Bsbops 504

PROJECT
PORTFOLIO
STUDENT VERSION
BSBOPS504
MANAGE BUSINESS RISK
First published 2021
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Contents
Section 1: Establish risk context 5

Section 2: Identify and analyse risk 8
Section 3: Implement and monitor risk treatment 10
Rockford college-PP-V1.1 Page | 4
Rockford International College Pty Ltd T/A Rockford College

Level 3, 633 Princes Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: [email protected] | Web: www.rockford.edu.au
Student name: Dawa Sherpa
Assessor:
Date:
Businessthis
assessment is based
on:
Risk management
project/process:
Documentation
reviewed as
preparation:

Section 1: Establish risk context
1 Provide a brief overview of the business or organisation you are basing your
portfolio on.
1.1 What is the name of the business or organisation?
Answer
The company is known as Nature Care.
1.2 What is the main focus of the business?
Answer
Nature Care concentrates on creating skin care products with natural components.
Our goal is to supply customers with premium cosmetics while pursuing sustainable
growth in Goa.
1.3 What role will you assume as you investigate the risk for your chosen risk
management process/project?
Answer
: Financial Manager
2 Determine the scope of your chosen risk management process/project.

2.1 What does your chosen risk management process/project involve?
Answer
Corporate procedures are a part of the risk management process because risk
management is an organizational process as a whole. The CEO will oversee and
facilitate the following crucial steps during this process:
 A CEO-led activity to identify risks that is conducted annually. This entails
determining the severity and likelihood of risks, as well as developing and/or
reviewing individual risk management strategies for risks that have been
identified and that go above and beyond what Nature Care Products
considers to be acceptable risks.
 the inclusion of a Risk Management Assessment for all company activities,
whenever possible

 the integration of risk management practices into Nature Care Products'
quality assurance and improvement systems, as well as strategic planning,
operational planning, and resource management planning procedures
 Clearly identify and document risk management escalation procedures.
 Make sure that different Nature Care Products sections respond to the same
risk in a consistent manner.
 Payroll, banking, accounts payable (supplier payments), account receivable
(customer receipts), and legislative compliance are regarded to be activities
within the scope.
2.2 Which departments or work areas are involved in the process?
Answer
Each department will participate in the risk management process. However, as a
financial manager, I must consider both money loss and other impacts to our
organization's finances while assessing risk..
2.3 Are there any risks the business will not manage (for example, staff retention)?
Answer
IT risks won't be handled by our risk management staff.
3 Evaluate organisational requirements and standards for managing risk.

3.1 Which organisational policies and procedures provide input on how you
approach your chosen risk management process or projecte.g. Risk
management, Record keeping etc.?
Answer
All Nature Care laws and regulations, including those pertaining to risk
management policies, record keeping, and internal communication plans, are
subject to the risk management process.
3.2 Are there any processes you need to follow?
Answer
Processes that must be followed include: A commitment to properly implement risk
management:
 Nature Care Products is dedicated to risk management and reduction. This
will be accomplished through locating, analyzing, assessing, and treating

risk exposure that could affect Nature Care Products' ability to achieve its
goals and/or the efficacy of its operations.
 As a delegated line management responsibility, risk management must be
taken into account in operational planning as well as in Nature Care
Products' planning and decision-making processes.
 Employees of Nature Care Products shall implement risk management in

accordance with pertinent legal mandates and suitable risk management
standards.
A dedication to risk management education and expertise development:

 Nature Care Products is devoted to making sure that every employee, especially
those with managerial, advisory, and decision-making duties, has a solid
understanding of risk management principles and the necessary skills to put risk
management into practice successfully.
 A commitment to track performance and evaluate risk management
development:
 As a foundation for continuous improvement, NatureCare Products will routinely

evaluate and review the progress being achieved in creating a suitable culture of
risk management and the successful application of risk management strategies
throughout the organization.
3.3 Attach policies and procedures to this section of your portfolio.
4 What are the legal requirements associated with your chosen risk management
process or project?
4.1 Explain the legislation you need to comply with.
Answer
Australia has national statutory regulations to guarantee fair trade for both
enterprises and consumers. The Australian Competition and Consumer
Commission over sees and enforces this system (ACCC). Consumer protection is
governed by state and territory laws in addition to Australian federal law. Each state
and territory has a fair dealing office that offers guidance on legal requirements and
company rights.
Consumer protection legislation: The Australian Consumer Law (ACL) establishes
guidelines for un favorable contract clauses, consumer rights protections, product

