BSBRSK501 Manage risk STUDENT ASSESSMENT GUIDE SUMMARY SHEET This summary is to be completed by the AVETA assessor and is used as a final record of student competence. Student’s evidence and assessor checklists are to be attached to this summary. Student Name: Student Group: Student ID No: Completion Date: Unit Code: BSBRSK501 Unit Title: Manage risk Assessment Method Assessment Evidence Result S - Satisfactory NS – Not Satisfactory Assessment 1 Case Study/ Direct Observation/ Report  A risk report, inclusive of:  Summary notes from the meeting with the manager  A draft communication plan S | NS Assessment 2 Case Study/ Direct Observation/ Report  A risk analysis and management plan report, inclusive of:  A completed risk management plan S | NS Assessment 3 Case Study/ Direct Observation/ Report  An evaluation report on risk management process S | NS Assessment 4 Question and Answer  A Hard copy of satisfactorily typed responses to the 10 questions S | NS Final Assessment Result for this unit  COMPETENT  NOT YET COMPETENT Student Declaration: I declare that the evidence I have submitted for Assessment for this unit of competency is my own work and that:  I have been assessed in this unit.  I have been provided with feedback.  I have been advised of my result.  I am aware of my appeal rights. Student name:____________________ Signature: _____________________ Date: ____/_____/_____ Assessor Declaration: I declare that:  Where I have deemed the student as Competent the student has satisfactorily completed all the required assessment tasks for this unit of competency  Where I have deemed the student Not Yet Competent, the student has not satisfactorily completed all the assessment tasks for the unit  I have conducted these assessments in accordance with principles of assessment and rules of evidence  I have provided appropriate feedback to the student  I believe that the evidence that the student has submitted for this unit of competency to the best of my ability is the students own work. Assessor name:__________________________ Signature: ____________________________ Date: ____/_____/_____ BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 2 of 45 Comments (If the student is deemed Not Yet Competent the Assessor MUST state the circumstances and reasons why this judgment has been made): CHEATING & PLAGIARISM DECLARATION Student Declaration: In accordance with AVETA’s Cheating Policy’ and ‘Plagiarism Policy’ I hereby acknowledge by signing this declaration that I have not cheated or plagiarised any work in regards to all the assessment tasks undertaken in this unit of competency except where the work has been correctly acknowledged. Student name: _______________________________ Signature: ____________________________ Date: ____/_____/_____ Administrative use only Entered onto Student Management Database ________________ Date Initials BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 3 of 45 Assessment Guidelines for Student: Conditions of assessment  You are to complete all the assessments, in accordance with AVETA’S Assessment Policy and that are outlined in this document i.e. Assessment 1,2 & 3 and present your evidence to the Assessor so that you can be graded as either S – Satisfactory or NS – Not Satisfactory for each assessment task. In either case your Assessor will provide you with feedback.  If the evidence is graded as NS – Not Satisfactory you will be required to re-submit the evidence within your enrolment period for the qualification.  In this case you will be provided with clear and constructive feedback based on the assessment decision so that you can improve your skills / knowledge prior to submission of evidence.  Only when all assessments have been graded as S - Satisfactory you will be deemed C – Competent in this unit of competency; if you do not satisfactorily complete all the assessment tasks you will be deemed NYC – Not Yet Competent for this unit of competency and appropriate feedback will be provided to you by your assigned assessor.  Your Assessor will use the checklists, in this document, to ensure that all assessment requirements have been met. Context of and specific resources for assessment During the assessment tasks, you will be provided with:  Access to a simulated environment and; to office equipment and resources. Special consideration  If you require a reasonable adjustment, you should discuss the matter with your assigned assessor in accordance with AVETA’s Special Consideration Policy.  If you are dissatisfied with an assessment decision you should make an appeal to AVETA in writing no longer than 20 days following advise of the assessment decision, in accordance with AVETA’s Complaints and Appeals Policy. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 4 of 45 ASSESSMENT 1 – CASE STUDY/ DIRECT OBSERVATION/ REPORT STUDENT INFORMATION Assessment Description: For this assessment, you are required to review and determine the risk context associated with establishing a new business outlet, within the existing business structure. You will be required to review internal and external environment factors and liaise with all stakeholders to generate a list of risks. For the case study provided within this Assessment Task, you are required to review risk management processes and determine the scope and objectives, taking into account stakeholder input and both internal and external environmental factors affecting the organisation. With the information gathered, you are to identify risks and present this to relevant parties for feedback. For the case study - MacVille provided in Appendix 1 of this assessment, you will assume the role of the risk manager/assessor. Throughout this assessment process your assessor will be acting as your Manager and the CEO of MacVille along with observing your performance throughout this assessment process. Your assessor will allocate students/ classmates to act as stakeholders to assist you in completing the assessment requirements. Procedure: 1. Using the case study information provided in Appendix 1 of this assessment, review the MacVille Risk Management Policy and Risk Management Strategy and complete a risk report for your Manager (the assessor) that addresses the following steps: a. Scope – Identify the scope of risk management required in your identified role. b. Goals – Identify and describe the critical success factors, goals or objectives for areas included in scope. c. Stakeholders – Identify internal and external stakeholders, their role in the process and any issues or concerns they have. Present this using the table format provided in Appendix 1 of this assessment. d. Analysis – Complete a PEST analysis and a SWOT analysis for risks associated with the given scenario in Appendix 1 of this assessment. You must include reference to relevant legislation such as WHS Act and AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines. e. Research – Review and summarise the research information provided in the case study, as well as any literature available that is relevant to this scenario about risk management processes. f. Describe – Complete the analysis of risk for the scenario by summarising the scenario and its associated risks, accompanied by checklists, diagrams or flowcharts that support the summary. 2. After you have completed the above steps and documented a draft report for your Manager (the assessor), you need to: a. Meet with your Manager (the assessor) to: i. Discuss the draft report that you have developed, especially your understanding of the critical success factors and goals (you should check that your Manager agrees with your findings). ii. Discuss and identify how you can communicate with stakeholders about the risk management processes mentioned in this scenario (Appendix 1 of this assessment):  Summarise: In dot-point form, summarise the discussions with your Manager o This should also include any recommendations they made to you. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 5 of 45  Develop: a draft of the communication plan your Manager suggested to you for consultation with a stakeholder or particular group of stakeholders o For example, if stakeholders desire a phone call, you should include a draft script of information that you need to share with stakeholders. o Whatever the form of communication, it must clearly ask stakeholders for input and invite them to assist in the identification of risk for this scenario. iii. Arrange a time to meet with the stakeholders (classmates allocated by the assessor) in order to communicate the risk management processes mentioned in the scenario (Appendix 1 of this assessment) and invite them to participate in discussions to further identify risks associated with the scenario. 3. Meet with the stakeholders (classmates allocated by the assessor) to communicate the risk management processes mentioned in the scenario (Appendix 1 of this assessment) and invite them to participate in discussions to further identify risks associated with the scenario. Incorporate the input received from the stakeholders in your draft report, if required. 4. Liaise with the CEO (the assessor) to submit the finalised report and accompanying documents. You need to ensure that your report: a. Is titled ‘Risk review’ b. Is logically structured, with attachments on the back of the report as follows: i. It includes the summary notes from the meeting with your manager ii. It includes draft communication plan to be used with stakeholders c. Is submitted in a format as required by your organisation (your assessor will outline the requirements such as Microsoft word document – printed copy). Submit all the assessment evidence to your assessor within the agreed timeframe. Ensure you keep a copy of all the work submitted for your own records and for use in Assessment Task 2. What you must provide: 1. A risk report (as outlined above in steps 1–4, using the headings provided for each step), inclusive of: a. Summary notes from the meeting with the manager (the assessor) b. A draft communication plan to be used with stakeholders Your assessor will be looking for:  Participation in an observed meeting with the Manager (the assessor) of MacVille to discuss the draft report, to attain agreement on your findings and to obtain support for risk management activities; and to discuss and identify how to communicate with stakeholders about the risk management processes.  Participation in an observed meeting with the stakeholders (classmates allocated by the assessor) of MacVille to communicate the risk management processes and invite them to participate in discussions to further identify risks.  