Assessment Task bsbrsk501 PDF

Assessment Task
Task 1BSBRSK501 Manage risk
Report on risks
© 2015 Innovation and Business

Business Industry
Industry Skills oun!il %uly 2015 1 st
oun!il "td#Modi$ed %uly
edition version& 2
'age 1 o( 2)
Assessment Task
Task 1BSBRSK501 Manage risk
Su*mission details
Student+s Studen
name t no,
Assessor+s
name
Assessment
site
Assessment
date#s
The assessment
assessment task is due on the date specifed by your assessor
assessor.. Any
changes to this arrangement must be approved by your assessor in
writing.
Submit this document with any required
required evidence attached. See
specifcations below or details.
© 2015 Innovation and Business

Business Industry
Industry Skills oun!il %uly 2015 1 st
oun!il "td#Modi$ed %uly
edition version& 2
'age 2 o( 2)
Assessment Task 1BSBRSK501 Manage risk
'er(orman!e o*-e!tive
For this task you are required to decide the dangers/risks associated with
opening up a new business branch within the eisting business
organi!ation. They will be required to look at all the internal and eternal
reasons/ risks and discuss will all the important people to put together a
list o all dangers and risks.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st
edition version& 2
'age . o( 2)
Assessment des!ription
For the (ac)ille *ty +td simulated business scenario provided# you are
required to assume/take on the role o ,risbane store Assistant (anager#
Ash# who has -ust been promoted to be (anager o a new store. Ash has
been tasked with conducting a risk management analysis o this new
venture.
There are three stages to this pro-ect 01 review# 21 analyse and plan# and
31 monitor. This pro-ect is divided into three assessment tasks as ollows
Assessment Task 1 Assessment Task 2 Assessment Task .
"isk analysis
"isk review report# email to stakeholders report#
and meeting action
with (onitoring report
$%&plan and risk treatment
For this assessment task# you will need to review the simulated/pretend
business4s risk management processes and decide the scope/range and
ob-ectives/aims# taking into account stakeholders0/interested people and
both internal and eternal environmental/your world actors/causes
a5ecting the organisation. &nce you have gathered this inormation# you
are to identiy risks and write a drat/eample report to the $%&. 6ou will
meet with the $%& to discuss your report# seek support or your
fndings/what you have ound# and approval to communicate risk
management processes to relevant stakeholders/ interested people or
their eedback/comments and participation/being part o.
0
Stake/older 7 a person or group with a direct interest# involvement# or
investment in something
edition version& 2
'age  o( 2)
'ro!edure
6ou will assume/take on the role o Ash# Assistant (anager o the ,risbane
(ac)ille ca8# who has -ust been promoted to (anager o the new
Toowoomba store. 9n preparation or the new venture# Ash has been tasked
with conducting a risk management analysis o this pro-ect
!erpt o( email (rom 3 'aula Kinski

From $%& : *. ;inski
To Assistant (anager : <ueen Street store
"e =ew Toowoomba store
$ongratulations on your new appointment. *rior to taking up your
position as (anager o our new Toowoomba store# located in "uthven
Street# the ,oard o >irectors has asked that the risks in this pro-ect be
appropriately/correctly managed.
9 want you to undertake/start this task as it will give you
signifcant/important insight into the store4s operations# it will ensure a
smooth transition/move or ?urley4s $a8 sta5 into the (ac)ille amily
and will encourage you to give ongoingcontinuous support or our risk
management initiatives.
9 would like you to approach/tackle this task in three stages and meet
with me at the end o each phase to review your work and discuss your
plans or the subsequent/net phases. The three stages in this risk
management task will include
0. "eview.
2. Analyse and plan.
3. (onitor.
&nce 9 have received your risk review report# we will need to discuss the
steps that you will take in the risk management process.
"egards
*. ;inski
$%& (ac)ille $a8s <ld1
edition version& 2
'age 5 o( 2)
0. "eview the provided (ac)ille simulated business scenario pretend

