BSBRSK501_Ed5

Biscuits and soups are also exported. Iconic products that Arnott’s are known for are Shapes, Vita-Weat, Salada, Jatz, Tiny Teddies, Tim Tam, Mint slice, Wagon Wheels and Teevee Snacks. So strong is the brand, that each year 669 million individual Tim Tam biscuits are eaten each year. Arnott’s exports many of its products to New Zealand, Asia, and Japan. Arnott’s goal is to grow its business in Australia and expand its market share in Asia Pacific to become the leading regional consumer food business in the biscuit and snacks portfolio. To be the leader in innovation and to be the iconic Australian company. The scope will cover the head office at North Strathfield and the factory site at Huntingwood, NSW. The head office employs 200 staff, and the factory site employs 500 staff. The factory manufacturing staff are on a shift pattern for 24 hour, 7 day cover of the operating lines. The Quality team work on a day shift. Stakeholder Stakeholder Role (internal or external stakeholder) Stakeholder’s issues or concerns/ priorities Board Internal stakeholder Drive strategy of long terms goals. Respond to shareholders. Build profit into the business CEO Internal stakeholder Following board directive in meeting short- and long-term goals of company. Follow WHS legislation Finance Director Internal stakeholder Increasing profit margins by decreasing expenses. Marketing Director Internal stakeholder Increasing the customer satisfaction index, increasing market share, increasing brand reputation Research and Development Director Internal stakeholder Launching best to market biscuits and soups to meet customer insights learning Production Director Internal stakeholder Maximum production output, with minimum breakdown and minimum overheads. WHS in the workplace Managers Internal stakeholder Drive business strategy, implement business plans Staff Internal stakeholder Follow procedures, meet business objectives and KPI Suppliers External stakeholder Supplying ingredients under market conditions and a pre LA024401 Assessment 1 BSBRSK501 Ed 5 3 © New South Wales Technical and Further Education Commission, Archive version 1, April 2019 b) Identify internal and external stakeholders for your organisation and their issues/concerns or priorities; provide your responses in the stakeholder analysis table.

Task 2 Risk assessment – Research the overall processes of risk management within your organisation, risk identification, risk analysis and risk evaluation of existing practices and procedures. At Arnott’s data is collected from various sources, and used as part of the strategy for identifying and managing risks. Company Goal Safety Safety is an important goal of the company, and is measured as a key KPI, with every employee and manager responsible. Any slips, trips, falls and injuries are recorded and collated for analysis in a system called QUESIS. The analysis is reportable at board level and the company standard is no lost days from injury. Each site will have a notice board at its front entrance stating the number of days from the last reportable accident that caused lost days from works. All near misses are required to be reported. The health and safety team meet monthly and review all the data, and risk assess the business to ensure it is meeting the legislative requirements. Company Goal Customer Satisfaction All feedback from customers whether it be by letter, email or telephone call is recorded on the CARES system. This collates all the feedback by product line and is an alert system if a particular line of biscuits or soups has a continual issue. This feedback is collated and used for future development purposes to design a product more to the customers liking which will follow through to increased market share. Social media is closely monitored and all comments on the Arnott’s Facebook are responded to. However, Arnott’s, use social media more to create excitement about new products to be launched. Four years ago, Arnott’s rebranded and redesigned the Shapes products. New recipes were created for the biscuit base to create a crunchier texture, and the flavourings were updated. The noise on social media was never predicted, customers did not like the new Arnott’s Shapes. It was a categoric disaster for Arnott’s, after a $10million spend on development. Due to the loss of market share, and the customers being very vocal about the new flavours, a business decision was made to revert the recipes back to the original. A marketing campaign followed to say, we listed, we are sorry, the original shapes are back. Goals, quality, market share, profits, growth goal – link the following to each goal to reduce risk, decline in sales Company Goal Increase Market Share All finished product is quality assured before leaving site, to ensure it meets expectations. All raw materials are bought on a specification with parameters for quality, microbiological, physical, and chemical attributes that must be met on receipt at goods inwards. This ensures consistency of product and maintain the reputation of the Arnott’s biscuits that it is made to the highest quality standard. 6 LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019 a) Describe the existing organisational processes, procedures and requirements for undertaking risk management for your organisation.

