Posted: July 30th, 2023

Assessment 1 – Knowledge Questions

Assessment 1 – Knowledge Questions
Assessment task description:
• This is the first (1) assessment task you must successfully complete to be deemed competent in this unit of competency.
• The Knowledge Test is comprised of nine (9) written questions
• You must respond to all questions and submit them to your Trainer/Assessor.
• You must answer all questions to the required level, e.g. provide an answer within the required word limit, to be deemed satisfactory in this task
• You will receive your feedback within two (2) weeks, and you will be notified by your Trainer/Assessor when your results are available.
Instructions for answering the written questions:
• Complete a written assessment consisting of a series of questions.
• You will be required to answer all the questions correctly.
• Do not start answering questions without understanding what is required. Read the questions carefully and critically analyse them for a few seconds; this will help you to identify what information is needed in the answer.
• Your answers must demonstrate an understanding and application of the relevant concepts and critical thinking.
• Be concise, to the point and write answers within the word-limit given to each question. Do not provide irrelevant information. Remember, quantity is not quality.
• You must write your responses in your own words.
• Use non-discriminatory language. The language used should not devalue, demean, or exclude individuals or groups based on attributes such as gender, disability, culture, race, religion, sexual preference or age. Gender-inclusive language should be used.
• When you quote, paraphrase, summarise or copy information from other sources to write your answers or research your work, always acknowledge the source.
Purpose of the assessment:
• This assessment task is designed to help you demonstrate the knowledge which you have acquired during the learning phase of this unit. Ensure that you:
• review the advice to students regarding answering knowledge questions in the Business Works Student User Guide
• comply with the due date for assessment which your assessor will provide
• adhere with your RTO’s submission guidelines
• answer all questions completely and correctly
• submit work which is original and, where necessary, properly referenced
• submit a completed cover sheet with your work
• avoid sharing your answers with other students.

Task instructions:
• This is an individual assessment.
• To ensure your responses are satisfactory, consult a range of learning resources and other information such as handouts, textbooks, learner resources etc.
• To be assessed as Satisfactory in this assessment task, all questions must be answered correctly.

Provide your response to each question in the box below.
1.1 Answer the following questions:
Identify at least two project risks for each of the following risk categories:
• Scope risk
• Scheduling risk
• Resource risk
• Technology risk

1.2 Answer the following questions:
Outline three examples of tools or techniques that could be used to identify risks as part of a risk assessment process.

1.3 Answer the following questions:
Outline three sources of information that can be used to gather information on potential risks within the workplace.

1.4 Answer the following questions:
Explain each of the key components of a risk management plan.

1.5 Answer the following questions:
Summarise the purpose of Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009) and identify the key principles underlying this risk management standard.

1.6 Answer the following questions:
Describe the characteristics, techniques and appropriate applications of both quantitative and qualitative risk analysis.

1.7 Answer the following questions:
Outline the key steps involved in a risk management process.

1.8 Answer the following questions:
Explain five options for controlling risk.

1.9 Answer the following questions:
Complete the table below to provide examples of risk classification and risk context for a variety of industries. The first row has been completed as an example.
Industry Risk context examples (at least two each) Risk classification
(Environmental, Geopolitical, Societal, Economic, Technological, Operational, Resource, Security)
Politics New Labour policies implemented Societal risks, Economic risks

Industry Risk context examples (at least two each) Risk classification
(Environmental, Geopolitical, Societal, Economic, Technological, Operational, Resource, Security)
Education

Mining

____________________________
Assessment 1 – Knowledge Questions

1.1 Scope Risk:
Project risks related to the scope of work can significantly impact the project’s success. Two examples of scope risks are:

a) Requirement Creep: This risk occurs when stakeholders continuously introduce new requirements or changes to the project scope, leading to scope expansion beyond the initial agreement. This can result in project delays, increased costs, and potential conflicts between stakeholders.

b) Scope Misalignment: This risk arises when there is a lack of clarity or understanding regarding the project’s scope among the project team and stakeholders. Misalignment can lead to misunderstandings, improper planning, and the delivery of incorrect or incomplete project deliverables.

1.2 Scheduling Risk:
Scheduling risks pertain to uncertainties that might affect the project timeline. Three tools or techniques that can be used to identify scheduling risks in the risk assessment process are:

a) Critical Path Analysis: This technique helps identify the sequence of activities that determine the project’s overall duration. By analyzing the critical path, project managers can pinpoint activities with zero slack, making them susceptible to delays.

b) Monte Carlo Simulation: This probabilistic technique uses random sampling to model various scenarios and assess their impact on project schedules. It helps to identify potential scheduling risks and estimate the likelihood of meeting project deadlines.

c) Historical Data Analysis: Examining past project schedules and their outcomes can provide insights into potential scheduling risks. By identifying patterns or recurring issues, project managers can proactively address similar risks in the current project.

1.3 Resource Risk:
Resource risks are associated with uncertainties related to project resources. Three sources of information to gather data on potential resource risks within the workplace are:

a) Resource Inventory: Reviewing the organization’s resource inventory can provide valuable information about the availability, capacity, and utilization of key resources, such as human resources, equipment, and materials.

b) Stakeholder Interviews: Engaging in discussions with project team members, stakeholders, and subject matter experts can offer insights into potential resource constraints, skill shortages, or conflicting resource demands.

c) Project Documentation: Existing project documents, such as resource allocation plans, historical resource utilization reports, and lessons learned from previous projects, can provide valuable data for identifying potential resource risks.

