ASSESSMENT 2

Qualification Name BSB50215 - Diploma of Business; BSB 51915 Diploma of Leadership

and Management; BSB60215
Unit Name BSBRSK501 –Manage Risk
Unit Purpose This unit describes the performance outcomes, skills and knowledge
required to manage risks in a range of contexts across the organization or
for a special business unit or area. It applies to individuals who are
working in positions of authority and are approved to implement change
across the organisation, business unit, program or project area. They
may or may not have responsibility for directly supervising others.
Linkages to other Advanced Diploma of Leadership and Management
packages
Resources Implications Assessment will require:
 Access to an actual workplace or simulated environment
ASSESSMENT INFORMATION

Submission of evidence An assessment of competence is dependent on the submission of

evidence that supports your foundation skills and ability to perform the
tasks relating directly to the elements and performance criteria,
performance evidence and knowledge evidence described in this
particular study unit.
Reading You might need to undertake extra reading in order to supplement your
knowledge of the materials in this unit. Some documents will provide
reference lists, which contain useful book, web document and research
paper titles.
Referencing When using materials from published authors to support you assignment
work, remember to cite and reference the work correctly.

Student Name: & ID No Ivan Putra Lisdiyana HIS1249

I certify that this assessment is Student Signature:

my own work and that I
understand the requirements of
the assessment.
Date:

Assessment Feedback:

Trainer/Assessor Name:
Trainer/ Assessor Signature:
Date:

Assessment BSRSK501 Page 1 of 12

Version 1.9
Last Updated February 2020
Student Instructions

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).

Elements of competence:

1. Establish risk context

2. Identify risks
3. Analyse risks
4. Select and implement treatment
5. Communicate and document risk treatment plan

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 BSRSK501 Page 2 of 12
Version 1.9
Last Updated February 2020
Practical Task 1: Establish risk context and identify risks

In order to complete this assignment, you will need to have completed Assessment Project
Tasks 1 & 2: Case Study: Cafe One for Unit BSBMGT517 Manage operational plan.

For that assessment project, you were required to identify three areas of the business
operations of Café One that need improvement, in addition to the example provided.
Having identified these areas for improvement, you then had to identify the critical success
factors and develop key performance objectives for each one. Finally, you were required to
develop an action plan for one problem area to show how improvement might be achieved.

Your risk management project is based on the same Café One case study Once again you are to
assume the role of the café manager Shaun who is looking to improve the performance of the
café. As part of his review, he has decided that it is important to review the café’s risk
management plan.

Shaun knows that looking at all the risks that could impact a business is a big task so he has
decided to try to look at the most important factors only at this stage. In view of this, he has
decided to limit the scope of his review to some of the problem areas of the business he has
already identified.

Table 12.1 on Page 329 of your textbook describes the steps in the operational planning process.
You have already competed steps 1-3 below and now you need to compete Step 4

Step Description

1 Research and organise research requirements, consult and document resource requirements
2 • Set realistic goals and targets. Develop SMARTIA goals
3 • Set KPls (or measures of success) to define and measure success in achieving objectives and
tasks, for example: 'number of customers submitting a repeat order in 12 months'. Set them to
reflect the objectives in the operational plan
4 • Conduct a risk assessment and develop contingency plans in order to respond effectively to
future unanticipated or emergency events

Page 336-7 of the textbook also describes the process for conducting a risk assessment,
developing contingency plans and communicating with stakeholders. You will also need to
refer to Chapter 19: Risk management of your course book and, in particular, refer to
pages 524-5 of, Management Strategies and Skills, Dwyer & Hopgood and table 19.1 on
page 525 for useful information on the context of common business risks and the possible
consequences.

Assessment BSRSK501 Page 3 of 12

Version 1.9
Last Updated February 2020
Practical Task 1a: Your first task is to complete the risk context template below.

Conduct a Risk Analysis and develop Contingency Plans for the ONE problem area for
which you developed an Action Plan in the previous unit of the course. You will need to
refer to your previous assessment task and review the Operational Planning Action Plan you
developed.

