RME A1 01
University of Technology, Sydney
49006- Risk
Management in
Engineering
Risk Management Plan for a Small Business
Rita Nusheiwat
Autumn 2014
University of Technology, Sydney
49006 – Risk Management in Engineering
Risk Management Plan for a Small Business
Rita Nusheiwat | 11458039
EXECUTIVE SUMMARY
This report presents the risk management strategy focused on the financial risks of running a fictional convenience store located in the suburb of Bella Vista in Sydney. This study is based on the AS/NZS ISO 31000:2009 standard framework, shown in Figure 1 below.
After starting with an overview of the project, the report establishes the context, which sets the groundwork on what risks to focus on.
A communication and consultation plan of the risk
management study is then set up.
Subsequent sections include risk identification using techniques such as brainstorming and checklists, risk analysis using methods such as Failure Mode and Effect Analysis (FMEA), and risk evaluation using qualitative and quantitative techniques such as the ALARP chart. The last sections of this report consist of the risk treatment plan, which explores possible options if the identified risks come to realisation followed by the monitoring and review process to maintain the effectiveness of those treatments.
The main highlights of this report are that, while there are many options for treating risks, the appropriate method will depend on factors such as number of treatments, cost, implementation time, suitability, and acceptability of residual risk. On the other hand, unless treatment costs greatly outweigh the benefits, every attempt should be carried out to try to reduce the risk to a level that is
“As Low As Reasonably Practical”.
It can be also concluded that for a large share of the identified risks, there is a relationship between the relevant stakeholders’ ability and the business performance. As a result, a heavy emphasis on selecting the right personnel, comprehensive training
49006- Risk
Management in
Engineering
Risk Management Plan for a Small Business
Rita Nusheiwat
Autumn 2014
University of Technology, Sydney
49006 – Risk Management in Engineering
Risk Management Plan for a Small Business
Rita Nusheiwat | 11458039
EXECUTIVE SUMMARY
This report presents the risk management strategy focused on the financial risks of running a fictional convenience store located in the suburb of Bella Vista in Sydney. This study is based on the AS/NZS ISO 31000:2009 standard framework, shown in Figure 1 below.
After starting with an overview of the project, the report establishes the context, which sets the groundwork on what risks to focus on.
A communication and consultation plan of the risk
management study is then set up.
Subsequent sections include risk identification using techniques such as brainstorming and checklists, risk analysis using methods such as Failure Mode and Effect Analysis (FMEA), and risk evaluation using qualitative and quantitative techniques such as the ALARP chart. The last sections of this report consist of the risk treatment plan, which explores possible options if the identified risks come to realisation followed by the monitoring and review process to maintain the effectiveness of those treatments.
The main highlights of this report are that, while there are many options for treating risks, the appropriate method will depend on factors such as number of treatments, cost, implementation time, suitability, and acceptability of residual risk. On the other hand, unless treatment costs greatly outweigh the benefits, every attempt should be carried out to try to reduce the risk to a level that is
“As Low As Reasonably Practical”.
It can be also concluded that for a large share of the identified risks, there is a relationship between the relevant stakeholders’ ability and the business performance. As a result, a heavy emphasis on selecting the right personnel, comprehensive training
References: - CPA Australia Business and Management Centre of Excellence, 2009, Risk management guide for small