SCM30002 Understanding Risk Management Assignment 2B

Word/time limit: 3000 (+/- 10%)

Weighting: 35%

Due date: 5pm AEST Monday 23 May 2022 (Week 10).

After you have read this information, head over to the Assignment 2 Q&A discussion board to ask any questions and see what your peers are saying about this assignment

Assignment Details

For this assignment, you must adhere to the following report structure:

• Title page
• Table of contents
• Executive summary
• Main discussion (please see further details below)
• References
• Appendices (only if required).

Within your main discussion, you will need to include three sections:

• The first section assesses your knowledge about risk responses to hazard risks with the use of a bowtie analysis to focus on before, during and after responses.
• The second section aims to evaluate your understanding of concepts of business continuity using a business continuity planning model, plus an understanding of the importance of planning for business continuity.
• The third section assesses your analysis of financial hazard risk controls, and how to implement them. You are also asked to consider the effect of internal culture and how a poor internal culture may lead to internal fraud.

Section 1 (approximately 1000 words)

You are the new risk manager based at a rural university campus called Alpha University in Victoria. The Alpha University campus is located in a flood-prone valley. Due to its rural bush setting, bushfires are also an ongoing major threat to the campus. You also discover the campus has recently faced a spate of overnight break-ins to the faculty office, where money and other valuable equipment was stolen. You are required to:

• Create three separate bowtie diagrams(see Figure 16.2 Bowtie and types of controls (Links to an external site.) [Hopkin 2018, p. 185] from your eText) for each risk source (flood, fire and break-in) and detail in descriptive analysis below each of your three bowtie diagrams how you will:
• • prevent flood/bushfire/break-in risks and associated losses before they happen (Loss prevention)
  • reduce loss or damage during a flood/bushfire/break-in event (damage limitation), and
  • contain costs after there is a flood/bushfire/break-in (cost containment).
• Use academic, practitioner or quality expert literature to help justify your above analyses (minimum three references).

Section 2 (approximately 1000 words)

Unfortunately, weather reports indicate that the Alpha University campus is about to be flooded sometime in the coming week.

• Using all five elements of the model for business continuity planning (BCP) from Figure 18.2 Model for business continuity planning(Links to an external site.) (Hopkin 2018, p. 205) of your eText to formulate a business continuity plan for Alpha University’s campus based on the specific oncoming threat of flooding.
• Provide a brief justification to the Chief Operations Officer of Alpha Universitywhy you believe BCP is very important.
• Use academic, practitioner or quality expert literature to help justify your above analyses (minimum three references).

Section 3 (approximately 1000 words)

It has come to your attention that there has been some internal fraud on-campus at Alpha University. You discover that two staff in the Accounts department have been paying money into their own bank accounts based on paying false invoices they fraudulently created. You discover a large number of false invoices that detail companies that do not exist for work that was never done for Alpha University. This fraud has been carried out over the past four years and payments based on these false invoices now amount to $50,000 each stolen by these two staff members.

• What are some of the hazard risk controls specifically related to fraud you can implement to prevent/detect/correct/minimise this type of fraud? Please provide some detail against each fraud-minimising method you use. Refer to Control of financial risks(Links to an external site.) (Hopkin 2018, pp. 270–271) from your eText for information.
• Describe briefly how a poor internal culture related to risk management may have influenced and led to this fraudulent behaviour. Refer to Steps to successful risk management(Links to an external site.) (Hopkin 2018, pp. 286–288) from your eText for information.
• Use academic, practitioner or quality expert literature to help justify your above analyses (minimum three references).