Identified Problem/ Context of Risk Possible consequences of not treating the

risk areas e.g. operational, risk or of making changes to address the
financial current problem (contingency planning)
strategic
Analyse The supplies are - Operational It is difficult to determine financial
risks from ordered by one of the strategic performance because of current order and
your Action permanent staff over - Financial payment procedures to the suppliers
Plan the phone and no strategic
record is kept Contingency planning: Develop an IT
system to order, track, and record all the
transaction. Order form must be designed
properly so then when the orders received,
they can be checked again. New system
will be able to maintain the transaction
flow with the suppliers and will be
automatically recorded

Practical Task 1b: Your second task is to complete the risk context template below.
Analyse the other problem areas of the business that you identified previously and identify
the risk management context for each of them. Once you have established the context, you
will need to identify the potential consequences that could result from failure to address
these issues properly.

Identified Problem/ risk Context of Risk Possible consequences of not treating the
areas e.g. operational, risk or of making changes to address the
financial strategic current problem (contingency planning)
1 Price and the quality of - Operational If the risk is not solved it will reduce the
supplies – quality of the strategic quality of the product in the café and the
supplies does not meet - Financial strategic café sales will not meet the company’s
the company’s requirement
requirement
2 Service issue – as the Operational There will be a huge amount of complains
café has only two strategic from customers, it will cause more trouble
permanent staff, delay such as customer number is reduced and bad
and wrong orders are reputation for the company
frequently being served
to customers
3 Staff morale and turnover Operational The two permanent staff will receive too
levels – café has only strategic much work allocation as casual employees
Assessment BSRSK501 Page 4 of 12
Version 1.9
Last Updated February 2020
 two permanent and
others are casual
4 Menu issues – limited
range of product choices
during breakfast and
lunch
5 Marketing and profit
issue – the owner does
not believe in promoting
the business and consider
it as a waste of money
will not always available when needed. The
staff morale is low and turnover level is high
- Operational Business competitors will attract the café
strategic One customers if the menu issues in the café
- Market strategic are not solved
- Market strategic Without marketing, Café One will lose
customers and profit will be low

Facilitator marking guide

What is the assessor looking for in a satisfactory response?
Did the student identify risk scope and context satisfactorily?
Foundation Skills
Did the student interpret and analyse the business problem areas to identify context of
risk and possible consequences of non-treatment?

Task 1c) Based on your analysis of the major risk contexts faced by restaurants and cafes, list the
major legislative and regulatory contexts that Café One needs to be mindful of when developing
its Operational Plan and may need to be addressed in their Risk Management Plan. Identify three
of the key areas of Federal or State legislation or regulation that govern these risk contexts in
NSW.

Write response (100-150 words) here:

Based on the analysis of the major risk context faced by Café One, there are few
regulations in NSW that Café needs to be mindful when developing its operational plan.
Work Health and Safety Act 2011 will provide for a balanced and nationality consistent
framework to secure the health and safety of workers and workplaces mainly through
elimination or minimisation of risks arising from work and provide fair and effective
workplace representation. State and territory laws govern consumer protection under The
Australian Consumer Law (ACL) provides regulations on unfair contract terms,
consumer rights, and other areas. Marketing permit is needed to promote a business.
Company is responsible for protecting customer’s personal information. Moreover,
company need to comply with Intellectual Property (IP) regulations, including trademark
laws.

Facilitator marking guide

Did the student identify the major legislative and regulatory contexts applicable to the
restaurant industry?
Foundation Skills
Did the Student interpret textual information from a range of sources to identify relevant
information?

Assessment BSRSK501 Page 5 of 12

Version 1.9
Last Updated February 2020
Practical Task 2a: Identify Stakeholders to consult

Having completed this task, Shaun has decided that the analysis could help him to prioritise
which of the problem areas in the restaurant he should address first. He knows there is a lot to
do, but trying to change too many existing procedures at once could have a negative impact on
the business, so he has decided to apply risk analysis and evaluation to the main problem areas to
identify the most important issues.

