Common Business Unit

BSBRSK401A Identify risk and apply risk management

processes
Written Assessment

Student Name: XXXXXX

Student Number: XXXXXX
Assessment Number: 21917/01

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Instructions
Once you feel confident that you have covered the learning materials for this unit, you are ready
to attempt this assessment.
To complete the assessment, please type your answers to each question or task in this
document.
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number].doc for example 12345678_21850a_01.docx.

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Competency and Grading

To achieve a Pass (PA) grade for this assessment, you must at a minimum address all
the requirements specified in the assessment instructions in order to demonstrate your
competency. To achieve a higher grade such as a Credit (CR), Distinction (DN) or High
Distinction (HD), your assessor will be looking for additional details, research, analysis
and referencing where it is not specified. This will demonstrate your in-depth
understanding and application beyond the assessment requirements but within the
context of the unit being delivered.
See further information on grading located in your Student Handbook.
Assessment Task 1
Identify risk and plan risk management

Performance objective
You must demonstrate the skills and knowledge necessary to identifying risk and
planning risk treatment in the context of a simulated business.

Assessment description
To complete this assessment task, you will need to review a simulated business and
associated documentation, identify and document risks, analyse and evaluate risks to
determine level of risk for the organisation, and plan to treat risk. You will need to
perform these activities in accordance with organisational requirements and the
international and Australian standard for risk management, AS/NZS ISO 31000:2009.

Procedure
1 Review the simulated business information for MacVille in the Appendices of your
Student Workbook.
2 Review the scenario information contained in the Appendices of this assessment
task.
3 Identify the internal and external context for risk management with respect to the
MacVille scenario.
4 Identify three risks using tools, for example, checklists, research notes, notes of
meetings with stakeholders.
5 Analyse each identified risk to identify likelihood and consequence of each risk.
6 Determine the level of risk for each risk.

7 Consult with three stakeholders to assist your analysis and evaluation of risk. Ask
questions to gather information from stakeholders.
Note: You may use any individual as part of the role-play such as, a family
member, friend, study buddy or work colleague. They will need to act out one of the
relevant stakeholders, contained in the Appendix 1 of this assessment task. For the
best outcome you may need to provide them with added context, to understand the
full requirements of the consultation.
8 Weigh possible control measures for each risk, assessing strengths and
weaknesses of each measure.
9 Determine control measures for each risk.
10 Determine resources and responsibilities for control of risks. Resources may
include financial resources, human resources, or any equipment you determine to
be necessary to implement control of risks.
11 Document process and outcomes of identification, analysis, and evaluation:
a Write a two- to three-page reflection on the process you undertook to identify
risks and plan risk management:
i

ensure you refer to specific legislation and/or key provisions of

legislation relevant to risks

ii ensure you explain how your process was consistent with organisational
requirements and AS/NZS ISO 31000:2009
iii ensure you identify tools used and explain your use of tools to identify
risks
iv ensure you explain how you used research and information gathering
skills to identify risks and determine the acceptability of risk
v ensure you explain how information from consultation with stakeholders
informed your analysis and evaluation of risk
vi ensure you explain how you weighed control options and determined
controls.
b Complete the risk register template.
c Complete the risk treatment action plan template.
Ensure your own responsibilities and those of others are clearly recorded.
Ensure you have included at least two activities that you will be able to
implement in full or in part for Assessment Task 2.
Note: for Assessment Task 2, you will need to implement and monitor
success of, for example, two activities, such as:
i

producing policies

ii producing procedures
iii producing role descriptions
iv producing signage
v producing written communications
vi producing video evidence of risk treatment
And/or directly demonstrate implementation:
vii presenting plans
viii presenting information sessions for workers/managers
ix training for workers or managers
x demonstrating use or setup of risk management tools
xi demonstrating procedures to reduce risk.
Ensure two such activities are included in your risk treatment action plan
template.
12 Submit your completed assessment - in accordance with the specifications listed
below - to OpenSpace. Ensure you keep copies of your work for your own
reference and for reference as you complete Assessment Task 2.

