BSB60407 Advanced Diploma of Management ~ Grade Acer Support for Assignment

BSB60407 Advanced Diploma of Management

BSBRSK501B Manage risk

The following assessments are to be

(a) completed and

(b) submitted

in accordance with the associated

STANDARD INSTRUCTIONS

ASSESSMENT COVER SHEET

To obtain the qualification of BSBIRSK501B Manage risk, the skills and knowledge required are summed as: Skills

Learner should have:

• communication and literacy skills to consult and negotiate, to prepare communication about risk management, and to encourage stakeholder involvement.

• Organisational and management skills to plan and implement risk management process.

• Problem – solving and innovation skills to find practical ways to manage identified risks.

Knowledge

• AS/NZS 4360 : 2004 Risk management

• legislation, codes of practice and national standards, for example;

a) duty of care

b) company law

c) contract law

d) environmental law

e) freedom of information

f) industrial relations law

g) privacy and confidentiality

h) legislation relevant to organisation's operations

i) legislation relevant to operations as a business entity

• organisational policies and procedures including;

a) risk management strategies

b) policies and procedures for risk management

• overall operations of organisation

• reasonable adjustment in the workplace for people with a disability

• types of availability insurance and insurance providers.

Assessments Tasks to be completed

There are four (4) assessment tasks to be completed for this unit.

Assessment Part A. Knowledge test.

Performance objective

You are required to demonstrate understanding of a wide range of questions to assess your underpinning knowledge of the management of risk.

Specifications (submit)

• written responses to all questions provided. Your assessor will be looking for:

* evidence that you understand the required legislative requirements

* evidence that you understand risk management practices in the business sector.

Adjustment for distance-based learners

This test can be adjusted for distance learners. Options include the following. Option 1: Submit test as a report

Procedure:

* no variation of the task is required (templates will be emailed to you) * Follow-up interview may be required (at the discretion of the assessor)

* Documentation can be submitted electronically or paper-based.

Option 2: Conduct test as an interview

This option involves holding an interview with the candidate on Skype or by telephone.

Procedure:

* the assessor will schedule a date for the interview and email required templates to you

* the assessor will make contact with the learner and commence the interview

* after the interview you will complete the templates using supplied information and return them to your assessor within an agreed timeframe

* supplementary information or a follow up interview may be required (at the discretion of the assessor).

Assessment description

For this task you are required to demonstrate an understanding of standards and legislation relevant to risk management, and the management of risk across an organization in a range of contexts.

Procedure

• (Some of the knowledge will not have been discussed in class and this will require you to study your workbook for the information. This knowledge will assist you when applying it later.)

You are required to:

1. Review the written questions provided

2. Provide written responses to the questions

3. Submit your responses in the agreed timeframe.

1. What are three ways that research can be conducted for risk-related issues* For each way, briefly describe how it may be done.

2. Fishbone checklists and brainstorming are both tools that can be used in risk management. Describe each of these and when they would best be used.

3. What are the five stages of risk likelihood* Briefly describe each one.

4. List and give an example description for each of the five levels of consequence for risk.

5. What needs should be considered when treating risk* List and describe three treatments that could be considered.

6. What should be included in a risk action plan* Describe the key inclusions and briefly the type of information included with each inclusion.

7. How does the AS/NZS ISO 31000:2009 Risk management – principles and guidelines standard assist organisations to reduce risk*

8. For each of the pieces of legislation listed, describe the intent of each and how it could impact on the process of managing risk.

a. Privacy law.

b. WHS regulations.

c. Contract law.

9. Name and give an example for three adjustments that can be made in the workplace to assist a person with a disability.

10. List two types of insurance an organisation could consider purchasing, and for each type, describe the risks covered by the insurance and the benefit to the organisation.

Assessment Part B. Risk review.

Performance objective

For this task you are required to determine the risk context associated with establishing a new business outlet, within the existing business structure. They will be required to review internal and external environment factors and liaise with all stakeholders to generate a list of risks.

Specifications (submit)

• An email by completing (in dot-points) the partial-completed email shown in Procedures based on the information in the case study provided.

