CMI 518 Assignment Example
Business processes, structures, knowledge, and outcomes can be improved when risks are identified and managed properly. While risk doesn’t have a single definition, it can be described as the likelihood of an event happening and its potential consequences. It may also refer to the lack of knowledge or expertise, or in the context of project management, as the “standard deviation of free cash flows.” Risk management has various aspects, including social, operational, technical, and management factors, and it can apply across all areas of a business, including its customers, markets, and suppliers. It can also cover intangible elements like reputation, brand, and image.
CMI 518 Managing Risk has been designed to help learners understand the scope and purpose of business risk management. This includes evaluating different types of business risks, the governance structures and strategies for managing them, and how to effectively implement risk management practices within organisations.
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Assessment Questions
Learning Outcome 1: Understand the scope of business risk management
AC 1.1 Evaluate business risks in relation to the organisation, its customers and suppliers.
Every business faces risks that could impact its financial performance. These risks can arise from various sources, including within the organisation itself, from customers, or from suppliers. It’s important for businesses to assess these risks and create strategies to minimise their potential impact.
Organisational risks are those that could prevent the business from achieving its goals. These include financial risks, operational challenges, and reputational damage.
Customer risks are risks that could affect customer satisfaction or lead to losing customers, such as issues with product quality, delivery problems, or pricing concerns.
Supplier risks refer to factors that could affect a supplier’s ability to deliver goods or services to the business. These include quality problems, delays in delivery, or financial instability of the supplier.