business setting1 inormation and documentation provided in the
Appendices o this task.
2. rite a report or the $%& your assessor1 that addresses the
ollowing
a. The e5ectiveness o the (ac)ille "isk (anagement Framework
in supporting the principles and processes values B systems1 o
risk management# set out in the risk management standard
AS/NZS ISO 31000:2009. &utline the purpose and key
elements/points o the standard in your discussion.
b. 9dentiy and describe the scoperange o work1 o risk
management required in your role.
c. 9dentiy and describe the critical /serious important1 success
actors/reasons# goals or ob-ectives or areas included in the
scope.
d. 9dentiy relevant related1 internal and eternal stakeholders
interested parties1# their role in the risk management process#
and any issues or concerns they have raised. $omplete the Table
o Stakeholders Template provided in Appendi 3 o this task1
and attach to your report.
e. $omplete a 'ST 2 analysis and a S43T . analysis to look at
the associated risks. &utline the relevant legislation# regulations
and standards including those at a local level# i.e. Toowoomba
$ouncil1. i.e government and industrial rules and regulations1
. >escribe the methods o research that you used to complete
your *%ST and S&T analysis. For eample# how you
approached the simulated business inormationC legislation#
regulations# etc.C and any other inormation or research on risk
that applies to the scope o your report.
g. $omplete the review o risk or the situation by
summarising/short brie the scenario and identiying a list o
risks to the pro-ect.
ote& %nsure your report is written in a style appropriate/correctly or
your stakeholders# or eample# using appropriate language and
including appropriate illustrative/pictures material such as checklists#
diagrams or Dow charts1 and attachments to support your summary.
2
'ST 7 A *%ST analysis is a business measurement tool. *%ST is an
acronym or *olitical# %conomic# Social and Technological actors# which are
used to assess the market or a business or organi!ational unit
3
S43T 6 a study undertaken by an organization to identify its internal strengths and
weaknesses, as well as its external opportunities and threats
edition version& 2
'age 7 o( 2)
3. Submit your report as per the specifcations / terms on the net page.
,e sure to keep a copy or your records.
E. Ater you have developed/written your report# write an email that is
intended or the interested people identifed in Step 21. 6our email
should clearly ask interested people / stakeholders or input/their
comments# include a list o risks you have identifed and invite them
to assist in identiying any additional risks.
. Send the email to the $%& your assessor1 or review and request a
meeting to discuss identifed risks and urther risk management
processes.
G. (eet with the $%& to
a. discuss your fndings/results# particularly your understanding o
the critical success actors and goals
b. eplain the (ac)ille risk management process
c. discuss how you can communicate with stakeholders about the
risk management processes in this scenario/situation and invite
them to participate in discussions to urther identiy risks
associated with the scenario
d. obtain the $%&4s support or ongoing risk management activities
e. ask the $%& or input on additional risks.
H. 9n dot7point bulleted1 orm# summarise/brieDy your discussion with
the $%&. This should include any recommendations/suggestions they
made to you.
I. Submit the required documents or assessment as per the
specifcations below. ,e sure to keep a copy or your records.
edition version& 2
'age 8 o( 2)
Spe!i$!ations
6ou must provide
J a risk review report# including a completed table o stakeholders
J email communication to stakeholders
J summary notes rom your meeting with the $%&.
6our assessor will be looking or evidence o

J reading skills to gather# review# interpret/understand and
analyse/review tet7based business inormation rom a range/number
o sources
J written and oral/speech communication skills to organise and deliver
inormation to e5ectively communicate risk management processes
to a range o stakeholders/interested people.
J =umeracy/numbers7 mathematical skills to interpret/understand
mathematical data when reviewing and analysing scenario/setting7
situation business inormation
J ability to work independently/reely as well as
collaboratively/together to make decisions about risk management
J ability to interact/cooperate with others using appropriate
conventions/systems when communicating to# and
consulting/discussing with# stakeholders/interested parties
J ability/skill to sequence/in order and schedule/plan activities and
manage communication
J ability to analyse relevant/appropriate inormation to identiy
scope/range o work# goals and ob-ectives and to evaluate/review
options/other choices
J ability to use amiliar/known digital technology to access/get to
inormation# document fndings/resutls and communicate them to
stakeholders.
edition version& 2
'age 9 o( 2)
Appendi 1& Ma!:ille 'ty "td simulated

*usiness
Ba!kground
As part o their overall strategy in the Australian beverage market#
(ac)ille *ty +td have developed a chain o ca8s in the $entral ,usiness
>istrict $,>1 o ,risbane# <ueensland and the $,> o Sydney# =S. The
,oard o >irectors has made the decision to epand their operations in
<ueensland with the purchase and re7branding o the eisting ?urley4s
$a8 in Toowoomba# 03K km west o ,risbane.
Ash is currently the Assistant (anager o (ac)ille4s Dagship ca8 in <ueen
Street# ,risbane# and has been given the opportunity to manage the new
store in Toowoomba. Ash is also a member o the Finance# Audit and "isk
(anagement FA"(1 $ommittee described in the (ac)ille "isk
(anagement *olicy.
The $%& or (ac)ille4s ca8s in <ueensland# *aula ;inski# has
assigned/given Ash the task/-ob o managing the risks involved with the
operational aspects o this takeover/purchase. A copy o her email is
provided below.
mail (rom 3 'aula Kinski
From $%& : *. ;inski