Evidence that you analysed and identified the needs of the case study along with organisational policies and procedures with regards to risk management and the overall operations of the organisation, and have clearly reflected these in the risk report.  Properly formatted and logically structured risk report, as per the assessment instructions.  Communication and literacy skills to consult, to prepare communications about risk management and to encourage stakeholder involvement.  Knowledge of AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 6 of 45  Knowledge of legislation, codes of practice and national standards, for example: ○ duty of care ○ company law ○ contract law ○ environmental law ○ freedom of information ○ industrial relations law ○ privacy and confidentiality ○ legislation relevant to organisation’s operations ○ legislation relevant to operation as a business entity BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 7 of 45 APPENDIX 1: Case Study: MacVille Business plan (excerpt) Scenario As part of their overall strategy in the Australian beverage market, MacVille Pty Ltd have developed a chain of cafes in the Central Business District (CBD) of Brisbane, Queensland and the CBD of Sydney, NSW. The board of directors have made the decision to expand their operations in Queensland with the purchase and re-branding of the existing Hurley’s cafe in Toowoomba, 130km west of Brisbane. You are currently the assistant manager of their flagship store in Queen Street, Brisbane, and have been given the opportunity to manage the new store in Toowoomba. The CEO for MacVille’s cafes in Queensland is Paula Kinski. You are a member of the Finance, Audit and Risk Management (FARM) Committee described in the MacVille Risk Management Policy. Paula has assigned you the task of managing the risks involved with the operational aspects of this take-over. A copy of her email is attached. Email from CEO – Paula Kinski From: CEO – P.Kinski To: Assistant Manager – Queen Street Re: New Toowoomba store Congratulations on your new appointment. Prior to taking up your position as manager of our Toowoomba store located in Ruthven Street, the Board has asked that the risks in this project be appropriately managed. I want you to undertake this task as it will give you significant insight into the stores operations; it will ensure a smooth transition to the MacVille systems and will encourage you to give ongoing support for our risk management initiatives. I would like you to approach this task in three stages and meet with me at the end of each phase to review your work and discuss your plans for the subsequent phases. The three stages in this risk management task will include: 1. Review. 2. Analyse and plan. 3. Monitor. Your primary risk management focus is directed to the ongoing operations of the Toowoomba cafe. The strategic and investment risks of this project are being managed by the board. To this end, you are to consider any risks that could impact on human resources management, financial operations, WHS, our supply chain and the local governance and overall compliance issues. MacVille business plan FY 2011/12 Mission MacVille cafes serve competitively priced, high quality coffee and gourmet food in a safe and comfortable cafe-style environment. Our friendly, well-trained staff provide superior customer service. Vision MacVille aims to deliver our valued customers the very best cafe-going experience. In three years, the business will have established a presence across the Queensland and NSW, with the opening of additional cafes. Values ● Customer-focus ● Safety ● Teamwork ● Performance excellence. Strategic directions The strategic context in which MacVille will achieve its mission and vision is through: ● engaging with customers and customer research ● developing and improving products and quality ● expansion of operations across Queensland and NSW ● creating a high-performing organisation. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 8 of 45 By way of background, MacVille has agreed to employ all existing staff on three months’ probation. The current supervisor James Mansfield has been offered the position of 2 nd in charge and he has accepted. While settlement on the purchase of the business is not for another few weeks, the seller has agreed to grant us full access to the store’s operational processes and store information. You should liaise weekly with the Finance, Audit and Risk Management (FARM) Committee here at head office concerning the marketing, finance and store management functions that you are investigating. I will set up a regular meeting for you. Head office has a report on a similar expansion conducted by the NSW team that may help you in your research. You may need to review other statistical information and engage specialists to help you with your investigation. The legal firm Goldsmith Partners is advising MacVille on the Hurley cafe acquisition and will be available to help you with legal or any compliance issues. The landlord of the shop in Toowoomba, Ron Langford, is also a local councilor and has offered his assistance in getting us established in Toowoomba. He has offered his email address for correspondence ([email protected]). Once I have received and discussed your risk review report, we can move onto the next stage of the risk management process. Regards P.Kinski CEO MacVille Cafes (Qld) Site