Posted: November 15th, 2022

BSBPMG517 Manage project risk Assessment

Assessment Information

The assessment tasks for BSBPMG517 Manage project risk are included in this Student Assessment Tasks booklet and outlined in the assessment plan below.

To be assessed as competent for this unit, the student must complete all of the assessment tasks satisfactorily.

Assessment Plan
Assessment Task Overview
1. Written questions Students must correctly answer all questions.
2. Risk identification and analysis project Students must identify, analyse and evaluate human resources risks associated with establishing new retail outlets for a company
3. Risk treatment Assessment project Students must evaluate a risk control measure, and implement changes in response to this.

Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for clarification if you have any questions at all.

When you have read and understood this unit’s assessment tasks, print out the Student Assessment Agreement. Fill it out, sign it, and hand it to your assessor, who will countersign it and then keep it on file.

Keep a copy of all of your work, as the work submitted to your assessor will not be returned to you.

Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per your RTO’s assessment appeals process.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Naming electronic documents
Students are directed to name documents logically.
Each should include:
• Course identification code
• Assessment Task number
• Document title (if appropriate)
• Student name
• Date it was created
For example, BSBPMG517 AT2 Risk Register Joan Smith 20/04/18
All documents should be filed in a folder named after the unit code, and sub-folders named after the assessment tasks.

Additional Resources
The following resources will be given to you before you begin each Assessment Task.

Assessment Task 2
• Risk Management Policy and Procedures
• Risk Register Template
• Risk Management Plan Template

Assessment Task 3
• Training Survey Results
• Manager Feedback
• Assessment Report Template

Assessment Instructions

Each assessment task in this booklet consists of the following:

Assessment Task Cover Sheet
This must be filled out, signed and submitted together with your assessment responses.
If you are submitting hardcopy, the Cover Sheet should be the first page of each task’s submission.
If you are submitting electronically, print out the cover sheet, fill it out and sign it, then scan this and submit the file.

The Assessment Task Cover Sheet will be returned to you with the outcome of the assessment, which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not satisfactory, your assessor will include written feedback in the Assessment Task Cover Sheet giving reasons why. Your assessor will also discuss this verbally with you and provide advice on re-assessment opportunities as per
your RTO’s re-assessment policy.

Depending on the task, this may include
• resubmitting incorrect answers to questions (such as short answer questions and case studies)
• resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
• redoing a role play after being provided with appropriate feedback about your performance
• being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily completed the first time, after being provided with appropriate feedback.

Assessment Task Information
This gives you:
• a summary of the assessment task
• information on the resources to be used
• submission requirements
• re-submission opportunities if required

Assessment Task Instructions
These give questions to answer or tasks which are to be completed.
Your answers need to be typed up using software as indicated in the Assessment Task Instructions.

Copy and paste each task’s instructions into a new document and use this as the basis for your assessment task submission. Include this document’s header and footer.

If you are submitting electronically, give the document a file name that includes the unit identification number, the task number, your name and the date.

Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation before beginning the assessment task. It will give you a good idea of what your assessor will be looking for when marking your responses.

Assessment Task 1: Written Questions

Task summary
This is an open book test to be completed in the classroom.
A time limit of 1 hour to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.

Required
• Access to textbooks/other learning materials
• Computer and Microsoft Office
• Access to the internet

Timing
Your assessor will advise you of the due date of this assessment.

Submit
• Answers to all questions

Assessment criteria
• All questions must be answered correctly in order for a student to be assessed as having completed the task satisfactorily.

Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell you how you should answer the question. Use the definitions below to Help you to provide the type of response expected.
Note that the following guidance is the minimum level of response required.

Analyse – when a question asks you to analyse something, you should do so in in detail, and identify important points and key features. Generally, you are expected to write a response one or two paragraphs long.

Compare – when a question asks you to compare something, you will need to show how two or more things are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected to write a response one or two paragraphs long.

Contrast – when a question asks you to contrast something, you will need to show how two or more things are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write a response one or two paragraphs long.