To Assistant (anager : <ueen Street
"e =ew Toowoomba store
$ongratulations on your new appointment. *rior to taking up your
position as (anager o our new Toowoomba store# located in "uthven
Street# the ,oard o >irectors has asked that the risks in this pro-ect be
appropriately/properly managed.
9 want you to undertake/to take on this task as it will give you
signifcant/important insight/awareness into the store4s operations# it will
ensure a smooth transition/change or ?urley4s $a8 sta5 into the
(ac)ille amily and will encourage you to give ongoing support or our
risk management initiatives/e5orts.
9 would like you to approach/address this task in three stages. Ater the
frst stage# we will meet to review your work and discuss your plans or
the subsequent/ollowing phases/steps. The three stages in this risk
management task will include
0. "eview.
2. Analyse and plan.
3. (onitor.
edition version& 2
'age ) o( 2)
6our primary risk management ocus/e5orts is directed to the

ongoing/continuous operations o the Toowoomba ca8. The
strategic/plan and investment/outlay o money risks o this pro-ect are
being managed by the ,oard or this you are to consider any risks that
could impact/e5ect on human resources management i.e work orce#
sta5 etc1# fnancial operations# ?S# our supply chain supplier1 and the
local governance/authority and overall compliance meeting the
standards1 issues.
(ac)ille has agreed to employ all eisting sta5 at ?urley4s $a8 on three
months4 probation/trial . The current supervisor o ?urley4s# Lames
(ansfeld# has been o5ered the position o 2nd 9n $harge and he has
accepted.
hile settlement on the purchase o the business is not or another ew
weeks# the seller has agreed to grant/give us ull access/admission to the
store4s operational processes and store inormation. 6ou should
liaise/communicate weekly with the Finance# Audit and "isk (anagement
FA"(1 $ommittee here at head oMce concerning the marketing# fnance
and store management unctions that you are investigating/looking ater
7 into. 9 will set up a regular meeting or you.
?ead oMce has a report on a similar/same epansion/growth conducted
by the =S team that may help you in your research. 6ou may need to
review other statistical/numbers inormation and engage/take on
specialists to help you with your investigation/study. The legal frm
Noldsmith *artners are advising (ac)ille on the ?urley4s $a8 acquisition
and would be available to help you with legal or any compliance issues.
The landlord/owner o the shop in Toowoomba# "on +angord# is also a
local councillor and has o5ered his assistance in getting established in
Toowoomba. ?e has o5ered his availability or email address or
correspondence communication# messages1
hen you have fnished your report# please name it according to our
document naming conventions/standards and send it through. &nce 9
have received and discussed your risk review report# we can move onto
the net stage o the risk management process.
"egards
*. ;inski
$%& (ac)ille $a8s <ld1
Ma!:ille do!ument naming !onvention

Files should be saved using the document name# the date and the
document version. For eample# a meeting agenda or a meeting on 0
(arch 2K0E would be saved as O(eeting Agenda K0K32K0E v04.
edition version& 2
'age 10 o( 2)
edition version& 2
'age 11 o( 2)
Site visit ; e< Too<oom*a store =t/e eisting

>urley+s a(?@
6ou received permission rom *aula to travel to the Toowoomba store to
start your research. *aula had cleared it with Lames (ansfeld# the current
senior supervisor# who will spend most o the day with you helping answer
your queries/inquiries. She also arranged or you to spend time with "on
+angord# the store4s landlord.
Meeting <it/ %ames Mans$eld

6ou arrived at the ca8 and noted the two hours o drive time that it took to
get there rom the $,> o ,risbane. 6ou met with Lames# who took you
through a complete overview/update o the store and the surrounding
area. ?e was &; with the idea that you needed to take notes in
preparation or a report.
Ater lunch# you went over your notes to revise/review and edit
key/important concerns and signifcant/important events that you had
written down earlier
otes (rom meeting <it/ %ames Mans$eld
J The location o the store on the corner o the two main streets o
the city makes or easy access or local customers and high
visibility or tourists.
J The long drive rom Toowoomba to ,risbane would make attending
the weekly managers meeting diMcult considering many meetings
did not fnish until into the evening ater rereshments. There are
also manager training sessions that need to be completed over the
net si months in with a ew other assistant managers.
=avigating/going through the steep narrow climb up the range with
trucks blocking the way is quite diMcult even in daylight hours.
,eing a competent/good driver you eel that it would be unlikely
that you would be involved in an accident# but it still
concerns/worries you considerably/quite a bit.
J The two7hour delivery time would make resh pastry deliveries rom
the company4s central bakery plant impractical/unrealistic. The
pastries would arrive ater the morning rush. These are a key part
o the (ac)ille product assortment/variety.
J There is also a concern about getting the company7branded
supplies through as quickly as a $,> ,risbane store could.
J ?urley4s $a8 was a amily7run store and some amily members
were employed on the sta5. Lames was engaged/working by the
amily to supervise/manage the operations o the store and (r
?urley as manager would authorise wages but anyone can
authorise deliveries.
edition version& 2
'age 12 o( 2)
J hen asked about written policy and procedures manual# Lames

