BSBRSK501

Manage risk
Learner Workbook
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Activities

Complete the following activities individually or in a group (as applicable to the specific
activity and the assessment environment).

Activity 1A
Provide a brief overview of your organisation’s (or an example organisation’s) current risk
management practices and how these meet organisational needs. (Approximately 150-200
words.)

The organization’s name is Logistics United, and it is based in Western Australia. Risk
management practices are really important for an organization to meet its organizational
needs. Here, it is important to mention the what is risk management. In simple words, risk
management is the identification of risks in advance and analysing them and after that
taking the required precautionary methods to stop them from spreading.
The current risk management practices at Logistics United are not very promising but as
stated in our company’s risk management log are:
1. Updating the logbooks: a risk management log has been at our workplace which has
to be updated on regular basis.
2. Educating the concerned people: the project team and the stakeholders are educated
on risk management and are encouraged to actively identify, analyse and mitigate
the risks.
3. Communication on regular basis: the stakeholders and the project team are
communicated on the risk statuses.
These practices meet the organizational needs of the organization by keeping the
operational plans in the place and continuous monitoring of the risks keep the workers safe
and the working of the organization smooth.

Activity 1B
For your organisation (or an example organisation), provide the details of two areas
within the business and the requirements under these that require risk management (e.g.
work health and safety).

The two areas in the example organisation that requires risk management are:
1. Workplace health and safety: in this area, the findings show that the risk of injury to the
workers is quite high and the staff reports of injury are up to 5 times in the duration of
one week.
2. Outdated machinery and equipment: the equipment that is used by logistics united is
outdated and the goods sometimes gets damaged because of it.
3. So, these two are the areas which require risk management.

Activity 1C
At your workplace (or an example workplace) list the stakeholder types/groups and an
issue for each.

The stakeholders at logistics united are:

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1. Truck drivers: the issue with the truck drivers is that they sometimes have to wait
and take back the load
2. Customers: the customers sometimes get defaulted goods because while packaging
them sometimes they just get damaged due to outdated equipment.
3. Suppliers: sometimes we have to ask for goods in bulk over again because of the
goods that get damaged while packing.
4. Regulatory agencies: the rules and regulations laid by the agencies and the pressure
to meet them at every cost brings the organization to a problem because they
cqnn0t be ignored at any time.
5. Workers who load and pack the goods: the safety standards that are must for the
staff members to keep also gets ignored and results in the i
6. jury to the workers.

Activity 1D

How do the following affect risk management in the workplace:

 Political: political aspect and the business of an organization are inter-twined. Any
changes in the political atmosphere can result in the changes of the policies of the
organization. For example: changes in the regulations of the government are
followed by the changes in the party that comes into power.
 Economic: changes in the economic structure in a country can directly affect the risk
management of a workplace. For instance: any changes in the taxation policy like
increases in the taxes can result in the negative social performance of a company.
 Social: the aspects can also affect the risk management in certain way which includes
the health of the employees and their social situation.
 Legal: the legal aspects that can affect the risk management include but not limit to
meeting the compliances, fulfilling the terms of contracts, and alleged briberies.
 Technological: latest technological advancements and changes in the features of the
machinery, can add on to the additional expenses for an organization to increase its
efficiency.
 Policy: the policies incorporated in an organization’s can sometimes lay a mandatory
procedure for the improving the operating performance and complying with the
other procedures laid by the organization.

Activity 1E

For your workplace (or an example workplace), assess the strengths and weaknesses of
the existing risk management process for one area of business (e.g. financial or
operations).

The STRENGTHS of the existing risk management process in operations of business at the
example workplace:
 We have the personnel who are very well trained and experienced.
 Our insurers back us completely when it comes to claiming for the loses without any
fuss.
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 Our customers are also loyal to us and many times we have delivered switched
products and they do not turn off from us.

The WEAKNESSES of the operations of our organization are:

 Lack of appropriate equipment at our workplace is the biggest weakness currently as
this is the one that has been causes us some real losses.
 The personal protection equipment for our employees are also not sufficient. Due to
which we have seen many injuries that take place at our workplace nearly 5 per
month.

Activity 1F
Following on from Activity 1E, identify three critical success factors that can help achieve
good risk management.

The three critical success factors that can help in achieving good risk management:
1. A good health and safety protocol is important at my workplace currently, because
of the issues relating safety of our workers.
2. A good equipment technology is another CSF that will help in achieving good risk
management.
3. Training to the staff about avoiding the risks is also a CSR.

Activity 1G

As a role play, perform the following as a learner group activity:

In groups of approximately 5 people, take turns to represent the risk assessment manager
holding a group discussion with a group of stakeholders (e.g. managers, colleagues,
employees, etc.). (Discussions may last approximately 10-20minutes for each turn.)

