• To review organisational processes, procedures and requirements for undertaking risk management in accordance with current risk management standards.
• To determine scope for risk management process
• To identify internal and external stakeholders and their issues.

William owns a bicycle retail and repair shop which has seen an increase in business during the COVID-19 pandemic.

With a busier store and higher demand for bikes and repairs, William considers the measures that he needs to put in place to meet public health requirements and how he can lower the risk of COVID-19 at the store.

William decides it is not reasonably practicable for his 10 employees to work from home as they are all involved in sales and repairs, which must be done at the premises. He looks through the COVID-19 resource kit on the Safe Work Australia website and identifies the control measures that are relevant to his business. This includes physical distancing, cleaning and hygiene practices and policies for employees who show symptoms of COVID-19.

The business regularly holds events to allow customers to test ride their range of bikes, with attendance of up to 20 people. William understands that these events pose a higher risk of spreading COVID-19 and do not meet the new rules for public gatherings, so immediately cancels these activities.

The business also allows customers to take bikes from the store for test rides. William is aware that it is possible for the COVID-19 virus to be on different surfaces for periods of time and this may result in transmission. It is difficult to disinfect bikes after each customer use due to cleaning products potentially contaminating and damaging parts of the bike.

William weighs up the likelihood of COVID-19 transmission from test rides and how to eliminate or minimise the risk of that happening, including measures like ceasing test rides or regularly disinfecting bikes. He then considers the suitability of those measures against their cost.

William decides the best way to minimise the risk is to temporarily limit the number of customer test rides. He clearly communicates this new practice to customers through his website and using signage at the store. William considers that this may result in a decline in sales but knows that this is necessary to reduce the risk of spreading COVID-19. William will still ensure that his employees disinfect bikes after each customer use but by limiting the number of test rides it will reduce the potential damage to his stock from disinfecting practices and save on cleaning costs and staff time.

1. From a provided case study,complete the following tasks:

(A)   Interpret the current risk of a bicycle retail and repair shop.

(B)   Identify the processes, procedures and requirements which have been implemented for risk management purpose.

2. Research further information from government website or reliable sources, then complete following tasks:

·        Determing scope of risk management processes of a case study in relation to Work Health and Safety (WHS) and Ocuupational Health and Safety (OHS) legislation.

3. In relation to a case study, identify at least one example of internal and external stakeholders who are relevant to risk management of current risk and their concerns.

These factors determine the extent to which a government may influence the economy or a certain industry. A government may impose a new tax or duty due to which entire revenue generating structures of organizations might change. Political factors include tax policies, Fiscal policy, trade tariffs etc. that a government may levy around the fiscal year and it may affect the business environment. Example Index Terms – Embargoes & Sanctions, Coups.

Economic

These factors are determinants of an economy’s performance that directly impacts a company and have resonating long term effects. A rise in the inflation rate of any economy would affect the way companies’ price their products and services. Adding to that, it would affect the purchasing power of a consumer and change demand/supply models for that economy. Economic factors include inflation rate, interest rates, foreign exchange rates, economic growth patterns etc. It also accounts for the FDI (foreign direct investment) depending on certain specific industries who’re undergoing this analysis. Example Index Terms – Ownership Changes, Bankruptcy, Company Relocations.

Societal

These factors scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc. Example Index Terms – Child Labor Laws, E Coli, Medical Ethics.

Technological

These factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably. This refers to automation, research and development, workforce; anything that would disrupt the course of company to conduct business. Example Index Terms – Computer Crime, Labor Shortages, Labor Disputes.

Legal

These factors have both external and internal sides. There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. Legal analysis takes into account both of these angles and then charts out the strategies in light of these legislations. Example Index Terms – Class Actions; Fines & Penalties, Patent Infringement

From: LexisNexis (Access: March 2021)

1.      Read the explanation of Political, Economic, Societal, Technological and Legal categories, then apply these to the case study of Bicycle Retail Shop.

You must explain how these risks may influence the shop in accordance with the current risk.

·        To document critical success factors, goals or objectives for area included in scope.

2.)    Howcan critical success factors, goals or objectives advocate risk management achievement in the organisation

3.)    Identify two critical success factorswhich would assistthe bike shop (a risk assessment case study) to acheive the risk management processesrelating to WHS.

·        To communicate with relevant parties about the risk management process and invite participation.

• One person performs as  the risk assessment manager while other members perform as colleagues, employees or clients etc.).
• As risk assessment manager, you will need to provide the following descriptions;
• Determine the area of risk management
• Identify the risk management activities which have been implemented in the shop
• In a discussion, you should communicate:
• To obtain support from other stakeholders in regards to risk management activities
• To discuss about the risk management  processes

• Inviting them to attend a small group discussion with a topic of assisting risk identification in a provided case study of bicycle retail shop.
• Participate in an oral discussion to assist in the identification of risks
• Use appropriate verbal and non-verbal communication

·        To use tools and techniques to generate a list of risks that apply to the scope, in consultation with relevant parties.

2.      Outline three tools and techniques for determining risks.

3.      Perform the following task by carring out the following activities:

·        Each learner must select a tool and technique to generate a list of risks regarding WHS area of a bicycle retail shop.

·        Discuss your method of consultation with relevant stakeholder regarding the selected tools and techniques. You are also required to design a stakeholder feedback form.