• A brief table of notes covering each of the following

* All of the issues and identifying those about which you require further information

* stakeholders from whom that information may be obtained

* the questions you would propose to put to the relevant stakeholder Your assessor will be looking for:

• evidence that you analyzed and identified the needs of the case study and have clearly reflected these in the email and table.

Assessment description

For the case study provided with this Assessment Task, you are required to review risk management processes and determine scope and objectives, taking into account stakeholder input and both internal and external environmental factors affecting the organisation. With the information gathered, you are to identify risks and present this to relevant parties for feedback.

Procedure

For the provided case study, you will assume the role of the risk manager/assessor.

1. Review the Risk Management Policy and Risk Management Strategy in the MacVille Case Study in Appendix 1 and take note of the following.

i. Scope – Identify the scope of risk management required in your identified role.

ii. Goals – Identify and describe the critical success factors, goals or objectives for areas included in scope.

iii. Stakeholders – Identify internal and external stakeholders, their role in the process, and any issues or concerns they have. Present this using the table format provided.

iv. Analysis –Complete a PEST analysis a SWOT analysis for risks monitoring and evaluation associated with the scenario. Include reference to relevant legislation.

v. Research – Review and summarise the research information provided in the case study, as well as any literature available that is relevant to this scenario.

vi. Describe – Complete the analysis of risk for the scenario by summarising the scenario and associated risks, accompanied by checklists, diagrams or flowcharts that support the summary.

2. Complete the following email by including each of the topics previously highlighted.

Email from: Assistant Manager – Queen Street

To: CEO – Paula Kinski

Re: New Toowoomba store

Thank you for the opportunity to become Manager of the new Toowoomba store. I have commenced several actions of the actions you identified. I understand the importance of the tasks especially around the risks and, as a new manager, I wished to check with you at this stage that I am covering all the key issues before completing the formal report. I propose to include:

Would you please advise of any other issues that should be included.

Regards

Amanada Cheng

Manager MacVille Cafes Ruthven Street

3. Use the following example as a basis for your table of notes.

ISSUE FURTHER

INFORMATION

REQUIRED Y/N STAKEHOLDER QUESTION

Long drive after meetings Y CEO If I need to stay up late in

Toowoomba, it might be better on some nights to stay there. What is situation with the costs of overnight stays* What are your thoughts*

Adjustment for distance-based learners

• Complete assessment as per instructions, the only difference being that the meeting with your manager (the assessor) will be via phone or Skype or other live telephone or video medium.

Assessment Part C. Risk reports.

Performance objective

In this assessment you are to analyze the risks identified in the case study, to assess likelihood and consequence of risks, evaluate and prioritize risks, and determine options for treatment. You are also required to develop an action plan for treatment of risks, and communicate it to relevant parties.

Specifications (submit)

* A completed Risk Analysis Report table based on the table in the Procedures.

* A completed Risk Management Report table based on the table in the Procedures.

(Assessment Part C follows on from and incorporates the responses to Assessment Part B) Your assessor will be looking for:

* evidence that you analysed and identified the risks relevant to the case study, and established suitable plans for managing the risks.

Assessment description

Using the information gathered in Assessment Part A and the case study provided, examine the likelihood and consequences of identified risks, prioritize the risks and determine options for treatment of each risk. Using this information you are required to develop an action plan for implementing risk treatment, document the plan as required, and communicate the risk management plan to relevant parties.

Procedure

When submitting the report and accompanying documents, you need to ensure that:

• your report is titled ‘Risk Analysis Report’

• your table is titled ‘Risk Management Table’

1. Using the case study information provided in this assessment and in Assessment Part B, develop a report for your CEO as per the table and with the following information under the relevant headings.

a. Likelihood – For each risk, assess the likelihood of the risk occurring.

b. Consequence – For each risk, assess the consequence of the risk occurring.

c. Priorities – Use a risk calculation table to assist in prioritising the risks.

d. Options – For each prioritised risk, outline at least two suitable options for treating the risk.

