Case Study - Risk Management

Overview of Problem

Over the last three months at the Brisbane Bounce gym there has been an increase in negative feedback and complaints related to the code of conduct of fitness instructors from the customers. Most of the complaints are related to the following aspects:

• video and audio quality of the online sessions with fitness instructors is not good which leads to problems in following the instructor's advice
• instructors not coming on time for the online classes
• misunderstandings due to poor communication skills especially with customers belonging to diverse cultures.

A new fitness chain has recently opened its center 500m away from the Bounce Fitness gym in Brisbane. This new fitness center has installed one of the best types of video conferencing software to provide an excellent customer experience. The software has good bandwidth and can accommodate a large number of clients in the online sessions people (approx. 500) per session. This means that the trainers and the clients can experience uninterrupted sessions. The new fitness center also has very strict regulations on trainers' attendance at their scheduled sessions, and they also have a robust feedback mechanism to address customer grievances. Owing to the success of these factors by the new fitness center, Bounce Fitness is at risk of losing its current clientele to the new gym.

Evidence collected from the support desk has shown that over a five-month period from January to May that there was an increase in up to 50% in complaints. Table 1 shows the increase in number of complaints from January to May

Table1: Monthly Complaints at Bounce Fitness, Brisbane

Month	Number of Cases	Growth Rate
January	18	-
February	24	33%
March	32	33%
April	45	41%
May	70	56%
June	60
July	50

Reduction in Active Memberships

The General Manager of Human Resources feels that the increase in number of complaints is one of the most important reasons behind the reduction in the number of active members at the Bounce Fitness in Brisbane at Bounce Fitness. Table 2 provides data on Active Members. At the Brisbane Bounce Fitness gym.

Table2: Monthly Active Members at Bounce Fitness, Brisbane

Month	Number of Active Members	Growth Rate
Jan	524	-
Feb	540	3%
Mar	520	-4%
April	492	-5%
May	434	-12%
June	440	1%
July	465	6%

Part 1: Establish the risk context and research risks

1. This task will require students to demonstrate my ability toanalyse information from a range of sources to identify the scope and context of the risk management process. The following tasks need to be updated inBSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

Students are expected to fill this information in Part 1: Task 1 in the document.

1. Identify and list one business risk area that Bounce Fitness Brisbane may be exposed to (the business risk area may be any of the following):

• finance
• WHS & Emergency
• quality
• customer relationship management
• human resources
• marketing
• travel
• contingency planning
• administrative.

2. In accordance with the business risk area identified above, identify the following details by accessing relevant sources or documents from the link - Policies and procedures:

a. two processes

b. two procedures

c. two requirements.

These details must relate to the risk management process followed by the organisation in the identified business risk area.

List the details in the Table 1 of the BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReportgiven in the Organisational Processes, Procedures, and Requirements.

3. After identifying the organisational processes, procedures, and requirements to establish the context of risk management, update the following information in Table 2 of BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

a.List out one area each for included and excluded risk area in the

Establishing the context - Scope' table.

'b.Establish the context of the risk management process, in terms of:

• political context
• economic context
• social context
• legal context
• technology context
• policy context

c. Update the same in table 'Establishing the context' in Table 2.

4. Identify and list two relevant stakeholders of the risk management process. (The roles of the stakeholders can be - owners or shareholders of the organisation, managers and employees, clients and suppliers, competitors, partners and investors, regulators and local community).

Updated The list on Table 5 in

BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

5. Identify two existing arrangements (risk management policies, procedures and processes that are currently followed) that follow the risk management process.In addition to that also identify and review the two strengths and two weaknesses of each of the processes. (Existing arrangements are risk management policies, procedures, and processes that are currently followed in the organisation.) This information must be updated on Table 6 in BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

6. Identify the following for the business risk area included in the scope for risk management process:

a. two critical success factors.

b. two goals.

c. two objectives.