folder. Quarterly the CEO will present a company meeting, it used to be at the conference centre in the Sydney Olympic park, but now it is on Teams Meetings. Company objectives, new lines or operations are reported on On a monthly basis I report to my manager about raw material specifications, the time management, and whether we will meet the project time lines to ensure the new product will be developed on time. This is completed on report format and sent to me my manager Annual a survey is completed for employee satisfaction. This is reported back to staff by powerpoint presentation by HR team. This measures the risk of staff leaving by how satisfied that they are with in their job. Retaining talent is important for any business. Consultation takes place when new products are being developed, there needs to be a discussion between subject matter experts that will the equipment on the line be able to produce the product as expected, will the ingredients have the expected functionality. There is always a risk of innovation failing, so reducing this risk takes place with SMEs LA024401, Assessment 1, BSBRSK501 Ed 5 9 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019

Long lead time on some ingredients delivery Opportunities Threats e.g. New product launch, expansion Expansion in the Asian markets Increase export to UK with new trade initiative Partnership with other brands for fusion products i.e. messino tim Tam, Krispy Kreme and Teevees Licensing brands to other manufacturers e.g. Streets ice cream flavours Buy new companies such as FreedomFoods Move into private label production Develop organic products Develop healthy savoury snack products Loyal customers for Tim Tam and Shapes e.g. Competitors Poor economic strength globally and export issues due to COVID Increased health consciousness Competitors copying brands e.g. Aldi, woolworths producing copy Tim Tam biscuits Change in exchange rates for overseas ingredients purchase causing price fluctuations Overseas manufacturing and manufacturing in Australia declining Ingredients being seen as unacceptable by consumers i.e. palm oil, artificial flavours, artificial sweeteners Task 4 Risk analysis – Consider the range of causes, sources of risk, consequences and likelihood to produce a risk rating. The rating can then be used to determine further management by the organisation. Place all your responses in the Task 4 Risk Analysis Register (on the following page). a) List 10 risks into the RISK column with a brief description to represent each risk. (The 10 risks must be risks identified in the SWOT analysis table and must represent risks from a range of departments/functions from your organisation). b) Risk Reference . Create your own risk reference as a unique identifier code for each risk e.g. a marketing risk may be given the risk reference code of MARK001, Warehouse risk may be WARE001. c) Analyse each risk, briefly note what can happen if the risk occurs in the EVENT column d) Analyse each risk, briefly note how it can happen in the CAUSE column e) Evaluate each risk, briefly note what are the long term level of impact if the risk occurs CONSEQUENCES column f) Assess the current risk management strategies for each risk and determine if the current control strategies are either Adequate ( A ), Moderate ( M ) or Inadequate ( I ). g) Refer to the risk matrix tool positioned on the page after the risk analysis register table. The risk matrix is required for analysing the types of risks for your organisation. The risk matrix is required to define the current risk level for each risk by considering the likelihood against the consequence. Determine the Likelihood level (or the 12 LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019