2. Use the table (Risk Analysis Report) to provide a summary of the information and then add comments in the subsequent section to ensure adequate information on

why options you suggest for controlling risk are:

i. likely to be effective

ii. feasible for the organisation.

3. Develop a risk management plan by completing the table included in this task and attaching it to your report.

4. In practice, you would communicate the plan to your organization by several means. Communication of the plan is a vital component of it. In this case, submit your report and the risk management plan to your assessor.

Adjustment for distance-based learners

* No variation of the task is required.

* A follow up interview may be required (at the discretion of the assessor).

* Documentation can be submitted electronically or posted in the mail.

Assessment Part D. Monitoring report.

Performance objective

For this assessment you are required to review the implementation of the action plan developed in Assessment Task 3 and prepare a monitoring report.

Specifications (submit)

* A completed evaluation report using the format shown in Procedures.

Your assessor will be looking for:

* Evidence that you analysed and evaluated the case study information against the established action plan.

Assessment description

Review the implementation of the action plan developed in Assessment Task 2 against the case study provided. Then prepare a monitoring report evaluating the risk management process.

Procedure

(Note: Assessment Part D follows on from and incorporates the responses to Assessment Part C.)

1. Review the provided case study information in order to develop a report examining the ongoing implementation of a risk management action plan. Use the following headings.

a. Plan –a clear summary of the initial risk and the plan implemented to manage it.

b. Implementation– a summary of all actions taken to date in attempting to manage identified risks.

c. Outcomes –a clear statement identifying continued and/or reduced risks, with supporting information in tables or graphs where available.

d. Evaluation –a clear analysis of the effectiveness of the risk management plan, by comparing the implementation with the outcomes.

2. In practice, you would need to communicate your evaluation of the risk management plan by several means through your organization. In this case, submit your report to your assessor.

Adjustment for distance-based learners

* No variation of the task is required.

* A follow up interview may be required (at the discretion of the assessor).

* Documentation can be submitted electronically or posted in the mail.

RISK MANAGEMENT PLAN

RISK PLAN IMPLEMENTATION OUTCOMES EVALUATION

(Where possible, list abbreviations at the end of the table and use them. See example)

• Evaluation

* Issue not avoided – catastrophic damage CAT

* Issue not avoided – major damage MAJ

* Issue not avoided – minor damage MIN

* Issue avoided up to now OK

* Issue now extremely unlikely in short term OK for now

* Issue now extremely unlikely in long term Settled

Appendix 1 - Case Study: Business plan (excerpt)

Appendix 2 - Case Study: Scenario initial situation Toowoomba

As part of their overall strategy in the Australian beverage market, MacVille Pty Ltd have developed a chain of cafes in the Central Business District (CBD) of Brisbane,

Queensland and the CBD of Sydney, NSW. The board of directors have made the decision to expand their operations in Queensland with the purchase and re-branding of the existing Hurley’s cafe in Toowoomba, 130km west of Brisbane.

You are currently the assistant manager of their flagship store in Queen Street, Brisbane, and have been given the opportunity to manage the new store in Toowoomba. The CEO for MacVille’s cafes in Queensland is Paula Kinski.

You are a member of the Finance, Audit and Risk Management (FARM) Committee described in the MacVille Risk Management Policy.

Paula has assigned you the task of managing the risks involved with the operational aspects of this take-over. A copy of her email is attached.

Email from CEO – Paula Kinski

From: CEO – P.Kinski

To: Assistant Manager – Queen Street

Re: New Toowoomba store

Congratulations on your new appointment. Prior to taking up your position as manager of our Toowoomba store located in Ruthven Street, the board has asked that the risks in this project be appropriately managed. I want you to undertake this task as it will give you significant insight into the store’s operations, it will ensure a smooth transition to the MacVille systems and will encourage you to give ongoing support for our risk management initiatives.

I would like you to approach this task in three stages and meet with me at the end of each phase to review your work and discuss your plans for the subsequent phases. The three stages in this risk management task will include:

1. Review.

2. Analyse and plan.

3. Monitor.

Your primary risk management focus is directed to the ongoing operations of the Toowoomba cafe. The strategic and investment risks of this project are being managed by the board. To this end, you are to consider any risks that could impact on human resources management, financial operations, WHS, our supply chain and the local governance and overall compliance issues.

