1.1 Evaluate business risks in relation to the organisation, its customers and suppliers

»	key information for LEARNERs

Overview of assessment tasks

Each task in this assessment brief has been developed to enable you to evidence achievement of the learning outcomes and assessment criteria for CMI 518: Managing Risk.  Each of the assessment criteria must gain a pass outcome for you to successfully achieve the unit.

Preparation for the assessment

• Before you begin the assessment brief please read the CMI 518 unit specification thoroughly as only the content related to the achievement of the assessment criteria will be assessed.
• Research the topics being assessed.  Suggested reading/web resources are provided on the CMI 518 unit specification. Your tutor may signpost you to relevant resources. Additionally, you may access excellent online resources at ManagementDirect https://members.md.cmi.org.uk. Please note that if you have a customised site the link will differ, please contact your Centre for clarification.  
  • If you are enrolled on the Trailblazer Apprenticeship programme you are encouraged to review the Apprenticeship Standard for Operations/Departmental Manager.

Completing the assessment brief

• The assessment brief contains a series of tasks which are clearly referenced to the relevant assessment criteria and indicative content. 1.1 Evaluate business risks in relation to the organisation, its customers and suppliers
• Refer to the Assessment Guidance Table at the end of the assessment brief which outlines the requirements for a Pass or Refer.
• Evidence must be provided in the evidence booklet. Additional work based evidence such as plans or documentation (which has been referred to within the main text) should be included at the end of the booklet marked ‘Work Based Evidence’.  Appendices are not a requirement of this assessment brief.  If appendices are included these will not be marked or moderated by the CMI.
• Work based evidence must be accompanied by a supporting statement in the learner evidence box, to explain the link to the assessment criteria.  Work based evidence (where required by the task) must not exceed SIX (6) pages.  Files embedded in the booklet must not exceed 10MB.
• The evidence booklet must be completed in a professional manner (e.g. applying business conventions for writing formal reports) and by using Microsoft Word, Rich Text Format or another compatible software programme and not in a PDF format.
• An appropriate referencing system (such as Harvard Referencing) must be used to ensure the original source(s) of quotations or models can be verified.
• Finally, you must sign the Learner Authenticity statement (an electronic signature is accepted).

Learner support

For information regarding policies and procedures for assessment (e.g. special assessment arrangements, learner support, appeals, complaints, certification, confidentiality, plagiarism) you should contact your tutor or Centre manager and refer to the CMI Level 5 in Management and Leadership syllabus.

»	Introducing assessment Brief CMI 518

Business processes, structures, know-hows and outcomes can be optimised when risks are identified and managed effectively. There is no singular definition of risk. Risk could be defined as: probability of occurrence and consequences; or, lack of underpinning knowledge and know-hows; or, in a project / programme management context as the “standard deviation of free cash flows”. Risk management can have social, operational, technical and management dimensions and can apply to all the functions of business, customers, markets and suppliers. Risk management can also apply to intangible factors such reputation, brand and image.

Assessment brief CMI 518 has been designed to equip learners with an understanding of the scope and purpose of business risk management.  This includes an evaluation of the types of business risks, the governance and approaches for managing these effectively, and how risk management can be implemented successfully within organisations.

»	assessment tasks and WORD COUNT

Assessment brief CMI 518 features the following assessment tasks. Further detail is provided against each assessment task within the brief.

Assessment Task		Learning outcomes covered by assessment method	Assessment criteria	Guideline word count
1	Write a report entitled: The scope of business risk management in organisations	LO1 Understand the scope of business risk management	1.1 Evaluate business risks in relation to the organisation, its customers and suppliers	Approx. 1800 words
			1.2 Analyse the governance of risk within organisations
			1.3 Examine categories of risk used within different organisational settings
			1.4 Analyse organisational methods for managing and quantifying risk
2a	Write a proposal to the senior management team which sets out your chosen approach/approaches for managing business risk	LO2 Understand the process for managing business risk	2.1 Analyse the processes for identifying, assessing and ranking business risk	Approx. 1200 words
			2.2 Analyse the process for managing a business risk
			2.3 Examine approaches for mitigating a business risk
2b	Write a report entitled: Methods for implementing and communicating business risks	LO2 Understand the process for managing business risk	2.4 Analyse methods for implementing business risk management	Approx. 1000 words
			2.5 Assess methods for reporting identified risks to stakeholders

Guideline word count

The written word, however generated and recorded, is still expected to form the majority of assessable work produced by Learners at Level 5. The amount and volume of work for this unit should be broadly comparable to a word count of 3500-4000 words within a margin of +/-10%.  The excessive use of word count is not grounds for referral, however the CMI reserve the right to return work to the Centre for editing and resubmission by the Learner. 

The following are excluded from inclusion in word count, if used and not required by the assessment brief an introduction to a job role, organisation or department, index or contents pages, headings and sub headings, diagrams, charts and graphs, reference list or bibliography, reflective statement drawn from undertaking the assignment and how this has impacted on the learner’s work.

Please see the CMI Assessment Guidance Policy for further guidance.

»	the scope of business risk management

Understanding the principles of risk management within an organisational context and setting is dependent on an organisation’s internal and external environment.  These factors influence how an organisation responds to and manages risk in terms of its governance and management decision making. Managers need to be able to apply relevant risk management theories, principles and models in different contexts and situations.  Risk could be managed as a process to be followed and/or a response to one off events.

A manager who has an in-depth understanding of the principles of business risk management will have the know-hows to apply their understanding to a variety of organisational settings and risk contexts.

