2024 – To demonstrate your competence in the BSBRSK501 the following theory and practical tasks will need

To demonstrate your competence in the BSBRSK501 the following theory and practical tasks will need to completed. Competence in the workplace refers to the knowledge, skills and attitudes demonstrated by organizational members. It is the ability to consistently perform, over time, a discrete task, under specified conditions, to an agreed standard. These standards are set by industries, enterprises and accrediting bodies. These competencies are developed by learning what to do (declarative knowledge), learning how to do it (procedural knowledge), and when do it (situational or conditional knowledge).

 

Written Questions – see Assessment 1.  The questions are designed to assess your understanding of the unit as well as your underpinning knowledge.

 

Project by 4 Practical Tasks – Assessment 2 below

 

Elements of competence:

 

Establish risk context

Identify risks

Analyse risks

Select and implement treatment

 

Please read all the information given to you before you start any assessment task. If you do not understand some or all of the questions, please ask your Teacher/Assessor for assistance. Attempt to answer all questions in your own words. 

 

Assessment Requirements

A learner guide has been provided to the students as a reference for the purpose of developing suitable answers to complete the assessment. It is important to note that while the learner guide is a general reference, the student is not limited to this text. Answers may be developed and encouraged to be provided through experience and knowledge gained by the student within their workplace environment. There may be need for a student to research material using the Internet or other relevant sources to complete their studies.

 

To demonstrate competence in this assessment you must be able to answer all questions correctly. If you do not answer some questions you are deemed to be Not Yet Competent, your Teacher / Assessor may ask you supplementary questions to determine your competence.  Assessment will take the form of three parts being:

 

Direct evidence which is evidence provided with the assessor present.

Indirect evidence provided by the student away from the presence of the assessor.

Supplementary evidence material provided by the student in support of their competency but not in place of either direct or indirect evidence.

 

Should you still be deemed Not Yet Competent you will have the opportunity to undertake a supplementary assessment or appeal the result. If you feel you are not ready to be assessed or this assessment is unfair, please contact your teacher to discuss your options.

Please print and sign your name below if you understand the assessment instructions and requirements and consent to be assessed.

 

Student Name: ________________________________________________________

 

Student Signature: ____________________________________________________

 

Date: _______________________

 

 

Assessment 2 Tasks

 

Some of the more common risks that apply to small businesses include:

Breakdown of machinery and equipment

High staff turnover or loss of a key staff member especially if they have unique skills

Security of data and intellectual property

Theft

Increased competition

Failure to comply with legislation, regulation and/or standards

Bad debts created by  customers

Negative cash flow

Natural disasters such as fires and storms

Issues relating to internet connectivity, Internet fraud and scams

Insurance coverage

Consequences arising from lack of innovation

Industrial accidents, work injuries

The following website also provides useful information on creating a risk management plan

https://www.business.qld.gov.au/business/running/risk-management/risk-management-plan-business-impact-analysis/identify-risk-business

This document details all of the risk issues facing a restaurant business: http://www.travelers.co.uk/documents/Restaurants_Risk_Management_Guide_UK.pdf

 

Instructions: 

 

This Project evaluates a number of elements of competency that will assess your knowledge and skills in managing risk (see BSBRSK501-Unit Outline for a complete list of elements of competency and performance criteria that you must demonstrate).

This Project can be completed in one of several ways. Assessment candidates may manage risk:

 

Within their own work environment or organisation,

or

With reference to a scenario provided by the trainer/assessor 

 

You must successfully complete all Practical Tasks of this project. If you are not sure about any aspect of this assessment or would like to discuss your particular needs, please speak to your assessor.

 

This project is made up of 4 Practical Tasks:

 

Practical Task 1:  Review current risk management processes and/or Establish Risk Context

 

Task Description

 

This assessment project requires you to establish the context of the risks associated with an organisation or within a part of the organisation.  The project may be completed within your workplace or on the basis of a simulation provided by your trainer.  

 

If you will be completing this activity in your workplace, you will need access to the following:

 

The current risk management plan, if available

If completing this activity for a business unit within the organisation, you will need information about key business activities for this business unit

 

If you will be completing this activity as a simulation, your trainer will provide you with this information. 

 

What is the Risk context?
In order to develop a risk management strategy, an organisation must begin by establishing the risk context. The risk context should take into account both the internal and external set of circumstances or rules within which the organisation is operating. Creating a proper risk context can help an organisation to create an appropriate risk action plan. 

What is the Risk context like?

The risk context is like the background of a story. If you read a story without any real background information, you would fail to understand a lot of things about the characters in the story and the actions which they take as part of that story. If you consider risks to be like characters in the story and you do not look at the context of the risks, you may fail to understand some important things about the risks themselves. Setting the context will help you to see the whole picture.

What is the purpose of determining a Risk context?

It is important to determine the correct risk context, because it will help you to be able to identify the risks which are appropriate for this context. For example, a flower seller will have a completely different risk context to that which might apply to a lion tamer. If they both tried to use the same risk context, they may both land in trouble. Setting a risk context provides a brilliant basis on which to continue on with the rest of the risk management process.

What are the different types of Risk context?

