Risk Management Plan

BSB51415 Diploma of Management


Manage project risk

Task 2 – Risk Management Plan

Candidate Instructions
Purpose of this Assessment task
This assessment task is designed to test your skills in managing project risk as required by the unit BSBPMG517 Manage project risk. Your trainer/assessor will be assessing your work and provide you with constructive feedback on Canvas. This task will assess your skills in: Identifying project risks Analysing project risks Establishing risk treatment and controls Monitoring and controlling project risks Assessing risk management outcomes
In this assessment you will analyse the provided case provided, undertake research in the topics presented, conduct 1 role-play to demonstrate your skills and provide the risk management plan to your Trainer. By successfully completing this Case Study you will provide the required performance evidence of your competence in managing project risk in an organisation.
What are you required to do to undertake this Case Study? You should carefully read the provided Case Study; its additional documents provided on Canvas and undertake all questions. The task includes: (i) Analysing the case (ii) Undertaking required research (iii) Role playing and (iv) Reporting.
To successfully undertake this assessment, you should be doing the following: Read the provided Case Study couple of times and understand its requirements Clarify the requirements with your trainer and assessor, if you are not sure Research appropriate websites as directed by your trainer/assessor Self-reflect and practice the 1 role-play before you record them and upload them on Canvas Discuss with your trainer/assessor the contents of the report you will be presenting
Context and conditions of undertaking the tasks? The prescribed tasks will be undertaken by you after carefully analysing the case scenarios. Your trainer/assessor will provide you a context to role-play the scenario. Your trainer will also provide you guidance on the websites to be researched. Your trainer/assessor may also set certain conditions under which you will perform the tasks required by this assessment. For example, your trainer may set a time limit to perform a task or, ask you to repeat a task or, ask you to give additional information about the performance by asking you some verbal questions or, they may prescribe you some new conditions to undertake certain tasks.
Given your personal conditions, your trainer/assessor should also be able to make some reasonable adjustments in undertaking the tasks of this assessment. You should check with your trainer/assessor about the conditions under which the tasks should be completed, and the possible adjustment they can make in undertaking these tasks.
What specific WHS requirements may be involved? This assessment will require you to be aware of the standard Workplace Health and Safety requirements e.g. Workplace Health and Safety Act and Workplace Health and Safety Legislation Your trainer/assessor will advise you on these and other legislative requirements.
Tasks and frequency of performance Details of the tasks to be undertaken in this assessment are provided in the attached Case Study. The tasks listed in that document must be performed at least once. The role-play question should involve at least 2 team members.
Getting Started It is anticipated that the assessment will take approximately 8 hours to complete. The assessment may be re-attempted on two further occasions (maximum three attempts in total). All assessments must be resubmitted 3 days within receiving your unsatisfactory grade. You must clearly indicate “Re-submission” on your resubmitted work.
You must complete all questions unassisted by the assessor or other personnel but may refer to reference material as may be needed. All questions must be answered satisfactorily for the assessment to be completed satisfactorily. For any assessment conducted that is incomplete, or without satisfactory performance, the assessment will need to be completed again after further training support. This may be simply to focus on question areas not achieved in the prior assessment.
Submitting your assessment When you are ready to submit your assessments, upload the files in Canvas via the submission tab. It is important that you keep a copy of all electronic assessments submitted to Canvas. Please submit all assessment components.
Word count In this assessment some of the questions include a word count. This is a guideline only, but your answers should not vary substantially (i.e. +/- 10%) from the word count provided. Microsoft Word includes a word count tool.
Objective To test the required application skills in managing project risk.
Assessment Cover Sheet
Candidate name:
Trainer’s Name:
Date Submitted:
Candidate declaration: I declare that: I have read and understood all the information provided in relation to the assessment requirements to complete this unit, the instructions and the purpose and processes of undertaking this assessment task This assessment is my own work and where other’s works or ideas have been borrowed, I have appropriately referenced or acknowledged them I understand that plagiarism is a serious offence that may lead to disciplinary action.
Candidate signature:


Before you begin reading the case study, it is recommended that you read and familiarise yourself with all the documents of the simulated IndoAust Jaya scenario and corresponding project brief that can be found on Canvas under additional resources. Use Appendix B to complete all assessments Parts.