said that (r ?urley set the policy and procedures verbally/in words
and on the ew days each week he was in the store he would show
the sta5 how to do things the way he wanted them done.
J ater use : ater wastage presentC the dishwasher is oten run
when only hal ullC ruit and vegetables are washed under a ast7
running tapC toilets all use the single Dush systemC Lames eplained
that (r ?urley instructed the sta5 to keep the non7native/not grown
locally in the country Dowering plants in the courtyard ully
watered.
P The dishwasher was always set to the ull wash setting and
has a ater %Mciency +abelling and Standards Scheme
%+S1 rating o 3. The more water eMcient :G star
dishwashers cost about QG#KKK and above.
P ual6us/ system  would cost about QH#KK to upgrade.
The store currently uses E0#KK litres a week.
J Lames spoke about the ca8 attracting a large percentage o
retirees because o the easy access to buses and the store4s central
location.
J The same sta5 member that completed the cash register balancing
also completed the bank deposit orm and did the banking as well.
The banking was not done every day and oten QE#KKK was kept on
the premises overnight in the cash register. There was no sae.
There is a bank two shops away but the ?urley amily bank is a
couple o blocks away and there was not always time to do the
banking.
J Lames replied to your question about the possibility o break7ins#
saying that there was a KR chance o it happening in a year and
the consequence/importance was moderate/reasonable.
J =ot all takings rom the cash register by amily sta5 members were
recorded.
C The ft7out looked old and unattractive in parts# with some chairs
unstable and broken and some parts o the worn carpet were
simply taped over with gaDer 5 tape,
J &ne o the sta5 was a qualifed che who had developed/setup an
innovative/new and popular range o rice wraps that were tasty#
E
ual Elus/ System 7 A dual7Dush toilet is a variation o the Dush toilet
that uses two buttons or handles to Dush di5erent levels o water

FaDer tape 7 strong cloth-backed waterproof adhesive tape
edition version& 2
'age 1. o( 2)
gourmet very high quality7desirable1 and healthy. =one o the

other ca8s in the area o5ered these.
J =o established/well known process or dealing with in-uries that
happened at work.
7
J Lames gave a brochure about an innovative/new ro!en par6*ake
cooking system that was under the limit set by council or an
ehaust system# yet it cooked resh bakery items in 3K minutes
rom ro!en par7baked pastries.
J The computer with all the store4s employee details# and fnancial
records was not password protected and anyone could access the
inormation.
J Lames4s response to your question about the lack o sales
promotion techniques was that he could not get the sta5 interested
in the activity so he stopped trying to make it happen.
J The employee detail orm requested inormation about the
employee4s entire past health issues.
J The wage and superannuation records seemed to be incomplete#
with many calculations being worked out by the number o hours
worked multiplied by a set Oin the hand4 amount.
J Lames also provided a brochure about a company that could come
and set up iFi in the ca8 so that customers could use their
computer notebooks and connect to the internet while they were
dining in the ca8.
Meeting <it/ Ron "ang(ord

6ou met with "on +angord in his oMce to discuss the ca8# council by7laws
and aspects/sides concerning the surrounding district. 6ou took notes that
included the ollowing signifcant/important inormation.
otes (rom meeting <it/ Ron "ang(ord
J "on eplained that there were opportunities or opening more ca8s
in the surrounding shopping centres like ilsonton# $li5ord Nardens
and ;7(art *la!a.
J "on handed you an etract rom a government report# O%conomic
,rie4.
J "on eplained that the ederal government was now introducing
G
'ar6*aking 7 is a cooking technique in which a bread or dough product is
partially baked and then rapidly ro!en or storage. The raw dough is baked
normally# but halted at about IKR o the normal cooking time# when it is
rapidly cooled and ro!en
edition version& 2
'age 1 o( 2)
legislation government rules1 that backs up the local *y6la< 8

concerning eMcient water usage# particularly by industries. The
current by7law has fnes o up to QK#KKK or ecessive water
breaches/breaks7 penalties. "on did eplain that the council was
allowing some time to Omake good4 under certain circumstances on
a case7by7case basis. "on also agreed with the idea o installing a
water tank in the courtyard or the ca8 to use and would help get it
built.
J "on eplained that Toowoomba was obviously a place or retirees
and the population was growing.
J "on spoke about the ederal government4s =ational ,roadband
=etwork being rolled out in Toowoomba# which would allow eMcient
and e5ective video streaming and teleconerencing.
J "on spoke about a current by7law that is due or implementation/
putting into place 7 on the frst o net month# which will allow ca8s
to epand their ootpath dining and so put more tables and chairs
outside their premises.
J "on also spoke o the act that representatives/agents o a large
international chain o co5ee shops had been making enquiries
around town about opening a store in the Toowoomba $,>.
H
By6"a<s  a regulation made by a local authority or corporation
edition version& 2
'age 15 o( 2)
Meetings <it/ Senior Management Team and