safety laws, unsolicited consumer agreements, lay-by agreements and penalties,
among other things.
Australia has a national legal framework to govern product safety and information
standards. - Product liability regulation These requirements are intended to prevent
the marketing of dangerous items in Australia.
The Australian Competition and Consumer Commission up holds the criteria
(ACCC).
The enforcement of product safety regulations involves both federal, state, and
local fair trading offices. The main responsibility of state and territorial
administrations is to help consumers.
Law pertaining to the environment Environmental protection is cooperatively
managed by the Australian Government, State and Territory Governments, and
Local Governments. The procedure for evaluating and approving national
environmental and cultural concerns is governed by legislation issued by the
Australian government. Environmental protection laws from the states and
territories apply to particular economic operations.
Privacy regulations The Office of the Australian Information Commissioner (OAIC),
which is responsible for enforcing national privacy laws in Australia, controls how
corporations can gather, access, and keep personal information. The administration
of sensitive information, such as medical records, is subject to special regulations.
4.2 Do any regulations apply?

Answer
The Fair Work Act of 2009 (FW Act) and the Fair Work Regulations of 2009 are the
major pieces of fair work law we deal with. They control how employees and
employers interact in Australia. They offer a safety net of minimal rights, allow for
flexible scheduling and workplace equality, and stop discrimination against workers.
From July 1, 2009, until approximately 2014, certain components of the Fair Work
system might be implemented progressively according to the Fair Work
(Transitional Provisions and Consequential Amendments) Act 2009.
Corporations Act 2001: The main piece of legislation governing businesses in
Australia is the Corporations Act 2001. It encompasses businesses and other types
of organizations, like partnerships. The Corporations Act governs issues such as
how to register a firm and how companies should conduct themselves during
insolvency.
1988 Privacy Act: The Privacy Act of 1988 governs the Australian Government's
and its agencies' use and dissemination of the data they amass on people.
The 2010 Competition and Consumer Act: The majority of the market is covered
under the Supplier, Wholesaler, Retailer, and Consumer Relationships Act 2010
(Competition and Consumer Act 2010). Its goal is to improve the welfare of

Australians by fostering fair trade, healthy competition, and consumer protections.
The Australian Competition and Consumer Commission enforces the Competition
and Consumer Act 2010 external-icon.png.
4.3 Is there the potential for new laws to be introduced or existing ones to be
amended or rescinded?
Answer
Yes, changes to tax rules and regulations governing businesses entering new markets
are necessary if governments and authorities hope to revive their economies following
the slump brought on by COVID-19.
4.4 Which risk management standard/s are used or guide the risk management
activities of the business?
Answer
.
ISO 31073:2022 Management of risk — This article defines the general terms
Words used to describe the management of
risks that businesses face.
Risk management — Recommendations As an add-on to ISO 31000, this

for the management of legal risk document provides principles for
handling the particular legal risk
concerns that businesses must deal
with. Any organization's context and use
of these standards can be catered
accordingly. This document, which is not
industry- or sector-specific, offers a
standard method for managing legal
risk.
Risk management — Risk assessment This Standard implements IEC

methods AS/NZS IEC 31010:2020 31010:2019, which offers
recommendations on the choice and use
of approaches for assessing risk in a
variety of circumstances. The methods
are employed as a part of a process for
risk management, to offer knowledge
about specific hazards, and to aid in
decision-making where there is

uncertainty. The document offers
descriptions of a variety of strategies
and makes references to other
documents that go into greater detail
about those techniques.
ISO 31000:2018 Risk management: Best practices Managing risk is outlined
in ISO 31000:2018 for companies. Any
organization's context and use of these
standards can be catered accordingly. It
offers a universal strategy for controlling
any kind of risk and is not industry- or
sector-specific. Throughout the
organization's existence, ISO
31000:2018 can be utilized and applied
to any activity, including all levels of
decision-making.
AS ISO 10377:2017 Safety of Supplier guidelines

consumer goods: Adopts IOS 10377:2013 to give
suppliers useful advice on evaluating
and managing consumer product safety,
including effective documentation of risk
assessment and risk management to
satisfy applicable requirements.
5 List the resources available for you to use as you plan, implement and monitor risk.
5.1 Are template documents available to support your risk management
process/project?
Answer
Yes, Nature Care will give personnel with sample documentation such as a risk
register, risk action plan, or communication plan..
5.2 Do you have budget allocation or restrictions for the risk management
process/project?\
Answer

The budget for the risk management process is only $20,000, and all other
costs must be kept to a minimum.
5.3 Which employees are available to assist you?
Answer
All departmental staff members must give the Nature Care risk management
process the proper assistance. Other employees from the sales department and
the administrative department are also accessible, in addition to human resources
from the finance department like the manager, financial assistant, and payroll
officer.
5.4 What other resources are required?
Answer
Budget, resources (human and material), time, paperwork, and facilities
6 Establish objectives and critical success factors for your risk management process
or project.
6.1 List two objectives.
Answer
 boost budget likelihood and ensure short-term financial liquidity,
 Reduce the volatility of cash flows and maximize the projected level of cash
flows.
6.2 List three critical success factors for the risk management process or project.
Answer
 Commitment and backing from senior management;
 promotion of creativity and innovation; and
 Development of a unique competitive advantage.

