Risk Management 2_Assessment 1

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Risk Management 2_Assessment 1 Assessment 1 – Written Responses 1. a. Explain why you (representing the organization) would review its existing risk management practices (policy, procedure, process). Being a representative of the company, I would review its existing risk management practices which comprise policy, procedure and process due to the following:  It will assist in determining if the already existing practices were formulated in the right way and in accordance to the required standards of risk management.  It will also help in realizing the required and important risk management practices that might have been omitted during the formulation of the existing risk management practices.  It is also essential because it will give an opportunity for the employees in the organization to learn and put in practice some of the newly introduced ideas. b. Provide the rationale for the review  The rationale for the review would be looking for the new strategies that would be used to improve the existing risk management practices.  It would also include the manner in which the outdated risk management practices would be replaced by the new and practical ones. c. List the benefits of doing the review. Doing the review would benefit the company in the following ways:  Enhancing the relationship between the employees and the relevant stakeholders of the company.  Helps in the realization of the effects of risk management practices in the organization either positive or negative.  Leads to the achievement of the organizational purposes and the achievement of goals.

 Enhances the competition in the market with other organizations by producing high quality products and giving the best services possible.  It helps to enhance the productivity as well as efficiency in the company by cutting the huge budget and reducing the costs that are required for compliance. 2. a. Provide three examples of the scope that risk management may cover; and, The three examples of the scope that risk management may cover are:  Deviation. This means leaving one particular organized course.  Validation. This is the provision of validity of a particular act.  Qualification. This is the achievement that an individual has and it should be good. b. provide a brief explanation of what it is within the scope that risk management will be applied. Risk management will be applied to the follow within the scope:  The structure of the company. This implies to how the duties flow at the company starting from the highest rank to the lowest rank.  The kind of risks that may occur daily at the workplace. Several risks are associated with any workplace and so they can be expected anytime.  The main aim of risk management process at the workplace. This will enlighten the people at the workplace of what they should expect.  The drawbacks of the finishing of risk management process. This will explain the limitations that come with completing the risk management process.  The period of time that it will take to determine the arising risks at the company. This will help in finding ways of preventing them.  The areas that need to be examined so as to identify any sign of risk occurrence. 3. In your own words, summarize: a. 8 Principles of the AS/NZS ISO 31000 Risk Management – Principles and Guidelines The principles and guidelines of the AS/NZS ISO 31000 Risk Management are:

Risk management should be included in all the company operations and all the activities that take place in it. A suitable approach must be drawn and be made comprehensive for the suitability of customization to fit the company’s aims and context. Inclusion of the relevant stakeholders should be done in the management fraternity and the thinking, anticipation, detection, acknowledgement, and reaction to any changes must be dynamic. Risk management should consider any drawbacks of the present information. The human and cultural practices are a must at the workplace and should be practiced l stages. The risk management practice is enhanced continuously by studying and experience. b. Benefit of the AS/NZS ISO 31000 Risk Management – Principles and Guidelines The benefits of principles and guidelines of AS/NZS ISO 31000 R ISK Management are:  It establishes a guide to allow public, private or community businesses, groups and people to get a more confident and rapid basis for planning and making of the decisions.  It also gives a finer determination of opportunities and threats as well as threats and obtaining value from more uncertain and variable situations.  It is efficient in the allocation and consumption of the available resources, enhanced incident management as well as lowering the loss and cost of risk.  It also enhances the compliance with the required legislation and even better cooperate governance. 4. How would you ensure that your risk management processes take into account the following legislation, codes of practice and national standards? Briefly describe each legislation. Provide a practical example for each legislation of what risk action you would take that takes into account the legislation. a. Duty of care

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This legislation illustrates the roles of individuals to ensure that their actions do not initiate harm to others. An example would be having to always do things within the possible competence and not relying on something that one is not sure the other person can do. b. Company law The chance of financial or reputational loss which occurs as a result of not knowing of how the law applies in the company is referred to as the legal risk. An example could be a possibility of not carefully reviewing a company contract leading to some faults that would eventually affect the application of its terms. c. Contract law A manner in which a contract is written can expose or protect the company. When the drafting of a company has errors, it can expose the company to so many threats. d. Environmental law The environmental law can also be referred to as the actual or potential threat that has a serious effect on living things and the environment at large through effluents, emissions, wastes and resource depletion that emerge from the activities of a company. e. Freedom of information Every individual has a right to access any information such as access to copies of documents as state in the FOI act. f. Industrial relations law This law illustrates how task related obligations are managed and entitled between the managers and their workers. An example is how the Queensland’s industrial relations for the private sector were switched from a state system to a national system. g. Privacy and confidentiality Privacy refers to an act of physically, behaviorally or intellectually sharing oneself with others and having control over its extent, timing and circumstances.