As risk assessment manager, you will need to choose an area of risk management and
seek support and participation from your stakeholders to assist in risk management
activities. Provide information on the support that you will need and how your
stakeholders can participate.

The area of risk management: operational risk. The reason for this is that it can result in
significant loss for a company due an error. Also, operational risks are more in line with
failures in systems, processes, and procedures which are quite obvious in our case.

Support that I will need: reviews that our company received regarding the errors in our
operations because they can be really helpful in getting to know the areas that require
serious reforms within the organization. Also, the assessments taken by some employees
stating lack of certain things in the operational structure of the company.

The means through which the stakeholders will be engaging are:

- Meetings that will take place at the company premises.
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- Telephonic communication with the stakeholders that are not able to come and
meet in person
- Emails to the stakeholders who need a detailed report on the risks and the manner
in which the process of risk management will be conducted.

Activity 2A
Write a script that you can use to invite a specific stakeholder group to assist in risk
identification. Provide details of the risk area and the requirements that the stakeholder
group will need to fulfil.

Hi,
My name is William Jack. As the operating manager, I am writing to invite you to assist me
and my team in risk identification as you have been identified as a stakeholder with
interests and experience relevant to the risk identification.
The area of risk identification is the operational area in which we are planning to go on with
the operational risks.

Your involvement could include participation and a confirmation of participation from you
as we want to ensure that you are in receipt of the communication. Also, we want your
assistance in raising concerns and finding the areas that are yet to be recognized.

Activity 2B
Choose a scope (or area) of risk management in the workplace and perform a brief
research of the risks that may be involved. List five risks that you have found.

Operational Risk Management refers to identification, assessment, monitoring, control and

mitigation regarding operational risk in a comprehensive manner.
The scope of operational risk management expands but not confined to the day to day
running of the business and the organization as a whole.
The risks that we have found while going on with the operational risk management are:
1. Equipment failure
2. Continuous health and safety concerns of the workers
3. Non-compliance with the required set PPEs.
4. Regulatory risks in which taking care of all the necessary regulations usually delay
the delivery being given to the party.
5. In our case, the poor weather conditions also fall under the category of operational
risks as we are a logistics company and we have to move goods from one place to
another which can be obstructed by the harsh weather conditions.
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Activity 2C
As a role play activity in the learning group, perform the following:

For a risk area of your choice, discuss in small groups (approximately 5-8 people) the
methods, tools and techniques that you can use to identify the risks.

To identify the operational risks, the methods, tools and techniques that can be used are:

The methods that can be used could be qualitative analysis which involves going to the
depth of the risks by adding it to a matrix or by quantitative in which the gravity of the
seriousness of the risk can be summed up in the exact number figures.

- Data that has been stored in our company’s computer databases involving our daily
operations and the other details
- Physical examination of the equipment and the machinery that is required to run the
operations of the company as the operational risk falls under its horizon.
- Interviewing or talking to the workers who run the daily operations at the workplace
can also be beneficial in collecting the information on operational risks.

Activity 3A

1. Name three analysis techniques that you can use to determine the likelihood of risks
occurring.

The analysis techniques that can be used to determine the likelihood of the risks
occurring are:
a) Statistical analysis: this kind of analysis requires a look at the past figures and
statistics of the company as it provides an evidence of past situations.
b) Casual analysis: casual analysis is having an outlook at the pattern in which the
risks have been happening at the workplace and how can the pattern be
reversed.
c) Consequence analysis: this technique helps you to find the consequence of a
certain decision is made and then trying to weigh the balance of it with other
decisions.

2. Provide a system of scale that you can use to show the impact of risks.

To show the impact of risks, a risk matrix can be set which provides an overview of the
potential risks and shows the areas of concern and any priorities that need to be worked
on. A specific matrix is a must which is designed to meet the particular needs of the
project and the risks are cautiously monitored. The levels of the risk matrix can be as
follows:
Keys:
L – low risk
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LM – low/medium risk
M – medium risk
MH – medium/high risk
H – high risk.

Activity 3B
1. What are the hierarchy of controls?

The Hierarchy of Control ranks risk control measures from the highest level of protection
and reliability to the lowest level of protection and reliability. It helps an organization in
prioritising the risks and managing them. It is a method for choosing risk control
measures that can be used by employees at every level of a company.

2. How can these help to prioritise risks for treatment?

The hierarchy of control has six different levels of control measures, the most effective
measure is placed at the top of the hierarchy and the least effective is at the bottom. So,
one starts from the top of the hierarchy in choosing their control measure and work
their way down.