Einan!eG Audit and Risk Management =EARM@
ommittee
Soon ater you returned rom your research trip to the Toowoomba store#
you attended two teleconerences.
Eirst tele!on(eren!e
First# you met with the senior management team. At this teleconerence#
you discussed issues raised by Lames (ansfeld and "on +angord and the
report on previous =S epansion# which head oMce had given you
Report into the acquisition and re-brandin o! the NS" e#pansion store .
*aula said that there may be some things to learn rom the =S
eperience.
;ey problems identifed in the report were as ollows
0. 9=T%"=A+ S6ST%(S +ack o internal controls# particularly over cash
handling# monitoring and recording.
2. $&(*+9A=$% Failure to meet compliance standards in ?S# privacy
and industrial relations law.
3. *&+9$6 +ack o written policy and procedures to guide sta5 in
carrying out their duties.
E. ,S9=%SS $+T"% +ack o a pro(essional *usiness !ulture 9 in
the amily run business.
. Failure o the business to monitor the eternal environment/outside
a5airs and fnd opportunities and threats to the business.
The team agreed that similar issues would pose a risk to the Toowoomba
epansion.
Se!ond tele!on(eren!e
6ou then held a teleconerence with the FA"( $ommittee. At the
teleconerence# you relayed the concerns o the senior management team.
The FA"( $ommittee decided to allow you time to complete your review
and then would include discussion o your review in the monthly ,oard o
>irectors meeting.
I
Business ulture : the way a business or proessional organisaiton
operates with a sense o business ormalities.
edition version& 2
'age 17 o( 2)
Appendi 2& Ma!:ille 'ty "td ; Business

plan =e!erpt@
Ma!:ille 'ty "td

Business 'lan
Mission
(ac)ille $a8s serve competitively priced# high quality co5ee and
gourmet ood in a sae and comortable ca87style environment. &ur
riendly# well7trained sta5 provide superior customer service.
:ision
(ac)ille aims to deliver our valued customers the very best ca87going
eperience. 9n three years# the business will have established a
presence across the <ueensland and =S# with the opening o
additional ca8s.
:alues
J customer7ocus
J saety
J teamwork
J perormance ecellence.
Strategi! dire!tions
The strategic contet in which (ac)ille will achieve its mission and
vision is through
J engaging/dealing with customers and customer research
J developing and improving products and quality
J epansion o operations across <ueensland and =S
J creating a high7perorming/doing well organisation.
edition version& 2
'age 18 o( 2)
Ma!:ille 'ty "td& Risk management

poli!y
Introdu!tion
(ac)ille recognises that risk management is an essential/needed
component o good management practice and is committed to
ensuring/making sure the implementation/setting up o risk management
processes that ocus/e5orts on the proactive/positive management o
risks across the organisation.
This risk management policy orms part o (ac)ille4s internal controls
systems in the company1 and !orporate governan!e) how the
company is managed and run1 arrangements. The risk management policy
is designed to
J identiy# evaluate# control and manage risks
J ensure potential/possible threats/ears and opportunities are

identifed and managed
J inorm directors# senior management and sta5 members about their
roles# responsibilities and reporting procedures with regards to risk
management i.e what the responsibilities senior management have
when issues o risk management happen1
J ensure risk management is an integral/essential part o planning at
all levels o the organisation.
'oli!y
(ac)ille is committed to achieving its vision# business ob-ectives and
quality ob-ectives by the proactive/positive management o risk at all
levels o the organisation.
(ac)ille will identiy# evaluate# control and manage risk throughout the
organisation in accordance with the O(ac)ille "isk (anagement
Framework4. See risk management strategy or ramework details.
Responsi*ility and Aut/ority

>irectors# management and employees o (ac)ille have responsibility or
implementing aspects/angles o this policy.

orporate governan!e 7 broadly reers to the mechanisms# processes
and relations by which corporations are controlled and directed.
edition version& 2
'age 19 o( 2)
Role o( t/e ire!tors