By way of background, MacVille has agreed to employ all existing staff on three months’ probation. The current supervisor James Mansfield has been offered the position of 2nd in charge and he has accepted.

While settlement on the purchase of the business is not for another few weeks, the seller has agreed to grant us full access to the store’s operational processes and store information. You should liaise weekly with the Finance, Audit and Risk Management (FARM) Committee here at head office concerning the marketing, finance and store management functions that you are investigating. I will set up a regular meeting for you.

Head office has a report on a similar expansion conducted by the NSW team that may help you in your research. You may need to review other statistical information and engage specialists to help you with your investigation. The legal firm Goldsmith Partners is advising MacVille on the Hurley cafe acquisition and would be available to help you with legal or any compliance issues.

The landlord of the shop in Toowoomba, Ron Langford, is also a local councillor and has offered his assistance in getting established in Toowoomba. He has offered his email address for correspondence (ron.langford@tcc.com.au).

Once I have received and discussed your risk review report, we can move onto the next stage of the risk management process.

CEO MacVille Cafes (Qld)

Site visit – Toowoomba

You received permission from Paula to travel to the Toowoomba store to start your research. Paula had cleared it with James Mansfield the current senior supervisor who will spent most of the day with you helping answer your queries.

You arrived at the cafe and noted the two hours of drive time that it took to get to the cafe from the CBD of Brisbane. You met with James who took you through a complete overview of the store and the surrounding area. He was OK with the idea that you needed to take notes in preparation for a report.

Paula had also arranged for you to meet with Ron Langford in his office later that afternoon.

Hurley’s Cafe

After lunch, you went over your notes to revise and edit key concerns and significant events that you had written down earlier.

The location of the store on the corner of the two main streets of the city makes easy access for local customers and highly visible for tourists.

• The long drive from Toowoomba to Brisbane would make attending the weekly managers meeting difficult considering many meetings did not finish until into the evening after refreshments. There is also manager training sessions that need to complete over the next 6 months in conjunction with a few other assistant managers. Navigating the steep narrow climb up the range with trucks blocking the way is quite difficult even in daylight hours. Being a competent driver you feel that it would be unlikely that you would be involved in an accident, but it still concerns you considerably.

• The two hour delivery would make fresh pastry deliveries from the company’s central bakery plant impractical. The pastries would arrive after the morning rush. These are a key part of the MacVille assortment.

• There is also a concern about getting the company branded supplies through as quickly as a CBD Brisbane store could.

• Hurley’s cafe was a family run store and some family members were employed on the staff. James was engaged by the family to supervise the operations of the store and Mr. Hurley as manager would authorise wages but anyone can authorise deliveries.

• When asked about written policy and procedures manual, James said that Mr. Hurley set the policy and procedures verbally and on the few days each week he was in the store he would show the staff how to do things the way he wanted them done.

• Water use – Running the dishwasher when only half full. Washing fruit and vegetables under a fast running tap. Toilets all used the single flush system. Dual flush would cost about $7,500 to upgrade. The dishwasher was always set to full wash and had a Water Efficiency Labelling and Standards Scheme (WELS) rating of

3. The more water efficient 5-6 star dishwashers cost about $6,000 and above. James explained that Mr Hurley instructed the staff to keep the non-native flowering plants in the courtyard fully watered. The store currently uses 41,500lt a week.

• James spoke about the cafe attracting a large % of retirees because of the easy access to busses and the stores central location.

• The same staff member that completed the cash register balancing also completed the bank deposit form and did the banking as well. The banking was not done every day and often $4,000 was kept on the premises overnight in the cash register. There was no safe. There is a bank two shops away but the Hurley family bank is a couple of blocks away and there was not always time to do the banking.

• James replied to you question about the possibility of break-ins saying that there was a 50% chance of it happening and the risk was moderate.

Not all takings from the cash register by family staff members were recorded.

