Assessment Details Qualification Code/Title Assessment Type Assessment - 01 Time allowed Due Date Location AHIC Term / Year Unit of Competency National Code/Title BSBRSK401 Identify risk and apply risk management processes Student Details Student Name Student ID Student Declaration: I declare that the work submitted is my own, and has not been copied or plagiarised from any person or source. Signature: ____________________________ Date: _____/______/__________ Assessor Details Assessor’s Name RESULTS (Please Circle) SATISFACTORY NOT SATISFACTORY Feedback to student: ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Student Declaration: I declare that I have been assessed in this unit, and I have been advised of my result. I am also aware of my appeal rights. Signature: _______________________________ Date: ______/_______/___________ Assessor Declaration: I declare that I have conducted a fair, valid, reliable and flexible assessment with this student, and I have provided appropriate feedback. Signature: ________________________________________ Date: ______/_______/___________ Instructions to the Candidates  This assessment is to be completed in class supervised by assessor.  Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge. You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit of competency.  If you are not sure about any aspect of this assessment, please ask for clarification from your assessor.  Please refer to the College re-submission and re-sit policy for more information.  If you have questions and other concerns that may affect your performance in the examination please inform the assessor immediately.   Assessment-1 (written Report) Identify risk and plan risk management Assessment description To complete this assessment task, you will need to review a simulated business and associated documentation, identify and document risks, analyse and evaluate risks to determine level of risk for the organisation, and plan to treat risk. You will need to perform these activities in accordance with organisational requirements and the international and Australian Standard for risk management, AS/NZS ISO 31000:2009. Procedure/Instructions 1. Review the MacVille simulated business information provided by your assessor. 2. Review the MacVille scenario in the appendices of this assessment task. 3. Identify the internal and external context for risk management with respect to the MacVille scenario, including organisational policy, procedures and processes for risk management. 4. Identify three risks using tools (for example, checklists, research notes, notes of meetings with stakeholders). 5. Analyse each identified risk to determine the likelihood and consequence of each risk (for example, as a percentage or a cost). 6. Determine the level of risk for each risk. 7. Consult with three stakeholders to assist your analysis and evaluation of risk, using questioning and listening techniques to gather information from stakeholders. Use appropriate communication protocols to maintain a structured approach to consultation. Note: Your assessor will role-play or assign stakeholder roles to others. Ensure you arrange a time, place, or method of consultation with your assessor. 8. Weigh possible control measures for each risk, assessing strengths and weaknesses of each measure. 9. Determine control measures for each risk. 10. Determine resources and responsibilities for control of risks. Resources may include financial resources, human resources, or any equipment you determine to be necessary to implement control of risks. 11. Document your process and outcomes of identification, analysis, and evaluation of risk. a. Write a reflection on the process you undertook to identify risks and plan risk management. You should include: i. reference to specific legislation and regulations and the key provisions relevant to risk ii. explanation of how your process was consistent with organisational requirements and AS/NZS ISO 31000:2009, and comment on the purpose and key elements of current risk management standards, including audit requirements iii. identification of the tools you used and explanation of your use of tools to identify risks iv. explanation of how you used research and information-gathering skills to identify risks and determine the acceptability of risk v. explanation of how information from consultation with stakeholders informed your analysis and evaluation of risk vi. explanation of how you weighed control options’ strengths and weaknesses and determined controls. b. Complete the risk register template (Appendix 2). c. Complete the risk treatment action plan template (Appendix 3). Ensure your own responsibilities and those of others are clearly recorded. Ensure you have provided at least three control measures (one for each of the three risks you identified) that you will be able to implement in full or in part for Assessment Task 2. Note: For Assessment Task 2, you will need to implement and monitor the success of three control measures, for example, producing: i. policies (written or amended) ii. procedures for team members to follow, including, for example, written procedures, diagrams, or flowcharts iii. detailed role descriptions of team members iv. signage v. communications to team members, Australian staff or managers vi. video evidence of implementation activity. Depending on your chosen risk management activities, you may need to demonstrate your implementation to your assessor, for example, by: vii. holding a presentation for team members, workers or managers viii. leading an information session for team members, workers or managers ix. training workers or managers, particularly team members, on how to successfully implement project at the lowest risk x. demonstrating use or set-up of risk management tools xi. demonstrating procedures to reduce risk to team members. Note: It is preferable that you demonstrate your implementation where possible. Ensure three such control measures are included in your risk treatment action plan. 12. Submit all documentation in accordance with the specifications below. Ensure you keep copies of your work for your own reference and for reference as you complete Assessment Task 2. Trainer will also provide further explanations on the above instructions in the class which will clearly outline all requirements in more detail and simplistic way according to your understanding level. You may also request your trainer for additional information and may seek help with summarising of all instructions if required. Submission Specifications You must: ● submit: ○ completed risk identification tools (e.g. notes, checklists) ○ a written reflection ○ a completed risk register template ○ a completed risk treatment action plan ● participate in three consultation role-plays with risk stakeholders.   