Update the above information in Table 7 in

BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

7. Research and identify three risks from the identified area that may apply to the scope i determined.

Update this information in Table 8 of

BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport

The tables BSBOPS504_AE_Pro2of2_Appx_2RiskManagementReport:

Part 1 Task 1

Organizational Processes, Procedures, and Requirements These details must relate to the risk management process followed by the organization.
Business risk area (Identify any one area)	Finance WHS & Emergency Quality Customer relationship management Human resources Marketing Travel Contingency planning Administrative
Processes	1. 2.
Procedures	1. 2.
Requirements

Table 2 : Part 1 Task 1

Establishing the Context
Scope	Included area
Excluded area
(For each of the following contexts, identify at least one factor that influences workplace business activity and explain how the context is derived from my evaluation of the organizational processes, procedures, and requirements.)
Political Context	Factor
Explanation
Economic Context	Factor
Explanation
Social Context	Factor
Explanation
Legal Context	Factor
Explanation
Technological Context	Factor
Explanation
Policy or Environmental Context	Factor
Explanation

Table3 : Part 1 Task 1

Organizational Processes, Procedures, and Requirements
Business risk area
Processes	1. 2.
Procedures	1. 2.

Table 4 : Part 1 Task 1

Establishing the Context
Scope	Included area
Excluded area
(For each of the following contexts, identify at least one factor that influences workplace business activity and explain how the context is derived from my evaluation of the organizational processes, procedures, and requirements.)
Political Context	Factor
Explanation
Economic Context	Factor
Explanation
Social Context	Factor
Explanation
Legal Context	Factor
Explanation
Technological Context	Factor
Explanation
Policy Context	Factor
Explanation

Table 5 : Part 1 Task 1

Stakeholders
Name of stakeholder	Type of stakeholder	Work role of stakeholder
1.	Competitor Customer Employee Industry group Supplier
2.	Competitor Customer Employee Industry group Supplier

Table 6 : Part 1 Task 1

Existing Arrangements
Existing Arrangement 1	Strengths	1. 2.
Weaknesses	1. 2.
Evaluation
Existing Arrangement 2	Strengths	1. 2.
Weaknesses	1. 2.
Explanation

Table 7 : Part 1 Task 1

Critical Success Factors, Goals, and Objectives
Critical Success Factors	1. 2.
Goals	1. 2.
Objectives	1. 2.

Table 8 : Part 1 Task 2

Business Risks
Business Risk 1
Business Risk 2
Business Risk 3

Part 2: Develop risk treatment schedule and plan

To complete this part of the assessment,i will be required to demonstrate my ability toanalyse the risks that were identified in Part 1 and develop a risk treatment plan for two risks.

To complete this task, i must:

1. List the three risks that i identified in Part1 Task 3 in the Risk Register.For each identified risk:

a. Provide a risk description (This must conform with the risk description in the updated Risk Management Report from Part 1.)

b. Assess the likelihood of the risk occurring from the risk rating matrix table in the risk register.

c. Assess the impact or consequence if the risk occurs select from the risk rating matrix table and refer to the Likelihood and impact definition table in the risk register.

d. Calculate the risk rating using the following formula: Risk rating = (Probability or likelihood of risk occurrence) (Impact or cost if risk occurs)

e.Assign an initial risk rating to the risk (from the risk rating matrix in the register).

f. Assign a priority level for each risk based on its risk rating.

g. Identify two possible control measures for treating each risk.

2. Prepare the Risk Treatment Schedule and Plan with:

a. The identified risks. Write the risks in order of the priority ratings identified in the Risk Register.

b. Risk treatment option. Identify whether to avoid, reduce, transfer, or accept the risk.

c. Risk treatment actions.

d. Personnel responsible for implementation of treatment activity.

e.Target date for implementation.

f. One expected outcome of implementation. Each outcome must be SMART (Specific, Measurable, Achievable, Relevant, Timebound).

g. Identify the current treatment to manage the risk.

Risk Description	Risk Assessment	Control Measure	Current Treatment to Manage Risk
Likelihood (L)	Impact (I)	Risk Rating (R)	Priority Level
					1. 2.
					1. 2.
					1. 2.

Part 3: Implement, Monitor and evaluate Risk Treatment Plan

Task 1: Implement Risk Treatment Plan

1. Access and identify the following details for my organisation. Students can access the document for this on Risk Management Policy and Procedures.

a. two policies for risk treatment implementation.

b. two procedures for risk treatment implementation.