7 Identify stakeholders who will be part of the risk management process.
7.1 Who is able to shed light on or assist with risk identification, risk analysis and/or
risk control?
Answer
 . CEO and board of directors,
 a financial manager and an assistant,
 other managers of connected departments, and risk management specialists
7.2 Who is likely to be impacted by an adverse risk event?
Answer
Such a risk will have an effect on the entire firm because it will prohibit the achievement
of goals and objectives, which will result in job losses for personnel.
7.3 How will each stakeholder provide input to the risk management process (such
as identifying possible risks, helping describe their impact and suggesting ways
to prevent or mitigate risks)?
Answer
o When providing input for risk management, stakeholders can play a
variety of roles. For instance: - The finance manager and department can
supply data based on financial statements, the corporate financial health
of the organization, and market rates. Information pertaining to
accounting and auditing chores or cash flows for investing, financing, and
operating operations is available from the account manager and payroll
officer.
o The sales department can offer information about consumer preferences
and strategic context for risk management activities.
o The human resources department can offer insight on the personality and
output of employees.
7.4 What influence does each stakeholder have on risk management decisions?
Answer
Stakeholders have varying perspectives on risk management choices, therefore
their influences can range. An organization's growth and potential for progress may
be slowed if it does not take risks. Contrarily, taking risks can boost an
organization's productivity as well as its capacity for creativity and innovation.
- A risk-taker frequently views dangers as opportunities. They prefer taking risks
and find it tough to do so; yet, their extreme optimism can occasionally result in
losses. You will find fewer hazards if your stakeholders actively seek risk.

- Risk neutrals approach risks systematically. They perform multiple analyses using
tools like the Decision Tree Method, Expected Monetary Value (EMV), and other
techniques before coming to a well-informed conclusion.
Risk-tolerant people feel at ease ignoring hazards. They prefer to ignore risks until
they become a problem.
7.5 What are the possible issues each stakeholder may have if a risk event occurs
(for example, employees will still want to be paid, customers may still need your
products or services and banks will still need to be paid for loans etc)?
Answer
Risk events could cause the company to suffer a substantial loss, making it
impossible for it to continue operating. As a result, there aren't enough products
available to meet consumer demand.
- Problems with employee salaries and wages due to insufficient cash flow; this
could result in conflict with the labour union or force the company to scale back in
order to retain its condition.
- Brand reputation damage - Stock price decline - Legal problems as a result of
past-due bank borrowing
8 Communicate with relevant stakeholders.

8.1 Who will you communicate to (at least two stakeholders) regarding:
8.1.1. Explanation of the risk management process or project?

Answer
o Accounting Manager,
o Payroll officer, and Financial Assistant
8.1.2. Invitation to assist in risk identification.

Answer
o Director - Analyst of credit
o Financial assistant - Auditor
8.2 How will you consult with each stakeholder?
Answer
 Director - Analyst of credit

 Financial assistant - Auditor
8.3 If not already viewed in person by your assessor, attach proof (e.g. draft email,
telephone conversation recording, video of meeting etc.)of your explanation of
the risk management process/project to the stakeholders.
8.4 If not already viewed in person by your assessor, attach proof of your
invitationtostakeholders to assist in the identification of risks (e.g. draft email,
telephone conversation recording, video of meeting etc.).
Note: If suitable, 8.3 and 8.4 can be completed as one communication.
 EMAIL:
Risk management process and identification meeting
To all stakeholders,
I hope everything is good with you. This email is a reminder that we will be
meeting on Tuesday at 10:00 am next week.
This discussion will last for at least three hours as we cover the risk
management process to ensure that every member of the staff has a thorough
awareness of the rules and regulations pertaining to risk management.
Managers and analysis will then keep working on risk identification after that.
Within the next three working hours, detailed reports will be made available to
all staff members and stakeholders.
Please use this email as your confirmation for attending the meeting. If you
have any questions, kindly email me at this address.
Regards
Dawa Sherpa
Manager of the finance division,
Natural care products
9 Analyse the external environment of your risk management process/project.

Note: You may choose to perform any external environmental analysis
(e.g.PESTLE analysis) to answer this question instead of the questions below.
9.1 What is the political situation like (e.g. unrest, government support of small
business, government policies)?
9.2 What is the current and predicted economic situation (e.g. state of local and
other applicable economies, interest rates, exchange rates, employment rates
etc.)?

