, i.e. reduce the likelihood of a negative impact on objectives. Reduce the consequences, that is, decrease the extent of the damage. An example of this is reducing the inventory or making continuity plans. Share the risk. This involves other parties baring a portion of the risk (preferably by mutual consent). This may take place in the form of insurance arrangements, contracting, partnerships or joint ventures, all of which spread the responsibility and burden of the risk with other. This usually comes at both a financial expenses and creates another risk, namely that the parties with whom the risk is shared will not manage it effectively. Retain the risk. After the altering or sharing of a risk, there exist residual risks which are retained. This also a take place by default as a result of failure to identify or manage a risk.

Treatment options. 1. 2. 3. 4. 5. 6. 7. Acceptability of all Administration efficiency Capacity compatibility Continuity of effects Contracts Cost effectiveness Economic and social environments.

Question 6. What should be includes in a risk action plan? Describe the key includes and briefly the type of information included with each inclusion. Answer 6. The risk action plan The risk action plan outlines how the risk is to be managed and a timeline for this process to take place. It should include; The risk Risk rating Treatment activity or control Roles and responsibilities for those involved Timeline Monitoring arrangements.

Implementation of the risk action plan requires participation from the organisation. And therefore should involve the following stages. Communicating the plan Documenting procedures Training.

Communicating the plan A good starting point for implementation of the action plan is the communication of the risk management process and strategies. It is essential that everyone in the organisation understands the importance of risk management, who the key people are and how they can contribute to the process. Documenting procedures. Your action plan will have identified areas where written procedures need to be developed and documented. To effectively implement the plan, staff, volunteers and management committee members need to work together to develop these procedures. Existing and new procedures should be reviewed to ensure that they are consistent. Training It is highly likely your action plan will involve the introduction of new practices, or changes to existing activities, so this will require training. It is a good idea to ensure that this is carried out through the structures and processes that already exist to facilitate in your organisation.

Question No. 7 How does the AS/NZS 4360:2004 provide guidance for managing risk? Answer No.7 AS/NZS 4360:2004 views the analysis and evaluation of risk as two seprate elements and so outlines seven elements in the risk management process. Establish the context Determine the scope of the project, both internally and externally. Establish the criteria by which a risk may be evaluated. Identify risk Recognise potential hazards, which may prevent, dimish or delay the organisation or project objectives. Analyse risk- Identify what the consequence and likelihood of the risk taking place. Evaluate risk Compare the potential rewards with the potential adverse outcomes including the likelihood of each. This allows decision to be made regarding the priority and action required to manage the risk. Treat Risk The process of selecting which risks are to be managed and taking measures to limit the result of highest priority Monitor and review critically observe or measure the progress of the risk management process and make changes where beneficial. Communicate and consult Ensure stakeholders are aware of information applicable to them and appropriate to the risk level and the stage of risk management.

Question No. 8 Describe OHS regulation and List key Obligations. Answer No.8 OHS (occupational health and safety) laws vary throughout Australia according to the state parliament that passed the act. For example, queensland it is the work place health and safety act 1995. While states have different names to their acts covering the workplace, they all prescribe a similar set of requirements for all managers including supervisors of projects. These are: To ensure that work is performed in a safe manner and does not have any negative effect on the workers health To ensure sufficient information and education was provided so that the work could be undertaken safely To ensure workers have a say in the safety of their workplace by recognising and acting on risks and hazards in the workplace To implement audit and control measures that verifies the effectiveness of OHS activities. To ensure equipment and machinery is maintained in a safe condition.

Obligations Whenever possible collect information directly from the person. Only collect information that is necessary. Collect information by fair means. Take reasonable steps to let people know that personal information has been collected and what is going to be done with it. Do not disclose information about the person to a third party that you are collecting information from. Take care about the type of information contained in messages left on answering machines.

Question No. 9 Workplace adjustment Answer No. 9 Sometimes it can be necessary to make adjustments in the workplace to accommodate people with a disability. Adjustments can be undertaken in a number of different ways, some of which are outlined below. Selection Process Discuss potential changes to non-core requirement of position Applicants may ask a friend to attend to interview Prove a signing interpreter for hearing impaired employees if needed. Make physical changes to work place, for example: Movement or adjustment of furniture Adjustment of lighting Lowering benches. Exchange certaing tasks to aid people with disabilities: E.g. telephone duties may be exchanged for filling duties for someone with hearing impairment. Flexible work hours Regular breaks Working from home Unobstructed access needs to be provided to all public use areas. A telephone typewriter Voice recognition software Speech synthesiser Access to training and development opportunities needs to be ensured for people with disabilities.

Work area design

Job design

Flexible work practice Workplace access Providing equipment Training and development

Question No. 10 List two types of insurance an organisation could consider purchasing, and for each type, describe the risk covered by the insurance and the benefit to the organisation. Answer No 10. Insurance involves paying premiums to share certain risk with another organisation. Insurance should only be considered as a risk management option when other treatments have not been successful in reducing a risk to an acceptable level for the organisation. That being said, it is still an important part of many risk action plans. Generally, there are two types of insurance. Life Insurance management of the risk of death or disability. General Insurance covers the sharing of all other risks, e.g. property damage, workers compensation, motor vehicle insurance.

Some insurance is required by legislation. For example originations that employ staff must have workers compensation, those that own motor vehicles must take out compulsory third party motor vehicle insurance. Other insurances are purchased at the discretion of the organisation, according to its determined needs.