»	SCENARIO A UNIT CMI 518 Assessment Brief: Managing Risk

DKM&X is a large industrial company based in the UK that manufactures tools and equipment. Its primary market is in the UK, but it also sells to European based companies and the US. DKM&X has a wide range of internal and external stakeholders. This includes staff, departments, shareholders, partners, regulators, suppliers and customers such as individuals, companies/manufacturers (in sectors such as automotive, aerospace, general engineering, construction as well as retail outlets). The company has a number of strategic business units (SBUs) and departments including a design shop, consultancy services, training and support, distribution, workshop, an administrative and management centre and customer service hub. The governance of risk within DKM&X includes management boards and committees, there are specified lines of authority and accountability, management policies and procedures in relation to risk management and a programme of mandatory staff development. DKM&X has a committed approach to identifying, quantifying and managing risk. The business risks faced by the organisation could include failures relating to processes, suppliers and customers, events such as accidents and scenario based risk (i.e. political/economic changes),as well as business as usual activities (BAU).

»

Task 1

Basing your response on the scenario above, your own experience of managing risk in the workplace or using examples from organisations you know well or have researched:

You are required to write a report entitled ‘The scope of business risk management in organisations’.

Using examples, the report must:

1. Evaluate business risks that may occur in relation to an organisation, the organisation’s customers and suppliers (AC1.1)
2. Analyse the governance of risk within organisations (AC1.2)
3. Examine a minimum of THREE (3) categories of risk used within different organisational settings (AC1.3)
4. Analyse TWO (2) methods organisations use for managing and quantifying risk (AC1.4)

Guidance for completion of Task 1

Within the report you should include sub headings.  You may choose to include tables and diagrams (as appropriate) to support your discussion. You are encouraged to base your response on the scenario or consider the use of good practice examples from an organisation you know well or have researched. You may include reference to relevant theoretical principles/models/frameworks as appropriate. Please refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.

»	the process for managing business risk

Some organisations manage risks using a set of formalised processes.  This is primarily the case for organisations operating in highly regulated industry areas (i.e. oil and gas, health and social care). Alternatively, other organisations manage risk based on the technical and management knowledge and experience of its managers.  Regardless of the type of organisation, there needs to be a coherent process for managing business risk.

»

Task 2a

Basing your response of the scenario on page 4, your own experience of managing business risk or using well chosen examples from an organisation you know well or have researched:

You are required to write a proposal to the senior management team which sets out your chosen approaches for managing business risk for a department, business function or project of your choice. 

Using well chosen examples, the proposal must include an:

1. Analysis of the processes you could use for identifying, assessing and ranking business risk (AC2.1)
2. Analysis of the process you have selected for managing a business risk (AC2.2)
3. Examination of the different approaches that could be used to mitigate an identified business risk (AC2.3)

Guidance for completion of Task 2a

You may base your response on the scenario on page 4, your own experience of managing business risk or using well chosen examples from an organisation you know well or have researched. Your response should set out your chosen approaches for managing business risk for a department, business function or project of your choice. Within the proposal you should include sub headings.  You may choose to include tables and diagrams (as appropriate to support your discussion. For AC2.2 you may choose to present your answer using your organisation’s process or a narrative and/or a flow diagram. You may include reference to relevant theoretical principles/models/frameworks as appropriate.    Refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.

 

»	Task 2b UNIT CMI 518 Assessment Brief: Managing Risk

It is essential that there is a coherent plan for implementing business risk management and communicating these risks to its stakeholders. 

You are required to write a report entitled ‘Methods for implementing and communicating business risks’.

Using examples, the report must:

1. Analyse THREE (3) methods that can be used to implement business risk management (AC2.4)
2. Assess THREE (3) methods for reporting identified risks to stakeholders (AC2.5)

Guidance for completion of Task 2b

You may base your response on the scenario on page 4, your own experience of managing business risk or using well chosen examples from an organisation you know well or have researched. Within the proposal/report you should include sub headings.  You may choose to include tables and diagrams (as appropriate. You may include reference to relevant theoretical principles/models/frameworks as appropriate.    Refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.

 

»	assessment guidance

Refer

Pass

The submission is incomplete Tasks are incomplete Not all assessment criteria have been met No examples are used or the examples given do not match the requirements of the assessment criteria Evidence is Unclear Technically incorrect or inaccurate Biased Unprofessional language Poorly structured and presented Ideas are under-developed Lacks sufficient detail to show understanding of the topic The application of different perspectives, approaches or schools of thought is unclear or inappropriate Little or no evaluation of evidence has taken place The ability to make judgments and solve complex problems has not been evidenced Evidence is not directly attributable to the learner External sources of information are not acknowledged Work based evidence or artefacts (e.g. planning documents or presentation slides) do not meet the requirements of the assessment criteria and are not current (within 5 years) All tasks have been completed All assessment criteria have been met Examples given are well chosen and match the requirements of the assessment criteria Evidence is Well written and presented Contains a breadth of examples Accurate Current (e.g. use of up to date legislation) Authentic Inclusive Coherent Credible Technically correct Evidence shows understanding and application of different perspectives, approaches or schools of thought and the reasoning behind them. Evidence shows the learners ability to evaluate evidence and solve problems to achieve set outcomes. Evidence used from external sources has been correctly referenced Evidence is directly attributable to the learner Work based evidence or artefacts (e.g. planning documents or presentation slides) match the requirements of the assessment criteria and are current (within 5 years)