Assessment Task BSBRSK501

Assessment Task Task 1BSBRSK501 Manage risk 

Report on risks

© 2015 Innovation and Business Business Industry Industry Skills oun!il oun!il "td#Modi$ed %uly %uly 2015 1 st edition version& 2 'age 1 o( 2)

Assessment Task Task 1BSBRSK501 Manage risk 

Su*mission details Student+s name

Studen t no,

Assessor+s name Assessment site Assessment date#s  The assessment assessment task is due on the date specifed by your assessor assessor.. Any changes to this arrangement must be approved by your assessor in writing. Submit this document with any required required evidence attached. See specifcations below or details.

© 2015 Innovation and Business Business Industry Industry Skills oun!il oun!il "td#Modi$ed %uly %uly 2015 1 st edition version& 2 'age 2 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

'er(orman!e o*-e!tive For this task you are required to decide the dangers/risks associated with opening up a new business branch within the eisting business organi!ation. They will be required to look at all the internal and eternal reasons/ risks and discuss will all the important people to put together a list o all dangers and risks.

© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age . o( 2)

Assessment Task 1BSBRSK501 Manage risk 

Assessment des!ription For the (ac)ille *ty +td simulated business scenario provided# you are required to assume/take on the role o ,risbane store Assistant (anager# Ash# who has -ust been promoted to be (anager o a new store. Ash has been tasked with conducting a risk management analysis o this new venture.  There are three stages to this pro-ect 01 review# 21 analyse and plan# and 31 monitor. This pro-ect is divided into three assessment tasks as ollows Assessment Task 1

Assessment Task 2

Assessment Task .

"isk analysis report# action "isk review report# email to stakeholders and meeting with $%&plan and risk treatment (onitoring report

For this assessment task# you will need to review the simulated/pretend business4s risk management processes and decide the scope/range and ob-ectives/aims# taking into account stakeholders0/interested people and both internal and eternal environmental/your world actors/causes a5ecting the organisation. &nce you have gathered this inormation# you are to identiy risks and write a drat/eample report to the $%&. 6ou will meet with the $%& to discuss your report# seek support or your fndings/what you have ound# and approval to communicate risk management processes to relevant stakeholders/ interested people or their eedback/comments and participation/being part o.

0  Stake/older 7 a person or group with a direct interest# involvement# or investment in something © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age  o( 2)

Assessment Task 1BSBRSK501 Manage risk 

'ro!edure  6ou will assume/take on the role o Ash# Assistant (anager o the ,risbane (ac)ille ca8# who has -ust been promoted to (anager o the new  Toowoomba store. 9n preparation or the new venture# Ash has been tasked with conducting a risk management analysis o this pro-ect !erpt o( email (rom 3 'aula Kinski From $%& : *. ;inski  To Assistant (anager : irectors has asked that the risks in this pro-ect be appropriately/correctly managed. 9 want you to undertake/start this task as it will give you signifcant/important insight into the store4s operations# it will ensure a smooth transition/move or ?urley4s $a8 sta5 into the (ac)ille amily and will encourage you to give ongoingcontinuous support or our risk management initiatives. 9 would like you to approach/tackle this task in three stages and meet with me at the end o each phase to review your work and discuss your plans or the subsequent/net phases. The three stages in this risk management task will include 0. "eview. 2. Analyse and plan. 3. (onitor. @ &nce 9 have received your risk review report# we will need to discuss the steps that you will take in the risk management process. "egards *. ;inski $%& (ac)ille $a8s istrict $,>1 o ,risbane# o Sydney# =S. The ,oard o >irectors has made the decision to epand their operations in irectors# management and employees o (ac)ille have responsibility or implementing aspects/angles o this policy.

  orporate governan!e 7 broadly reers to the mechanisms# processes and relations by which corporations are controlled and directed. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 19 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

Role o( t/e ire!tors  The >irectors have a governance/authority responsibility in the management o risk. This includes J determining which types o risk are acceptable and which are not J setting the standards and epectations o sta5 with respect to

conduct/behaviour J approving ma-or decisions a5ecting (ac)ille4s risk profle/outline or

eposure/dangers7 i.e fnancial or business ha!ards J monitoring the management o signifcant/important risks to reduce

the likelihood/possibility o potential organisational risks and threats or ailure J being satisfed that risks are being actively/keenly : positively

managed# with the appropriate/correct controls in place and working e5ectively J annual review o (ac)ille4s approach to risk management and

approval o changes or improvements to key/important elements/eatures7 items o its processes and procedures.