• To know how to assess likelihood of risks occurring
• To assess the impact or consequence if risks occur.
• To evaluate and priorities risks for treatment

The five analysis techniques, which we can use to determine the likelihood of risks occurring are as follows:

1. Statistical analysis technique: Looking at data, facts and figures in information to provide evidence of past situations, this is helpful for looking at straightforward data but will not highlight any variables or influences that may have affected the outcomes.
2. Predictive analysis technique: This can be used when looking at data and figures to lookahead at predicting future occurrences, although it is not an accurate type of analysis, if using a strong predictive model then it can help us to make better decisions.
3. Probability analysis technique: This focuses on the possible occurrences that may happen by looking at historical data and information (past trends) and applying that to the current situation.
4. Delphi technique: This is a form of risk brainstorming, but the essential difference between traditional risk brainstorming and applying the Delphi Technique is that the Delphi Technique makes use of expert opinion to identify, analyse and evaluate risks on an individual and anonymous basis. Each expert then reviews every other experts risks, and a risk register is produced through continuous review and consensus between the experts.
5. Consequence analysis technique: This has become the standard method in establishing risk severity in Qualitative Risk Analysis. Risk Matrices will often vary in size, but they all essentially do the same thing, and that is: Provide a practical means of ranking the overall severity of a risk by multiplying the likelihood of risk occurrence against the impact of the risk, should it still occur. This is about identifying the consequences of taking actions or in making decisions, it can help us to look further along at organisational activities to ensure that we are aware of and factor in any other actions that may occur.

2.      Identify the term of hierarchy of controls and how this can help to prioritise risks for treatment?

The hierarchy of controls is a system used in industry to minimise or eliminate exposure to hazards. It is a widely accepted system promoted by numerous security organisations. This concept is taught to industry executives to be promoted as a standard workplace practice.

The hazard controls in the hierarchy are, in descending order of effectiveness:

• Elimination: Eliminating the hazard and the risk it creates is the most effective control measure.
• Replacement/Substitution: Substitute the risks with lesser risks.
• Isolation: Isolate people from the risks.
• Engineering Controls: Reduce the risks through engineering changes or changes to systems of work.
• Administration Controls: Use administrative actions to minimise exposure to hazards and to reduce the level of harm.
• Personal Protection Equipment (PPE): Use personal protective equipment to protect people from harm.

The hierarchy of control is a method for choosing risk control measures that can be used by employees at every level of a company.

For example, directors and officers can use the hierarchy to create safety strategies to be carried down through the company; senior management can use the hierarchy to train workers in the safety strategies and be assured that workers are competent and capable in those control measures; and workers use the control measures on a day-to-day basis in their workplace. One of an officer’s or director’s health and safety duties is to understand the varying levels of controls that prevent any identified hazards from posing a risk to the health and safety of persons in and associated with the workplace. This duty involves the use of the hierarchy of control.

3.      According to an example of risk matrix template below, interpret and identify following elements:

(A)   Assess the likelihood of Covid-19 transmission from the test ride of William’s retail shop.(You must answer in the range of “Rare”, “unlikely”, “possible”, “likely” or “most likely” according to an example of risk matrix template).

(B)   Assess the impact or consequence of Covid-19 transmission if they occur (You must answer in the range of “Very low”, “Low”, “Moderate”, “High”, or “Extreme” according to an example of risk matrix template).

Example to answer A& B:Learner may differently answers, for instance,

You believe the likelihood of Covid-19 transmission would be ‘Most likely’ and the impact or consequence of itwould be ‘extreme’. The reason is because you do not believe even if the shop claimed that all bicycles have been already cleaned or wiped after test ride, you are unsure that all viruses have been killed.

(C)   Evaluate and prioritise three (3) risks for treatment in accordance withWilliam’s bicycle retail shop.

(D)   Develop a contingency plan in accordance with William’s bicycle retail shop.

• To determine and select most appropriate options for treating risks
• To develop an action plan for implement appropriate optioning risk treatment.

1. From a case study in activity 1A, determine and select the approachthat you believe it is the most effective for treating risks.(Your selected option would be “strategies for controlling risk, sequence risk control activities, treatment options or porter’s five forces”; however, you must reasonably describe and advocate why your selected option represents the most appropriate option for treating risks in accordance with the risks in William’s retail shop.)
2. Before generating an action plan for treating risks, identify three (3) elements which you need to cosider.
3. Develop an action plan for implementing the risk treatment for the bicycle retail shop. (You can choose to either use the provided template or develop by yourself).

2)     Complete the following tasks:

• Discuss how you will communicate the risk management process which has been developed by yourself to your stakeholder using verbal and non-verbal techniques. (This may include the visual such as chart or diagram which you believe it is beneficial to present the information to your pair.)
• Prepare feedback from to receive feedback on whether the risk management process is effective for the bicycle retail shop.

2.      What elements should be included when documenting the results of risk assessments?

3.      If you were William who is the owner of bicycle retail shop (a case study from activity 1A), how would you appropriately document and keep records of risk assessment results?

2.      Evaluate the risk management process in WHS area of William’s bicycle retail shop. The evaluation process must consider:

• Advantages and disadvantages of using each approach in a risk management process
• The most effective approach to implement in a risk management process
• Are measures affordable?
• Are measures realistically workable?