Operational Context – This involves looking at the ways in which an organisation goes about its business. Most operational factors are internal factors, which are often changeable by the management structure.
Strategic Context – This involves looking at the environment (including legal frameworks) within which an organisation operates. Most strategic factors are external factors, which can easily change, but these changes are not usually controlled by the organisation itself.

What’s involved with determining a Risk context?

To determine a risk context, an organisation may have to look at its aims, structure, membership, client-base, activities and methods of operation. The context of each company could be different, even if it is in the same industry as other organisations, because many other factors and circumstances will be different. It is also important to look at the strategic context, because different regions or different industries have different external pressures which affect them.

Where does determining a Risk context fit into the risk management process?

Determining the risk context is the very first step in the risk management process. It must be done before an organisation begins to identify the risks which it faces. If risks were identified before a context was established then they might not be evaluated using the correct context, and therefore the action plan which is devised may not be suitable.

How does the Risk context impact on managing organisational risk?

Establishing context is a very important part of managing organisational risk, because it allows an organisation to consider each risk in its own unique circumstances. Establishing context also helps an organisation to decide on an action plan of how best to address the risks.

What terms are used in Risk context?

Risk – Something which may happen to an organisation.
Context – The circumstances which surround an organisation.
Internal – Parts of the context which comes from within the organization itself, such as the company’s aims and objectives.
External – Factors from outside of the company which may provide part of the context.

 

Write a description of the context for the risks you will be focusing on for this activity.  Include the following:

A review of the existing risk management approach used by the business unit or organisation

The scope for the risk management process (ie. Is it the whole organisation, such as a small business, or a specific department such as the Warehouse Operations of a manufacturing company, or a specific project such as the introduction of a Point of Sale electronic ordering system for a restaurant etc.)

The political, economic, social, policy, legal and/or technological contexts

The strengths and weaknesses of existing risk management arrangements

Critical success factors, goals and objectives

Analysis of the key stakeholders

 

Practical Task 2: Identify Risks

 

Task Description

 

Building on your description of the context of risks for your chosen organisation or business unit from part 1, you are now required to use a range of methods to identify risks.

 

In consultation with relevant parties, develop a list of sources of information you will use to assist you identify risks that apply to the scope you identified in Practical Task 1.

Use these sources of information to research the risks that may apply to scope.

In consultation with relevant parties, use at least two different tools or techniques to generate a list of risks that apply to the scope.  (Tools and techniques may include brainstorming, checklists, fishbone diagrams, flowcharts etc.)

 

Once you have described the context for your risk management process, identify 5 potential risks within the context you have described.  For instance, a café could have risks relating to staff behaviours, supplier reliability, competitor activity, workplace health and safety, risks through fire or theft, loss of key staff, equipment failure, potential changes in customer tastes and preferences. 

 

You need to identify 5 different risks from a range of contexts that you will analyse in Practical task 2 of this assessment

 

Practical Task 2 Checklist 

 

Before you hand in this assessment task, use the checklist below to make sure you have completed all the tasks and have included all relevant information.

Listed the sources of information used to research risk

Generated a list of risks that apply to scope

Evidence of the tools and techniques used (eg. notes from brainstorming, checklists)

 

 

Practical Task 3: Analyse Risks 

 

Task Description

 

This task requires you to analyse the likelihood and impacts of the five risks you have identified and evaluate and prioritise them for treatment.

 

 The following templates below may be of assistance in this task

 

Risk Categorisation Table

 

 

Compile a risk categorisation table for 5 risks you have been examining, showing your assessment of the likelihood of the risks occurring and the impact on the organisation if they do occur.  You may wish to use the matrix below. 

 

Evaluate and prioritise these risks for treatment by rank ordering them.

 

Risk Categorisation Table

 

 

Definitions

Level of Likelihood:

AExpected  – will occur regularly

BProbable – will occur at some stage

CPossible – could occur

DImprobable – could occur but unlikely

ERare – can occur but in limited situations

 

Impact:

1Insignificant

2Minor

3Moderate

4Major

5Catastrophic

 

Level of Risk Matrix:

 

 

 

 

Practical Task 3. Checklist 

 

Before you hand in these assessment tasks, use the checklist below to make sure you have completed all the tasks and have included all relevant information.

 

Compiled a risk categorisation table

 

Practical Task 4: Treat Risks

 

Task Description

 

This task requires you to develop a risk treatment plan to address one of the identified risks.

 

The following template below may be of assistance in this task

 

Risk Treatment Plan

 

Develop an action plan to address identified risks.  Include the following in your plan:

risks

Treatment options

Actions required

Who is responsible

Time frames

Monitoring process

 

Explain the process you would use to implement the risk treatment plan.

Describe the strategies you would use to monitor and review the risk treatments you have planned.

Outline the sources of information you will need to use to review the effectiveness of your risk management strategies.

Describe the process you will follow to ensure accuracy of and appropriate storage of all documentation.

 

 

Practical Task 4: Checklist 

 

Before you hand in these assessment tasks, use the checklist below to make sure you have completed all the tasks and have included all relevant information.

 

Prepared an action plan

Explained the implementation process

Described the strategies to monitor and review the risk management plan

Described the processes used to ensure accuracy of documents and appropriate storage 

 

Example of a Risk Treatment Plan