Role o( t/e Senior Management Team and Store Managers ;ey roles o the senior management team are to J implement/put together policies on risk management and internal

control where this is deemed/seems appropriate J identiy and evaluate areas o signifcant/important risks

potentially/possibly aced by (ac)ille or consideration by the >irectors J identiy areas where risk management is not adequately/properly

addressed/looked at and advise the >irectors accordingly J review and update the "isk (anagement Strategy J undertake an annual review o the e5ectiveness o systems o

internal control and provide an annual report to the >irectors# including a summary review and respective recommendations i.e update the >irectors on how well the internal systems are working or not1.

Role o( a(? mployees ;ey roles o employees are to J amiliarise/make aware themselves with the content/details o the

"isk (anagement *olicy and clariy/make clear any aspects/angles necessary with a senior team member J consider any risks they eel could impact on them meeting their

ob-ectives/aims and either manage the risk i it is in their control to do so# or inorm a management team member o their concerns © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 1) o( 2)

Assessment Task 1BSBRSK501 Manage risk  J advise senior management# in the frst instance# or the ,oard o

>irectors# i concerned about any raud/scam or unethical/bad behaviour.

Ma!:ille Risk Management Erameirectors "emuneration/salary *olicy.

Mont/ly reporting >ecisions to rectiy/f problems are made at regular meetings o the senior management team. $omprehensive/complete reporting at ,oard and Sub7committee meetings is designed to monitor key/important risks and their controls.

Business planning and *udgeting  The business planning and budgeting/fnancial planning process is used to set ob-ectives/aims# agree on action plans# and allocate resources. *rogress towards meeting business plan ob-ectives is monitored regularly by the senior management team and by >irectors at ,oard meetings.

Risk management revie<  The Finance# Audit and "isk (anagement FA"(1 $ommittee is required to report at ,oard meetings on internal controls. The FA"( $ommittee pays particular attention to risk management. 9t is the $%&4s responsibility to brie the >irectors periodically and as appropriate on the development o policies and procedures to ensure e5ective and eMcient operations# risk management strategies and implementation. 9n addition# the FA"( $ommittee oversees internal audit# eternal audit and management as required in its review o internal controls. The committee is thereore well placed to provide advice to the ,oard on the e5ectiveness o the internal control system# including (ac)ille4s strategy or the management o risk.

ternal audit  The fnal audit o fnancial statements is controlled by an eternal !/artered a!!ountant 11 who provides eedback to the ,oard through the FA"( $ommittee.

0K Sitting Fees - is a fee paid for being part of a meeting and contributing to the meeting without having any company ownership – it’s a fee payable on a periodic basis throughout each year. The sitting fees covers all formal meetings, regardless of their duration, of the prescribed authority, including any preparation time and travel associated with the meetings

00  /artered A!!ountant 7 The title is an internationally recognised proessional designation. $hartered accountants work in all felds o business and fnance# including audit# taation# fnancial and general management. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 21 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

'ro!edure& evelopment o( a Risk Management 'ro$le  The ollowing outlines the process or developing a risk management profle.

1, sta*lis/ t/e !ontet& J >efne and identiy the environment/location# characteristics/eatures

and stakeholders interested parties# people# workers etc1# their goals and ob-ectives# and the scope/area o the specifc risk management process. J >evelop criteria/conditions against which risks are

evaluated/reviewed and identiy the structure/arrangement or risk management.