The >irectors have a governance/authority responsibility in the
management o risk. This includes
J determining which types o risk are acceptable and which are not
J setting the standards and epectations o sta5 with respect to

conduct/behaviour
J approving ma-or decisions a5ecting (ac)ille4s risk profle/outline or
eposure/dangers7 i.e fnancial or business ha!ards
J monitoring the management o signifcant/important risks to reduce
the likelihood/possibility o potential organisational risks and threats
or ailure
J being satisfed that risks are being actively/keenly : positively
managed# with the appropriate/correct controls in place and working
e5ectively
J annual review o (ac)ille4s approach to risk management and
approval o changes or improvements to key/important
elements/eatures7 items o its processes and procedures.
Role o( t/e Senior Management Team and Store Managers

;ey roles o the senior management team are to
J implement/put together policies on risk management and internal
control where this is deemed/seems appropriate
J identiy and evaluate areas o signifcant/important risks
potentially/possibly aced by (ac)ille or consideration by the
>irectors
J identiy areas where risk management is not adequately/properly
addressed/looked at and advise the >irectors accordingly
J review and update the "isk (anagement Strategy
J undertake an annual review o the e5ectiveness o systems o

internal control and provide an annual report to the >irectors#
including a summary review and respective recommendations i.e
update the >irectors on how well the internal systems are working or
not1.
Role o( a(? mployees

;ey roles o employees are to
J amiliarise/make aware themselves with the content/details o the
"isk (anagement *olicy and clariy/make clear any aspects/angles
necessary with a senior team member
J consider any risks they eel could impact on them meeting their
ob-ectives/aims and either manage the risk i it is in their control to
do so# or inorm a management team member o their concerns
edition version& 2
'age 1) o( 2)
J advise senior management# in the frst instance# or the ,oard o

>irectors# i concerned about any raud/scam or unethical/bad
behaviour.
Ma!:ille Risk Management Erame<ork

This ramework encompasses/covers a number o elements/items that
together acilitate/make easy7 provide an e5ective and eMcient operation#
enabling (ac)ille to respond to a variety/many o operational# fnancial#
commercial and strategic/planning risks. These elements/items include
J policies and procedures
J monthly reporting
J business planning and budgeting
J risk management review
J eternal audit.
'oli!ies and pro!edures

A series/number o policies underpin/support the internal control process.
These policies are endorsed/supported by the directors and are
implemented/put together and communicated by the senior management
team to all sta5. These policies include
J ?uman "esources *olicies
P Sta5 Travel *olicy

P ?arassment *olicy
P ?S *olicy
P "eturn to ork *olicy
P ork:+ie ,alance *olicy
P %quity/>iscrimination/>iversity *olicy
P *arental +eave *olicy
P &rganisational $ulture *olicy 7 how the company operates
proessionally
J Financial *olicies
P ,ad >ebt *olicy

P $ash "eserving *olicy
P "evenue/%penditure "ecognition *olicy
P Finance# Audit and "isk (anagement FA"(1 $ommittee Terms
o "eerence# including delegations
J $orporate Novernance *olicies
P ,oard *rotocol /practices
edition version& 2
'age 20 o( 2)
P Sitting Eees 10 *olicy

P >irectors "emuneration/salary *olicy.
Mont/ly reporting
>ecisions to rectiy/f problems are made at regular meetings o the
senior management team. $omprehensive/complete reporting at ,oard
and Sub7committee meetings is designed to monitor key/important risks
and their controls.
Business planning and *udgeting

The business planning and budgeting/fnancial planning process is used to
set ob-ectives/aims# agree on action plans# and allocate resources.
*rogress towards meeting business plan ob-ectives is monitored regularly
by the senior management team and by >irectors at ,oard meetings.
Risk management revie<

The Finance# Audit and "isk (anagement FA"(1 $ommittee is required to
report at ,oard meetings on internal controls. The FA"( $ommittee pays
particular attention to risk management. 9t is the $%&4s responsibility to
brie the >irectors periodically and as appropriate on the development o
policies and procedures to ensure e5ective and eMcient operations# risk
management strategies and implementation. 9n addition# the FA"(
$ommittee oversees internal audit# eternal audit and management as
required in its review o internal controls. The committee is thereore well
placed to provide advice to the ,oard on the e5ectiveness o the internal
control system# including (ac)ille4s strategy or the management o risk.
ternal audit
The fnal audit o fnancial statements is controlled by an eternal
!/artered a!!ountant 11 who provides eedback to the ,oard through the
FA"( $ommittee.
0K
Sitting Fees - is a fee paid for being part of a meeting and contributing to the
meeting without having any company ownership – it’s a fee payable on a periodic
basis throughout each year. The sitting fees covers all formal meetings, regardless of
their duration, of the prescribed authority, including any preparation time and travel
associated with the meetings
00
/artered A!!ountant 7 The title is an internationally recognised
proessional designation. $hartered accountants work in all felds o
business and fnance# including audit# taation# fnancial and general
management.
edition version& 2
'age 21 o( 2)
'ro!edure& evelopment o( a Risk Management

