Task summary

For this task you are required to review the risk context of the organisation and conduct research; and then develop a briefing report for the CEO and shareholders of an organisation.

Resources and equipment required to complete this task

Access to textbooks and other learning materials.

Computer and Microsoft Office (or similar program).

Assessment Cover Sheet Assessment Task 1 Cover Sheet BSBRSK501.docx

Access to the internet for research and to access publications about risk management standards such as: http://www.finance.gov.au/sites/default/files/COV_216905_Risk_Management_Fact_Sheet_FA3_23082010_0.pdf (Links to an external site.)Links to an external site.

Risk Management Policy and Procedure (BSBRSK501 SD Risk Management Policy and Procedure (ID 99163).docx).

When should the task be completed?

Your assessor will provide you with the due date for this assessment.

What needs to be submitted?

Upload an Email to CEO with risk management briefing report attached.

Instructions

You are the Operations Manager of a medium-sized Australian company, NatureCare Products, based in Brisbane. The company commenced business in 1996 and manufactures eco-friendly, high quality beauty skincare products. The business was established to cater for a growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging.

The company sells its products in health food shops across the country, as well as online through its own website. The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of customers are professional women aged 25 - 55.

Strategic priorities focus on business diversification and growth, specifically to increase market share by 10% and to expand the existing product range to attract more customers.

At a recent board meeting, the two company shareholders and the CEO discussed options for expanding the business, including establishing a chain of retail outlets. The CEO has asked you to investigate this by undertaking a risk analysis on establishing a chain of retail outlets. The idea is to initially set up a retail outlet in central Sydney, Brisbane and Melbourne. The CEO and shareholders are keen to get the business expansion started as soon as possible so you need to get your risk management plan in place immediately.

Currently the company employs the following staff: Accounts Manager, Marketing Manager, Marketing Assistant, Sales Manager, four customer service representatives, Office Manager and Administration Assistant, Operations Manager, as well as the CEO and two shareholders as indicated above.

The company currently has a risk management policy and procedure in place that incorporates the AS/NZS ISO 31000:2009 Risk Management Principles and Guidelines.

Review the risk context and conduct research.

Review the case study information provided to you to determine the scope of the risk management process required, as well as the company's risk management policy and procedure and information on risk management standards. Make notes for use in your report that address:

Legislative and regulatory context of the organisation in relation to risk management.

Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process.

An analysis of the strengths and weaknesses of the company's existing retail approach namely, online and through health food shops.

Analysis of critical success factors, goals or objectives for the business expansion project.

Following, this you are required to conduct a PESTLE analysis for NatureCare Products in order to identify key factors that impact on the business environment in which the company operates and their relevance in identifying risks. Make notes for use in your report.

When you have completed your PESTLE analysis, you will be ready to write an initial report for the CEO as outlined in the next activity.

Develop a risk briefing report.

This part of the assessment task requires you to develop an initial report for the CEO about the risk management project and processes and to seek approval to proceed.

Your report should address:

Introduction, including scope of the risk management process and an outline of the risk management process as per the organisation's policy and procedure, as well as how the organisation's process aligns with the risk management standards as identified in the link provided to you. It must also include any legislative and regulatory context of the organisation in relation to risk management that you have identified in your research.

PESTLE analysis identifying the key factors that impact on the environment in which NatureCare Products operates and their relevance to the risk management process.

Identification of internal and external stakeholders with whom you will need to consult to identify potential risks, as well as issues they are likely to raise as part of the risk management process.

An analysis of the strengths and weaknesses of the company's existing retail approach namely, online and through health food shops.

Analysis of critical success factors, goals or objectives for the business expansion project.

When you have completed your report, send it to the CEO (your assessor) via email (upload your email to Canvas). In the email you should provide a brief overview of the risk management project and seek approval to proceed with the process.

Your assessor will send you an email in the role of the CEO providing you with feedback and approval to proceed. Consider any feedback provided to you by the CEO in the next part of the assessment.

What do I need to hand in for this task?

Have I completed this?

Email to CEO with risk management briefing report

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Assessment Task 2: Role Play - Due Date 7, 8 and 12 May in class

Submit Assignment

Due No Due Date

Points 1

Submitting a text entry box or a file upload

Task summary

For this task you are required to participate in a meeting to consult on risk management, and then develop a risk management plan,

Resources and equipment required to complete this task:

Access to a simulated workplace environment - classroom.

Space for a meeting.

Role-play participants.

Notebook or laptop for taking notes.

Risk management plan template (BSBRSK501 SD Risk Management Plan Template (ID 99159).doc).

Access to textbooks and other learning materials

Access to a computer, the Internet, and a web browser

Access to a word processor

Assessment Cover Sheet Assessment Task 2 Cover Sheet BSBRSK501.docx

When and where do I need to complete this task?

You will do this task in the classroom which is set up as the simulated workplace environment.

What do I need to submit (upload)?

Email to CEO.

Risk management plan.

Emails to Administrative Manager and Marketing Manager with plan attached.

Instructions

The CEO and shareholders are impressed with your report and are confident in your ability to handle the risk management plan. They have asked you to consult with the Marketing Manager and the Office Manager to identify the five greatest risks to the company and then develop a risk management plan for dealing with them. The Marketing Manager and the Office Manager will be able to provide you with input as to what their departments consider to be the greatest risks and provide some insight into treatment options.

One of the risks identified already by the CEO is that the company's disaster recovery plan needs to be investigated and updated. This responsibility will fall on you as the Operation's Manager but will require input from the CEO. Last month there was a power outage for 2 hours during an unexpected storm. According to the disaster recovery plan, a generator would kick in after an outage of longer than one hour; however, this never happened. If this happens again and the power outage was longer than three hours - this could mean that many of the products in the process of production would spoil and losses could be high. With new branches opening - product output will need to increase, therefore this is a risk that the CEO is very uncomfortable about.

Send (upload) an email to the Marketing Manager and the Office Manager inviting them to the meeting with a brief explanation of the purpose of the meeting and the input you would like them to provide; as well as the details of time, date and location.

Chair the risk consultation meeting.

During the meeting, your assessor will be looking to see that you:

Summarise the situation and your findings from your briefing report to the CEO and shareholders.

Explain the risk management process.

Invite participation on risks they have identified and which ones they feel are the greatest.

Come to an agreement on the five greatest risks to the company and brainstorm treatment options and actions to be taken.

Communicate effectively by using questioning and listening techniques to encourage other's opinions and clarify your understanding of them.

From the risks identified in the consultative meeting, develop your risk management plan for the top five risks. Your risk management plan needs to include:

An assessment of the likelihood of the risks occurring, as well as the severity of the risk should it occur.

Identification of at least one suitable treatment measure for each of the five risks; and priority rating (high, medium or low) to show the order in which risks must be treated.

An evaluation and prioritisation of risks for treatment.

A risk action plan that sets out for each risk the:

risk description

impact of risk

recommended actions

resource requirements

timelines

responsibilities

monitoring processes.

4. Send your risk management plan to your assessor for approval as the CEO; and once it is approved send an email to the Marketing Manager and the Administrative Manager advising them of the outcome of the meeting; their roles in the plan and how they need to implement these actions and by when.