Australian Harbour International College

RTO ID: 41338 CRICOS Provider Code: 03449J

ABN: 74 603 036 102
T: 02 9268 0085
E: admissions@ahic.edu.au
W: www.ahic.edu.au
A: Level 4, 114-120 Castlereagh Street
Sydney NSW 2000 Australia

Assessment Details
Qualification
Code/Title
Assessment Type

Time
allowed

Assessment - 01
Locatio
n

Due Date

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
Assessors 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:
______/_______/___________

Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename BSBRSK401 Identify risk and apply risk
management processes

Version 2.0/ June

2016

Review Date:
January 2016

Page 1 of 13

processes

BSBRSK401 - Identify risk and apply risk management

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.

processes

BSBRSK401 - Identify risk and apply risk management

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.

BSBRSK401 - Identify risk and apply risk management

processes

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

BSBRSK401 - Identify risk and apply risk management

processes

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.

processes

BSBRSK401 - Identify risk and apply risk management

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,
MacVilles 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.

MacVilles 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. MacVilles
commitment to staff extends to involving staff and seeking
feedback on organisational strategic directions and
activities, particularly activities directly or potentially
affecting staff.

BSBRSK401 - Identify risk and apply risk management

processes

Asset

Description

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
relationship
s

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 MacVilles 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: 510% of revenue
Moderate: 1020% of revenue
Major: 2040% 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 villages 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 MacVilles roast
bean supplies.

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BSBRSK401 - Identify risk and apply risk management

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

John Wu

Operations
Manager

Duties/importance to
operations/reason for stakeholder
interest
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

Communicati
ons 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

Yosef Malouf

Australian
Human
Resources
and Training
Manager
PNG Fairtrade
Consultant
(contracted
to MacVille)

monitoring production to achieve

production targets
maintaining and overseeing staff

performance and morale.

ensuring and monitoring safety

standards, and the social, economic and

environmental impacts of MacVille
operations in PNG
does not speak local dialect.

BSBRSK401 - Identify risk and apply risk management

processes

Name

Position

Geoffrey
Blanche

PNG Quality
and
Production
Officer
(MacVille
employee)

Duties/importance to
operations/reason for stakeholder
interest
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

Harold Jones

Sales and
Marketing
Manager
Consultant in
PNG
(contracted
to MacVille on
monthly
basis)

responsibility for monitoring and meeting

sales targets, understanding customer

and client needs and concerns.
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.

processes

BSBRSK401 - Identify risk and apply risk management

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.

Australian Harbour International College

RTO ID: 41338 CRICOS Provider Code: 03449J
ABN: 74 603 036 102
T: 02 9268 0085
E: admissions@ahic.edu.au
W: www.ahic.edu.au
A: Level 4, 114-120 Castlereagh Street
Sydney NSW 2000 Australia

Appendix 2: MacVille risk register template

Risk

Risk consequence

Risk level

Risk likelihood

(Low, Medium, High,

Extreme)

1.

2.

Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename BSBRSK401 Identify risk and apply risk
management processes

Version 2.0/ June

2016

Review Date:
January 2016

Page 11 of 13

Control/s

Australian Harbour International College

RTO ID: 41338 CRICOS Provider Code: 03449J
ABN: 74 603 036 102
T: 02 9268 0085
E: admissions@ahic.edu.au
W: www.ahic.edu.au
A: Level 4, 114-120 Castlereagh Street
Sydney NSW 2000 Australia

3.

Review and maintenance requirements:

Appendix 3: MacVille risk treatment action plan template

Risk treatment activity

Person
responsible

Resources required

Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename BSBRSK401 Identify risk and apply risk
management processes

Version 2.0/ June

2016

Review Date:
January 2016

Page 12 of 13

Timelines

Australian Harbour International College

RTO ID: 41338 CRICOS Provider Code: 03449J
ABN: 74 603 036 102
T: 02 9268 0085
E: admissions@ahic.edu.au
W: www.ahic.edu.au
A: Level 4, 114-120 Castlereagh Street
Sydney NSW 2000 Australia

1.

2.

3.

Review and maintenance requirements:

Australian Harbour International College, 114-120 Castlereagh Street, Sydney NSW 2000, Australia
|RTO NO: 41338 | CRICOS Provider Code: 03449J
Filename BSBRSK401 Identify risk and apply risk
management processes

Version 2.0/ June

2016

Review Date:
January 2016

Page 13 of 13