Part A – Stakeholder consultation

Conduct a telephone consultation with a stakeholder to discuss the risks associated with this project.

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Evidence requirement:

You (playing the role of the Project Manager) must provide video evidence of calling the stakeholder to discuss the risks associated with a project.You need to do this in a simulated environment following the process below.

The phone conversation you conduct should be approximately 5 minutes long. During your conservation, you must:

  • Discuss the risk management objectives
  • Discuss the risk context
  • Discuss potential risks and their priorities
  • Discuss treatment options for the risks identified
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When you have finished recording, you will need to upload your file to Canvas. If you need help on how to submit a video file on Canvas, instructions are available in the Student Lounge on Canvas.

You will need to use the Project Brief to develop a clear understanding of the project. Provide the person acting as the stakeholder with a copy of the Project Brief prior to commencement. Information for the person acting as the stakeholder is provided in Appendix A Briefing Notes. Provide these notes to the person acting as the stakeholder so they have a clear understanding of the role play requirements.

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Part B – Risk context

Establish the context for risk management. The context of your risk management should set out the parameters of the risk management system. Your context should include:

  • Risk objectives within which the project operates
  • Risk management standards used
  • Relevant business policies and procedures that were reviewed

Look closely at section 7 of the project brief. Look also at IAJ’s Risk Management Framework. (This section should be no longer than 200 words long).

Part C – Project risks

Develop five risk categories and then for each identify a minimum of two risks in each category. Look closely at section 7 of the project brief to assist you. (This section should be no more than 100 words long).

Part D – Risk identification

Discuss an appropriate risk identification approach. Indicate in your answer who is responsible for risk identification, and where and how risks are documented. (This section should be no more than 100 words long).

Part E – Risk Analysis

Assess any three of your identified risks and apply a numerical value to each risk. In carrying out the analysis you need to determine the probability (likelihood) and impact (consequence) of the risk occurring and then develop a risk matrix using your scale levels.

Consider the procedure for the Development of a Risk Management Profile in IAJ’s Risk Management Framework. (This section should be no more than 100 words long).

Part F – Risk register

Use your risk analysis to prepare a risk register detailing the three identified risks. Your answer should include a classification of whether the risk presents a ‘threat’ or an ‘opportunity’ to the project.

Look at IAJ’s Risk Management Framework to assist you. (The section should be no more than 100 words).

Part G – Risk Treatment

Provide a detailed explanation of the risk treatments you have selected for three of your identified risks. Your explanation should include a discussion of the strengths and weaknesses of existing risk controls.

Look at the Development of a Risk Management Profile in IAJ’s Risk Management Framework for assistance. (This section should be no more than 100 words long).

Part H – Action Plan

Create an action plan for implementing on of the risk treatments. Start by detailing all the activities, steps or tasks required to implement the treatment. The action plan should include a detailed description of each of the activities or tasks that need to be completed. For each activity you should also detail the timeframe, required resources and roles and responsibilities.

Your action plan should also include an overview of the performance measures and monitoring arrangements for the risk treatment plan.

Look at the Development of a Risk Management Profile in IAJ’s Risk Management Framework for assistance. (Your plan should be no more than 200 words long).

Part I – Risk response

Write an email to one of the key stakeholders to report a project risk that has been realised and the steps you will take to address and monitor the risk. Include a description of who you have assigned responsibility of the risk to. (100-150 words long).

Additional information for the case study

It is now May. By this time, the majority of the software configurations should’ve been completed. This has been unable to occur as the administrators were not able to complete the Sage administration training and do not know how to configure the software. The Sage administration training was cancelled as the trainer was called away to deal with a family emergency. Sage has promised to reschedule the training, but have not been able to confirm a date with the trainer. (Hint: Look at section 6 in the project brief to identify the appropriate stakeholders to address your email to).

Part J – Monitoring and Evaluation

You are to plan an audit of the project’s risk management system. The audit should seek to measure the extent to which the goals and objectives of the risk management process were realised. It should also identify any new concerns so that new goals and objectives can be set.

The audit process is to be conducted in collaboration and consultation of key stakeholders.

