Risk Management Plan

Topics: Risk management, Risk, Management Pages: 8 (1279 words) Published: September 15, 2014

BSBMGT609A Manage Risk – Case Study Assessment

RISK MANAGEMENT PLAN

FOR ENV

Table of Contents
1.INTRODUCTION 3
1.1Purpose Of This Document3
2.CONTEXT AND BACKGROUND 3
2.1What Is Risk Management?3
3.RISK MANAGEMENT AT ENV 4
3.1Overview of the Organisation’s Risk Management Process4 4.RISK MATRIX 5
4.1Explanatory of Likelihood and Consequences6
4.1A Likelihood Scale Definition6
4.1B Consequences Scale Definition6
5.RISK REGISTER 7
6.SWOT ANALYSIS 8
7.RISK TREATMENT PLAN 9
8.MONITORING AND REVIEWING 11
Continuous monitoring 11
Line management review 11
Audit 11
9.DISCLAIMER 12

1.INTRODUCTION

1.1Purpose Of This Document

The purpose of this document is to set out a plan for ensuring that Risk Management is considered and included in the business and operations of Edgeware National Valuers (ENV) and to provide guidelines for its implementation.

2.CONTEXT AND BACKGROUND

2.1What Is Risk Management?

Risk is usually defined as an assessment of the possibility of some adverse event occurring and the likely consequences of this event. Risk is inherent in valuation of Edgeware National Valuers. As the consequences of an adverse event may include damage with client relationships, loss of reputation, financial loss, organisational or political embarrassment, operational disruption, legal problems, and so forth, it is important that management policies, procedures and practices are in place to minimise ENV’s exposure to risk.

Risk Management involves adopting and applying a systematic process to identify, analyse, assess, control and monitor risk so that it is reduced and maintained within an acceptable level. Risk Management is a business tool in valuation and part of good management and good planning process.

3.RISK MANAGEMENT AT ENV

3.1Overview of the Organisation’s Risk Management Process

Risk Management is the discipline required to minimise the impact and cost to ENV, in dealing with risks to which are exposed, in a manner consistent with achieving our valuation business objectives.

The end result of risk management is to provide Edgeware National Valuers with a regular profile report of the status of risks and risk controls across the organisation.

Risk Management Process

Communicate & Consultation

Establish context

Identify risk

Analyse risk

Evaluate risk

Treat risk

Monitor & Reviewing

4.RISK MATRIX

A Risk Matrix is used in the Risk Assessment process, it allows the severity of the risk of an event occurring to be determined. Risk Matrix explores how likely it is to happen and how bad it would be if it happened. The likelihood and consequences definition scale is on Page 6 of this document

4.1Explanatory of Likelihood and Consequences

4.1A Likelihood Scale Definition:

1.Rare – A very rare event where it may happen once in a career 2.Unlikely – Could happen once every five years
3.Moderate – Could happen between one to five years
4.Likely – Could happen within a year
5.Almost certain – Could happen at any time

4.1B Consequences Scale Definition:

1.Insignificant – Could result in loss with business because procedures were not properly followed 2.Minor – Could result with not following procedures correctly or efficiently, results in damage with client relationships, loss of reputation of the business

3.Moderate – Loss of confidence and reputation with the company, loss with business 4.Major – The action could be a significant change with the company, financial loss would be incurred, reputation would suffer and legal action might be taken through the Valuation Code of Ethics

5.Extreme – Could involve where the insurer not covering damages due to negligence in following procedures properly. Examples includes financial loss, reputation loss,...
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