'ro$le
The ollowing outlines the process or developing a risk management
profle.
1, sta*lis/ t/e !ontet&

J >efne and identiy the environment/location# characteristics/eatures
and stakeholders interested parties# people# workers etc1# their goals
and ob-ectives# and the scope/area o the specifc risk management
process.
J >evelop criteria/conditions against which risks are
evaluated/reviewed and identiy the structure/arrangement or risk
management.
2, Identi(y and des!ri*e risks&

J "isks are best identifed through a collaborative/working together
approach involving a !ross6se!tion12 o stakeholders.
J All conceivable/possible risks must be considered. %nsure any
certainties/confrmations are identifed as problems and addressed in
the risk management profle.
., ondu!t !urrent risk analysis&

J An analysis o the risks is conducted to determine their causes# and
estimate their probability/chance and consequences/results. This
analysis provides the basis or working on the Oright4 risks.
, ondu!t risk evaluation&

J "isks are considered and prioritised/importance according to their
potential/possibility impact/e5ect and each risk is assessed/evaluated
to determine its level o acceptability.
5, evelop and implement proposed risk treatments&

J "isk treatments are developed to cost7e5ectively reduce# contain and
control risk.
J Formal risk management reporting mechanisms are defned and
documented.
J $ategorise the risk likelihood.
02
ross6se!tion& a typical or representative/portion sample o a larger
group.
edition version& 2
'age 22 o( 2)
7, MonitorG reportG update and manage risks&

J As risks change constantly# the risk profle is continuously monitored#
reviewed and updated by management. =ew risks may be identifed
as more inormation becomes available and eisting risks may be
eliminated through the e5ectiveness o the risk treatments/actions.
J 9dentifed risks# and monitoring and management activities should be
recorded and stored as ollows
P risks identifed through regular audit should be recorded on the
"isk Audit +og
P risk management activities should be recorded on the "isk
(anagement "egister.
edition version& 2
'age 2. o( 2)
Ma!:ille+s Risk Areas

The ollowing are our broad areas where potential or risk to (ac)ille has
been identifed. nder each area# eamples o possible risks are detailed.
3perational#organisational&
J legal and regulatory compliance
J technology
J insurance
J resources human# physical

1.
C logisti!s
J marketing
J product quality
J communications
J inrastructure# plant and equipment
J customer interaction
J market needs.
Einan!ial&
J accountability
J raud or thet
1
C !apital investment
J interest rates
J loss o income# unding/fnance.
Fovernan!e&
J conduct o ,oard o >irectors
15
C !oni!t o( interest ,
03
"ogisti!s 7 the planning and control o the Dow o goods and materials
through an organi!ation or manuacturing process
0E
apital Investment 7 unds invested in a firm or enterprise for the purposes of
furthering its business ob!ectives
0
oni!t o( interest 7 a conDict between the public and private interests
o somebody in an oMcial position
edition version& 2
'age 2 o( 2)
'ro-e!t management&
J procedures and tools or pro-ect management
J stakeholders : strength o relationships/conDict o interest
J human resources i.e sta5# personnel1
J fnancial resources.
edition version& 2
'age 25 o( 2)
Ma!:ille 'ty "td& Risk management

strategy
Introdu!tion
(ac)ille recognises that risk management is an essential component/part
o good management practice and is committed to the proactive/positive
management o risks across the organisation. The strategy is designed to
J identiy# evaluate/review# control and manage risks
J ensure potential threats and opportunities are identifed and

managed
J inorm directors# senior management and sta5 members about their
roles# responsibilities and reporting procedures with regards to risk
management
J ensure risk management is an integral/important part o planning at
all levels o the organisation.
Fuiding 'rin!iples
J (ac)ille is committed to achieving its vision# business ob-ectives and
quality ob-ectives by the proactive management o risk at all levels o
the organisation$ acknowledging that embracing/taking on
innovative/new ideas and practices carries with it risks# but that these
are identifable/known and measurable/can be calculated and
thereore capable o being sub-ect to realistic risk
mitigation/minimisation processes.
Responsi*ility and Aut/ority

J The ,oard o >irectors have responsibility or ensuring that risk
management is in place.
J The Finance# Audit and "isk (anagement FA"(1 $ommittee has the
responsibility o reviewing the "isk (anagement Action *lan on a si7
monthly basis.
J The $%& and the senior management team have responsibility or
managing risk and advising the ,oard on appropriate controls.
J The $%& and the senior management team support and implement
policies approved by the directors.
17
J Key risk indi!ators will be identifed$ closely monitored and
action taken where necessary $ by the sta5 and directors.
0G
edition version& 2
'age 27 o( 2)
Ma!:ille Risk Management Erame<ork

