BD30703 Risk Management & Insurance Assignment Brief 2026 | UMS

BD30703 Assignment Brief

Course: BD30703 Risk Management & Insurance (Undergraduate Level)

Semester: Semester 2, 2025/2026

Assignment Title: Comprehensive Risk Management Plan (Individual – Final Replacement)

Weighting: 40% of Final Grade]

Due Date: Week 14 [Refer ITEL for exact due date]

Assignment Overview & Objectives

This anchor project is designed to immerse you in the practical application of risk management principles. You will step into the role of a risk management consultant and engage directly with the real-world challenges faced by micro and small businesses. The primary objective is to move beyond theoretical concepts and develop a professional, actionable Risk Management Plan for a real firm.

By completing this project, you will achieve the following learning objectives:

• Analyse the specific risk profile of a small business by systematically identifying and classifying its unique risk exposures (strategic, operational, financial, and hazard-related).
• Evaluate the potential frequency and severity of these risks using qualitative and quantitative analysis techniques.
• Synthesize a range of risk treatment measures, including loss prevention, loss reduction, and risk financing, to formulate a cohesive treatment strategy.
• Create a professional risk management plan document and communicate your findings and recommendations effectively to stakeholders.

The Scenario: Your Role

You are a Risk Management Consultant. A micro or small business owner (a friend, family member, local businessperson, or even a business you frequent) has asked for your help. They have heard about the concept of “risk management” but have never had the time or expertise to formally address the uncertainties their business faces. They are relying on you to provide a clear, structured, and practical plan to protect their livelihood. 

The Task: The Risk Management Plan

You will identify a real micro or small business (e.g., a local restaurant, independent retail shop, freelance graphic designer, landscaping company, dental practice, or tradesperson). Your task is to develop a formal Risk Management Plan for this business, strictly following the Risk Management Process as outlined in ISO 31000 and our course framework.

Your final submission must be a professional report (approximately 5,000 words]) that includes the following sections, guided by five key questions.

Questions (20% x 5 = 100%)

Your Risk Management Plan will be structured around answering the following five questions. Each question is designed to assess your ability to analyse, evaluate, and create at a high level.

Question 1: Context Establishment & Risk Identification (Analysis)

Analyse the internal and external environment of your chosen business to establish the context for risk management. Based on this analysis, identify and categorize at least 8-10 specific and credible risks the business faces. Categorize them into at least four of the following types: Strategic, Operational, Financial, and Hazard (Pure) Risks. For each risk, provide a specific “risk statement” (e.g., “Due to reliance on a single supplier, the business faces operational disruption if that supplier fails to deliver key inventory.”).

What students need to do:

• Establish Context: Describe the business (size, location, legal structure, key activities, number of employees). Analyze external factors (economic trends, local competition, regulations) and internal factors (culture, key personnel, physical assets) that create uncertainty.
• Identify Risks: Brainstorm and research potential risks. Go beyond obvious ones. Engage with the business owner to uncover their specific concerns. Create a clear, categorized list with well-written risk statements.

Question 2: Risk Analysis (Analysis)

For each risk identified in Question 1, conduct a qualitative risk analysis using a 5×5 Risk Matrix. You must:

• Assign a Likelihood rating (e.g., Rare to Almost Certain) and a Severity/Impact rating (e.g., Insignificant to Catastrophic) for each risk, justifying each rating based on the specific context of the business.
• Calculate an Inherent Risk Score (e.g., Likelihood x Impact) for each risk.
• Plot all risks on a visual 5×5 Risk Matrix to prioritize them. Explain which risks fall into the high, medium, and low-priority zones and why this prioritization is critical for the business owner’s decision-making.

What students need to do:

• Define the qualitative scales (Likelihood and Impact) in a way that makes sense for this specific small business (e.g., what does “Catastrophic” mean to a solo freelancer vs. a small retail shop?).
• Justify each rating with evidence or logical reasoning based on their context analysis.
• Create the visual matrix and provide a clear narrative explanation of the prioritization.

Question 3: Risk Evaluation & Treatment (Analysis & Evaluation)

Based on your risk analysis, select the top 5 priority risks. For each of these, critically evaluate the current risk control measures (if any) and propose a detailed risk treatment plan. Your treatment plan must go beyond simply saying “buy insurance.” It should apply a combination of the four primary treatment options—Avoidance, Reduction (Loss Prevention/Control), Sharing (including Insurance), and Retention—where appropriate. Justify why each chosen treatment method is the most suitable and effective strategy for that specific risk, given the business’s risk appetite and financial capacity.

What students need to do:

• For each top risk, identify if any controls are already in place and assess their effectiveness.
• Propose new or enhanced treatment measures. For example, for a fire risk, reduction (install a new fire suppression system), sharing (buy property insurance), and retention (accept a higher deductible) could all be part of the plan.
• Most importantly, justify why this combination of treatments is optimal. This is where they demonstrate higherlevel thinking.

Question 4: The Role of Insurance (Application & Analysis)

From your treatment plan, identify at least three distinct risks for which insurance is an appropriate risk sharing mechanism. For each:

• Identify the specific type of insurance policy that would respond to a loss (e.g., Commercial General Liability, Business Interruption, Workers’ Compensation, Professional Indemnity).
• Explain how this insurance policy would function as a risk financing tool in the event of a claim.
• Analyse one key policy provision, exclusion, or condition for each of the three policies you selected (e.g., the “pollution exclusion” in a CGL policy, the “waiting period” in a Business Interruption policy). Explain how this specific clause could impact the business owner’s recovery from a loss and why the owner must be aware of it.

What students need to do:

• Connect specific risks to appropriate insurance products.
• Demonstrate an understanding of how insurance transfers the financial consequences of a risk.
• Dive deeper than the policy name to analyse a specific part of the contract, showing they understand that insurance is not a blanket solution and comes with limitations.

Question 5: Implementation, Monitoring, and Communication (Creating)

Design a practical Risk Management Action Plan for the business owner. This should be a clear, bullet-point or table-style guide that outlines:

• Implementation: What specific steps need to be taken to put your recommended treatments in place? Who is responsible (e.g., owner, manager, you as the consultant)?
• Monitoring: How should the business owner continuously monitor these risks? What key indicators should they watch? (e.g., monitor employee incident reports, track changes in supplier reliability, regularly review insurance policies).
• Review Cycle: Propose a formal schedule for reviewing and updating this Risk Management Plan (e.g., annually, or after a major business change). Explain why this ongoing process is more important than the document itself.

What students need to do:

• Synthesize the entire project into a set of actionable next steps.
• Transition from analyst to advisor, providing clear, non-technical guidance that the business owner can actually follow.
• Emphasize the dynamic and continuous nature of the risk management process.    

Submission Requirements

• Format: Professional report format with a title page, executive summary, table of contents, numbered sections corresponding to the five questions, and a references page.
• Citation: Use a consistent citation style (e.g., APA, MLA) for any sources used.
• Appendices: Include any supporting materials, such as a completed risk register template, photos of the business, or notes from your conversation with the business owner.

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