2. For each risk:

a. Update the Risk Treatment Schedule and Plan with the Actual Date of Implementation in Table 1 inBSBOPS504_AE_Pro2of2_Appx_4RiskTreatmentScheduleAndPlan

Risk Treatment Schedule and Plan

Table 1 : Part 2

Risk Treatment Plan

Risk

Risk Treatment Option (Avoid/ Reduce/ Transfer/ Accept)

Risk Treatment Action

Personnel Responsible

Target Date for Implementation

Expected Outcomes

Actual Date of Implementation

1.

2.

3.

Table2 : Part 3 Task 2

Risk Monitoring
Risk Treatment Actions	Monitoring 1		Monitoring 2
	Date of Monitoring	Actual Outcomes	Date of Monitoring	Actual Outcomes

Table3 : Part 3 Task 2

Evaluation of Implementation
Favourable Outcomes		Unfavourable Outcomes
Outcome	Reason for Variance	Outcome	Reason for Variance

Table4 : Part 3 Task 2

Areas of Improvement (Identify areas of improvement in the risk management process based on the actual outcomes of the implementation.)
Area of Improvement	Reason for Selecting this Area

Task 2: Monitor and evaluate Risk Treatment Plan

During the task, students will need to:

1. Monitor the implemented risk treatment actions. The first monitoring session will be conducted in May 20XX and the second monitoring session will be conducted in July 20XX
2. For each monitoring occasion, update the Risk Monitoring section of the BSBOPS504_AE_Pro2of2_Appx_4RiskTreatmentScheduleAndPlan

with the following:

• date of monitoring
• actual outcomes.
• risk treatment action

3. After the second monitoring occasion:

a.Evaluate the implementation of the Risk Treatment Plan section of theBSBOPS504_AE_Pro2of2_Appx_4RiskTreatmentScheduleAndPlan

by comparing the actual outcomes against the expected outcomes

• identify one favourable outcome
• identify the reason for the favourable variance
• identify one unfavourable outcome
• identify the reason for the unfavourable variance.

b. Identify two areas of improvement for each risk in the risk management process based on the actual outcomes of the implementation. Provide a reason for selecting each area of improvement

Table 1 : Part 2

Risk Treatment Plan

Risk

Risk Treatment Option (Avoid/ Reduce/ Transfer/ Accept)

Risk Treatment Action

Personnel Responsible

Target Date for Implementation

Expected Outcomes

Actual Date of Implementation

1.

2.

3.

Table2 : Part 3 Task 2

Risk Monitoring
Risk Treatment Actions	Monitoring 1		Monitoring 2
	Date of Monitoring	Actual Outcomes	Date of Monitoring	Actual Outcomes

Table3 : Part 3 Task 2

Evaluation of Implementation
Favourable Outcomes		Unfavourable Outcomes
Outcome	Reason for Variance	Outcome	Reason for Variance

Table4 : Part 3 Task 2

Areas of Improvement (Identify areas of improvement in the risk management process based on the actual outcomes of the implementation.)
Area of Improvement	Reason for Selecting this Area

3. After the second monitoring occasion:

a.Evaluate the implementation of the Risk Treatment Plan section of theBSBOPS504_AE_Pro2of2_Appx_4RiskTreatmentScheduleAndPlan

by comparing the actual outcomes against the expected outcomes

• identify one favourable outcome
• identify the reason for the favourable variance
• identify one unfavourable outcome
• identify the reason for the unfavourable variance.

b. Identify two areas of improvement for each risk in the risk management process based on the actual outcomes of the implementation. Provide a reason for selecting each area of improvement

Table 1 : Part 2

Risk Treatment Plan

Risk

Risk Treatment Option (Avoid/ Reduce/ Transfer/ Accept)

Risk Treatment Action

Personnel Responsible

Target Date for Implementation

Expected Outcomes

Actual Date of Implementation

1.

2.

3.

Table2 : Part 3 Task 2

Risk Monitoring
Risk Treatment Actions	Monitoring 1		Monitoring 2
	Date of Monitoring	Actual Outcomes	Date of Monitoring	Actual Outcomes

Table3 : Part 3 Task 2

Evaluation of Implementation
Favourable Outcomes		Unfavourable Outcomes
Outcome	Reason for Variance	Outcome	Reason for Variance

Table4 : Part 3 Task 2

Areas of Improvement (Identify areas of improvement in the risk management process based on the actual outcomes of the implementation.)
Area of Improvement	Reason for Selecting this Area