9.3 Are there any social considerations (e.g. changing values, beliefs, attitudes and
habits)?
9.4 How are technological advances affecting the business (e.g. internet, RPA, risk
control)?
9.5 What are competitors doing?
Answer
PESTLE Analysis
Politic Changes in Policy and Changes in Government - From one government

factors to the next, policy is made consistently. Second, all governments uphold
the agreements reached by the preceding administrations.
Trade Agreements & Other Treaties - The nation has a solid track
record of upholding agreements it has made with different international
partners. There is constancy in the rule of law and regulations because
the governments of each party have abided by the agreements made by
earlier administrations.
The size of government budgets, both at the local and federal levels
The administration is running deficit budgets at both the national and
local levels, which is boosting economy in the near term but could
cause an increase in inflation over the medium term..
Econo Foreign Exchange Rate: A number of businesses have suffered losses
mic as a result of foreign exchange risk in recent years.
factors
Fiscal and monetary policies: The culture of government tax breaks has
expanded the deficit and could cause financial difficulties for the
economy in the years to come.
Price Changes in Local and International Markets - In comparison to
the quantitative easing implemented over the past ten years, the
pricing of NatureCare products and other goods have stayed stable
in the Australian market. NatureCare should take into account the
possibility of wild inflation and significant currency devaluation given
Australia's current deficit levels in an emerging economy.
Social Social Structure and Hierarchy The types and degree of consumption in
Factor a society are also influenced by the hierarchy and standards that are
s acceptable in that community. The top of highly hierarchical society
frequently has the authority of decision-making.
The quality of the goods and the cost structures of manufacturing
processes frequently reflect a company's approach toward health and
safety. Because of its strict health and safety standards, NatureCare

may face competition in emerging nations from businesses with less
expensive structures.
Birth Rate: The birth rate is another reliable harbinger of future demand.
Due to a somewhat higher birth rate and higher degree of immigration,
Australia has managed to avoid the government-style stagnating
economy.
Technolo Property Rights and Protection of Technology-Oriented Assets -
gical NatureCare should examine the legal standing of different property
factors rights and intellectual property rights safeguards that are prevalent in
Australia.
Transparency & Digital Drive – Nature Care can combat corruption in
the regional economy by digitizing a number of processes.
Supply chain partners' empowerment – Nature Care has to examine the
ways in which technology might provide supply chain partners more
leverage. This could aid Nature Care in increasing supply chain
flexibility and transparency.
Environme How much of the budget is allocated to using renewable energy
ntal sources, and how can Nature Care implement this investment as part of
factors its business plan to stay competitive?
Recycle Policies - What recycling regulations apply in the target market
and how can Nature Care follow them?
Waste Management: What is the waste management strategy in the
potential market, and how can Nature Care comply with the waste
management standards there?
Legal factors Health and Safety Laws - What are the country's health and safety laws,
and what must Nature Care do to abide by them? Before entering the
market, it would be best for Nature Care to perform a thorough
investigation of the attitudes of various nations about health and safety.
Employment Laws - Are the employment laws of the nation in line with
Nature Care's business strategy?
Data Protection Regulations: Nature Care must evaluate the country's
data protection laws and determine how to abide by them.
10 Establish the strengths and weaknesses within your business that have the
potential to create or impact risk.
Note: You may choose to use any relevant analysis tool (e.g. SWOT analysis) to
answer instead of the questions below.

Are the current risk management policy/procedures complete and comprehensive?
10.1 What is the state or condition of business’ resources relevant to your risk
management process or project?.
10.2 How effective are existing communication mechanisms between
management and the workforce?
10.3 How loyal are staff?
10.4 What is the size and quality of the customer database?.
10.5 What is the business’s ability to fund or raise funding?
10.6 What is the business’ cash flow situation?
10.7 Are supplier relationships strong and reliable?
Answer
Strengths Weaknesses
 successful record  inventory
of entering new control
markets large inadequat
e return on
margins
investment
 a variety of lack of
products diversity in
the
 Managing business regulations and
environment workforce
Little size
Opportunities Threats
 lowering the cost of entering new  Governmental
markets and expanding into foreign
requirements and red
markets
tape global geopolitical
 Adapting technological environment
an increase in disposable income variables
for consumers
 social media and e-commerce-  Due to environmental
focused business model
rules, working in
developed markets is
becoming more

expensive.
 increase in protectionism
Policies and procedures ☒
Communication to explain risk management

☐
process to stakeholders (if relevant)
Communication to invite stakeholders to identify

☐
risks (if relevant)

Section 2: Identify and analyse risk
1 Plan to discuss risks with invited stakeholders (identified in Section 1).