Appendix 1: Scenario – MacVille MacVille is an Australian coffee supply business. The company imports coffee and supplies cafes and restaurants with top quality coffee, which is produced and distributed in line with the highest social and environmental standards. Within five years, MacVille intends to have established itself as the number one coffee supplier for fine coffee shops and restaurants in Australia. To achieve the company vision, MacVille’s strategic directions include: ● engaging clients with excellent service to increase sales volume ● reducing expenditure and achieving financial control over expenses ● establishing MacVille as employer of choice through supporting innovative thinking, performance management and leadership skills through training, and exemplary health and safety performance ● monitoring supplier quality and triple bottom line impact. These strategic directions are reflected in sales and operational targets at every level of the company and are also reflected in individual performance measures. The organisation must effectively identify and manage risk to strategic goals. MacVille strategic assets In general terms, MacVille possesses the following strategic assets which may be considered at risk in any venture, project or aspect of day-to-day operations: Asset Description Workforce The MacVille workforce is loyal, expert and motivated. The workforce includes: ● sales teams and managers ● roasters and managers of production and packaging team ● distribution team and managers. MacVille’s reputation as employer of choice is a key strategic asset. MacVille trains its workforce and management team and commits to staff development and advancement. MacVille pays extremely competitive wages and commits to staff wellbeing through wellness and health and safety management programs. MacVille’s commitment to staff extends to involving staff and seeking feedback on organisational strategic directions and activities, particularly activities directly or potentially affecting staff. Technology MacVille possesses expert, proprietary roasting equipment and techniques. Techniques are most important and are a closely guarded secret. Using MacVille in-house equipment and techniques allows MacVille to tightly ensure production quality and supplies of product for sale. Supplier relationships MacVille maintains a tightly knit network of suppliers to ensure supply and advance notice of potential supply issues. Suppliers are loyal to MacVille. MacVille encourages such loyalty by paying fair prices for raw beans and making regular purchases. Reputation The MacVille business model is underpinned by its commitment to triple bottom line reporting and responsibility: social, economic, and environmental responsibility. A key to MacVille’s success with customers has been its commitment to fair trade practices. Identifying particular risks to individual projects or ventures will require research and information gathering on the internal and external context of risk concerning MacVille. Such information gathering may include research into local, domestic and international political, environmental, social and technological conditions, standards, and codes of conduct. It will necessitate direct or indirect consultation with internal and external risk stakeholders. Note that, in analysing risk consequence, MacVille adheres to the following guidelines: ● Insignificant: Less than 5% of revenue ● Minor: 5–10% of revenue ● Moderate: 10–20% of revenue ● Major: 20–40% of revenue ● Catastrophic: above 40% of revenue. A new venture MacVille has established a relationship with a small village in the highlands of Papua New Guinea (PNG) that grows coffee beans. MacVille is committed to providing equipment and high-level skilled training to the village so that the local villagers can harvest and roast the beans in-country, rather than exporting the green beans, as they currently do. MacVille will develop the village’s capacity in exchange for cheaper roasted beans. The costs of development are budgeted to be less than or equal to the savings gained. The village will incorporate, with every villager a shareholder in the new venture. The village will eventually become a completely independent supplier. It is anticipated that PNG could potentially supply up to 20% of MacVille’s roast bean supplies. This endeavour is a major marketing coup for MacVille, as they can strongly market the Fairtrade certification aspects of this, due to the large investment they are making into the village and the skilled-trade ability they are giving to the villagers. It will have additional benefits to MacVille, which include saving considerable amounts of money in both energy and water use, not to mention domestic labour costs and cost of sales. The venture is not expected to have any effect on domestic production, jobs, advancement, etc., due to increased efficiencies, expansion into new markets, and increased sales made possible by the venture. Stakeholders and project team members: Name Position Duties/importance to operations/reason for stakeholder interest John Wu Operations Manager ● Chair of FARM Committee and project owner: full decision-making powers for project ● overall responsibility for ensuring supply, production, supplier relationships ● monitoring supplies ● monitoring production expenses. You Communications and Training Officer Project Leader ● responsibility for overseeing, planning, implementation and risk management ● particular responsibilities for implementation include communications and training for project team members, board of directors, FARM Committee and Australian staff and managers ● you will be reporting to the MacVille board of directors and the Finance and Risk Management (FARM) Committee. Oliver Hughes Australian Human Resources and Training Manager ● monitoring production to achieve production targets ● maintaining and overseeing staff performance and morale. Yosef Malouf PNG Fairtrade Consultant (contracted to MacVille) ● ensuring and monitoring safety standards, and the social, economic and environmental impacts of MacVille operations in PNG ● does not speak local dialect. Geoffrey Blanche PNG Quality and Production Officer (MacVille employee) ● ensuring and monitoring MacVille standards of quality and rate of production to meet MacVille requirements ● point of contact between MacVille and PNG supplier ● does not speak local dialect. Connie Black Sales and Marketing Manager ● responsibility for monitoring and meeting sales targets, understanding customer and client needs and concerns. Harold Jones Consultant in PNG (contracted to MacVille on monthly basis) ● speaks both pidgin and the local village dialect, so he can liaise with clan chief, Dikana ● high-level contacts and influence within PNG government. Your role and task You have recently been assigned to work in a project team charged with the implementation of the new business endeavour for MacVille. Your duties within the project team include: ● risk identification ● analysis ● evaluation ● implementing and monitoring risk treatment, particularly in own areas of specific responsibility: communications, training, demonstrating procedures for affected managers and staff. As the project leader, you will need to identify possible risks, particularly risks with strategic impact for MacVille. Some research (for example, internet research of PNG conditions or legislative requirements) may be necessary to identify risk and establish context. In accordance with the relevant risk management standard, you will need to analyse and evaluate risks, ensuring you consult with stakeholders to assist you with this important task. In accordance with MacVille requirements, you will need to follow MacVille risk management policy and framework and reporting requirements. MacVille requires the completion of a risk register for each venture or project and a risk treatment action plan. It is now the beginning of the first quarter of the financial year. MacVille expects risk management activities to have begun (or be ongoing) simultaneously with implementation of production by end of second quarter. Appendix 2: MacVille risk register template Risk Risk consequence Risk likelihood Risk level (Low, Medium, High, Extreme) Control/s 1. 2. 3. Review and maintenance requirements: Appendix 3: MacVille risk treatment action plan template Risk treatment activity Resources required Person responsible Timelines 1. 2. 3. Review and maintenance requirements: