CMI Unit 708 Strategic Risk Management, CMI Level 7 in Strategic Management and Leadership

Assessment Brief: Strategic Risk Management

Overview of assessment tasks

Each task in this assessment brief has been developed to enable you to evidence achievement of the learning outcomes and assessment criteria for CMI 708: Strategic Risk Management.

Preparation for the assessment
• Before you begin the assessment brief please read the CMI 708 unit specifications thoroughly as only the content related to the achievement of the assessment criteria will be assessed.
• Research the topics being assessed. Suggested reading/web resources are provided on the CMI 708 unit specification. Your tutor may signpost you to relevant resources.

Completing the assessment brief
• The assessment brief contains a series of tasks which are clearly referenced to the relevant assessment criteria and indicative content.
• Refer to the Assessment Guidance Table at the end of the assessment brief which outlines the requirements for a Pass or Refer.
• Evidence must be provided in the evidence booklet. Additional work-based evidence such as plans or documentation (which has been referred to within the main text) should be included at the end of the booklet marked ‘Work Based Evidence'. Appendices are not a requirement of this assessment brief. If appendices are included these will not be marked or moderated by the CMI.
• Work based evidence must be accompanied by a supporting statement in the learner evidence box, to explain the link to the assessment criteria. Work based evidence (where required by the task) must not exceed SIX (6) pages. Files embedded in the booklet must not exceed 10MB.
• The evidence booklet must be completed in a professional manner (e.g. applying business conventions for writing formal reports) and by using Microsoft Word, Rich Text Format or another compatible software programme.
• An appropriate referencing system (such as Harvard Referencing) must be used to ensure the original source(s) of quotations or models can be verified.
• Finally, you must sign the Learner Authenticity statement (an electronic signature is accepted).

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.

Learning outcome 1: Understand strategies for managing risk
1.1 Critically appraise strategic risk within an organisational context
1.2 Critically assess strategies for managing risk in an organisational context

Learning outcome 2: Know how to develop risk management strategies
2.1 Critically appraise the leadership skills for strategic risk management
2.2 Propose a Risk Management Framework to deliver strategic objectives

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

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)

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.'

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)

• 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.

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
• 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.