RTO No: 91223

Assessment Task 1

BSBOPS504 Manage business risk

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Assessment Task 1 Cover Sheet

Student Declaration
To be filled out and submitted with assessment responses

 I declare that this task is all my own work and I have not cheated or plagiarised the work or
colluded with any other student(s).
 I understand that if I am found to have plagiarised, cheated or colluded, action will be taken
against me according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Jacob Lloyd Jones
Student name

SCS1787
Student ID number

J. Jones
Student signature

Date

Assessor declaration
 I hereby certify that this student has been assessed by me and that the assessment has been
carried out according to the required assessment procedures.

Assessor name

Assessor signature

Date

Assessment outcome S NS DNS Resubmission Y N

Feedback

Student result response

 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student signature

Date

A copy of this page must be supplied to the office and kept in the student’s file with the evidence.

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 Assessment Task 1: Knowledge questions

Information for students

Knowledge questions are designed to help you demonstrate the knowledge which you have acquired
during the learning phase of this unit. Ensure that you:

 review the advice to students regarding answering knowledge questions in the Business Works
Student User Guide

 comply with the due date for assessment which your assessor will provide

 adhere with your RTO’s submission guidelines

 answer all questions completely and correctly

 submit work which is original and, where necessary, properly referenced

 submit a completed cover sheet with your work

 avoid sharing your answers with other students.

i
Assessment information
Information about how you should complete this assessment can be found in Appendix
A of the Business Works Student User Guide. Refer to the appendix for information on:

 where this task should be completed

 the maximum time allowed for completing this assessment task

 whether or not this task is open-book.

Note: You must complete and submit an assessment cover sheet with your work. A
template is provided in Appendix C of the Student User Guide. However, if your RTO
has provided you with an assessment cover sheet, please ensure that you use that.

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Questions
Provide answers to all of the questions below:

1. Explain the risk management process. You may answer using a labelled diagram or in words (or
both) and must include:

 a definition of risk management: Risk management in business is about using sound

judgement and decision-making skills to reduce the consequences of risk while still making
the most of the opportunities available to you. It is about establishing, mitigating and
responding to risks and setting up a plan to deal with them.

 a list or illustration of the steps in a risk management process:

Identify Analyse Control Monitor

 a description of what each step involves.

The typical risk management process essentially comprises of four steps or stages:
o risk identification: reveal what, where, when, why, and how something could affect a
company's ability to operate
o risk analysis: involve examining how project outcomes and objectives might change due to
the impact of the risk event
o risk mitigation (or control): prepare for and lessen the effects of threats faced by a business

o monitoring implemented risk control measures: involve regular checking or surveillance to

ensure the effectiveness of control measures

2. Describe a current risk management standard. In your answer:

 name the standard: AS/NZS ISO 31000:2018

 explain the purpose of the standard: give terms and definitions relating to “risk
management” and provide information and step-by-step guidance. It is considered ‘best
practice’ or the benchmark against which an organisation’s risk management practices can
be judged.

 list key elements of the standard:

o principles underlying risk management

o the risk management framework

o the risk management process

3. Complete the table below to describe the types of business risk.

© 2020 RTO Works Strathfield College RTO: 91223 CRICOS Provider Code: 02736K Page
Type of Description Example Key responsibility
risk
(at least two people)

Strategic These risks can occur at A business sells natural  CEO

risk any time and are related sunscreen in lotion form
 Managing director
to the business or but over time people’s
organisation’s strategy. preference for lotion
declines and more
people want a spray form
of sunscreen.

Compliance These risks involve Complying to all  Head of safety

risk having to comply with regulations due to
 Head of operations
rules set by government COVID-19 and having a
or regulatory bodies. COVID Safe plan that
meets requirements.

Financial These risks affect the Customers not paying on  CFO

risk financial health of a time (or paying in
 Financial controller
business (cash flow, instalments).
liquidity, financial
position, debt burden
etc.)

Operational These risks are Targets not being met  Head of operations
risk associated with a because a machine
 Managers/supervisors
business or breaks down.
organisations’ systems
and processes.

4. Complete the table to explain three different tools and techniques that may be used to identify
risk. The first row has been completed as an example for you to follow.

