RISK MANAGEMENT 2- ASSSESSMENT1- GABRIEL-ANSWERS

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RISK MANAGEMENT 2 ASSESSMENT 1 Assessment 1 – Written Responses 1. a. Explain why you (representing the organisation) would review its existing risk management practices (policy, procedure, process). There is need to regularly review the existing organizational risk management practices (policies, procedures and processes) in order to be able to update them based on the current risks that the organisation is facing or is likely to face at the particular time. b. Provide the rationale for the review It is important to review the risk management practices because the current ones may not be relevant to the organization after the particular risk has been eliminated or mitigated hence the need to update depending on the current risks. c. List the benefits of doing the review. The benefits of reviewing the existing risk management practices are to be able to identify new risks and be able to address them and to be able to determine the effectiveness of the risk management practices in addressing the likely risks to the organization. 2. a. Provide three examples of the scope that risk management may cover; and, i. Risk Analysis- ii. Risk Mitigation- iii. Risk Monitoring

Fig 1.1: scope of risk management Source:researchgate.com b. Provide a brief explanation of what it is within the scope that risk management will be applied. i. Risk Analysis- this is the process of identifying and assessing the potential risks to the organisation that may have a negative impact to its operations. ii. Risk Mitigation- these are the steps taken by an organization to prepare and address the potential risks in order to avoid their impact to the operations. Risk mitigation involves risk acceptance, risk avoidance, reducing the risk or transferring the risk. iii. Risk Monitoring - is the continuous process of tracking and evaluating the potential risk to the organisation and to determine the effectiveness of the risk management plan that is in place. 3. In your own words, summarize:

a. 8 Principles of the AS/NZS ISO 31000 Risk Management – Principles and Guidelines i. Integration- risk management forms a key part of all the organizational operations and activities and should be included in the operations of the organization. ii. Structured and comprehensive- there should be a structured and comprehensive method in risk management in order to ensure consistency in the outcomes and results. iii. Customized- the risk management process is customized and specific to a particular organization depending on its external and internal context. iv. Inclusive- it involves the regular and timely involvement of all the relevant stakeholders to be able to get their views and opinions on the process. v. Dynamic – the potential risks to an organization emerge, change and disappear depending on the changing circumstances of the organizational context hence the need to detect and respond to the occurring risk appropriately and on time. vi. Best available information- risk management involves making use of the historical and current information as well as future anticipations hence the need to properly inform all the stakeholders on time. vii. Human and cultural factors- risk management is influenced by human and cultural factors at different stages. viii. Continual improvement- the risk management process is continually improved through continuous learning and experience b. Benefit of the AS/NZS ISO 31000 Risk Management – Principles and Guidelines The purpose of these principles and standards is to provide guidance so that organizations (public, private), community, groups and individuals have a reliable basis for making Informed decisions and adequate planning for the identification of the potential risks and ways to mitigate them. 4. How would you ensure that your risk management processes take into account the following legislation, codes of practice and national standards? It is important that all the key stakeholders are involved in the development of the risk management process in order to be able to identify all the potential risks and be able to ensure

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that all the legislations, codes of practice and national standards are followed. There should be regular review and consultation sessions with all stakeholders in all the stages of the risk management process in order to have a clear establishment of the context of the organization, proper identification and management of the risk in line with the legislations and standards that are in place. 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 - This legislation ensures that all employees have an obligation to ensure that they protect each other and prevent causing harm to others in their operations. It ensures that the organization takes the necessary action against any employee as a result of their negligence i.e. an all employees should be trained on how to handle hazardous chemicals and action is taken on anyone who leaves hazardous chemicals in an open and accessible place. b. Company law – this is a set of legislations which govern the conduct, relationships and rights of individuals, companies, businesses and organizations. c. Contract law - is a legally binding agreement between different parties that have agreed to work together. All parties in the contract are expected to duly follow the contract agreement to avoid any legal implications. d. Environmental law – the legislations are put in place to minimize activities that may lead to environmental pollution. All organizations should ensure that their operations do not contribute to environmental pollution i.e. they should have a proper system in place to manage their industrial wastes. e. Freedom of information- the Act was put in place to ensure that all organizations have a right to access any information from the agencies and authority freely. The organization are free to request for any information and use it in its operation in the risk management process. f. Industrial relations law- this is the legislation that govern the rights and obligations of an employee and their employer. This is enacted through the Fair Work Act of 2009.

