Risk management is one of the most important areas of focus for any organization. An organization consists of several sections, processes, and people that are working in tandem to efficiently complete the goals assigned. This creates the need to understand and write BSBRSK501 manage risk assessment answers for students looking to work in the risk management discipline.
The purpose of the course is to prepare students to manage risk in organizations by assessing the health of its processes. The need to prepare assessment questions and analyze the answers to premeditate any disruption in the functioning of the organization.
Before we jump to the free samples (which is lucrative), one must familiarize with the purpose of the course and stages of assessment. First, let's take a look at the topic at hand and why it is important?
What Is BSBRSK501 - Manage Risk Assessment?
It involves identifying and managing potential risks to the organization before they show any kind of activities. This allows the risk manager to develop a process to minimize the damage from the risk and maximize the chances of survival. The risk is to manage in advance of its onset or in its early stages to achieve the maximum benefit from the management exercise.
Seven stages of risk management are standardized by the international fraternity. These are explained below to understand the scope of the process.
- Identify the Risk: There is a need to identify the early symptoms visible in all risk situations. This acts as an early warning though the extent and intensity of the risk are still not known. One only knows that something is wrong, and there is a need to carefully plan for it. A prompt survey is to be undertaken to assess the risk and its impact.
- Analyze the Risk: Early warning has prompted you to design an initial risk assessment survey to identify the preliminary impact of the risk. This helps you in identifying the areas and the intensity with which they will get affected. This also helps you to make an initial damage control plan to secure the most vulnerable areas.
- Analyze the Impact: The next step taken is to assess the extent of expected damage. This also includes the probability of risk in different sections of the firms and plan for minimizing the impact. They need to understand that this analysis should not be rigid and must accommodate for unforeseen situations.
- Risk Treatment: Develop plans to face the risk. One can come up with several plans and conduct a virtual assessment run to check the viability of the plan. This gives one option if there are any diversions in progress to the risk. This also helps one to conduct themselves in a more dynamic manner during the risk as they have already gone through different scenarios.
- Residual Risk: One must also prepare risks that seem minuscule in impact. It is never wise to ignore any kind of risk when performing risk management. This will help you in increasing the effectiveness of your plan. This also helps you divert resources to the most vulnerable sections.
- Risk Control: Now that you have developed the plan, it's time to implement it and see the results of your work. You must still remain an active assessor of the risk and don't become a bystander. If things seem a little off anywhere, you must provide remedies learned during the trial runs.
- Monitor and Review: One should monitor the progression of risk and evaluate the effectiveness of the process implemented by you. This gives you experience for future situations. You must also review the extent of damage done and compare it with your initial damage assessments. You can also make a section-wise comparison of the damage and evaluate the performance of the plan based on the planning stage assessment.
These were the seven stages of risk management based on international standards. These stages can be merged based on the continuity of the process involved to come up with fewer stages. Still, the overall action plan involves all these processes in different forms.
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Four Important Duties While Writing BSBRSK501 Manage Risk Assessment Answers
Risk management sometimes involves collateral damage, which means that some things are needed to be sacrificed. This also means that some things are the top priorities during any risk management exercise and, resources & efforts are managed to uphold these practices. This prioritization is done based on the initial vulnerability of a person or an entity. It also takes into account the privilege enjoyed by people while planning for risk management.
There are four areas that are to be protected before anyone else when executing risk management. These are:
- Duty of Care: The goal is to avoid any kind of injury to any person because of the actions or lack of action while managing risk. This injury can be of any kind; physical, financial, mental, etc.
- Environmental Risk: Most Australian organizations have to comply with strict environmental norms that are to be followed at any cost. While managing risk, one can not ignore the environmental impacts that the actions will have. This has to be taken into consideration while presenting a plan.
- Privacy: When assessing the risks, one has to keep in mind that the client data doesn't get leaked. The client is not part of the administration, which means that while assessing internal books, the client data should be treated as confidential information. Failing that, it may lead to litigation and disenchantment of current and future clients.