Activity 4A

1. Name three risk control strategies that you can use.

The three risk control strategies that can be used are:

 Treat the risk
 Transfer the risk
 Tolerate the risk

2. Name three factors that may affect risk treatments.

The three factors that may affect risk treatment are:

1. Needs and the priorities of the management and the organization
2. Requirements of the resources
3. Time frame as to when the certain policy will be implemented.

Activity 4B

List five things that may be included in an action plan for risk treatment.

In an action plan for the risk management, the things that can be included are:
1. The probability of the risks causing harm to the employees and the organization
2. Proposed action
3. Recommendations
4. Comments of the concerned staff members
5. Description of the risk
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Activity 4C
As a role play activity in the learning group, perform the following in pairs:

Take turns to explain the risk management process, using verbal and, if required, non-
verbal techniques (e.g. non-verbal may include use of a chart or diagram).

In this roleplay activity, I used a diagram to explain the risk management process to the
relevant parties.
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Activity 4D
Why should you keep documentation of the risk management process and activities and
how should you store this information?

To prevent and minimise the impact of hazards on individuals, the documentarian of the risk
management process is necessary. Also, if there will be documentation, it can be used in the
future for reference and also as a piece of evidence.

This information can be stored in paper or electronically

Activity 4E

1. How can an action plan help in managing risk and what should you include in one?
An action plan can help in managing the risk by containing certain specifics. These
specifics include identifying risks upfront, analysing how risks will affect a project,
potential risk planning, and monitoring risk. In an action plan, impact of the risk,
recommendations on the risk, comments on the risks etc shall be included.

2. Name three things you should monitor when implementing plans.

Three things that should be monitored when implementing plans are:

1. The work activities of control
2. Training the relevant employees in the execution of the action plan.
3. Making sure that the employees stick to the plan.

Activity 4F

1. When should you evaluate risk controls?

In order to reduce the potential harmful impact of hazards, the risk controls should be
evaluated continuously and regularly.

2. Name three things you should consider when evaluating implemented risk controls.

When evaluating the implemented risk, the 3 things that should be considered are:
1. The advantages and disadvantages of using each measure

2. Look for the most effective control measure.

3. Affordable control measures.

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Answer the activity in as much detail as possible, considering your organisational

requirements.

1. As a workplace activity (or simulated workplace activity) review your current risk
management policy to ensure it is appropriate to your current organisation’s risk
management needs. As part of your review, you should:

 Identify the main aspects and how this is used within procedures
The main aspects of the risk management policy of my organization is to insure to
ensure that all employees are made aware of the need to manage risk and to
promote a culture of participation in that process. Identification of risks and
successful treatment in accordance with procedures and the procedures lay the
guidelines to follow for the risk management policy.

 How others follow current policy and procedures and how easy/applicable this is
to needs
The other staff members do try to follow the policies and procedures but because of
the limited resources it is not very effectively applicable. The reason for the above is
that the things that needed to be taken care of are acknowledged by the staff
members but as the same equipment is not appropriate, the policies and procedures
do not keep the injuries from happening.

 Write a report to show your findings and/or conclusions.

Title: analysing the risk management policy

Findings: after analysing the risk management policy, the things that I found
includes high chances of injuries to the staff members. The resources and the
equipment are not enough to keep the workers safe. It is found that the workers
use one equipment to handle every kind of good and in the process many goods
have been damaged and also the workers get injured due to that with an average
of 5 injuries in a month.

2. Following on from question 1, perform an analysis of the risk assessment tools and
technologies available for use by those in your organisation and produce a second
report to show your findings.
The tools and technologies that are present at my workplace are not well enough to
perform a very promising risk assessment. However, the main tool that is used for the
risk assessment is by analysing the customer complaints and taking a regular feedback
from the employees.
After the risk assessment, the findings show that the customers are not very satisfied
with the delivery timings as the goods do not arrive to them on time. The reason for that
is, due to inappropriate equipment, the goods gets damaged and then they are re-
ordered by the organization which takes some time and thus, making the delivery time
shifts to the longer period than originally told to the customer. Moreover, when looked
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at the feedback reviews from the employees were analysed, it came to the picture that
the PPEs are not enough f all the workers work at the same time.

3. Consult with your relevant manager/stakeholder to discuss your reports in order to

confirm understanding and to discuss the need for any changes (if applicable).

The findings were shown to the manager of the organization who not only agreed to the
findings but also mentioned that the necessary actions should be taken to stop the
organization getting into losses because of the inappropriate equipment for the goods as
well as PPEs.

This activity will need to be observed by the trainer/assessor or third party, and all
observations recorded in the observations and demonstrations checklist document.

Section B: Knowledge Activity (Q & A)

Objective: To provide you with an opportunity to show you have the required knowledge
for this unit.

The answers to the following questions will enable you to demonstrate your knowledge of:

 The purpose and key elements of current risk management standards

 The legislative and regulatory context of the organisation in relation to risk
management
 Organisational policies, procedures and processes for risk management.