As a manager new to the business, Shaun also recognises that he should probably also seek other
opinions on the major risks to the business which he may not have considered. Your next task is
to identify which other stakeholders in the business he should consult with to help him get some
different perspectives on the major risks to the business, the reason for consulting this stakeholder
and the risk context area to which the risk applies.

Stakeholder(s) Reason for consulting Risk context area of Stakeholder

to Consult expertise

Supply Supply Manager has Operational strategic – supply issues

Manager knowledge in the area of
supply, such as how to
properly order and receive
order from supplier and
the procedure to record the
transaction

HR Manager Issues related to Operational strategic – service issues,

employees normally done staff issues
by HR Manager

Marketing Marketing Manager has Marketing strategic

Manager the ability to make a
marketing plan for the
business

Chef Chef is responsible for the Operational strategic – menus issues

menus preparation and
making

Financial Financial Manager will Financial strategic

Manager maintain business’s
finances including budget
and profit

Assessment BSRSK501 Page 6 of 12

Version 1.9
Last Updated February 2020
 Suppliers Supplier is the one who Operational strategic – supply issues
will supply product stock
to the company

Practical task 2b: In-class meeting

Students are required to present their consultation plan to class and to be prepared
to justify how and why they have selected these stakeholders for consultation on the
risks identified

Consultation plan has been demonstrated during class activities.

Facilitator marking guide:

Did the student identify relevant stakeholders and the policy context of the risks
satisfactorily?
Foundation skills
Did the student effectively justify his decisions regarding stakeholder consultation?

Practical Task 3: Identify and Analyse Level of Risks

Now that you have now consulted with other stakeholders and re-evaluated the risk context
template competed earlier, your next task is to compile a table of potential business risks from the
template by looking at the possible consequences and the negative impact that they could have on
the business if they are not addressed or, equally importantly, if attempts to fix them are not
managed well.

Using the tables below you firstly need to assign a value to the likelihood of each risk occurring
(A,B,C,D,E) and the possible impact on the business if it does occur (1,2,3,4,5). Then, by using
the Level of Risk Matrix below, you can assign a level of impact and finally a rank to each risk

Risk Categorisation Table

Risk Likelihood Impact Level of Risk Rank

Supplies order is not kept
B 3 Medium 3

Price and the quality of supplies

C 2 Medium 2

Service issue – delay and wrong food being

served to customers A 5 Extreme 5
Staff morale and turnover level
C 1 Low 1
Menus issues – limited range of product
choices B 2 Medium 2

Assessment BSRSK501 Page 7 of 12

Version 1.9
Last Updated February 2020
 Marketing and profit issue
C 2 Medium 2

Definitions
Level of Likelihood:
A Expected - will occur regularly
B Probable - will occur at some stage
C Possible - could occur
D Improbable - could occur but unlikely
E Rare - can occur but in limited situations

Impact:
1 Insignificant
2 Minor
3 Moderate
4 Major
5 Catastrophic

Level of Risk Matrix:

Level of Level of Impact

Likelihood 1 2 3 4 5
(insignificant) (minor) (moderate) (major) (catastrophic)
A (expected) Low Medium High Very high Extreme
B (probable) Medium Medium Medium High Extreme
C (possible) Low Medium Medium High High
D Low Low Medium Medium High
(Improbable)
E (Rare) Low Low Medium High Medium

Facilitator marking guide:

Did the student identify and analyse risks so as to develop an appropriate prioritisation
of risk elements
Foundation Skills
Did the student appropriately analyse risk levels to allow a logical prioritisation of risk
Did the student organise content of risk matrix to allow effective analysis of the risk
levels identified

Assessment BSRSK501 Page 8 of 12

Version 1.9
Last Updated February 2020
Practical Task 4: Select and implement treatments
This task requires you to develop a risk treatment plan to address ONE of the major identified
risks.

