Aims :This unit examines the implications of risk for businesses. It explores the importance of risk assessment and risk management strategies, and considers measures and techniques for analysing and addressing risk. It discusses how effective risk management supports businesses in becoming market leaders.
Learners who aspire to positions which involve responsibilities for risk management will develop knowledge, understanding and analytical skills necessary for such job roles
Assessment Guidance: To achieve this unit, learners must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. Additional assessment guidance is provided on the ATHE sample assignment brief. This unit can be approached from a theoretical perspective and there are a range of different tasks in the sample assignment which are business related. Learners should use their current or former business experience or research on actual organisations to illustrate their work and demonstrate understanding of the LOs.
1. Understand the role of risk management in business.
- Examine the role of risk management in identifying, analysing and controlling risk.
- Assess the function of risk management structures and activities.
2. Understand how to assess and manage risk.
- Explain how various methods and techniques are used to measure and assess risk.
- Critically analyse the actions businesses can take to manage risk.
3. Understand the different types of risk.
- Analyse the main types of risk facing businesses.
- Examine the key operations which expose businesses to risk.
- Appraise the different types of security risk.
- Assess which business areas are particularly vulnerable to security breaches and fraud.
4. Understand the impact of the external environment on risk management.
- Assess the impact of external influences on managing operational risks.
- Explain how integrated risk management reduces the impact of external influences on businesses.
5. Understand the role of a manager with overall responsibility for risk management and risk management systems.
- Identify the advantages and disadvantages of businesses having a risk management system.
- Critically analyse the role and responsibilities of the manager with overall accountability for risk management .
- Evaluate critically the role of monitoring and budgeting in risk management.
6.Understand contingency planning and crisis management
- Analyse the links between contingency planning and crisis management
- Examine why businesses are vulnerable to breaks in business continuity .
- Evaluate critically the contribution crisis management systems make to businesses.
7.Understand risk in relation to marketing.
- Analyse the relationship between risk and marketing strategy.
- Examine critically the key areas in which businesses are vulnerable to marketing risk .
- Examine the use of benchmarking to reduce risk.