Technique/tool Description

Brainstorming A group discussion to produce as many ideas or solutions to

problems in a pre-determined amount of time.

Interviews During a structured interview, interviewees are asked a set of

prepared questions to encourage the interviewee to present their
own perspective and thus identify risks.

Checklists Checklists are pre-populated lists of hazards, risks or control

failures that have been developed usually from experience, either
as a result of a previous risk assessment or as a result of past
failures or incidents.

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Technique/tool Description

Structured “What-if” This is a systematic, team based exercise, where the facilitator
Technique (SWIFT) utilises a set of ‘prompt’ words or phrases to stimulate participants
to identify risks.

Bow Tie Analysis Bow tie analysis is a diagrammatic way of describing, linking and
analysing the pathways of a risk from causes to
effects/consequences.

Direct Observations This relatively simple technique is used daily in the workplace by
staff who may observe risky situations and hazards regularly. A
risk aware culture and well trained staff will improve people’s
ability to observe potential risks and implement controls before the
risk eventuates into an incident.

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

 avoid the risk (for example, avoid the risk of employees being distracted by not allowing them
access to any social media sites during business hours)

 prevent the risk (for example, prevent data leakages by limiting the number of people who
have access to sensitive information)

 contain the risk (for example, contain the risk of hackers accessing data by installing a
stronger firewall)

 accept the risk (when the risk level is very low, when the treatment cost is much higher than
the cost of the damage or when the benefit of taking the risk far outweighs the potential
damage)

6. Explain how legislation and its related regulatory requirements relate to risk management. In your
answer:

 identify two different legislative and regulatory requirements that may apply to risk
management.

 for each legislative requirement, explain how it relates to risk management.

 provide one example of how regulations support one of the legislation.

Fair Work Act & Fair Work Regulations: The Fair Work Act broadly covers workplace relations,
and provides for the minimum employment standards and regulates on a range of employment
and industrial matters. The Act is one of the primary pieces of legislation that govern the
employment relationship in most of Australia’s private workplaces. It is the foundation of all
minimum standards and regulations for employment that fall within the national workplace
system. Failure to conform with this Act can lead to warnings, fines or more dire consequences
for serious, continued or intentional and deliberate action (including imprisonment in some
cases).

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 WHS (Work Health and Safety) Acts & WHS Regulations: The benefits of regulations on risk
management include maintaining economic stability, increasing transparency, protecting against
fraudulent, illegal, and unfair practices. It can also involve negative media publicity when non-
compliance becomes public especially in terms of the impact of social media. The WHS Act and
Regulations require persons who have a duty to ensure health and safety to 'manage risks' by
eliminating health and safety risks so far as is reasonably practicable, and if it is not reasonably
practicable to do so, to minimise those risks so far as is reasonably practicable.

7. Explain the purpose of risk management policies and procedures in the workplace as they relate
to risk management.

Organisational documentation are workplace documents created by management and are

relevant to risk management. Organisational policies and procedures are put in place to make
sure everyone is as safe as possible and to ensure a successful outcome for the business or
organisation. For example:

 Strategic plan & Operational plan

 Policies & procedures (e.g., document storage, privacy, confidentiality, recruitment,

performance appraisal, work health and safety)

8. Complete the table below to summarise how three policies and procedures relate to risk
management.

Policy/procedure Description

Record keeping policy and Records and information-related risk assessment can be used
procedure to enhance an organisation’s performance, reduce business
risks and help information managers manage information
strategically.

WHS policy and procedure WHS Risk Management is a systematic process of identifying
hazards, assessing the risk associated with those hazards,
eliminating or controlling those risks and monitoring and
reviewing risk control measures.

Confidentiality Monitoring allows effective management of confidentiality risks.

policy/procedure The relationship of Confidentiality policy/procedure and Risk
management is the likelihood of a person or an organisation
being identified and the confidentiality methods used to
minimise the risk of identification.

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Assessment Task 1: Checklist

Student’s name:

Did the student provide a Completed

sufficient and clear answer successfully? Comments
that addresses the
suggested answer for the Yes No
following?

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Task outcome:  Satisfactory  Not satisfactory

Assessor signature:

Assessor name:

Date:

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