Introduction

This unit is about you being able to demonstrate an understanding of what risk means to an organization, the range of different risks that can be faced, how you assess the severity of the risk and probability of it happening, and how you manage the organization in order to minimize the risks.

Scenario:

Learners may use their own employment context, or that of another organization with which they are very familiar, to base their assignment. However, in the case that they are not able to do so, please use the below scenario:-

You are a middle manager, leading a department in a medium sized company. You have responsibility for identifying, assessing and minimizing risk.

Task 1: (500-550 Words)

Identify at least five different types of risk faced by an organization along with some of the consequences of these risks. Define the responsibilities of an operational manager for risk management.

A.C. 1.1 – Discuss the meaning of risk to an organization.

A.C. 1.2 – Define the responsibilities for risk management at operational management level.

Task 2: (1,350-1,450 Words)

Taking a standard risk assessment model, explain how the model works. Develop a set of risk management criteria for your organization and justify how and why these were selected. Complete a risk assessment for your own department using the same model and criteria. Describe how you went about completing the risk assessment, and evaluate the advantages and disadvantages of your chosen methodology, identifying their implications to the organisation. Describe two alternate methods you could have deployed to complete the risk assessment, and the advantages and disadvantages of each of these. Provide two examples of risk you identified which have a potential knock on effect on other areas of the organisation’s operational activities and explain the potential implications. Review the resulting risk management scores in your completed risk assessment, and provide an objective critique of the relevance and usefulness of the scoring method in your chosen risk assessment model, and the level of risk you have identified.

A.C. 1.3 – Explain a risk management model.

A.C. 2.1 – Develop and justify risk management criteria against which risk can be assessed.

A.C. 2.2 – Identify and evaluate techniques to specify risk including risk interdependencies.

A.C. 2.3 – Analyse a risk management model to quantify risk.

A.C. 3.1 – Evaluate the level of risk against pre-established criteria.

Task 3: (450-500 Words)

Using the results of your work in Task 2, prepare a comprehensive action plan to address all the areas of risk identified. This may be produced in table format, and should include clear justification for each of your chosen activities.

A.C. 3.2 – Select and evaluate activities to eliminate, mitigate, deflect or accept risk.

Task 4: (450-500 Words)

Explain what is meant by the term “Disaster Recovery Plan”. Describe the factors you would need to take into account when preparing such a plan, and how you would implement and manage the plan, including any test activity and reviews. You may use work based examples to illustrate your answer where relevant.

Leadership Practice