1.4 Key Components of a Risk Management Plan:
A comprehensive risk management plan comprises several key components:

a) Risk Identification: This component involves systematically identifying and documenting potential risks that could affect the project’s objectives. It includes categorizing risks based on their nature and source.

b) Risk Analysis: The risk analysis component entails assessing the identified risks in terms of their likelihood of occurrence and potential impact on the project. Qualitative and quantitative techniques may be employed during this phase.

c) Risk Response Planning: In this component, appropriate risk response strategies are formulated to address identified risks. Responses can include risk avoidance, risk mitigation, risk transfer, or risk acceptance.

d) Risk Monitoring and Control: The risk management plan should outline how risks will be monitored throughout the project lifecycle. It defines the roles and responsibilities of the project team members in managing and responding to emerging risks.

e) Communication and Reporting: This component establishes the communication channels, frequency, and stakeholders to whom risk-related information will be conveyed. It ensures timely and transparent sharing of risk information.

1.5 Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009):
The AS/NZS ISO 31000:2009 is the standard for risk management in Australia and New Zealand. Its purpose is to provide a framework that organizations can adopt to effectively manage risks. The key principles underlying this risk management standard are:

a) Risk-based Approach: AS/NZS ISO 31000 emphasizes that risk management should be integrated into an organization’s overall governance and decision-making processes. It advocates a risk-based approach to ensure risks are identified, assessed, and addressed systematically.

b) Inclusiveness and Participation: The standard promotes involving all relevant stakeholders in the risk management process, ensuring that different perspectives and expertise are considered to make informed risk-related decisions.

c) Transparent and Timely Communication: AS/NZS ISO 31000 stresses the importance of open and transparent communication about risks across the organization. Timely sharing of risk information enables stakeholders to take appropriate actions promptly.

d) Continual Improvement: The standard advocates for continual improvement in the organization’s risk management practices. It encourages learning from past experiences, updating risk assessments, and enhancing risk response strategies over time.

1.6 Quantitative and Qualitative Risk Analysis:
Quantitative and qualitative risk analysis are two distinct approaches to assess risks in a project:

Quantitative Risk Analysis: This method involves assigning numerical values to risks and their impacts. It utilizes statistical techniques and mathematical models to estimate the probabilities of risks occurring and their potential consequences. Quantitative analysis is particularly useful when dealing with complex projects that require precise risk evaluation.

Qualitative Risk Analysis: In contrast, qualitative risk analysis is a subjective approach that prioritizes risks based on their significance and impact on the project. It employs expert judgment and risk assessment matrices to categorize risks into high, medium, or low priority. Qualitative analysis is often applied in the early stages of a project or when detailed data is unavailable.

1.7 Key Steps in a Risk Management Process:
The risk management process typically consists of the following key steps:

a) Risk Identification: Identifying potential risks that could affect the project’s objectives, including both internal and external risks.

b) Risk Assessment: Analyzing and evaluating the identified risks in terms of their likelihood and potential impact.

c) Risk Response Planning: Formulating appropriate strategies to address each identified risk, which may involve risk mitigation, risk avoidance, risk transfer, or risk acceptance.

d) Risk Implementation: Implementing the planned risk response strategies and monitoring their effectiveness.

e) Risk Monitoring and Control: Continuously monitoring the project for new risks and assessing the effectiveness of the applied risk responses.

f) Communication: Effectively communicating risk-related information to relevant stakeholders to maintain transparency and facilitate informed decision-making.

1.8 Options for Controlling Risk:
To effectively control project risks, various options can be employed:

a) Risk Avoidance: This option involves eliminating activities or elements from the project that carry significant risks. By avoiding risky components, the project reduces its exposure to potential negative consequences.

b) Risk Mitigation: Mitigation aims to reduce the probability and/or impact of identified risks. Strategies may include introducing backup plans, improving processes, or implementing safety measures.

c) Risk Transfer: Transferring risk involves shifting the responsibility for managing specific risks to external parties. Common examples include insurance coverage and outsourcing critical project components.

d) Risk Acceptance: Some risks may be deemed acceptable due to their minimal impact or low probability of occurrence. In such cases, the project team consciously decides not to implement specific risk response measures.

e) Contingency Planning: Developing contingency plans enables the project team to respond effectively if certain risks materialize. These plans outline predetermined actions to mitigate the consequences of unexpected events.

1.9 Risk Classification and Risk Context Examples:
Industry: Politics

Risk Context Examples:

New Labour policies implemented, leading to changes in government regulations and policies.
Social unrest and protests due to political decisions, potentially disrupting operations and supply chains.
Risk Classification:

Societal risks: Impacts on society and public sentiment due to political decisions.
Economic risks: Changes in policies leading to economic fluctuations and financial uncertainties.
Industry: Education

Risk Context Examples:

Funding cuts and budget constraints, affecting the availability of resources and infrastructure.
Technological disruptions, such as the adoption of new educational technologies, leading to potential learning curve challenges.
Risk Classification:

Economic risks: Budgetary changes impacting the funding and financial stability of educational institutions.
Technological risks: Challenges in adopting and integrating new technologies into the educational system.
Industry: Mining

Risk Context Examples:

Environmental incidents, such as spills or accidents, leading to ecological damages and legal consequences.
Geopolitical conflicts impacting the availability and accessibility of mining sites and resources.
Risk Classification:

Environmental risks: Risks associated with mining activities impacting the environment and ecosystems.
Geopolitical risks: Risks arising from geopolitical tensions affecting the stability of mining operations in certain regions.