Create a Risk Management Action Plan
Manage risk- Implement Action Plan
Create a Risk Management Action Plan
A Risk Management Action plan is the course of action which an organisation agrees upon to help them to address potential risks, reduce the likelihood of these risks occurring and to lessen the impact of these risks if they do occur. A Risk Management Action Plan is a document that a manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix. A risk is “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives and it is created to ensure that the right actions are carried out in a timely manner.
Case Scenario
Candidates should complete either Scenario A or B:
Scenario A: You MUST first get approval from your trainer to use a scenario of your own choice. It could be the company or business you are currently working for or a business that you are in the process of establishing.
Scenario B: You have convinced ten (10) investors, friends and family, to invest $5,000 each into a business that you want to start-up. But before they hand over the money, they want to see that you have a Risk Management Action Plan in place that is sound and that shows that you are taking this venture seriously. They want to be convinced that you will succeed and that you have planned this business venture properly and taken everything into consideration.
You are opening a small restaurant located in Canberra City. The name of the Restaurant will be: Spicy Delights.
The Action Plan
References are not required but the words have to be yours, DO NOT PLAGIARIZE, don’t just copy and paste words from the internet. It MUST also contain ALL of the following headings (each heading should have as a minimum one paragraph of 125-200 words)
Introduction – Introduce and explain the purpose and objective of the Action Plan and also review current risk management arrangement strength & weaknesses
(If you are doing Scenario B: since this business doesn’t have an existing risk management plan, you must review the strengths and weaknesses of the risk management plan that you are suggesting to implement. It doesn’t have to be too in-depth, as long as you address a few main points.)
Stakeholder and Risk Analysis – Identify internal and external stakeholders and their issues. Also, do a risk analysis in the following areas:
• Political – this can include organisational politics and the wider political climate
• Economic – how the organisation may compete in the economic market
• Social – how organisational culture may impacts on workers and may include societal influences that may impact on trends or innovations in business
• Legal – this is about compliance to legislation and regulations of the specific business industry you work within
• Technological – this can involve how technology is used
• Policy – this involves legal compliance and may also refer to government policy that affects business
Participation and Goals – List critical success factors, and objectives. Also, seek support and participation from your stakeholders to assist in risk management activities. Provide information on the support that you will need and how your stakeholders can participate.
Risk Matrix – A risk matrix categorisation provides an overview of the potential risks to show areas of concern and any priorities that need to be worked on. This is a useful way to assess any probabilities of risk and to determine the level of impact they may have. For this heading you MUST:
1. Generate a list of risks and, if possible, link them with relevant parties
2. Assess the likelihood of the risks occurring and also assess the impact or consequence if the risks occurs (plot the risks in the matrix)
3. Determine and select most appropriate options for treating risks
4. Set specific times to regularly evaluate your risk controls
5. Prioritise the risks – list the risks in order of priority
Monitoring – Describe how the process will be monitored over an extended period of time
Evaluate Risk Management Process – To evaluate implemented risk controls, for this heading you MUST:
• Consider which risk control measures are the most effective
• Consider which risk control measures you can afford
• Consider which risk control measures are realistically workable
• Consider whether your organisation has the employees with the required skills and experience to use a particular risk control measure
• Consider whether new changes to the workplace or working practice necessitate new risk control measures
Answer preview Create a Risk Management Action Plan
APA
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