1.1 Choose a tool or technique to facilitate the group discussion to identify risks
within the scope of the risk management process
Note: At the meeting, you will collaboratively choose three risks to focus on as
a group.
Answer
Probability and Impact Matrix: Project managers can use this matrix to help
prioritize risks based on their potential impact. It aids in the distribution of resources
for risk management. The likelihood scores and effect scores of individual risks are
combined in this method. Following completion of all calculations, the risks are
graded according to their seriousness. This method aids in putting the risk in the
context of the project and aids in the development of plans for minimizing it.
1.2 List what will be discussed (e.g. identify risks, assess risks, risk treatments,
priorities etc.)
Answer
Detail the risk management process, including its steps and documentation needs,
review the risk assessment matrix, and list any potential risks.
1.3 What method and scale will you use to assess the likelihood and severity of the
risks?
Answer
The probability of each risk materializing must be determined for each risk the
organization chooses to manage. The possibility of a risk must be determined by
averaging the opinions of at least two stakeholders. The following scale must be
used to do this:
Rare 1
Unlikely 2
Likely 3
Very likely 4

Similar to this, the risk impact must be determined by averaging at least two
stakeholder estimates using the scale below:
Minor 1
Moderate 2
significant 3
Catastrophic 4
1.4 What will guide how you prioritise risk (e.g. risk matrix)?
Answer
 Extreme and high hazards ought to be given top consideration.
 Medium priority should be given to moderate hazards.
 Low and extremely low hazards should not be prioritized.
1.5 What are you prepared to negotiate?

Answer
 Identify potential hazards in relation to our company's financial health - Use a
risk management matrix to rank risks and their importance
 Outline a risk management action plan.
1.6 How will you negotiate?
Answer
o Emails and online meetings, to be precise.

o Calls made directly
 :Documents
1.7 Explain questioning and listening techniques you will use to elicit opinion and
clarify understanding.
Answer
Questioning techniques
 Use both prepared inquiries and spontaneous ones when interrogating
someone.
 Ask a range of inquiries.
 Steer clear of using rhetorical questions.
 Be specific while posing inquiries.
 Allow adequate waiting time
- Listening strategies
 Pay attention.
 Show that you are paying attention.
 Provide feedback.
 Reserving judgment.
 React in a proper manner
2 Summarise risks.
2.1 Summarise at least three risks identified at the meeting that apply to the scope
of your risk management process or project. For each risk:
2.1.1. Identify which type of risk it is.
2.1.2. Identify who may be responsible for the risk.
2.1.3. List at least two potential outcomes should the risk eventuate.
2.1.4. What treatment alternatives were discussed?
2.1.5. How do the stakeholders want to prioritise the risks?
Answer

Risk Responsib Potential Treatment Prioritise
le outcomes alternatives by
Increasing salaries rising payroll 1 Enhance the a matrix for
and payroll costs expenses and hiring process assessing
compensation to identify the risk
Payroll
most qualified
officer
and talented
candidates.
2 Educating
employees to
increase
productivity
Cash in the Incorrect invoicing 3 the adoption of a matrix for
financial statement Account cause the cash in the technology in assessing
accounting
and cash on hand ing financial statement Examine the risk
are not in balance Manag and cash on hand to financial records
be out of balance. every quarter.
er
incorrect invoices rising payroll 4 Automate a matrix for
Finan expenses and the printing assessing
cial compensation of invoices risk
Mana 5 Form a team to
ger check supplier
information on
orders and
invoices.
2.2 If not already viewed in person by your assessor, attach proof of your
stakeholder meeting (e.g. video of meeting etc.).
Answer
Follow-up meeting for risk evaluation and identification
We appreciate all of your time and effort at our previous meeting, dear everyone. I
am aware that it was really taxing, but the outcomes are excellent.
Three key concerns have been identified, including the dangers of rising salaries
and salary costs, cash flow imbalances, and mismatched invoicing.
According to our rules and processes, the risk management matrix is used to
evaluate each risk.

Please refer to the report and meeting minutes attached. Please feel free to email
me at any time if you have any questions.
I hope everyone has a wonderful weekend.
With sincere regards
Dawa Sherpa
Manager of the Finance Department, Natural Care Products
3 Complete the table below to assess the identified risks (using an appropriate scale
and stakeholder input).
Note, you may enter relevant information into the table below, or use any other
appropriate format. If you use another format (e.g. MS Excel spreadsheet), attach proof
to this section of your portfolio.
Risk Potential Student Stakehol Stakehold Combin

outcome ’srole der2 er3 edvalue
(e.g.ave
rage)
Likeli Imp Likeli Imp Likelih Imp Likeli Imp