2, Identi(y and des!ri*e risks& J "isks are best identifed through a collaborative/working together

approach involving a !ross6se!tion12 o stakeholders. J All conceivable/possible risks must be considered. %nsure any

certainties/confrmations are identifed as problems and addressed in the risk management profle.

., ondu!t !urrent risk analysis& J An analysis o the risks is conducted to determine their causes# and

estimate their probability/chance and consequences/results. This analysis provides the basis or working on the Oright4 risks.

, ondu!t risk evaluation& J "isks are considered and prioritised/importance according to their

potential/possibility impact/e5ect and each risk is assessed/evaluated to determine its level o acceptability.

5, evelop and implement proposed risk treatments& J "isk treatments are developed to cost7e5ectively reduce# contain and

control risk. J Formal risk management reporting mechanisms are defned and

documented. J $ategorise the risk likelihood.

02  ross6se!tion& a typical or representative/portion sample o a larger group. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 22 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

7, MonitorG reportG update and manage risks& J As risks change constantly# the risk profle is continuously monitored#

reviewed and updated by management. =ew risks may be identifed as more inormation becomes available and eisting risks may be eliminated through the e5ectiveness o the risk treatments/actions. J 9dentifed risks# and monitoring and management activities should be

recorded and stored as ollows P risks identifed through regular audit should be recorded on the "isk Audit +og P risk management activities should be recorded on the "isk (anagement "egister.

© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 2. o( 2)

Assessment Task 1BSBRSK501 Manage risk 

Ma!:ille+s Risk Areas  The ollowing are our broad areas where potential or risk to (ac)ille has been identifed. nder each area# eamples o possible risks are detailed.

3perational#organisational& J legal and regulatory compliance J technology J insurance J resources human# physical C logisti!s

1.

J marketing J product quality J communications J inrastructure# plant and equipment J customer interaction J market needs.

Einan!ial& J accountability J raud or thet C !apital investment

1

J interest rates J loss o income# unding/fnance.

Fovernan!e& J conduct o ,oard o >irectors C !oni!t o( interest

15

,

03  "ogisti!s 7 the planning and control o the Dow o goods and materials through an organi!ation or manuacturing process 0E  apital Investment 7 unds invested in a firm or enterprise for the purposes of furthering its business ob!ectives

0  oni!t o( interest 7 a conDict between the public and private interests o somebody in an oMcial position © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 2 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

'ro-e!t management& J procedures and tools or pro-ect management J stakeholders : strength o relationships/conDict o interest J human resources i.e sta5# personnel1 J fnancial resources.

© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 25 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

Ma!:ille 'ty "td& Risk management strategy Introdu!tion (ac)ille recognises that risk management is an essential component/part o good management practice and is committed to the proactive/positive management o risks across the organisation. The strategy is designed to J identiy# evaluate/review# control and manage risks J ensure potential threats and opportunities are identifed and

managed J inorm directors# senior management and sta5 members about their

roles# responsibilities and reporting procedures with regards to risk management J ensure risk management is an integral/important part o planning at

all levels o the organisation.

Fuiding 'rin!iples J (ac)ille is committed to achieving its vision# business ob-ectives and

quality ob-ectives by the proactive management o risk at all levels o  the organisation$ acknowledging that embracing/taking on innovative/new ideas and practices carries with it risks# but that these are identifable/known and measurable/can be calculated and thereore capable o being sub-ect to realistic risk mitigation/minimisation processes.

Responsi*ility and Aut/ority J  The ,oard o >irectors have responsibility or ensuring that risk

management is in place. J  The Finance# Audit and "isk (anagement FA"(1 $ommittee has the

responsibility o reviewing the "isk (anagement Action *lan on a si7 monthly basis. J  The $%& and the senior management team have responsibility or

managing risk and advising the ,oard on appropriate controls. J  The $%& and the senior management team support and implement

policies approved by the directors. 17

will be identifed$ closely monitored and action taken where necessary $ by the sta5 and directors.

J Key risk indi!ators

0G © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 27 o( 2)

Assessment Task 1BSBRSK501 Manage risk 

Ma!:ille Risk Management Erame