You work at Equitable Funding Ltd, a UK-based company which has recently been audited by a third-party regulatory organisation. The audit raised concerns about your organisation’s lack of risk management focus at a strategic level.

Business risk management is a very important aspect of business management and, if carried out correctly, the process can ensure that an organisation survives and further develops in the sometimes volatile and very demanding marketplace.

As a member of the senior management team, your line manager, has been asked to take on the role of an internal consultant to the team to advise and support them on the principles of risk management. She has asked you to assist her with this work.

Task 1
In the first part of your assignment, you need to prepare a briefing document on risk and risk management for circulation to relevant managers in the organisation. The document must:
• Assess the impact of different types of risk in business organisations
• Evaluate the activities which are high risk in different sectors of the economy
• Explain risk management in business
• Evaluate the vulnerability of organisations to breaks in continuity
• Assess approaches to risk management and business continuity planning

Extension activity
To achieve a Merit, you must also assess how a named organisation has managed business continuity.

To achieve a Distinction, you must evaluate the impact of different approaches to risk
management in organisations.

Task 2
The next major task in the management of risks at Equitable Funding Ltd is to be able to prepare an effective risk management plan for the organisation.

At a meeting with your line manager, you suggest that a model plan is produced for a smaller organisation. This will enable you to identify what has worked well in terms of process and outcomes and what changes are needed before a final plan is produced for Equitable Funding. Your line manager agrees that this is a sensible way forward. Using an organisation you know well, for example, where you work or study, produce:

• An assessment of business risks for the organisation
• An evaluation of the potential impact of the identified risks to the business
• A risk management plan to help mitigate potential risks

Extension activity
To achieve a Merit, you must add an additional section in your plan which justifies the strategies you have used in the risk management plan.

To achieve a Distinction, you must produce another detailed section in your plan which evaluates the strategic benefits to the organisation of having an effective risk managemen plan in place.