Discuss – when a question asks you to discuss something, you are required to point out important issues or features, and express some form of critical judgement. Generally, you are expected to write a response one or two paragraphs long.

Describe – when a question asks you to describe something, you should state the most noticeable qualities or features. Generally, you are expected to write a response two or three sentences long.

Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments for and against something. Generally, you are expected to write a response one or two paragraphs long.

Examine – when a question asks you to examine something, this is similar to “analyse”, where you should provide a detailed response with key points and features and provide critical analysis. Generally, you are expected to write a response one or two paragraphs long.

Explain – when a question asks you to explain something, you should make clear how or why something happened or the way it is. Generally, you are expected to write a response two or three sentences long.

Identify – when a question asks you to identify something, this means that you are asked to briefly describe the required information. Generally, you are expected to write a response two or three sentences long.

List – when a question asks you to list something, this means that you are asked to briefly state information in a list format.

Outline – when a question asks you to outline something, this means giving only the main points, Generally, you are expected to write a response a few sentences long.

Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the main points. Generally, you are expected to write a response a few sentences long.

Assessment Task 1 Instructions

Provide answers to all of the questions below:

1. Identify at least two project risks for each of the following risk categories:
• Scope risk
• Scheduling risk
• Resource risk
• Technology risk

2. Outline three examples of tools or techniques that could be used to identify risks as part of a risk assessment process.

3. Outline three sources of information that can be used to gather information on potential risks within the workplace.

4. Explain each of the key components of a risk management plan

5. Summarise the purpose of Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009) and identify the key principles underlying this risk management standard.

6. Describe the characteristics, techniques and appropriate applications of both quantitative and qualitative risk analysis.

7. Outline the key steps involved in a risk management process.

8. Explain five options for controlling risk.

Assessment Task 1 Checklist
Student’s name:

Did the student provide a sufficient and clear answer that addresses the suggested answer for the following? Satisfactory performance Comments
Yes No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date

Assessment Task 2: Risk identification and analysis project

Task summary
This assessment task requires you, in the role of Project Manager at NatureCare Products, to identify, analyse and evaluate human resources risks associated with establishing new retail outlets for the company. This will involve identifying risks and then meeting with Senior Management to consult on the risks you have identified. Following this, you are required to document risks and control measures in a risk register.

This assessment is to be completed in the simulated work environment in the RTO.

Required
• Computer with Microsoft Office and internet access
• Risk Management Policy and Procedures
• Risk Register Template
• Risk Management Plan Template
• Space for a meeting
• Roleplay participants

Timing
The assessor will advise you of the due date of this submission.

Submit
• Email to your assessor with your risk management plan attached.
• Email to your assessor with your completed risk register attached.

Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to complete further assessment to demonstrate competence.

Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Assessment Task 2 Instructions

Carefully read the following:

NatureCare Products is an Australian company based in Brisbane. The company commenced business in 1996 and manufactures and eco-friendly, high quality beauty skin care products. The business was established to cater for a growing demand for skin products that contain eco-friendly and natural ingredients. There is also an emphasis on eco-friendly packaging.

The company sells its products in health food shops across the country, as well as on-line through its own web site. The company targets customers that want high quality, eco-friendly products. Market research has identified that around 70% of customers are professional women aged 25 to 55.

The company currently has a small range of products that include:
• Cleansing creams to soothe skin during make-up removal. Primary ingredients include Shea butter to nourish the skin and plants extracts that are also rich in essential oils with regenerating and anti-inflammatory properties. This product will be for delicate and mature skins and could also be used as a baby cream.
• Multi Protection Day Moisturizing Creams for dry to normal skin types that help protect the skin during the day and includes Shea butter and extracts from fragile green algae that provides hydrating and protective properties.
• Regenerating facial scrub to clean off dead skin cells to promote regeneration of healthy new cells. This product will be used for most skin types.

The strategic objectives of the company are to increase market share by 20% At a recent board meeting the two company shareholders and the CEO discussed options for expanding the business and have decided to establish a chain of retail outlets in central Sydney and Melbourne within the next six months.

