Risk Management

Risk Management

Risk Management

	Aims			To raise business risk awareness and develop skills
				to assess, monitor and control business risks.  To
				develop an appreciation of the implications of
				business risks
		Unit Level		6
	Unit Code			H/503/5097
		Guided Learning Hours		40
	Credit Value			10
		Unit Grading Structure		Pass
	Assessment Guidance			Assignments in accordance with awarding
				organisation guidance
		Learning Outcomes.		Assessment Criteria.
		The learner will:		The learner can:
	1. Understand the risk			1.1	Examine the role of the risk management
		management function in			function in business
		business		1.2	Assess the role of business functions in the
					management of risk
		2. Understand how business		2.1	Analyse the risk assessment process
		risk is assessed and		2.2	Evaluate approaches to managing risk
		managed		2.3	Examine the risk management process.
	3. Understand the effects of			3.1	Analyse the main drivers of business risk
		business risks and how they		3.2	Appraise the impact of different types of risk
		can be managed			for a business organisation
				3.3	Assess which business areas are high risk
				3.4	Analyse risk management strategies
		4. Understand approaches to		4.1	Analyse the vulnerability of businesses to
		crisis management and			breaks in continuity
				4.2	Critically evaluate approaches to crisis
		business continuity planning
					management and business continuity
					planning

Indicative Content

Understand the risk management function in business

 Role of risk management

 Purpose of risk management – why risks need to be managed, identifying risks, review of activities and internal environment, setting objectives, risk assessment (impact and likelihood), risk response plans, control and monitoring

 Functions that have a role in managing risk

 Strategic planning, marketing, compliance, operations, legal and accounting, insurance, treasury/accounting, management and quality assurance, internal audit, health and safety, environmental 

Understand how business risk is assessed and managed

 Risk assessment

 Analysis, identification, description, estimation control measures, evaluation and review

 Risk management frameworks

 ERM programmes, COSO, ISO 3001, corporate governance/compliance, actuarial approaches, insurance, legal issues

 Risk management process

 Risk assessment, risk reporting, decisions, risk treatment, residual risk reporting, monitoring – ongoing and formal audit, modification

 Understand the effects of business risks and how they can be managed

 Drivers

 Strategic risks (eg. competition, changes in society or markets), financial risks (eg. liquidity, foreign exchange, credit risk), operational risks (eg. product failure), hazard risks (eg. natural disasters), information risks (eg. computer hacking)

 Operations: Identifying risks in business operations (as above)

 High risk areas

Data, systems integrity, reputation, financial theft

 Risk management strategies

 Employment practices, fraud prevention measures, health and safety policy protection of physical assets and business continuity, process and product management, bench marking, disaster management

Understand approaches to crisis management and business continuity planning 

Vulnerability

 Factors – size of business, operating environment, physical environment etc. Impacts – loss of profits, loss of assets, inability to trade

 Approaches

 Business continuity planning, impact assessment, threat assessment scenario definition, recovery solution design (including customer / stakeholder management), implementation and communication, testing, maintenance and update, crisis assessment, incident resolution – roles and actions

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