The Risk Treatment Plan Template below may be of assistance in this task

Complete the Risk Treatment plan below to address one of the identified risks. Make sure that
you address all the requirements of the template, namely:

o Description of the risk and its potential impact

o Treatment options to respond to the risk
o Actions required for implementing selected treatment
o Expected outcomes
o Resources and budget required
o Who is responsible
o Time frames
o Reporting and Monitoring process

You must ensure that your Risk treatment plan properly:

1) Explains the process you would use to implement the risk treatment plan.
2) Describes the strategies you would use to monitor and review the risk treatments you
have planned.

Assessment BSRSK501 Page 9 of 12

Version 1.9
Last Updated February 2020
Risk Treatment Plan Template

Prepared By: Manager Date: 10/06/2020

Business Activity Area: Service issues in the Cafe

Risk Identified
and likely impact: Service issue – delay and wrong foods being served to customers

Summary of risk
treatment options Introduce proper staff induction process, appraisal systems and development
process

Action plan for

treatment option: Introduce new staff induction process, appraisal systems and development process
to improve skill levels, look at work allocation, job roles, and performance to
Proposed actions redesign the system

Implementation
Strategies:  Arrange staff meeting with permanent staff to get feedback on service
issue
 Reduce staff shortages through having properly work rooster
 Monitor customer complaints and seek feedback from customers during
busy periods

Expected
outcome: Employees skills are improved, zero service issues and no complaints from
customers

Budget:
$1500 - $2000

Resource
requirements: Employee Development Policy, Staff Development Process Checklist, and
Performance Appraisal Form

Responsibility  Chef – staff training in food preparation and making

(show all)  Manager – supervise floor staff and give feedback to them

Timeline: 3 months

Reporting and
monitoring  All the staff development process will be reported to manager weekly
requirements  Staff meeting will be held once a week
 All data obtained will be kept for future references

Assessment BSRSK501 Page 10 of 12

Version 1.9
Last Updated February 2020
Practical Task 5: Communicate and document risk treatment plan

The success of changes to operational procedures and processes is often dependant on the
support of stakeholders who need to be kept informed of the plan and its progress.
Another important element of plan implementation is the maintenance and storage of all
documentation related to the plan.

Your final task is to write 150-250 words to:

a) Explain how you would communicate the risk management process to relevant parties
b) Outline the sources of information you will need to use to review the effectiveness of your
risk management strategies.
c) Describe the process you will follow to ensure accuracy of and appropriate storage of all
documentation.

Risk management requires the involvement of all the related parties. These relevant
parties will provide relevant and detailed information and help build more realistic
expectations. Risk communication can be done through organization meeting. Getting
every relevant party in one room is the best way to communicate the risk management
process as it can be explained face to face with the meeting attendees. This meeting
should give them the opportunity to ask questions and provide input into the process.
Meeting will continue to play an important role as part of the continual monitoring and
review of the strategy. There are some sources that can be used to ensure the
effectiveness of risk management strategies. These sources are proper risk identification,
risk analysis, risk evaluation, risk treatment, and continually monitoring the risk. All risks
that have been identified need to be recorded in the risk register. Risk register is a
document that contains the information about identified risks, result of risk analysis
(impact, probability, effect) and possible solution to be applied. Risk register is made to
enable for easier process of finding data in the future and also making easier to track data
as well as protecting data.

Facilitator marking guide:

Did the student select appropriate options for treating the risk and develop an action plan?
Did the student develop an appropriate communication and documentation management plan for
the risk
Did the student develop appropriate monitoring plans to ensure that the treatment plan was
effective
Foundation skills
Did the Student organise the content of the risk treatment plan effectively?

Assessment BSRSK501 Page 11 of 12

Version 1.9
Last Updated February 2020
Did the student satisfactorily identify and sequence risk treatment activities and monitoring
requirements

Assessment BSRSK501 Page 12 of 12

Version 1.9
Last Updated February 2020