g. Privacy and confidentiality- this is the legislation that seeks to ensure that all the confidential information of an employee is kept privately and should not be shared without the consent of the person. i.e. the organization should keep the information regarding the employees contact and health confidentially. h. Competition and Consumer Law- This legislation is concerned with the relationship between suppliers, wholesalers, retailers and customers within the market. It seeks to ensure fairness in trade and competition while ensuring that the customers get the best quality products in the market and value for their money. i.e. all companies have an equal chance to produce and market their products in the market. i. Disability law - the law is in place to ensure fairness in employment of all people including those living with disability. This seeks to prevent discrimination on the basis of one’s disability i.e. any person with a disability and has the required qualifications should be given equal chances in employment. 5. a. Give an example of a risk management activity: and, The risk management activity includes mitigation of the risk, transferring of the risk to other parties and prevention of the risk to avoid its impact on the operations of an organization. b. explain why it is important to gain the support stakeholders. The organization should gain the support of all the relevant stakeholders in risk management in order to be able to properly address the risks and mitigate their diverse impacts on the project and also ensure that they make proper decisions that will ensure the successful implementation of the project activities. c. Explain one method you can use to gain support; and, The organization should organize regular joint review and brainstorming sessions with all the relevant stakeholders. This will ensure that the stakeholders are able to contribute their views and ideas in the risk management thus gaining their full support in addressing the potential risks. d. why you chose this particular method.

The method is effective because it provides an opportunity for discussions to be able to arrive at the best decisions and solutions that will be beneficial in management of the potential risks. 6. a. Discuss three ways of how you will communicate with relevant stakeholders about the risk management process. There is need for every organization to ensure that there is regular and timely communication with the relevant stakeholders. The communication can be done through sending of emails to the stakeholders, organizing meeting to enable discussions and brainstorming as well as through telephone calls to provide updates to the stakeholders. b. Justify why you chose these. The above methods are very effective in ensuring regular communication with the stakeholders. The use of telephones and emails will ensure that any updates or information is easily and quickly passed to all stakeholders at their convenience. Organizing regular meeting will also provide an opportunity for all the stakeholders to come together to discuss and brainstorm to arrive at the most effective decisions. 7. a. Explain how you would encourage stakeholders to participate and assist in risk identification activities. The organization should seek to encourage all the stakeholders to participate in the identification of potential risks. This can be ensured through appreciating and valuing every stakeholder so that they feel comfortable and motivated to share their ideas and contributions. The organization should also be deliberate in reaching out to all stakeholders and giving all of them an equal chance to participate in the risk identification activities. The organization should also seek to use the best format or ways that suits all the stakeholders in order to encourage their participation in the activities. b. Justify the benefit of this approach. The involvement and appreciation of all stakeholders in the risk identification process will ensure that the organization establishes trust with the stakeholders thus establishing an effective working relationship that is beneficial in the risk management process.

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REFERENCE Standard, B., & Standard, N. Z. (2009). Risk Management-Principles and guidelines. BS ISO, 31000, 2009. Ghadge, A., Dani, S., & Kalawsky, R. (2012). Supply chain risk management: present and future scope. The international journal of logistics management. Zou, Y., Kiviniemi, A., & Jones, S. W. (2017). A review of risk management through BIM and BIM-related technologies. Safety science, 97, 88-98.

RISK MANAGEMENT 2- ASSSESSMENT1- GABRIEL-ANSWERS

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