Confidentiality is the handling of information that a person has disclosed with regard to trust expecting that it will not be disclosed to others. Privacy can be defined as a sense of controlling an access of others to ourselves while confidentiality is an act of agreeing on maintaining and the people that should have access to a particular data. h. Competition and Consumer Law This law applies to almost all the aspects of an organization which comprises advertisement, setting of prices as well as transactions with users and other companies. An example would be the wrong use of market authority, unacceptable conduct as well as untrustworthy and deceptive conduct. i. Disability law This law regards to the laws relating to people living with disabilities in areas of employment, housing, education as well as access to public services. 5. a. Give an example of a risk management activity: and, An example of risk management activity would include the following steps: Determination of the possible risk in the workplace  Analyzing of the risk  Prioritization of the risk  Implementation of a possible solution  Monitoring of the risk. b. explain why it is important to gain the support stakeholders. Risk management involves the prioritization of a risk in regard to probability and effect. Gaining the support of stakeholders in this situation is important as it helps to determine the high priority stakeholders. This can be achieved by through the method of similar prioritization of stakeholders. c. Explain one method you can use to gain support; and,

The method to be applied in this situation to gain the support is the meet expectations method. It involves the setting of goals and expectations on the first day and indulging team work to meet those expectations. Then a monthly goal review can be done to determine what was gained and what still needs more time to be achieved. d. why you chose this particular method. I would choose this method because it is efficient in achieving the objectives in easy and little steps and it minimizes mistakes. 6. a. Discuss three ways of how you will communicate with relevant stakeholders about the risk management process. The three ways of how I would communicate with relevant stakeholders about risk management process include the following:  Newsletters I can distribute newsletters bearing important information to reach the relevant stakeholders so that they can read and get the required information.  Lunchtime meeting I can organize a lunch time meeting with the stakeholders to discuss important matters concerning the company.  Use of email I can write direct emails to the relevant stakeholders to inform them of the important matters of the company so that they can get the information and see how to go about it. b. Justify why you chose these. A newsletter is relevant because it is always formally published and everyone can get access to it at any time, so it would be easy for the stakeholders to access the information. Lunchtime meeting would be relevant because it is always a time that everyone takes a break from work so the stakeholders my feel relaxed during the relay of information and also they can be in a position to ask questions or clarifications where necessary.

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Most people always check their email from time to time and therefore the stakeholders can find the information sent to them whenever they get to access their emails. 7. a. Explain how you would encourage stakeholders to participate and assist in risk identification activities. Encouraging stakeholders to participate and assist in risk identification activities is very important as it makes it easy to understand the steps that are involved in risk management activities. I would encourage the stakeholders in taking part in these activities in the following ways:  Showing the stakeholders that I understand them fully whenever they contact me regarding the risk management activities.  Actively listening to stakeholders whenever they explain their views concerning risk management activities by maintaining eye contact and nodding whenever they present the information.  I should be on the frontline leading the team with much integrity to show them what is expected in every step.  Involving the stakeholders in the estimates and always working as a team leader to manage the team expectations. b. Justify the benefit of this approach This approach is very important due to the following:  The fact that stakeholders are always important in any organization because they make the basis of the company, engaging them in the risk management activities of my company would be very useful.  This would also help in the determination and early preventing of any risk incident that would occur.

References Cvitanovic, C., Howden, M., Colvin, R. M., Norström, A., Meadow, A. M., & Addison, P. F. E. (2019). Maximising the benefits of participatory climate adaptation research by understanding and managing the associated challenges and risks. Environmental science & policy , 94 , 20-31. Fan, Y., & Stevenson, M. (2018). A review of supply chain risk management: definition, theory, and research agenda. International Journal of Physical Distribution & Logistics Management . Hunziker, S. (2021). Enterprise Risk Management: Modern Approaches to Balancing Risk and Reward . Springer Nature . Florio, C., & Leoni, G. (2017). Enterprise risk management and firm performance: The Italian case. The British Accounting Review , 49 (1), 56-74.

Risk Management 2_Assessment 1

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