hood act hood act ood act hood act
Increasing Increasing short- 3 3 3 3 3 3 3 3
salaries and term obligations
payroll costs and liabilities
2 3 2 3 2 3 2 3
lessen the profit
margin
Cash in the Constant mistakes 2 3 2 3 2 3 2 3

in the accounting
financial
system
statement
and cash on Due to a decrease 3 3 3 3 3 3 3 3
hand are not in funds, profits
in balance. were lost.
incorrect less contracts 3 3 3 3 3 3 3 3

invoices being signed

taint our 3 3 3 3 3 3 3 3
company's
reputation with
suppliers
4 Research risks
4.1 Research each of the identified risks to learn more about the riskand anyrelated
risk treatment options(e.g. speak to stakeholders, do an internet search, review
best practice examples, check policies and procedures, view past incidents,
research technology solutions etc.).
Note: You must access at least two different sources of information.
4.2 Summarise the research done for each identified risk.
4.3 List the options available to you to treat your identified risks.
4.4 Attach proof of your research to this section of your portfolio.
Answer
Risks Summary Options available Proof of research

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controls, entering to-fix-financial-
continually looking for
reliable data, and reporting-
ways to lessen the
balancing internal errors.html
possibility you will make
an error by automating and external https://
as much of the invoicing records www.infinitusreporting.c
process as possible, om/articl es/the-
common-risks-

these errors happen associated-with-
considerably less financial-reporting.html
frequently than they did
https://
in the past..
www.investopedia.c
om/articles/ markets-
economy/090516/wh
at-are- pros-and-
cons-raising-
minimum- wage.asp
https://
www.yourarticlelibrary.c
om/orga nization/7-
factors-for-determining-
wage-and-salary-
structure-of-
workers/24737
Use digital technology to document and calculate risk (e.g. a risk register). Include the
risk, potential outcomes, likelihood, impact/severity, risk calculation, treatment
actions and priority of each treatment action.
Answer
Risk Potential Student Stakehol Stakehold Combin

outcome ’s role der2 er3 ed value
(e.g.
average
)
Likeli Imp Likeli Imp Likelih Imp Likeli Imp

hood act hood act ood act hood act
Increasing Increasing short- 3 3 3 3 3 3 3 3
salaries and term obligations
payroll costs and liabilities
2 3 2 3 2 3 2 3
lessen the profit
margin

Cash in the Constant mistakes 2 3 2 3 2 3 2 3
in the accounting
financial
system
statement
and cash on Due to a decrease 3 3 3 3 3 3 3 3
hand are not in funds, profits
in balance. were lost.
incorrect less contracts 3 3 3 3 3 3 3 3

invoices being signed
taint our 3 3 3 3 3 3 3 3
company's
reputation with
suppliers
Note: Risk is calculated (likelihood)x(impact).
TREATMENT ACTIONS:
The risk of fire can be reduced by providing training in case of emergency in the
company, as well as making sure all fire-fighting materials are readily available and

safe to use. Also, company members should take part in evacuation strategy training
so people inside the incident do not panic.
Management of risk can prevent non-compliance risks, so all company members are
responsible for complying with laws and regulations.
Financial risk can be reduced by carefully selecting clients to trust, and by analysing
the risks before making decisions. Continually monitor the financial status of the
company and make plans for preventing damages related to the identified risk.
https://
Proof of your research (2 sources) √
www.sciencedirect.
com/science/
article/abs/pii/ Stakeholder meeting √
S02786399000708
Risk assessment (likelihood and impact) if you did not use
https:// ☒
the table provided
www.ccohs.ca/
oshanswers/
hsprograms/
risk_assessment.ht
ml
Digital risk documentation e.g. risk register √

Section 3: Implement and monitor risk treatment
1 Complete the action plan below for ONE of your selected risk treatments (in your
Risk register in Section 2).
Note: If your business already has an action plan template or other specific
documentation requirements, use them instead and attach your work to this section
of the portfolio.
Risk: Increase wages and salary expenses

Action:
- Improve recruitment process to find most appropriate and talented staff
- Staff training on maximizing productivity
Desired outcome:
- Maintain profit margin
- Minimize expenses for wages
- Increase productivity and work efficiency for staff
Overall person responsible: Human resources Manager
Step: Person Timefram Resource Performan Outcome Done

responsi e: s: ce requiremen ?
ble measure: ts:
Create a HR budget, Create a
plan for personnel resources, strategy that is
hiring personnel, innovative and
new and others in line with
employee 1 month Plan nature care Done
s. practices.
Make a HR budget, Create an
plan for personnel resources, innovative plan
staff personnel, that is in line
training and others with Nature
1 month Plan Care principles. Done