The company is also currently developing more products focusing on a range of products to meet particular skin needs rather than a one-size fits all. The new products are timed to be ready for sale at the same time as the opening of the new retail outlets.

The CEO has asked you to take on the role of Project Manager for the business expansion project.

Complete the following activities:

1. Identify project risk
Review the scenario information, as well as the Risk Management Policy and Procedures.
Review also the Risk Management Plan Template and the Risk Register Template

Take project risk notes that include the following:
• Identify risk objectives and standards.
• Summary of the risk identification methods used to identify the project risks.
• Establish the project risk context.
• Identify an appropriate risk ranking system
• Determine risk analysis classification criteria
• Classify the identified risks within risk categories
• Determine risk priorities

You will be determining the risks and their context more clearly during the meeting with the project team, but these preliminary notes should demonstrate that you can identify the case study project’s risks yourself.

2. Send an email to the General Manager (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment, and ask for the place, time and date of your meeting.

Attach your project risk notes to the email.

3. Participate in a meeting with the Project team and the CEO.
At the meeting, go through your risk management plan with the attendees, ensuring that they agree with the assumptions that you have made. Describe each of the risks that you have identified, as well as the questions you considered to identify the risks.

Ensure that the meeting participants agree with your risk ranking system, and how it applies to your analysis classification criteria.
Discuss the likelihood and the severity of each risk, and its overall risk rating as set out in the Risk Register.
Discuss also possible treatments for each risk. For each treatment, identify and discuss their strengths and weaknesses as set out in your report.

Agree on risks that need to be documented in the Risk Register as set out in the Policy and Procedures, as well as actions (treatment control measures) that should be taken for each risk.

Allocate risk responsibilities to project team members. Discuss with management who should be responsible for each risk management treatment or control method. These staff may not be senior management, but may be appointed to the project team for this reason.

During the meeting, you will need to demonstrate effective communication skills including:
• Speaking clearly and concisely
• Using non-verbal communication to Help with understanding
• Asking questions to identify required information
• Responding to questions as required
• Using active listening techniques to confirm understanding
Assessor: set up a quiet space for the meeting.
Other students should continue with their assessment tasks.
Prior to the meeting, read the student’s plan to review the risks they have identified.
Review the Risk Management Plan Assessor to identify additional risks that they may have not identified. Jointly discuss all identified risks and agree on the six most important for documentation in the Risk Register.
Go through each of the risks and discuss their severity and likelihood, as well as the consequences of each.
Discuss treatment methods as set out in the student’s report and in the Risk Management Plan Assessor.
Discuss the strengths and weaknesses of each control method and agree on appropriate treatments for inclusion in the risk register.
Vary your responses to avoid collusion amongst students.
You will need to organise at least two other students to attend the meeting. They should have successfully submitted their project risk notes, and should conduct their own meetings in the same session to minimise any advantages not hosting the meeting first may give.

4. Analyse project risks
Following the meeting, you are to perform an analysis of the project risks, and incorporate this into a Risk Management Plan.

Your risk management plan should include, as a minimum:
• Project risk context
• Existing risk controls
• Risk management objectives and standards
• Risk identification methods
• Risk categorisation process
• industry sector risk classifications
• Risk analysis classification criteria
• Risk Management approaches
• Risk monitoring and review processes
Describe the frequency of regular risk monitoring to identify changed circumstances.
Schedule a full review of the risk management process within six months of the new stores opening.
• Risks identified
Under the Risks Identified heading, develop an initial list of risks to discuss at a meeting with senior Management. As a guide, this should be between 6 to 10 risks.
• Classify project risks
• Potential treatment methods
For each of the risks that you identify, suggest at least two potential treatment measures for discussion, including the strengths and weaknesses of measures of each for discussion at the meeting.

Use the Risk Management Plan Template to guide your work. Your risk management plan should be about four pages long.

5. Revise your risk management plan.
Use the input from the stakeholders at the Project Team meeting to revise your risk management plan.
Make sure that risk responsibilities are allocated to project team members
Name this document Revised Risk Management Plan.