Specifications
You must:

submit your completed tools

submit a two- to three-page reflection

submit a risk register template

submit a risk treatment action plan

participate in three consultation role-plays with risk stakeholders.

Your assessor will be looking for:

literacy skills sufficient to read and understand policies and procedures, and
standards documentation, and to write, edit and proofread documents to ensure
clarity of meaning, accuracy and consistency of information

research and data collection skills to identify risks using tools, analyse and
evaluate risks in consultation with stakeholders

problem-solving skills to appropriately address identified risks

Australian and international standards for risk management

demonstrated knowledge of key provisions of relevant legislation from all levels of

government that may affect aspects of business operations, such as:
anti-discrimination legislation
ethical principles
codes of practice
privacy laws
environmental issues
occupational health and safety.

demonstrated knowledge of organisational policies and procedures relating to risk

management processes and strategies.

Appendix 1 Scenario: MacVille

MacVille is an Australian coffee supply business. The company imports coffee and
supplies cafes and restaurants with top quality coffee, which is produced and distributed
in line with the highest social and environmental standards. Within five years, MacVille
intends to have established itself as the number one coffee supplier for fine coffee shops
and restaurants in Australia. To achieve the company vision, MacVilles strategic
directions include:

engaging clients with excellent service to increase sales volume

reducing expenditure and achieving financial control over expenses

establishing MacVille as employer of choice through supporting innovative thinking,

performance management and leadership skills through training, and exemplary
health and safety performance

monitoring supplier quality and triple bottom-line impact.

These strategic directions are reflected in sales and operational targets at every level of
the company and are also reflected in individual performance measures. The
organisation must effectively identify and manage risk to strategic goals.
MacVille strategic assets
In general terms, MacVille possesses the following strategic assets which may be
considered at risk in any venture, project or aspect of day-to-day operations:
Asset
Workforce

Technology

Description
The MacVille workforce is loyal, expert and motivated. The workforce
includes:
sales teams and managers
roasters and managers of production and packaging team
distribution team and managers.
MacVilles reputation as employer of choice is a key strategic asset.
MacVille trains its workforce and management team and commits to staff
development and advancement. MacVille pays extremely competitive
wages and commits to staff wellbeing through wellness and health and
safety management programs. MacVilles commitment to staff extends to
involving staff and seeking feedback on organisational strategic directions
and activities, particularly activities directly or potentially affecting staff.
MacVille possesses expert, proprietary roasting equipment and
techniques. Techniques are most important and are a closely guarded
secret. Using MacVille in-house equipment and techniques allows
MacVille to tightly ensure production quality and supplies of product for
sale.

Asset
Supplier
relationship
s
Reputation

Description
MacVille maintains a tightly knit network of suppliers to ensure supply and
advance notice of potential supply issues. Suppliers are loyal to MacVille.
MacVille encourages such loyalty by paying fair prices for raw beans and
making regular purchases.
The MacVille business model is underpinned by its commitment to triple
bottom line reporting and responsibility: social, economic, environmental
responsibility. A key to MacVilles success with customers has been its
commitment to Fair Trade practices.

Identifying particular risks to individual projects or ventures will require research and
information gathering on the internal and external context of risk concerning MacVille.
Such information gathering may include research into local, domestic and international
political, environmental, social and technological conditions, standards, codes of
conduct. It will necessitate direct or indirect consultation with internal and external risk
stakeholders.
Note that, in analysing risk consequence, MacVille adheres to the following guidelines:

Insignificant: Less than 5% of revenue

Minor: 510% of revenue

Moderate: 1020% of revenue

Major: 2040% of revenue

Catastrophic: above 40% of revenue.