• The fit-out in parts looked old and unattractive, with some chairs unstable and broken and some parts of the worn carpet was simply taped over with gaffer tape.

• One of the staff was a qualified chef who had developed an innovative and popular range of rice wraps that were tasty, gourmet and healthy. None of the other cafes in the area offered these.

• No established process for dealing with injuries that happened at work.

• James gave a brochure about an innovative frozen par-bake cooking system that was under the limit set by council for an exhaust system yet it cooked fresh bakery items in 30 minutes from frozen par-baked pastries.

• The computer with all the stores employee details, and financial records was not password protected and anyone could access the information.

• James’s response to your question about the lack of sales promotion techniques was that he could not get the staff interested in the activity so he stopped trying to make it happen.

• The employee detail form requested information about the employee’s entire past health issues.

• The wage and superannuation records seemed to be incomplete with many calculations being worked out by the number of hours worked multiplied by a set ‘in the hand’ amount.

• James also provided a brochure about a company that could come and set up WIFI in the cafe so that customers could use their computer notebooks and connect to the internet while they were dining in the cafe.

Meeting with Ron Langford

In the afternoon you met with Ron Langford in his office to discuss the cafe, council bylaws and aspects concerning the surrounding district. You took notes that included the following significant information.

• Ron explained that there were opportunities for opening more cafes in the surrounding shopping centres like Wilsonton, Clifford Gardens and K-Mart Plaza.

• Ron handed you an extract from a government report ‘Economic Brief.’

• Ron explained that the Federal Government was now introducing legislation that backs up the local by-law concerning efficient water usage, particularly by industries. The current by-law has fines of up to $50,000 for excessive water breaches. Ron did explain that the council was giving some time to ‘make good’ under certain circumstances on a case by case basis. Ron also agreed with the idea of installing a water tank in the court yard for the cafe to use and would help get it built.

Ron explained that Toowoomba was obviously a place for retirees and the population was growing.

• Ron spoke about the Federal Government’s National Broadband Network being rolled out in Toowoomba that would allow efficient and effective video streaming and teleconferencing.

• Ron spoke about the current by-law that was due for implementation on the 1st of next month allowing cafes to expand their footpath dinning and so put more tables and chairs outside their premises.

• Ron also spoke of the fact that representatives of a large international chain of coffee shops had been making enquiries around town about opening a store in the Toowoomba CBD.

Senior Management Team and Finance, Audit and Risk Management (FARM) Committee meetings

Soon after you got back from your research trip to the Toowoomba store, you attended two teleconferences. First, you met with the senior management team.At this teleconference, you discussed issues raised by James Mansfield and Ron Langford and the report on previous NSW expansion, which head office had given you: Report into the acquisition and re-branding of the NSW expansion store. Paula said that there may be some things to learn from the NSW experience.

Key problems identified in the report were as follows:

1. Lack of internal controls, particularly over cash handling, monitoring and recording.

2. Failure to meet compliance standards in WHS, Privacy and industrial relations law.

3. Lack of written policy and procedures to guide staff in carrying out their duties.

4. Lack of a professional business culture in the family run business.

5. Failure of the business to monitor the external environment and find opportunities and threats to the business.

The team agreed that similar issues would pose a risk to the Toowoomba expansion.

You then held a teleconference with the FARM Committee. At the teleconference, you relayed the concerns of the senior management team. The FARM committee decided to allow you time to complete your review and then would include discussion of your review in the monthly board meeting.

Table of stakeholders (format)

Stakeholder Internal/external Role in process Stake in process

Appendix 3 - Case Study: Scenario Toowoomba update

The board has reviewed the previous report you developed, and has requested further information for several of the identified risks, including options for reducing the risk levels. These are as follows.

* Banking risk – theft of cash left on premises.

* Manager’s travel risk –physical injury.

* By-law Compliance risk –reputation/brand loss and fines.

Time lines to consider are based on risk priority levels and include the following.

* Pre-settlement – date of legal transfer of the business.

* Opening week – first week of company operations.

* Within 3 months – after the opening week.

* Within 6 months – after the opening week.

