UNIVERSAL BUSINESS ACADEMY (UBA)

Unit 6.8: Managing Risk in Business

Level 6 30 Credits

Scenario

You are employed in an organisation called Abacus Ltd which provides a range of
business consultancy services. One of your clients is a new company seeking to
understand risk management.

Task 1

The client wishes all members of the senior team to have an understanding of the
role of risk management in business and the different types of risk. Using
presentation software, prepare a presentation with supporting detailed notes for
distribution to participants in the training. The presentation and the notes must
include an:

examination of the role of risk management in identifying, analysing and

controlling risk
assessment of the function of risk management structures and activities
analysis of the main types of risk facing businesses
examination of the key operations which expose businesses to risk
appraisal of the different types of security risk
assessment of which business areas are particularly vulnerable to security
breaches and fraud.

AC 1.1, 1.2, 3.1, 3.2, 3.3, 3.4

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Task 2

The client understood the concepts in your presentation and found the information
directly relevant to the needs of the company. He has now asked you to prepare an
information guide which will be available to all managers via the business intranet.
The guide must include diagrams and examples and must provide:

an explanation of how various methods and techniques are used to measure

and assess risk
a critical analysis of the actions businesses can take to manage risk
an identification of the advantages and disadvantages of businesses having a
risk management system
a critical analysis of the role and responsibilities of the manager with overall
accountability for risk management
a critical evaluation of the role of monitoring and budgeting in risk
management.

AC 2.1, 2.2, 5.1, 5.2, 5.3

Task 3

The client wishes to understand the impact of the external environment on risk
management and has requested a meeting which will also involve the Head of
Marketing and Communications. Produce detailed notes for the meeting which will
be shared with all participants. The notes must:

assess the impact of external influences on managing operational risks

explain how integrated risk management reduces the impact of external
influences on businesses
analyse the relationship between risk and marketing strategy
critically examine the key areas in which businesses are vulnerable to
marketing risk
examine the use of benchmarking to reduce risk.

AC 4.1, 4.2, 7.1, 7.2, 7.3

Task 4

Your clients organisation has made good progress with its thinking and planning on
risk. The client now needs to understand contingency planning and crisis
management. Prepare a short report which provides:

an analysis of the links between contingency planning and crisis management

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an explanation of why businesses are vulnerable to breaks in business

continuity
a critical evaluation of the contribution crisis management systems make to
businesses.

AC 6.1, 6.2, 6.3

Guidelines for assessors
The assignments submitted by learners must achieve the learning outcomes and
meet the standards specified by all the assessment criteria for the unit. The
suggested evidence listed below is how learners can demonstrate that they have
met the required standard.

Task number Assessment criteria Suggested evidence

1. 1.1, 1.2, 3.1, 3.2, The presentation must refer to businesses in
3.3, 3.4 general rather than focusing on one chosen
organisation. It may refer to specific businesses in
illustrative examples.
The learner may use any suitable software for the
presentation but the information must be
appropriately presented for the stated audience
and be clear and in a logical order. The
supporting detailed notes should provide
supplementary information. The learner
does not need to actually deliver the presentation.
The learner must demonstrate analysis,
assessment, examination and appraisal of complex
information, concepts and ideas and show
awareness of current developments in risk
management and of theories that underpin different
approaches.
2. 2.1, 2.2, 5.1, 5.2, Diagrams may include flow charts, graphs or other
5.3 visuals. The Information Guide must be logically
presented and refer to a number of different
methods to measure and assess risk.
It must provide guidance appropriate for all
sectors and types of business, although specific
organisations or sectors may be referred to in
examples.
The critical analyses and critical evaluation must
include a convincing argument to support the
learners own conclusion. Reference to current
research or theory may support the analysis. The
Guide must make clear that the manager with
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responsibility for risk management in an

organisation may also have other existing
responsibilities.
3. 4.1, 4.2 7.1, 7.2, 7.3 The notes must be sufficiently detailed and in a format
suitable for senior managers to use.
The learner must demonstrate analysis of complex
information, concepts and ideas The critical
examination must include a convincing argument to
support the learners own conclusion. Reference to
current business tools or theory may support the
arguments.
4. 6.1, 6.2, 6.3 The report must be in a suitable format using
appropriate language for senior management.
Reference to current research or theory may
support the evaluation.
The learner must demonstrate analysis, evaluation
and critical examination of complex information,
concepts and ideas and show awareness of current
developments in contingency planning, crisis
management and business continuity, and of
theories that underpin different approaches. The
critical evaluation must include a
convincing argument to support a conclusion.