6. Complete the Risk Register.
Use the Risk Register Template to guide your work.
Your Risk Register should include the following:
• Documenting all of the risks as discussed at your meeting.
• Including an analysis of each risk including the likelihood of the risk occurring, as well as the severity of the risk should it occur, as well as an overall risk rating.
• Documenting risk control measures.
• Document actions for each identified risk including:

7. Send an email to the CEO (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments.

Attach your revised risk management plan and completed risk register to the email.

Assessment Task 2 Checklist

Student’s name:

Did the student: Completed successfully Comments
Yes No
Determine risk objectives and standards, with input from stakeholders?
Establish project risk context to inform risk management processes?
Identify project risks using valid and reliable risk identification methods?
Classify project risks within agreed risk categories?
Determine risk analysis classification criteria and apply to agreed risk ranking system?
Use risk analysis processes, within delegated authority, to analyse and qualify risks, threats and opportunities?
Determine risk priorities in agreement with project client and other stakeholders?
Document risk analysis outcomes for inclusion in risk register and risk management plan?
Identify and document existing risk controls?
Consider and determine risk treatment options using agreed consultative methods
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date

Assessment Task 3: Risk monitoring an assessment project

Task summary
This assessment task requires you to evaluate a risk control measure that you identified for a risk in Assessment Task 2, and implement changes in response to this.

This assessment is to be completed in the simulated work environment in the RTO.

Required
• Computer and Microsoft Office
• Access to the internet for research
• Training Survey Results
• Manager Feedback
• Assessment Report Template

Timing
The assessor will advise you of the due date of this submission.

Submit
• Email to your assessor with your Assessment report attached.
• Email to your assessor announcing risk control measures implemented.

Assessment criteria
For students’ performance to be deemed satisfactory in this assessment task, they must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed they will be asked to complete further assessment to demonstrate competence.

Re-submission opportunities
Students will be provided feedback on their performance by their Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.

If any parts of the task are not satisfactorily completed your assessor will explain why and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance. Re-assessment attempt(s) will be arranged at a later time and date.

Students have the right to appeal the outcome of assessment decisions if they feel they have been dealt with unfairly or have other appropriate grounds for an appeal.

Students are encouraged to consult with their assessor prior to attempting this task if they do not understand any part of this task or if they have any learning issues or needs that may hinder them when attempting any part of the assessment.

Assessment Task 3 Instructions

Carefully read the following:

Assume that one of the risks that you identified in your risk management plan was the inability to attract sufficiently qualified and knowledgeable staff to manage the new retail stores, and that the risk treatment identified is to invest in the training and development of existing staff to fulfil this role, at least in the short term.

It was identified that two of the existing customer service representatives are interested in taking on this new role. Neither of the two customer service representatives have managerial skills nor knowledge, but they both have excellent company and product knowledge, as well as customer service skills. The company funded both of the staff members to attend. These staff members are currently managing the two new stores.

A staff survey was sent to the two members of staff who completed the training, and their responses are collated in the Training Survey Results.

It is now one year later, and the retail stores have now been established in Sydney and Melbourne for five months. Each store employs a Manager, 2 full-time retail Helpants and several part-time and casual staff.
Financially, both stores are performing well, and are already covering their own overheads.

A week ago, both managers were asked to give feedback on how they are coping with their new responsibilities, and how the training that they received helped prepare them for the tasks that they perform today. Their responses are collated in the Manager Feedback.

Complete the following activities:

1. Monitor project risk
As set out in the Risk monitoring and review processes section of the Risk Management Plan, regular risk review processes have to be followed to maintain the currency of the Plan.
Monitoring the risk environment regularly helps to identify changed circumstances that may impact on the project risks.