Responsibilities for actions include the following.

* Financial, insurance and banking issues – financial controller.

* Legal issues –Goldsmith Partners.

* Expenditure $5,000 – MacVille board.

* New policy – CEO with MacVille board.

* On-site management, training – store manager.

* Changes to MacVille cafe Queensland operations – CEO.

* External audits – CEO with MacVille board.

Develop a report for the board that examines these risks and describes ways that each can be treated, and forward a copy of your report to your manager to table at the next board meeting.

Further case study information

Hurley’s Cafe

You revise your notes from the meeting with James Mansfield and identify the following points:

* In the context of MacVille’s investment here $4,000 would be considered to be of minor consequence if it were burgled from the closed premises overnight.

Meeting with Ron Langford

You revise your notes from the meeting with Ron Langford and identify the following points.

* He also said that the Council water patrols meant that it is likely that stores not complying with the by-law would be discovered.

Senior management team meeting

You go back over your notes compiled with the senior management team and note the following.

* Further feedback from Paula included that the water compliance risk was one where significant time and resources would be required and the board would view it having moderate consequences for MacVille’s cafes in Queensland. She also indicated that the board views any potential risk that could result in the death of an employee as having a catastrophic consequence.

Looking at the hierarchy of control the senior management team was able to give you some good brainstorming ideas to pursue. These include the following.

* Installing native plants to cut down water use.

* Making it a company policy to bank every day and eliminate the need to carry overnight.

* Install a teleconferencing system.

* Install a water tank and reduce dependence on council water.

* Change banks to the nearer one to avoid the long walk.

* Install dual flush toilets.

* Insure overnight cash holdings.

* Finish management meetings at 3:00pm.

* Introduce new processes on water use and conservation.

* Change assistant management times to the morning.

* Write new policy and procedures for water use in Toowoomba.

* Install a water usage graph in the staff room.

* Give the manager an excusal letter allowing them to leave any meeting at no later then 3:00pm every day.

* Replace the dishwasher with a 5–6 stat (WELS) rating.

* Have Goldsmith Partners apply for time to ‘make good’.

Case Study: Implementation information

In accordance with the risk management plan, an external audit was completed and presented six months later to the board. The audit investigated the status of the planned actions on the risks identified.

A summary of the findings is as follows

The financial controller had taken out $5,000 on insurance cover for cash held on the premises overnight from the opening week as planned, but the insurance premium was $2,500 per year and which is considered excessive by the financial controller.

The company bank account that was planned to open in the first week was opened about 4 weeks after opening at the bank two shops down the street, but it is not MacVille’s regular bank and there are difficulties with getting the same level of service that the stores receive in Brisbane.

The teleconferencing system planned for 6 months after settlement, has not yet been installed due in part to the delay in the Federal Government’s National Broadband Networkrollout.

The weekly management meetings are finishing close to 3:00pm as planned but sometimes the manager has to stay on at the request of the head office team. The manager has not yet been issued with an excusal letter by the CEO as agreed upon and feels that they do not have the authority to just walk out at 3:00pm. The assistant management training has been shifted to the mornings allowing the manager to leave before 1:00 pm as planned.

The board and CEO included a new policy regarding compliance with the Toowoomba bylaw on water conservation as planned but the specific procedure has not yet been written, although it appears that compliance is being achieved.

The plants have been changed to natives that require minimal water as planned. The installation of dual-flush toilets were planned for completion 6 months after settlement, and although the dual flush toilets have been ordered and in stock, they cannot be installed due to the backlog of work by district plumbers. The 5 star rated (WELS) dishwasher was installed by the supplier within the 6 months planned timetable.

The application to make good by Goldsmith Partners on behalf of MacVille, was accepted by the Toowoomba City Council; however the grace period to comply with by-law ends in 14 days and the store is still above the acceptable benchmark for water use.

The training on daily banking appears to have been successfully completed as planned. An audit of the bank deposit book shows that on only two occasions in the past 6 months that there is not a banking entry for the day’s sales.

There has been one internal audit arranged by tBSB60407 Advanced Diploma of Management