A new venture
MacVille has established a relationship with a small village in the highlands of Papua
New Guinea (PNG) that grows coffee beans. MacVille is committed to providing
equipment and high-level skilled training to the village so that the local villagers can
harvest and roast the beans in-country, rather than exporting the green beans as they
currently do. MacVille will develop the villages capacity in exchange for cheaper roasted
beans. The costs of development are budgeted to be less than or to equal to the savings
gained. The village will incorporate, with every villager a shareholder in the new venture.
The village will eventually become a completely independent supplier.
It is anticipated that PNG could potentially supply up to 20% of MacVilles roast bean
supplies.
This endeavour is a major marketing coup for MacVille, as they can strongly market the
Fairtrade certification aspects of this, due to the large investment they are making into
the village and the skilled trade ability they are giving to the villagers.

It will have additional benefits to MacVille, which include saving considerable amounts of
money in both energy and water use, not to mention domestic labour costs and cost of
sales.
The venture is not expected to have any effect on domestic production, jobs,
advancement, etc., due to increased efficiencies, expansion into new markets, and
increased sales made possible by the venture.
Stakeholders and project team members:
Name

Position

John Wu

Operations
Manager

You

Communication
s and Training
Officer
Project Leader

Oliver
Hughes

Australian
Human
Resources and
Training
Manager
PNG Fairtrade
Consultant
(contracted to
Macville)
PNG Quality
and Production
Officer
(Macville
employee)

Yosef Malouf

Geoffrey
Blanche

Duties/importance to operations/reason for

stakeholder interest
Chair of FARM Committee and project owner:
full decision-making powers for project
overall responsibility for ensuring supply,
production, supplier relationships
monitoring supplies
monitoring production expenses.
responsibility for overseeing, planning,
implementation and risk management
particular responsibilities for implementation
include communications and training for project
team members, Board of Directors, FARM
Committee and Australian staff and managers
you will be reporting to the MacVille board of
directors and the Finance and Risk Management
(FARM) Committee.
monitoring production to achieve production
targets
maintaining and overseeing staff performance
and morale.

ensuring and monitoring safety standards, and

the social, economic and environmental impacts
of MacVille operations on PNG
does not speak local dialect.
ensuring and monitoring MacVille standards of
quality and rate of production to meet MacVille
requirements
point of contact between MacVille and PNG
supplier
does not speak local dialect.

Name

Position

Connie Black Sales and

Marketing
Manager
Harold Jones Consultant in
PNG
(contracted to
Macville on
monthly basis)

Duties/importance to operations/reason for

stakeholder interest
responsibility for monitoring and meeting sales
targets, understanding customer and client
needs and concerns.
speaks both pidgin and the local village dialect,
so he can liaise with clan chief Dikana
high-level contacts and influence within PNG
Government.

Your role and task

You have recently been assigned to work in a project team charged with the
implementation of the new business endeavour for MacVille. Your duties within the
project team include:

risk identification

analysis

evaluation

implementing and monitoring risk treatment, particularly in own areas of specific

responsibility: communications, training, demonstrating procedures for affected
managers and staff.

As the project leader, you will need to identify possible risks, particularly risks with
strategic impact for MacVille. Some research, for example, internet research of PNG
conditions or legislative requirements, may be necessary to identify risk and establish
context. In accordance with the relevant risk management standard, you will need to
analyse and evaluate risks, ensuring you consult with stakeholders to assist you with this
important task.
In accordance with MacVille requirements, you will need to follow MacVille risk
management policy and framework and reporting requirements. MacVille requires the
completion of a risk register for each venture or project and a risk treatment action plan.
It is now the beginning of the first quarter of the financial year. MacVille expects risk
management activities to have begun (or be ongoing) simultaneously with
implementation of production by end of second quarter.

Appendix 2 MacVille Risk Register template

Risk
1.

2.

3.

4.

5.

Risk consequence

Risk likelihood

Risk level
(L, M, H, E)

Control/s

Appendix 3 MacVille Risk Treatment Action Plan template

Risk treatment activity
1.

2.

3.

Resources

Responsible

Timelines