Manage Risk
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ASSESSMENT BSBRSK501B
MANAGE RISK
Assessment tool 1
Assessment activity 1: Review organisational processes, procedures and requirements for undertaking risk management
1. Create your own definitions for the following terms:
a) Risk: A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
b) Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks.
c) Risk appetite: The amount a business is willing to place at risk in the pursuit of its objectives
d) Risk capacity: The amount a business is capable of loosing before it endangers its own sustainability
2. Comment on the following saying in relation to the risk management policies and practices of an organisation: “ Organisations that fail to plan, plan to fail”
If an organization does not have a risk plan is likely that any risk occurring with negative consequences occur organization. If the organization has a risk prevention plan is very likely that the risk does not occur and the organization and its workers could produce know how to deal with the negative consequences of that risk to minimize that consequences.
Assessment activity 2: Determine scope for risk management process
Case study
Advantages: It will be holistic.
Disadvantages: It will require extensive resources to conduct it properly, especially if the scope of the risk management is large and covers a wide range of activities across the divisions; very large number of policies and procedures; and is taking into account differences in each state, territory, country.
The scope of a risk management strategy is entirely reflective of the organisation, its activities and risk profile. It can also be indicative of the following: past history, knowledge and experience of risk management held by senior
Bottom of Form
ASSESSMENT BSBRSK501B
MANAGE RISK
Assessment tool 1
Assessment activity 1: Review organisational processes, procedures and requirements for undertaking risk management
1. Create your own definitions for the following terms:
a) Risk: A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.
b) Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks.
c) Risk appetite: The amount a business is willing to place at risk in the pursuit of its objectives
d) Risk capacity: The amount a business is capable of loosing before it endangers its own sustainability
2. Comment on the following saying in relation to the risk management policies and practices of an organisation: “ Organisations that fail to plan, plan to fail”
If an organization does not have a risk plan is likely that any risk occurring with negative consequences occur organization. If the organization has a risk prevention plan is very likely that the risk does not occur and the organization and its workers could produce know how to deal with the negative consequences of that risk to minimize that consequences.
Assessment activity 2: Determine scope for risk management process
Case study
Advantages: It will be holistic.
Disadvantages: It will require extensive resources to conduct it properly, especially if the scope of the risk management is large and covers a wide range of activities across the divisions; very large number of policies and procedures; and is taking into account differences in each state, territory, country.
The scope of a risk management strategy is entirely reflective of the organisation, its activities and risk profile. It can also be indicative of the following: past history, knowledge and experience of risk management held by senior