LA024401, Assessment 1, BSBRSK501 Ed 5 15 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019 Risk Analysis Register: ARNOTT’S Function (activity e.g. department ): Compiled by: Date: Date of risk review: Reviewed by: Date: Risk Reference (unique identifier code b)) RISK What is the risk? a) EVENT What can happen? c) CAUSE How can it happen? d) CONSEQUENCES What is long term impact if it happens? e) Current control strategies A (Adequate) M (Moderate) I (Inadequate) f) Current risk level analysis Risk priority j) Acceptability of Risk A (Acceptable) or U (Unacceptable) K) Treat Risk Yes or No l) Likelihood level g) Consequences level h) Level of risk i) PROC001 Vendor unable to supply IT support Software systems are not upgraded and risk of down time Lack of funding or service agreements not met Old systems sitting on old platforms cause more down time, user frustration, lack of ability to analyse data I Possible High 8- moderate 1 U Y IT001 Internet connection disruption All software systems stop working Internet goes down, poor server connections Loss of business IP, orders will not be able to be processed, staff salary payments will not happen, not able to pay vendors A Possible Medium 7 - moderate 2 U N QUAL001 Raw material does not meet quality specification Raw material requires rejecting and risk of run out of materials to product finished product Specificatio n signed does not meet quality standards. Supplier sent the wrong grade of material Poor quality finished product made, which ends being rejected. Business cost in wasted product and time. Lost time with quality checks and follow up with vendor A Possible Medium 7 - moderate 3 A Y IT002 SAP going down SAP does down and reordering of materials and production SAP crashes, software not supported Production planning stops, raw materials are not reordered, stock control is A Rare High 5 Moderate 4 A N

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b) What digital technologies, systems or processes within your organisation are available to store the risk management plan in an appropriate manner? The risk documents are kept on folders on the company S Drive, a naming convention is followed to ensure that there is a file structure inside each folder. The company take a back up nightly on the server. Policies are all held on the company HR intranet for all employees to view. These records are vital for a business to prove compliance, and avoid potential penalties and fees. For example, lack of financial records can lead to a fine for end of year accounts sign off. Records should be traceable, version controlled and managed by the risk assessor. They should always be up to date. c) What are your recommendations to ensure the risk management plan is documented and kept up to date, how will your organisation ensure the ongoing monitoring of the plan is discussed and evaluated to identify potential new risks in the future? My recommendations are to follow this following diagram LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019 Strategic Plan Risk management plan Risk management policy Risk management procedures Risk management register Risk management tool

Business need to recognise the benefits of risk management Risk management will support business in being able to meet corporate values and deliver the business objectives and goals. Application of a consistent and comprehensive risk management process will:  increase the likelihood of achieving strategic and business objectives  encourage a high standard of accountability at all levels in the organisation  support more effective decision making, through better understanding of risk exposures  create an environment that enables the business to deliver timely services and meet performance objectives in an efficient and cost effective manner  safeguard the business assets – human resources, physical resources and reputation  meet compliance and governance requirements. There needs to be roles and responsibilities as follows A business’s ability to conduct effective risk management is dependent upon having an appropriate risk governance structure and well-defined roles and responsibilities. It is important for everyone to be aware of their own individual and collective risk management responsibilities. In order for risks to be effectively managed it is essential to have people behaving in a way that is consistent with the organisation’s approved approach. This indicates that risk management is not merely about having a well-defined process but also about effecting the behavioural change necessary for risk management to be embedded in all organisational activities. Set out below is a generic management governance structure. This structure illustrates that risk management is not the sole responsibility of one individual but rather occurs and is supported at all organisational levels. 22 © New South Wales Technical and Furt

: Bibliography TAFE learning Resource BSBRSK501 Manage Risk Manage Risks by Leisa Thomson TAFE digital Australian Standard Risk Management Guidelines AS ISO 31000 LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019 DIRECTORS Provides support and reviews risk management CHAIRPERSON Drives the positive risk culture RISK COMMITTEE Endorses the businessmanagement policy and strategy MANAGERS Supports positive risk culture Manages risks for their crew STAFF Complies with risk policy and procedures Proactively identifies risks