Get plans HR budget, agreement on
approved Director resources, the proposal Receive
personnel, permission for
and others in
all plans, then progre
2 weeks assign work to ss
each staff
member.
hiring Administrat budget, recent hires hire at least 10
procedure ive resources, interns and 5
Manager, personnel, new employees
HR and others for each
personnel, 3 months department not yet
and HR
Manager
Training Administrat budget, Quality check Productivity is
exercises ive and resources, for employees up 30% from the
human personnel, previous
resources and others quarter, while
personnel 6 months employee not yet
satisfaction is
up 20%.
2 Communicate the action plan to relevant parties (each person responsible for a
step in the action plan).
2.1 To who will you communicate?
Answer
 CEO,
 HR manager,
 assistant in finance, and outside consultants
2.2 How will you communicate (e.g. face-to-face discussion, email)?
Note: If you are basing this assessment on the case study business, you are
required to communicate verbally.
Answer
Emails and online conferences
Meeting reminder: human resources action plan

I hope this email finds you all well, team.
As was mentioned in the meeting, our company has chosen to start a new
project to reinvent the hiring process and training process for nature care
products in order to reduce the risk from rising expenses for salaries and
wages.
Please review the action plan that is attached to this email before our next
meeting, which is scheduled for 12:00 on Sunday. If this time slot is not
convenient, please let me know as soon as possible so that I may make
alternative arrangements.
I appreciate your work and look forward to meeting you all at the meeting.
Department of Finance regrets,
Manager
Dawa Sherpa
Nature Care Products
2.3 Unless already viewed in person by your assessor, attach proof of your
communication to this section of the portfolio (e.g. email with attachment,
project schedule, video of team meeting etc.).
Answer
As was mentioned in the meeting, our company has chosen to start a new project
to reinvent the hiring process and training process for nature care products in order
to reduce the risk from rising expenses for salaries and wages.
Please review the action plan that is attached to this email before our next meeting,
which is scheduled for 12:00 on Sunday. If this time slot is not convenient, please
let me know as soon as possible so that I may make alternative arrangements.
Manager
Dawa Sherpa
Nature Care Products

3 Implement your action plan and maintain documentation.
3.1 Which step will you implement?
Note: If you are using the case study, assume that one step in your action plan
is to request quotes for RPA systems for invoice capturing.
Answer
Organizational policies include:
- Risk management guidelines and rules
- A communication strategy
- Record-keeping requirements
- Additional laws and regulations with which we must comply
3.2 What are the organisational policy and procedure requirements to implement
your chosen step in the action plan (e.g. how many quotes are you required to
obtain, should a research report be written etc.)?
Answer
Documents shall be kept and identified in accordance with our company's record-
keeping requirements:
- It is required to create and store specific kinds of records. Employees must
maintain records that are both legally required and essential to their job
performance.
• Include major business decisions, reports, data, and actions;
• Describe business endeavors, deals, and communication with regulatory
authorities or the public;
• Indicate internal or external changes that influence operations, employees,
partners, or customers - Naming convention
• For all workplace documentation, all employees must utilize the Nature Care
templates.
The names of documents should be [Department Type Detail Version].
• Documents must be saved utilizing the cloud-based storage platform provided by
Nature Care.

3.3 Attach proof of implementation to this section of your portfolio (e.g.request for
quotes, research conducted and written into a research report etc.).
Answer
As was mentioned in the meeting, our company has chosen to start a new project
to reinvent the hiring process and training process for nature care products in order
to reduce the risk from rising expenses for salaries and wages.
Please review the action plan that is attached to this email before our next meeting,
which is scheduled for 12:00 on Sunday. If this time slot is not convenient, please
let me know as soon as possible so that I may make alternative arrangements.
Manager
Dawa Sherpa
Nature Care products
3.4 Describe how you maintained the documentation to indicate completion of the
step (e.g. marked the action plan as “done”). If this step cannot be completed in
the Project Portfolio, attach proof.
 Check that all of the facts are correct and that all of the items required
for fire safety are identified. To complete all of the phases, the
responsible members for each step must do all of the duties required.
4 Monitor your risk management process or project.

4.1 What data is available?
Answer
• Action Plan
• Recruitment Plan
• Training Schedule
• Employee Performance Reports and Evaluation
• Strategic Documentation of Nature Care
• Financial records
4.2 Have any new risks emerged?

Answer
Yes, because COVID-19 is so simple to use, there is a risk of modifying borrowing
rates. As a result of the banks' decision to raise interest rates, we will have to
distribute a sizable sum for interest charges and cash outflow. Since this increase
in expenses is not offset by an increase in revenue, we must come up with
strategies to lessen its effects.
4.3 Have any incidents been recorded?
Answer
Three store room theft incidents were noted, involving three different stores.
 No, the incidents have been recorded.