Review the Training Survey Results and the Manager Feedback, as well as the case study information above, and from Assessment Task 2.

identify changed circumstances impacting project risks
Determine risk responses to changed environment

2. Write a Risk Management Assessment Report
Develop a report for the General Manager that gives an honest Assessment of how well the staff training performed as a risk management treatment. Your report should include, as a minimum, the following:
• Review the project outcomes to determine the effectiveness of:
o The risk management treatments.
o The risk management processes and procedures.
• Recommended improvements for application to future projects

Describe the changes you would make to your Risk Management Plan to ensure that the risk treatment is more effective the next time a new store is opened.
• Identify circumstances that have changed since you wrote your risk management plan, and how the changes may impact project risks
• Determine risk responses to the changed environment

Use Assessment Report Template to guide your work.
Your Assessment report should be between half a page and a page long.

3. Send an email to the CEO (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachment, and seek their feedback and approval to move forward with the project.

Attach your Assessment report to the email.

1. Send an email to the store managers (your assessor).
Assume that the General Manager has given approval for you to implement two of the risk responses that you listed in your Assessment report.
Choose the responses that you feel would be most beneficial to the managers, and write them a short email to inform them of this.

The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

Assessment Task 3 Checklist

Student’s name:

Did the student: Completed successfully Comments
Yes No
Monitor the risk environment to identify changed circumstances that are impacting on project risks?
Determine risk responses to changed environment?
Suggest modifications to their risk management plan to maintain currency of risk treatments and controls?
Review project outcomes to determine effectiveness of risk-management processes and procedures?
Identify and document risk management issues and recommended improvements for application to future projects?
Implement agreed risk responses?
Task Outcome: Satisfactory • Not Satisfactory •
Assessor signature
Assessor name
Date

Appendix

Assessment Report Template Manager Feedback

Risk Management Plan Template Risk Management Policy and Procedures

Risk Register Template Training Survey Results
—-

Risk Register
Name
Academic Institution

Risk Register
Dear Sir, the following is the risk register outlining the risks, severity levels, likelihood, ratings, treatment methods, and responsibility for each of them.
Area Risk Severity Likelihood Risk Rating Treatment/control methods Responsibility
Legal requirements Compliance risk Medium Moderate Almost certain Transfer the risk to a legal consultant. It is the responsibility of the legal consultant to inform the business on the compliance requirements.
Operations Operational risk Medium Unlikely Likely Mitigate the risk by eliminating inefficiencies and training staff. It is the responsibility of the new managers to develop operational manuals and carry out more training to boost effective operations.
Data management Lack of key data Medium Moderate Possible Transfer the risk to a consultancy to acquire the data. The company will transfer the risk to a data management company that has all the statistics about the market.
Performance Competition High Very likely Unlikely Mitigate the competition through creativity, the value of products and friendly prices. The managers will develop innovative strategies to attract customers, generate loyalty and enhance the value of products.
Financial performance Financial risks High Likely Rare Mitigate the risks by allocating more fund, increasing sales and reducing costs. The finance department and the manager will request for more funding as they strive to make profits to sustain the business.
Human Resource Management Lack of experienced employees.
High Likely Rare Mitigate the risks by training the employees to boost customer service and marketing. The manager and human resource department will develop the requirements for all employees and training sessions for all new recruits.

—

Risk Control Measures Implemented
Name
Academic Institution

Risk Control Measures Implemented
Dear Manager,
The General Manager has approved risk responses to curb the current problems at your workplace. The responses are meant to solve the problem of overworking without a day off to relax and refresh. The General Manager has approved for extra training on the role of delegation in managing a new store. The training will involve strategies of identifying potential staff members who can take up key positions in your absence. It will also focus on the benefits of delegation including accomplishing more tasks within a short time. The focus is to make your work easy and enable you to achieve the goals set for the new stores.
The General Manager has also approved a salary increase to boost your commitment and motivation to the job. Previously, you indicated that the salary was not sufficient and it was almost similar to what you earned when you were in your earlier job position. The salary will also take care of the extra skills and attention you have to put into the work to ensure the new store is performing profitably and efficiently satisfying customers’ needs.
The salary increase and the commencement of the training sessions will begin the following month.

