Developing Risk Management Strategies

Assignment Brief

Indicative content: Assignment 7022- Developing risk management strategies

Task 1

Assessment Criteria & Indicative Content

A.C. 1.1 – Explain the Meaning of Risk Management to an Organisation

• Define risk management in an organisational context.

• Reference relevant academic and industry sources.

• Discuss:

  • Strategic risk and risk management.

  • Risk in organisational/operational contexts.

  • Risk vs. uncertainty.

  • Strategic integration of risk management.

  • Unforeseeable risks (e.g. Nassim Taleb).

  • Predictability vs. unpredictability.

  • Types of strategic risk: operational, financial, corporate, environmental, and project risks.

  • Risk and legislation.

  • Risk and stakeholder perception.

A.C. 1.2 – Determine Roles and Responsibilities at Senior Management Level

• Build upon A.C. 1.1 with focus on senior management.

• Discuss:

  • Senior management responsibilities.

  • Attitudes to risk (Hurwicz, Wald, Savage, Laplace).

  • Managing irrational risk (Taleb).

  • Risk vulnerability (Allan and Beer).

  • Managing complexity, uncertainty, and ambiguity.

  • Dynamic risk management.

  • Senge’s ladder of inference.

A.C. 1.3 – Evaluate Risk Management Models

• Evaluate at least two risk management models.

• Include:

  • ERM approach – COSO ERM framework (pros/cons).

  • MoR (Management of Risk) framework (pros/cons).

  • GRC capability model – OCEG Red Book (pros/cons).

  • ISO 31000:2009 standards (pros/cons).

  • Organisation’s risk policy, objectives, and plan.

  • Slywotzky and Drzik’s six steps to managing strategic risk.

  • Strategic objectives, KPIs, and risk.

Guideline Word Count: 800–900 words

Task 2

Assessment Criteria & Indicative Content

A.C. 2.1 – Evaluate Risk Management Criteria

• Evaluate six risk management criteria.

• Discuss:

  • Risk management process – ISO 31000:2009.

  • Rational approach to decision-making.

  • WBGU risk classes and strategies.

  • Risk profile and risk appetite.

  • Strengths and weaknesses of each criterion.

A.C. 2.2 – Critique Techniques to Identify and Quantify Risk (Including Interdependencies)

• Critically analyse techniques used for risk identification and quantification.

• Discuss:

  • Risk identification and interdependency – ISO Guide 73:2009.

  • Risk analysis techniques and factors.

  • Scoring methods – limitations and issues.

  • Tools/techniques: radar charts, FMECA, probabilistic risk analysis, Monte Carlo analysis.

Guideline Word Count: 800–900 words

Task 3

Assessment Criteria & Indicative Content

A.C. 2.3 – Develop Strategies to Eliminate, Mitigate, Deflect, or Accept Risk

• Select 4 risks:

  • Eliminate 1.

  • Mitigate 1.

  • Deflect 1.

  • Accept 1 (include reduction plan if applicable).

• Justify chosen strategies and compare with alternatives.

• Discuss:

  • Risk evaluation.

  • Types of risk treatment strategies: avoidance, reduction, transfer, retention.

  • Real-world/workplace examples encouraged.

A.C. 2.4 – Communicate, Resource, and Manage Risk Strategies

• Detail communication and resource management.

• Discuss:

  • Communication methods – Shannon and Weaver.

  • Role allocation and resourcing.

  • Financial controls and corporate governance.

  • Policy dissemination – Stafford Beer’s VSM (optional).

  • Risk treatment plan.

  • Cost-benefit analysis and funding.

Guideline Word Count: 800–900 words

Task 4

Assessment Criteria & Indicative Content

A.C. 3.1 – Evaluate the Outcomes of Risk Management Strategies

• Evaluate potential outcomes of Task 3 strategy.

• Assess impact on organisation and stakeholders.

• Discuss:

  • Strategic risk evaluation – Hubbard.

  • Scope of evaluation.

  • Issues with control systems (Hubbard).

  • Tools: HM Treasury, EFQM Model.

A.C. 3.2 – Determine Actions to Respond to Strategy Outcomes

• Identify actions arising from outcomes.

• Discuss:

  • Improving strategic risk management – GRC capability.

  • Over-optimism – Hubbard.

  • Treasury and Risk’s 2009 ERM.

Guideline Word Count: 800–900 words

Task 5

Assessment Criteria & Indicative Content

A.C. 3.3 – Devise a Disaster Recovery Plan

• Develop a disaster recovery plan for a familiar organisation.

• Include:

  • Planning for disaster.

  • Business impact analysis (BIA) – BCI.

  • Ingredients and format of a BIA.

  • Resource implications.

A.C. 3.4 – Examine Influences on Reviewing the Disaster Plan

• Identify and explain influences affecting plan reviews.

• Discuss:

  • Organisational review processes.

  • Best practices for review.

  • Access to individuals and data.

  • Size of organisation.

  • Environmental and legal issues.

Guideline Word Count: 800–900 words