4.4 Have you (or other stakeholders) received or provided feedback?
Answer
Even while several managers believe that the risk management plan's overall
results are acceptable, the CEO has expressed worries that this risk was not
sufficiently controlled.
5 Evaluate your risk management process or project.
5.1 Are your identified risks still relevant?
Answer
All dangers are relevant, yes.
Have your risk treatments been successful?

Answer
To maximize the risk managing process, we still need additional time and
innovative ideas even when risk treatments have demonstrated their
effectiveness.
5.2 Are there any new risks?
Answer
Due to the simplicity of COVID-19, there is a risk of fluctuating borrowing rates.
5.3 How satisfied are stakeholders with your action taken to manage risks?
Answer
Though the CEO thinks the overall input is satisfactory, we could still do better and
provide better outcomes.

5.4 Are your selected treatment options still in line with best practice?
Answer
All available treatments comply with best practices.
5.5 Is any other risk treatment necessary?
Answer
Provide analysts with the task of predicting interest rate and market movements, for
example. Engage in swap transactions to obtain more advantageous borrowing
rates
5.6 Write a report on the outcomes of the evaluation and attach it to this section of
your portfolio. In you report, include:
 a summary of the risk process/project and associated risks and risk
treatments
 a summary of the progress of the action plan
 a summary of new risks
 a summary of risks no longer valid
 any additional risk treatments required.
Report
Evaluation
Report
Businesses face dangers that could hurt or destroy their reputation. The company in
this project selling eco-friendly, high-quality cosmetics produced with natural
ingredients is called Nature Care Products. Expect risk wherever we go in business; all
we have to do is come up with a plan to stop losses and keep the company moving in
the direction of its targets.

Increase wages and salary expenses, Imbalance between cash in- hand and cash in
financial statement and Mismatch invoices risk are the three categories of risks that
have been identified. Wage increases cause inflation because the cost of producing
goods and services goes up as companies pay their employees more. To make up for
the increase in cost, companies must charge more for their goods and services to
maintain the same level of profitability. Conduct training on promoting an inclusive
workplace, consider unconscious bias training and Build diversity and inclusion into
your culture. Review your leave policies
Errors in financial statements can cause people to lose faith in the company and its
employees. Even if the company's accounting department quickly corrects flawed
statements, the realization that such errors are possible may still result in people losing
faith in the company. To reduce financial reporting risk, organisations should start from
the top, with the CFO taking ownership of the effort and assembling a cross-functional
team of accounting, information technology, human resources, as well as operational
resources to work together and understand where every department stands
Inaccurate reports can lead you to make bad decisions or make your company look
less valuable than it is. They can also land you in legal hot water. Adoption of adequate
internal controls, accurate data entry, reconciliation of internal and external records
Action plan (if relevant) √
Proof of communicating action plan ☒
Proof of action plan step implementation √
Proof of how you maintained documentation (if

☒
relevant)
Evaluation report √



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PROJECT

© 2021 RTO Works

Section 1: Establish risk context 5

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2 Determine the scope of your chosen risk management process/project.

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3 Evaluate organisational requirements and standards for managing risk.

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 Employees of Nature Care Products shall implement risk management in

A dedication to risk management education and expertise development:

 As a foundation for continuous improvement, NatureCare Products will routinely

3.3 Attach policies and procedures to this section of your portfolio.

Rockford International College Pty Ltd T/A Rockford College

4.2 Do any regulations apply?

Rockford International College Pty Ltd T/A Rockford College

Risk management — Recommendations As an add-on to ISO 31000, this

Risk management — Risk assessment This Standard implements IEC

Rockford International College Pty Ltd T/A Rockford College

AS ISO 10377:2017 Safety of Supplier guidelines

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8 Communicate with relevant stakeholders.

8.1.1. Explanation of the risk management process or project?

8.1.2. Invitation to assist in risk identification.

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9 Analyse the external environment of your risk management process/project.

Rockford International College Pty Ltd T/A Rockford College

Politic Changes in Policy and Changes in Government - From one government

Rockford International College Pty Ltd T/A Rockford College

Rockford International College Pty Ltd T/A Rockford College

Rockford International College Pty Ltd T/A Rockford College

Policies and procedures ☒

Communication to explain risk management

Communication to invite stakeholders to identify

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1 Plan to discuss risks with invited stakeholders (identified in Section 1).

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1.5 What are you prepared to negotiate?

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Risk Potential Student Stakehol Stakehold Combin

Likeli Imp Likeli Imp Likelih Imp Likeli Imp

Cash in the Constant mistakes 2 3 2 3 2 3 2 3

incorrect less contracts 3 3 3 3 3 3 3 3

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