Level 7 CMI 708 Strategic Risk Management Assignment Example
INTRODUCING ASSESSMENT
The ability to lead strategic risk management effectively is essential to safeguard an organisation’s prosperity and reputation. Ultimately, leaders must know how to develop and lead risk management in a manner that not only reacts to organisational needs, but contributes to organisational success.
Assessment brief CMI 708 has been designed to enable learners to develop an in-depth understanding of strategic risk management. Leaders will critically appraise strategic risk within an organisational context. They will assess strategies for risk management and the leadership skills to lead risk initiatives successfully. Ultimately, leaders will be given the opportunity to develop a framework to deliver a risk strategy in an organisational context.
Guideline word count
The written word, however generated and recorded, is still expected to form the majority of assessable work produced by Learners at Level 7. The amount and volume of work for this unit should be broadly comparable to a word count of 4000 – 4500 words within a margin of +/-10%. The excessive use of word count is not grounds for referral, however the CMI reserve the right to return work to the Centre for editing and resubmission by the Learner.
The following are excluded from inclusion in word count, if used and not required by the assessment brief an introduction to a job role, organisation or department, index or contents pages, headings and sub headings, diagrams, charts and graphs, reference list or bibliography, reflective statement drawn from undertaking the assessment and how this has impacted on the learner’s work.
Please see the CMI Assessment Guidance Policy for further guidance.
STRATEGIES FOR MANAGING RISK
Understanding risk in its many forms, and the strategies that can be employed to manage and mitigate it is an essential leadership attribute.
The aim of Task 1 is for leaders to critically appraise the scope and organisational context of risk and the strategies for its management.
TASK 1
You are required to write a report entitled:
‘Strategies for managing risk’
The report must include well-chosen examples of risk in an organisational context you know well or have researched.
The report must be presented in TWO (2) sections:
i. Strategic risk within an organisational context You are required to critically appraise strategic risk within an organisational context. The appraisal of strategic risk must include reference to:
● the scope of risk
● current and emerging factors which influence risk
● the impact of the organisational context on risk (AC1.1)
ii. Strategies for managing risk in an organisational context
You are required to critically assess strategies for managing risk in an organisational context (AC1.2)
Guidance for completion of Task 1
● The report must be based on an organisation you know well or have researched.
● The report must include well-chosen examples.
● The report should include subheadings. You may choose to include tables and diagrams (as appropriate) to support your report.
● Your report may be underpinned with relevant theoretical concepts.
● Please refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.
DEVELOPING RISK MANAGEMENT STRAETGIES
The Harvard Business Review (2012), states ‘Risk management is too often treated as a compliance issue that can
be solved by drawing up lots of rules and making sure that all employees follow them’.
The aim of Task 2 is for leaders to appraise the leadership skills for strategic risk management and to recommend a
framework to deliver a risk strategy in an organisational context.
CASE STUDY
‘When Tony Hayward became CEO of BP, in 2007, he vowed to make safety his top priority. Among the new rules he instituted were the requirements that all employees use lids on coffee cups while walking and refrain from texting
while driving. Three years later, Hayward’s watch, the Deepwater Horizon oil rig exploded in the Gulf of Mexico, causing one of the worst man-made disasters in history. A U.S investigation commission attributed the discaster to management failures that crippled “the ability of individuals involved to identify the risks they faced and to properly evaluate, communicate, and address them.” Hayward’s story reflects a common problem. Despite all the rhetoric and money invested in it, risk management is too often treated as a compliance issue that can be solved by drawing up lots of rules and making sure that all employees follow them. Many such rules, of course, are sensible and do reduce some risks that could servery damage a company.’
Kaplan, R.S and Mike,A. (2012). Managing Risks:A New Framework. Harvard Business Review, June 2012. https://members.md.cmi.org.uk/Content/Display/78429)
TASK 2A
Reflecting on the skills required to lead strategic risk management effectively, you are required to write a report or reflective account entitled:
‘Leadership skills for strategic risk management’
The report or reflective account must critically appraise a minimum of THREE (3) leadership skills for strategic risk management. The report or reflective account may be based on the case study provided above, or a case study from
an organisation of your choice (AC2.1)
Guidance for completion of Task 2A
● The report or reflective account must include well-chosen examples which illustrate the impact of leadership skills for strategic risk management.
● You may choose to include tables and diagrams (as appropriate) to support your report or reflective account.
● Your report or reflective account must be underpinned with relevant theoretical concepts.
● Refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.
TASK 2 B
A Risk Management Framework can be designed to identify, measure, manage, monitor and report the significant risks to the achievement of strategic objectives. You are required to develop a proposal in a format of your choice entitled:
‘Proposed Risk Management Framework to Deliver Strategic Objectives’
The proposal must include:
● Identification of the strategic risk
● Relationship to strategic objectives
● Strategies to measure and manage risk
● Monitoring and reporting processes (AC2.2)
Guidance for completion of Task 2B
● The Risk Management Framework may be presented in the format of your choice (e.g. report, plan, table).
● The Risk Management Framework must be based on an organisation you know well or have researched.
● Refer to the indicative content for each of the assessment criteria (AC) outlined in the unit specification.
