BSBRSK501 Manage Risk Summative assessment 2

BSB52015 Diploma of Business
BSBRSK501 Manage Risk
Summative assessment 2
Project 1

• any current risk management policies, procedures and processes and their strengths and weaknesses
• the risk management scope
• the impact that each of the following has on the organisation’s approach to risk management:
  • political environment
  • economic climate
  • social factors
  • legal factors
  • technological advancements
  • policy context

• tools and techniques that can be used to identify, measure (quantify) and analyse (assess) risks
• critical success factors, goals or objectives
• relevant legislation, regulations or codes of practice
• internal and external stakeholder groups and their issues
• communication with each stakeholder groups
• support that will be needed in order for the risk management plan to be effective
• procedures for prioritising risk treatments

Format your risk identification, analysis and improvement plan/ proposal (or action plan) in a manner that would be accepted by senior management. Ensure that all risk scenarios are addressed and catered for.

Submit:

• the plan
• answers to the questions
• the plan rationale
• tools used in the assessment process and in the plan design process
• Any relevant support information, charts, graphs etc.

The plan must clearly describe the risk, proposed actions, resource needs, responsible persons, time frames, deadlines, expected outcomes and success metrics.

Plans should be accompanied by relevant statistics, evidence of the analysis of data/ information, graphs, charts and tables and any relevant background information. (Minimum 2,000 words)

Project Response:

Please address all the following questions:

1. What is the situation?

The situation is that, a bottle making company is having heavy machinery cutting the plastic and giving it the shape of a bottle. The machinery is 10 years old and some of its parts are rusted, lose and it is making some kind of noise also. The workers who are handling the machine on daily basis have told the manager about the problem and the manager has to get it rectified.

2. What are the risks associated with the situation?

In the given situation there can be many kinds of risk for the workers who are using the machinery every day. Some of the risks are mentioned below:

• Risk for accidents- There can be any kind of accident when the worker is handling the machinery.
• Low production-The production level will be reduced when the machinery is not working properly.
• More electricity usage- The machinery will use more electricity.
• Electricity break down-when the machinery is using consuming more electricity than there may be an electricity breakdown or burning of wiring.
• Fire risk-When the machinery is not working properly then a fire risk also comes with it, fire can happen anytime from the friction caused on rusted parts.

3. How were the risks identified and assessed?

The risk was identified when the workers were working on it and they noticed that there is a continuous noise coming from the machinery, especially when the machinery is cutting the plastic. After noticing the problem the worker complained and discussed with the manager.

The workers also noticed that some of the parts of the machinery lose and few parts are also having rust on them. These problems were also discussed and shared with the manager.

4. What controls currently exist?

The control which exists in the company regarding this problem is that the company has an engineer employed who can solve the problem but not completely he can only check the machine and add grease on the rusted parts of the machine for solving the problem of noise. But he cannot give a permanent solution because he is a general engineer and for handling these kinds of machinery an expert is required who can analyse the situation and do the required job. He can only find the permanent solution for the machinery. If the engineer cannot solve the problem and thinks that they have to call an expert for this then an expert is called who can solve the issues related to the machinery.

5. What is the desired situation?

The desired situation is that the machinery is working fine without having any lose parts, no rusted parts and no noise coming from the machine. The workers can manage the machine easily without having any kind of fear that any sort of injury will take place when they are using that machine. For getting this desired situation the company must get the machinery regularly checked from an expert from the manufacturing company so that if any sort of problem is identified it can be corrected as soon as possible without wasting any time because when such a heavy machine is not working properly then the organisation has to bear lose and the workers have to handle the risk of accidents. So it is better for the company to keep the machinery in desired situation.

6. What are the risks associated with the desired situation?

There can be some of the risk associated with the desired situation also which are as follow:

• New Technology-The workers may not be able to handle the machinery when the expert has added or removed a part from the machinery for making it work properly. The experts who handles these kind of machinery takes out a part from the machinery, which was the cause of the problem or they may change the way of handling it which has become more complex which can confuse the workers.
• More electricity-The new desired situation may be consuming more electricity because of addition of new parts.
• Production becomes low-When the workers do not understand the machine then it will also affect the level of production and it will definitely go low.

7. How have they been identified and assessed?

The risks belonging to the desired situation are identified by the expert itself because he has corrected the machine and he knows whether the complicity of the machinery has increased or not. And they also know that after the amendment the machinery is consuming more electricity or not. And if the solution done is long term in nature or not.

The expert after identifying the risks of the desired situation will first discuss them with the manager or owner of the company and only after his agreement on the situation the expert will continue doing his work.

8. How does the risk management plan act to reduce the impact or consequences of the risk/s?

A risk management plan reduces all types risk to such a level that everyone can be saved from all types of risks involved with the problem because the risk management plan is made according to the current situation and the plan has the required measures which must be taken to prevent one from the risk associated with the situation.

In the given situation the risk management plan includes the instructions to the workers that:

• If they hear any kind of unpleasant noise from the machinery they should stop the machine.
• If they find that electricity is blinking or voltage is shaking after machine is switch on then they should immediately switch it off.
• When they find any bolt near the surface of the machine they must inform the manager

9. Does it introduce any new risks?

Yes the risk management plan introduced by the managers or the expert can introduce more risk in the following ways:

Once the worker switch on the machine he may get hurt by it, till he comes to know that the machine is having a problem and he switch the machinery off, in this part of time also the worker can be hurt by the machine.

There is risk of noise pollution also in the work area which in case not sorted out can affect the hearing capability of the worker.

10. Who will the plan benefit and how will it be of benefit?

The risk management plan will benefit the worker and the organisation and the benefits are discussed below:
a. Worker-The worker is saved from the risk associated with the old and poor working machinery. And the most important is that they are saved from the risk of injury and their hearing capacity will also not get affected.

1. Organisation-the organisation will get economic benefits like they don’t have to face the low production caused by poor working machinery. The organisation doesn’t have to get the medical treatment done for the worker as the risk management plan has reduced the risks caused by the machinery.

The organisation will also get goodwill of the workers and other employees in a way that the organisation thinks of the worker’s health.

11. Why should the organisation support it? (Consider qualitative and quantitative benefits, costs, PR, safety etc.)

The organisation should support the risk management plan because of the following points:

• It will increase the quality of the product.
• The better machine will increase the production level
• Since the machine will produce more products the cost of the organisation will be saved.
• It offers better safety to the workers.
• Personal relations between the employee and the employer also increase because of good working conditions.

12. What resources and what personnel would be involved in developing, implementing and monitoring the planned risk controls?

The following resources are required for risks controls:

• For developing the experts and managers are required.
• For implementing the plan, training is required for the workers.
• For monitoring the plan a team manager is required who knows the plan very well.

13. What are the cost factors involved?

Following are the cost factors involved:

• Cost of repairing the machinery
• Cost of training
• Cost of low production during repairs and training time.
• Cost of appointing an expert

14. How would you ensure that the risk treatment was sponsored and supported by the organisation?

We would get ensured about the support from the organisation by a written agreement which the organisation has signed and by the regular support of the organisation in day to day work and through especially through an appointment of an engineer who will continuously check the working of the machinery.

15. Whose authorisation would you need in order to go ahead with your plan?

You would need a written agreement by the organisation in which the details would be written and the agreement will be signed by the organisation. And the authority of handling the plan without causing any delay for taking approvals at the time of injury or any happening.

16. How would you determine performance expectations?

We can determine the performance expectation by considering the following points:

The ability of the workers to work with the new machinery because the workers are very educated and they take a long time to understand the complex ways of handling the machinery.

The capability of the training program to train the workers who will actually operate the machine.

The trainer who will come for training can also find out that whether the workers have understood the ways or not and who among the team of workers has learnt the best who can be later used for providing training to those workers who have not understood the complex ways of handling the machinery.

17. How will you monitor the operation of the plan?

The operation of the plan can be measured in the following ways:

Production level- We can come to that the plan is working fine or not by analysing the production of pieces made by the machinery, if the production has increased then it means the plan has worked otherwise it means the machinery is not working properly.

Job satisfaction level-We can also check that the plan is working fine by asking them from the workers that they actually feel that the plan is working or not because they are the ones who are actually using the machinery and facing the risk daily so they can tell the best if the plan is working or not.

Mock test- The manager can do a mock test also for checking if the plan is working or not.

For example the manager with the help of the engineer, the manager has deliberately lose a part of the machinery without telling any of the workers and when the workers started the machinery and notices that a parts are lose and therefore a loud noise is coming from the machinery then it is checked by the manager that the worker informs anyone and notices the problem or not and switch off the machinery immediately.

The worker has been given the training of these things in the training session but here in the mock test if he has not noticed the noise and lose parts and if he is still continue doing the work on the machinery it clearly means that the plan is not working because despite of giving trainings to the workers they are not reacting properly and doing the suggested ways to keep them away from the risk.

And if the worker immediately switches off the machinery and informs the expert and manager then it means the worker has understood and will inform the other workers also.

18. Who would be responsible for monitoring the risk controls and why would this person (people) be most suited to the task?

The expert of the machinery is responsible for monitoring the task, the expert who is given the task of monitoring the machinery and the risk management plan is an engineer specially appointed for the work because in the organisation there is no one who can mend and check the heavy machinery and who can rectify it when there is a problem.

The expert who is an engineer is the most suitable person for monitoring the machinery and the risk management plan because he knows the machinery well and can help in case of any emergency he is the one who can help the organisation in the best possible way.

19. How will you measure its success? (i.e. what measurement processes will you use and what will you measure its success against?)

The success of the risk management plan can be measured by a measurement process which analyse the production made by the machinery and by looking closely than the workers are actually applying the ways suggested to them in case of emergency.

We can measure the success of the plan against the part situation in which there was no plan and the workers had to work along with various types of risk because earlier there was no awareness of how to manage the machine and what the steps required for stopping the machinery and whom to contact in case of emergency. We can say that the risk management plan is successful because the workers have understood the plan by a training program specially dedicated for this task.