- Equity: Top priority should be given to the well-being of the disadvantaged and disabled people. Achieving equality doesn't mean that there should be equal treatment for all. It means that there should be no discrimination, and people left behind because of social or physical reasons should be given priority. While managing risks, well being of such people should be the top priority.
These are the four duties of a person formulating a plan for risk management in a firm. These principles are applicable in all risk scenarios, be it financial, natural, political, administrative, etc.
Here is a sample for you to plan a risk management exercise in a financial firm that seems a little out of color off late. The stocks are not performing well, and people are planning to pull money out of it.
Free Sample for BSBRSK501 Assessment Answers - Risk Management Simplified
Scenario - There is an ABC bank which is showing signs of declining margins for the last few months. It has reported stagnant growth in the last quarter, and investors have demanded a manage risk exercise.
Manage Risk - ABC Bank
- Discuss with Stakeholders: Talk to the management about falling stock prices. Look at the books to identify the current state of deposits. Make a note of the falling number of new depositors joining the bank. Check the asset holdings of the bank and their current value. Find out the past asset and compile the reason behind the sale.
- PEST Analysis: Conduct a political, economic, social, and technical analysis of the bank. This will help you compile the outside and internal influences on the bank and how the competition is performing.
- SWOT Analysis: Conduct a strength, weakness, opportunities, and threat analysis of the bank. This will help you identify how the changing markets and new competition have fared in similar conditions. This will also tell you where the bank is going right and what are its weak points.
- Identify Risks: Compile all the data and reports gathered by you and identify the main risks that are threatening the bank. You can grade these risks on a priority basis to help you address the most immediate ones first.
- Likelihood: Analyse the risks based on their probability of occurrence. This means that sometimes risks self rectify themselves as the market changes. If they are there because of slow market growth, one can wait for a rebound to see if things get better.
- Impact: In any case, you find some risks are bound to happen because they are caused by internal factors. Analyze their impact and consequences the bank will likely face. For example, bad loans to favorable parties can be a big part of the credit outgo, which may not return. These are unlikely to change with markets as the deals were done with malicious intentions.
- Plan Treatment: As you have found out the risks that are bound to occur, prioritize them based on impact. Plan a solution for each one and draw the interlinkages for a more efficient plan. This will help you simultaneously treat multiple risks at the same time. For example, if it is determined that bad loans won't be repaid. Sell assets to bring liquidity to the bank. Stop credit outflow and focus on generating revenues from savings. If possible, suggest a moratorium on withdrawals to extract more interest on the deposits.
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- Give Options: Develop various options to implement a treatment. Analyze their effectiveness by studying the impact and the scale of treatment. This helps you in addressing multiple issues at the same time.
- Action Plan: Provide a plan to implement and assign priority to each action. Develop a system to monitor the impact of real-time.
- Document: Keep all the data received as feedback from the markets and stakeholders. Analyze the data regularly to see signs of recovery. If things aren't changing, move onto the next option. These documents will help you in developing a final report.
- Communicate and Monitor: Keep the feedback channels open to each stakeholder. Also, monitor the situation independently to provide instructions to the operations. Monitor if the plan is being executed as planned and determine if the efficiency is at par with the projections.
- Final Report: Generate the final report based on all three sections and subsections given above. Mention all the involved parties without disclosing client data. Only the people in the administration, active team, and the risk manager should be named.
- Table of Contents
- Executive Summary
- Methodology of Review
- Feedback and Analysis: From stakeholders and administration
- Results of PEST Analysis
- Results of SWOT Analysis
- Identified Risks: In order of priority
- Analysis of Risks: In order of priority
- Treatment of Risks: In order of priority
- Interlinked Risk: How Risk 1 is linked with Risk 2 and how the solution of one can impact the another.
- All Persons Involved in Exercise: With identification and declaration.
This was a sample BSBRSK501 manage risk assessment answer based on a failing bank and how one can assess the situation to avoid the collapse. Students often find it difficult when such assessments are given as there are many people involved, and they don't know where to begin.
There are several other such assessment answers conducted by experts in risk management. If you are looking for one, you are in the right place.
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Best BSBRSK501 Assessment Answers Help for Aussie Students
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