NSW Government: Treasury website: Risk management toolkit Viewed 5/2/19. Available at: https://www.treasury.nsw.gov.au/information-public-entities/governance-risk-and-assurance/ internal-audit-and-risk-management/risk End of assessment Checklist I have:  Created the assessment as a Word document (or similar software).  Used clear, direct, legible English constructed into sentences.  Used 12 point font size and business report style font (e.g. Calibri, Times new Roman, etc.).  Inserted page numbering.  Reviewed, proof read and spell checked my document.  Included a bibliography and or reference list.  Referred to the following Assessors marking criteria table and checked that I have provided responses to meet the criteria for each task.  Saved a copy on my own computer. If you are unable to complete this task for a specific reason, contact your teacher to discuss alternative arrangements for demonstrating your skills and knowledge. Do not commence working on assessment 2 until you have received a satisfactory result for this assessment from your TAFE Digital Assessor. 24 © New South Wales Technical and Furt

BSBRSK501: Assessment 1 Assessors Marking criteria Student name Date marked Assessment outcome Teacher Task s Satisfactor y Yes / No Comments 1. a) Overview of organisation with goals/objectives b) Identified internal and external stakeholders and their issues/concerns/priorities c) Reviewed external factors – completed a PESTEL analysis included legislative requirements 2. a) Described existing organisational processes, procedures and requirements for undertaking risk management b) Discussed if existing organisational practices are in accordance with current Australian risk management standards. Student may provide a critique of the existing processes and outline areas to improve to meet the Australian Risk management standards c) Described existing communication of risk management processes. How is risk communicated, how are stakeholders consulted with the existing processes and systems? 3 a) List existing tools, techniques processes to identify or monitor risks in the existing workplace, this may be incident report forms, customer feedback forms, sales reports, employee satisfaction reports, damaged good forms, stocktake reports etc. b) Conduct a SWOT with a wide range of LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019

risks listed from different sections of the business. This may consider internal management structure, internal IT systems, processes, intranet, skillsets of employees, communication. External factors may consider competitors, new technology, new system and new processes available, consumer expectations, Suppliers, agents, distributors, industry affiliations, international trends impacting on your market etc. 4 Risk analysis table completed Listed 10 different business risks Risk reference - set identifier code Analysed each risk briefly noted event, cause and consequences Referred to the risk matrix supplied and evaluated each risk using the risk matrix to determine the current risk level analysis Likelihood versus consequences To determine the level of risk Rated a risk priority to each risk 5 Risk evaluation completed Ranked risks in order of priority Sequences risks Determined acceptability or unacceptability Determined if risk should be treated or not 6 Risk treatment table completed for each risk a) Potential treatment options b) Responsible officer for monitoring and managing each risk c) Provide an estimated cost to implement risk treatment actions, this may be number of hours at a specific cost per hour, each week for a specified period of time d) Time frame to implement treatment, may be number of weeks or by a specific date e) Monitors to measure the effectiveness of the risk treatments 26 © New South Wales Technical and Furt

7. Overall risk management for the company - Monitoring and review a) Discussed and evaluated the ongoing process required to communicate and implement the risk management plans, ensuring regular monitoring, consultation and communication of the risk management process. b) What digital technologies, systems or processes within your organisation are available to store the risk management plan in an appropriate manner? c) What are your recommendations for the company to ensure the risk management plan is documented and kept up to date, how will your organisation ensure the ongoing monitoring of the plan is discussed and evaluated to identify potential new risks in the future? Overall: Has the student demonstrated the skills and knowledge required to manage risks in a range of contexts across an organisation or for a specific business unit or area? Teacher’s overall feedback: Task 5 - As per the heading, the Risk with the highest Risk Level should have priority 1, the next highest risk level will be priority 2, etc. This ensures that the finite resources available to manage and/or mitigate risks, are used efficiently and effectively. Task 6 â Please complete The Risk Treatment Plan for all 10 risks. It will be relevant for your Assessment 2. Please amend your Assessment using a different colour, and upload for marking. Thanks Brian Robertson LA024401, Assessment 1, BSBRSK501 Ed 5 © New South Wales Technical and Further Education Commission, 2019 (TAFE NSW), Archive version 1, April 2019