Task 3 Identifying risk and applying risk management processes

George and Mildred have become very concerned about the potential risks that could jeopardise CCF&MB's business operations. They were very impressed with your growth and promotional plans for CCF & MB so they have now moved you into more of a general manager's role with expanded responsibilities, including managing CCF & MB's risk.

Task 3: Question 1

As part of your new responsibilities, you are required to develop a risk management plan which:

establishes the context for CCF & MB's risk management plan and establish the boundaries of that context

outlines the regulatory requirements (in particular who are the regulators)

lists and explains the tools you will use in assessing the risks you identify

identifies the stakeholders (both internal and external) you would consult in establishing context and assist with the identification of CCF & MB's risks

outlines the tools you would use in identifying CCF & MB's risks

identifies at least two risks and the organisational processes associated with that risk that CCF & MB could face for each of the six categories of business risk; including strategic risks, compliance risks, financial risk, operational risks, market and environmental risks and reputational risks; with an appropriate risk statement for each identified risk.

Note: You may make any assumptions in producing your plan, but these should be documented either in the body of your plan or separately before you produce it. You are not permitted to simply answer the points detailed above.

(400 words)

Refer to the email from co-worker identifying potential risk in the Toolbox. In the answer box below, writean email to management outlining the identified risk, your analysis, how you would evaluate the risk and suggest how the risk could be best treated.

(200 words)

Refer to the risk treatment mapping guide in the toolbox. Using the following steps, complete the risk evaluation and treatment table below:

Step 1. Insert the risks that you identified in Question 1 into the table below.

Step 2. By using the risk treatment mapping guide in the toolbox, appraise the likelihood and consequence for each risk identified and include these in the table.

Step 3. Define how each risk can be treated, and whether a potentially serious risk should be escalated to management.

Step 4. Develop recommendations to mitigate identified risks.

Step 5. Provide recommendations on how to monitor and review the risks identified.

(200 words)

Take two (2) of the risks you identified in Question 1 and treated in Question 3. Create a scenario for both where the risk has escalated in likelihood and/or consequence due to the control strategy you applied not working effectively or the situation has changed.

Outline your recommendations for new controls.

Complete the table below.

(200 words)