This ramework encompasses a number o elements that together
acilitate an e5ective and eMcient operation# enabling (ac)ille to respond
to a variety o operational# fnancial# commercial and strategic risks. These
elements include
J *olicies and procedures A series o policies underpin/strengthen the

internal control process.
J "eporting >ecisions to rectiy/f problems are made at regular
meetings o the senior management team.
J ,usiness planning and budgeting The business planning and
budgeting process is used to set ob-ectives# agree on action plans
and allocate resources. *rogress towards meeting business plan
ob-ectives is monitored regularly by the senior management team
and by directors at ,oard meetings. $ontingency planning is
undertaken as required.
J "isk management review The FA"( $ommittee is required to report
at ,oard meetings on internal controls.
J $%& The $%& has responsibility to brie the >irectors periodically
ater some time regularly1 and as appropriate on the development o
policies and procedures to ensure e5ective and eMcient operations#
risk management strategies and implementation.
J %ternal audit The fnal audit o fnancial statements is controlled by
an eternal chartered accountant who provides eedback to the ,oard
through the FA"( $ommittee.
e$nitions
"isks are identifed on a scale o likelihood/possibility o
occurring/happening in the net 02 months and assigning/handing over an
impact/e5ect or consequence/outcome to the risk as high# medium or low.
?igh includes either a signifcant/important shortall/loss o around EKR in
achieving budget or a signifcant reduction in ability to unction/work.
(edium includes either a shortall o budget o between 0KR and 2KR or
some reduction in unction. +ow indicates minor reductions in achieving
budget or minimal reduction in perormance.
Key Risk Indi!ator =KRI@ 7 " #ey $isk %ndicator , also known as a #$%, is a
measure used in management to indicate how risky an activity is.
edition version& 2
'age 28 o( 2)
Appendi .& Ta*le o( stake/olders

template
Stake/older Internal#etern Role in Stake in

al pro!ess pro!ess
edition version& 2
'age 29 o( 2)
edition version& 2
'age 2) o( 2)

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Assessment Task

Task 1BSBRSK501 Manage risk

© 2015 Innovation and Business

© 2015 Innovation and Business

Assessment Task 1 Assessment Task 2 Assessment Task .

!erpt o( email (rom 3 'aula Kinski

0. "eview the provided (ac)ille simulated business scenario pretend

J email communication to stakeholders

J summary notes rom your meeting with the $%&.

6our assessor will be looking or evidence o

Appendi 1& Ma!:ille 'ty "td simulated

mail (rom 3 'aula Kinski

From $%& : *. ;inski

6our primary risk management ocus/e5orts is directed to the

Ma!:ille do!ument naming !onvention

Site visit ; e< Too<oom*a store =t/e eisting

Meeting <it/ %ames Mans$eld

otes (rom meeting <it/ %ames Mans$eld

J hen asked about written policy and procedures manual# Lames

gourmet very high quality7desirable1 and healthy. =one o the

Meeting <it/ Ron "ang(ord

otes (rom meeting <it/ Ron "ang(ord

legislation government rules1 that backs up the local *y6la< 8

Meetings <it/ Senior Management Team and

Appendi 2& Ma!:ille 'ty "td ; Business

Ma!:ille 'ty "td

J developing and improving products and quality

J epansion o operations across <ueensland and =S

J creating a high7perorming/doing well organisation.

Ma!:ille 'ty "td& Risk management

J ensure potential/possible threats/ears and opportunities are

Responsi*ility and Aut/ority

Role o( t/e ire!tors

J setting the standards and epectations o sta5 with respect to

Role o( t/e Senior Management Team and Store Managers

J undertake an annual review o the e5ectiveness o systems o

Role o( a(? mployees

J advise senior management# in the frst instance# or the ,oard o

Ma!:ille Risk Management Erame<ork

J business planning and budgeting

J risk management review

'oli!ies and pro!edures

P Sta5 Travel *olicy

P ,ad >ebt *olicy

P ,oard *rotocol /practices

P Sitting Eees 10 *olicy

Business planning and *udgeting

Risk management revie<

'ro!edure& evelopment o( a Risk Management

1, sta*lis/ t/e !ontet&

2, Identi(y and des!ri*e risks&

., ondu!t !urrent risk analysis&

, ondu!t risk evaluation&

5, evelop and implement proposed risk treatments&

7, MonitorG reportG update and manage risks&

Ma!:ille+s Risk Areas

J resources human# physical

J inrastructure# plant and equipment

J loss o income# unding/fnance.

J stakeholders : strength o relationships/conDict o interest

J human resources i.e sta5# personnel1

Ma!:ille 'ty "td& Risk management

J identiy# evaluate/review# control and manage risks