Assessment Report
Name
Academic Institution

Assessment Report
Dear Sir,
The following is the risk Assessment management report on how the training impacted the skills of the new managers.
Effectiveness of the risk management treatment
The risk management treatment plan was effective since it provided the necessary skills for customer service representatives. The two are now working as full-time managers in Sydney and Melbourne. The managers have indicated that they learned practical and theoretical skills and they are interested in acquiring more skills. The managers have indicated that the theoretical management models they learned are applicable in their area of work.
Effectiveness of the risk management processes and procedures
The risk management processes and procedures are effective in the identification and treatment of risks. It comprises of the principles to be used in risk management such as the monitoring of risks plus training and development. It also shows that all stakeholders have a responsibility for risk management. It shows that individual employees and management should play a role in risk management. The specification is crucial since it shows all the roles that should be undertaken.
Changed circumstances that may impact project risks
The store managers have new roles that require much of their time and attention. The load of work denies them work/life balance since stores have to operate 7 days a week. The circumstances may increase the project risks since the store managers may not be effective since they do have time to rest.

Determine risk responses to changing environment
The risk response to the new environment that demands much attention is to train the managers on the power of delegation. The managers should be trained how to delegate their duties to ensure they take a day off to relax and refresh. The risk of leaving the jobs can be curbed by increasing the salary, which is a salary of motivation. The store managers can also be given a day off to be with their families.
Recommended improvements for application to future projects
When a new store is opened, it would be appropriate to make necessary plans for the qualified managers who should be employed. The company should seek to mentor future managers for stores that will be opened in the future. Therefore, every time a qualified manager will be ready for the job.
—

Risk Management
Name
Academic Institution

Risk Management
Dear Sir,
The following is the risk management for NatureCare Company. The risk management plan has been designed with all the components clearly defined.
Project risk context
The project risk context has been used to identify criteria of assessing all the risks including internal risks.
Existing risk controls
The company has adopted the method of mitigating the risks, transferring them, exploiting them and avoiding them.
Risk management objectives and standards
The objective of risk management is to detect, analyze and solve various risks. All risks will be dealt with using standards such as dynamism, openness to change, continuous improvement and involving stakeholders in decision-making processes.
Risk identification methods
The risk identification methods for the company include brainstorming, carrying out interviews, assumption analysis and developing checklists.
Risk categorization process
It has also identified and categorized the risks into strategic, operational, financial, and compliance risks. The strategic risk involves the effectiveness of the plan in the process of expansion while financial risk involves the ability to generate profits while compliance involves the set regulations to be followed.
Industry sector risk classifications
The expansion plan relates to various risks including the strategic risk which may affect the success of the new outlets. The financial risk involves the possibility of generating profits in the outlets. The compliance risk is the possibility of being fined by the local government for failing to comply with business regulations.

Risk analysis classification criteria
NatureCare has various risks in the endeavor to run outlets away from the parent company. The risks include the financial, compliance and strategic risks. If the three risks occur they can significantly affect the success of the outlets. The likelihood of a strategic and compliance risk is low since adequate plans have already been made. However, the financial risk is high since the outlets are new and the market is competitive.
Risk Management approaches
NatureCare will manage risks by adopting four approaches including avoiding, transferring, mitigating and exploiting the risks.
Risk monitoring and review processes
The risks will be reviewed after every two weeks to prevent any possibility of a risk that can affect the success of the outlets. A staff survey will be carried out monthly to help in the review process.
Risks identified
NatureCare will experience various risks during the expansion including compliance risk, operational risk, lack of key data, competition, financial risks, and lack of experienced employees.
Classify project risks

Risk Probability Impact Rating
1 High Extreme Almost certain
2 Medium Major Likely
3 Moderate Moderate Possible
4 Low Medium Unlikely
5 Very low Minor Rare
6 Rare Trivial Rare

Potential treatment methods
The company will adopt risk treatment methods including assessing the options to determine if the risks will be avoided, mitigated, transferred or accepted. Risks can also be reduced in case it is manageable. A good opportunity can be exploited while a threat will be mitigated or minimized. The mitigation of risks will involve extra training and salary review.

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