Start by your audit questions. These are the questions that you hope your audit will answer. They should be centred on the goals and objectives of your risk management system. The following are some examples of audit questions:

  • Are risks being adequately identified?
  • Are risks being adequately evaluated?
  • Is the frequency of risk identification and evaluation adequate?
  • Are implemented risk treatments effective?
  • Are risk treatments monitored and reviewed?

You should have at least three questions relating to the specific goals and objectives you set in your Risk Management Plan.

Next, draw a flow chart showing the audit process. This process should explain how you intend to answer your audit questions. Include the types of evidence you will review. Remember to include consultation with the key stakeholders you identified in your Risk Management Plan. (You can use software like SmartDraw or XMind).

Finally, type a draft email to one of the key stakeholders. In your email, explain the audit you are conducting and why and ask the stakeholder to contribute. You will need to develop specific questions for the stakeholder asking them to provide evidence that will help you to answer your audit questions.

(This section should be no more than 300 words long).

Part K – Lessons learned

Complete a “lessons learned” report reviewing the risk management plan for a project. Your report should take into consideration all the assessment activities that you have already completed. Use the template provided to document your review.

(This section should be approximately 100 words).

Appendix A: Briefing Notes

Please supply the following information to the person playing the role of Lynne Sungee.

NOTES to be given for role play participant acting as Lynne Sungee
You are playing the role Lynne Sungee. You are IAJ’s Finance Manager. You manage IAJ’s accounts department. The Accounts Department at IAJ is responsible for: implementing cost saving measures ensuring books are always up to date ensuring all staff are paid weekly on a Thursday, with the correct amount of tax calculated issuing group certificates at end of financial year keeping track of all incoming accounts for items purchased paying accounts as per the terms and conditions tracking all outgoing accounts issued to creditors ensuring creditors pay their bills as per IAJ terms and conditions providing guidance to the HR department on staff salaries and Accounts department on cost of services. For this activity the learner will discuss risks relating to a project they are managing. The project involves implementing a Customer Relationship Management (CRM) system. The learner will provide you with a copy of the Project Brief to assist you in preparing for the role play. The learner will ask you specific questions regarding the project. The following information can be offered in response (although you are welcome to expand/develop these responses or choose other relevant responses as you see fit). You would like the risk management to extend to financial management. There is a risk that without careful communication, funds may not be available at the right stages of the project. You feel that decisions about purchases need to be made early to ensure that the required funds are available You feel that the timeframe for the project may cause costs to overrun You are concerned with the ability to keep an up-to-date, clear and complete customer record for each client You are concerned that the new systems ability to track client payments and details of client payment agreements may result in breaches of contract with vendors You are concerned that the new system may not be able to integrate client data from the LiveX database (used for managing transactions relating to livestock)

Appendix B: Risk Management Plan

  1. Project information
Project Title
Project Manager
Issue date
File name
  1. Risk management context
Risk objectives
Risk management standards
Relevant business policies and procedures
  1. Project risks categories
Risk category Sub-category
  1. Risk identification

Discuss risk identification approach.

  1. Risk analysis
Risk identification Risk Exposure
Risk ID Risk name Probability Impact Overall risk exposure (Probability x Impact)
  1. Risk matrix

Develop a risk matrix using your scale levels

  1. Risk register
Risk ID Risk name Category Opportunity/Threat Reported by Date of review
  1. Risk Treatment
Risk identification Risk Exposure Mitigation planning
(risk response/control strategy)
Risk ID Risk name Probability Impact Overall risk exposure Strategy Mitigation plan (Control strategy) Mitigation owner
  1. Action plan
Action Steps
What will be done?
Who will do it?
By When?
Resources needed (financial, human, physical & other)
Communication Plan
Who is involved?
What methods? How often?
  1. Risk response

11. Audit questions
Identify 3 audit questions related to the objectives you set in your Risk Management Plan.

12. Audit process
Draw a flow chart showing the audit process.

13. Monitoring and evaluation


14. Lessons-learned
Document 3 lessons-learned, including negative and positive lessons and how they apply to the project context.

Knowledge Area Date Lesson ID Description/issue Recommendation Status



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