visit – Toowoomba You received permission from Paula to travel to the Toowoomba store to start your research. Paula had cleared it with James Mansfield the current senior supervisor who will spent most of the day with you helping answer your queries. You arrived at the cafe and noted the two hours of drive time that it took to get to the cafe from the CBD of Brisbane. You met with James who took you through a complete overview of the store and the surrounding area. He was OK with the idea that you needed to take notes in preparation for a report. Paula had also arranged for you to meet with Ron Langford in his office later that afternoon. Hurley’s Cafe After lunch, you went over your notes to revise and edit key concerns and significant events that you had written earlier. ● The location of the store on the corner of the two main streets of the city makes easy access for local customers and highly visible for tourists. ● The long drive from Toowoomba to Brisbane would make attending the weekly managers meeting difficult considering many meetings did not finish until into the evening, after refreshments. There are also manager training sessions that need to be completed over the next 6 months in conjunction with a few other assistant managers. Navigating the steep narrow climb up the range with trucks blocking the way is quite difficult, even in daylight hours. Being a competent driver you feel that it would be BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 9 of 45 unlikely that you would be involved in an accident, but it still concerns you considerably. ● The two hour delivery would make fresh pastry deliveries from the company’s central bakery plant impractical. The pastries would arrive after the morning rush. These are a key part of the MacVille assortment. ● There is also a concern about getting the company branded supplies through as quickly as a CBD Brisbane store. ● Hurley’s cafe was a family run store and some family members were employed on the staff. James was engaged by the family to supervise the operations of the store and Mr. Hurley as Manager would authorise wages but anyone can authorise deliveries. ● When asked about written policy and procedures manual, James said that Mr. Hurley set the policy and procedures verbally and on the few days each week he was in the store he would show the staff how to do things the way he wanted them done. ● Water use – Running the dishwasher when only half full. Washing fruit and vegetables under a fast running tap. Toilets all used the single flush system. Dual flush would cost about $7,500 to upgrade. The dishwasher was always set to full wash and had a Water Efficiency Labeling and Standards Scheme (WELS) rating of 3. The more water efficient 5-6 star dishwashers cost about $6,000 and above. James explained that Mr Hurley instructed the staff to keep the non-native flowering plants in the courtyard fully watered. The store currently uses 41,500lt a week. ● James spoke about the cafe attracting a large % of retirees because of the easy access to busses and the stores central location. ● The same staff member that completed the cash register balancing also completed the bank deposit form and did the banking as well. The banking was not done every day and often $4,000 was kept on the premises, overnight, in the cash register. There was no safe. There is a bank two shops away but the Hurley family bank is a couple of blocks away and there was not always time to do the banking. ● James replied to your question about the possibility of break-ins by saying that there was a 50% chance of it happening and the risk was moderate. ● Not all takings from the cash register by family staff members were recorded. ● The fit-out in parts looked old and unattractive, with some chairs unstable, broken and some parts of the worn carpet was simply taped over with gaffer tape. ● One of the staff was a qualified chef who had developed an innovative and popular range of rice wraps that were tasty, gourmet and healthy. None of the other cafes in the area offered these items. ● No established process for dealing with injuries that happened at work. ● James gave a brochure about an innovative frozen par-bake cooking system that was under the limit set by council for an exhaust system. It cooked fresh bakery items in 30 minutes from frozen to par-baked pastries. ● The computer with all the stores employee details, and financial records was not password protected and anyone could access the information. ● James’s response to your question about the lack of sales promotion techniques was that he could not get the staff interested in the activity so he stopped trying to make it happen. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 10 of 45 ● The employee detail form requested information about the employee’s entire past health issues. ● The wage and superannuation records seemed to be incomplete with many calculations being worked out by the number of hours worked multiplied by a set ‘in the hand’ amount. ● James also provided a brochure about a company that could be set up WIFI in the cafe so that customers could use their computer notebooks and connect to the internet while they were dining in the cafe. Meeting with Ron Langford In the afternoon, you met with Ron Langford in his office to discuss the cafe, council by-laws and aspects concerning the surrounding district. You took notes that included the following significant information. ● Ron explained that there were opportunities for opening more cafes in the surrounding shopping centers like Wilsonton, Clifford Gardens and K-Mart Plaza. ● Ron handed you an extract from a government report ‘Economic Brief.’ ● Ron explained that the Federal Government was now introducing legislation that backs up the local by-law concerning efficient water usage, particularly by industries. The current by-law has fines of up to $50,000 for excessive water breaches. Ron did explain that the council was giving some time to ‘make good’ under certain circumstances on a case by case basis. Ron also agreed with the idea of installing a water tank in the court yard for the cafe to use and would help get it built. ● Ron explained that Toowoomba was obviously a place for retirees and the population was growing. ● Ron spoke about the Federal Government’s National Broadband Network being rolled out in Toowoomba that would allow efficient and effective video streaming and teleconferencing. ● Ron spoke about the current by-law that was due for implementation on the 1st of next month allowing cafes to expand their footpath dinning and so put more tables and chairs outside their premises. ● Ron also spoke of the fact that representatives of a large international chain of coffee shops had been making enquiries around town about opening a store in the Toowoomba CBD. Senior Management Team and Finance, Audit and Risk Management (FARM) Committee meetings Soon after you got back from your research trip to the Toowoomba store, you attended two teleconferences. First, you met with the senior management team. At this teleconference, you discussed issues raised by James Mansfield and Ron Langford and the report on previous NSW expansion, which head office had given you: Report into the acquisition and re-branding of the NSW expansion store. Paula said that there may be some things to learn from the NSW experience. Key problems identified in the report were as follows: 1. Lack of internal controls, particularly over cash handling, monitoring and recording. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 11 of 45 2. Failure to meet compliance standards in WHS, Privacy and industrial relations law. 3. Lack of written policy and procedures to guide staff in carrying out their duties. 4. Lack of a professional business culture in the family run business. 5. Failure of the business to monitor the external environment and find opportunities and threats to the business. The team agreed that similar issues would pose a risk to the Toowoomba expansion. You then held a teleconference with the FARM Committee. At the teleconference, you relayed the concerns of the senior management team. The FARM committee decided to allow you time to complete your review and then would include discussion of your review in the monthly Board meeting. BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 12 of 45 Case Study: Table of stakeholders (format) Stakeholder Internal/external Role in process Stake in process BSBRSK501 Manage risk BSBRSK501 Manage risk, Version MRSAG, V1 SRAGILL Pty Ltd T/A AVETA – Australian Vocational Education & Training Academy, www.aveta.edu.au CRICOS Provider Code: 02826G, RTO Number: 21888 13 of 45 Case Study: Risk management policy Introduction MacVille recognises that risk management is an essential component of good management practice and is committed to ensuring the implementation of risk management processes that focus on the proactive management of risks across the organisation. This risk management policy forms part of MacVille's internal controls and corporate governance arrangements. The risk management policy is designed to: ● Identify, evaluate, control and manage risks ● Ensure potential threats and opportunities are identified and managed ● Inform directors, senior management and staff members about their roles, responsibilities and reporting procedures with regards to risk management ● Ensure risk management is an integral part of planning at all levels of the organisation. MacVille is committed to achieving its vision, business objectives and quality objectives by the proactive management of risk at all levels of the organisation. MacVille will identify, evaluate, control and manage risk throughout the organisation in accordance with the ‘MacVille Risk Management Framework’. See the Risk Management strategy framework details. Responsibility and Authority Directors, management and employees of MacVille have responsibility for implementing all aspects of this policy. Role of the Directors The Directors have a governance responsibility in the management of risk. This includes: ● Determining what types of risk are acceptable and which are not ● Setting the standards and expectations of staff with respect to conduct ● Approving major decisions affecting Macville’s risk profile or exposure ● Monitoring the management of significant risks to reduce the likelihood of potential organisational risks and threats or failure ● Being satisfied that risks are being actively managed, with the appropriate controls in place and working effectively ● Annual review of MacVille’s approach to risk management and approval of changes or improvements to key elements of its processes and procedures.