Answer each question in as much detail as possible, considering your organisational

requirements for each one.

1. What are risk management standards and what are the key elements of these?
ANSWER:
Risk Management Standards set out a specific set of strategic processes which start with
the overall aspirations and objectives of an organisation and intend to help to identify
risks and promote the mitigation of risks through best practice. The key elements of
these standards are:
 Identify the risk
 Source the risk
 Measure the risk
 Evaluate the risk
 Mitigate the risk
 Monitor the risk

2. For your organisation, describe the legislative and regulatory needs to fulfil risk
management.
ANSWER:
The legislative and regulatory needs to fulfil the risk management at my organization
are:
The road transport legislation as:
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 Australian road rules

 Heavy vehicle regulation
 Auto roads registration and licensing task force
 Licenses of various kinds like warehouse licensing, customs licensing etc
 taxes

3. What do organisational policies and procedures for risk management provide?

ANSWER:
The organizational policies and procedures provide their employees with the least
amount of risk when they are performing their jobs. These procedures may include
equipment upgrades, extensive employee training, or the provision of a cleaner work
environment.

Section C: Performance Activity

Objective: To provide you with an opportunity to demonstrate the required performance
elements for this unit.

This activity will enable you to demonstrate the following performance evidence:

 Analyse information from a range of sources to identify the scope and context of the
risk management process including:
o stakeholder analysis
o political, economic, social, legal, technological and policy context
o current arrangements
o objectives and critical success factors for the area included in scope
o risks that may apply to scope
 Consult and communicate with relevant stakeholders to identify and assess risks,
determine appropriate risk treatment actions and priorities and explain the risk
management processes
 Develop and implement an action plan to treat risks
 Monitor and evaluate the action plan and risk management process
 Maintain documentation.

Answer the activity in as much detail as possible, considering your organisational

requirements.

Answer the following questions in reference to Case Study A.

1. Analyse the information provided and answer the following questions to determine
the scope and context of the risk management process.

a. Which area of business needs to be addressed?

The area of business that needs to be addressed is the operational area.
b. What are the individual hazards and where do they originate from?
The individual hazards are injuries that happen to the staff members. They originate
from the inappropriate equipment.
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c. How many times, on average, do specific incidents occur as a result of the hazard
each month or year?
Each month the individual injuries to our staff members occur about 5 times.
d. When, and in what circumstances, do these incidents tend to occur?
These incidents tend to occur when the one piece of equipment is used to handle all
type of goods because we don’t have appropriate equipment. Also, we don’t have
enough PPE.
e. Who is most likely to be affected?
the staff members are most likely to be affected by these.
f. What kind of a risk to individuals does the hazard pose?
The physical risk to the individuals is posed by the hazard.

2. Working with your peers (no more than 2-3 people), discuss the information provided
in Case Study A and assess the risks.

Within your discussion, you should determine and document:

 The key priority of the risk management process

The key priority of this kind of risk management process is to prevent the risks.
 One appropriate risk treatment action.
The appropriate risk treatment action is reducing the risk by adding more PPEs and
appropriate equipment.

3. Following on from your discussion in Question 2, develop an action plan which aims to
treat the risk(s).

Your action plan should include three steps to treat the risk.

You should use the following template for your plan:

Step One Step Two Step Three

Explanation of step Reducing the risk Mitigating the risk

by using the whenever possible.
Prevention of the
appropriate
risk
equipment

Equipment/resource PPE Appropriate Taking appropriate

s required equipment like care while handling
different the goods.
equipment for
different goods.

Other comments The staff shall be The personal The goods shall be
well aware of the protection handled in a way to
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equipment that is equipment shall be avoid the injuries.

to be used to what worn by all the staff
kind of goods. members while
working

4. You have implemented your plan, and after a month, you find that the number of
incidents being reported has not decreased. Evaluate your action plan and identify one
change which could be made or an additional step which might be added in order to
help decrease the number of incidents.

Recreate your action plan to incorporate this change.

Risk Risk plan Risk rating Risk rating after Changes that
implemented before treatment treatment needs to be
made

Injuries due to New equipment High High Training

inappropriate for personal safety session is to be
equipment arranged for
the staff to
train the for
the better use
of equipment.

Workplace Documentation – for learner

Workplace documents checklist

To demonstrate and support workplace knowledge, workplace documents can be submitted
to the assessor or third party. Indicate in the table below the documents that have been
provided. Please refer to your trainer/assessor if clarification is required or if you have any
further questions on what you are able to provide or use.

Document name/description Document attached

Marketing plan Yes No (Please

circle)

Risk analysis Yes No (Please

circle)

Yes No (Please
circle)
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Yes No (Please
circle)