DRM704 Organisational and Environmental Risk (T/650/5659) Assignment Brief 2026

Unit Aim

The aim of this unit is to help learners develop knowledge and understanding of the importance of managing risks in business organisations and enable them to develop an effective risk management plan and review risk financing options.

Learning Outcomes and Assessment Criteria

Indicative Content 

• Drivers, Strategic risks (e.g. competition, changes in society or markets), financial risks (e.g. liquidity, foreign exchange, credit risk), operational risks (e.g. product failure), hazard risks (e.g. natural Disasters), information risks (e.g. computer hacking). Operations: Identifying risks in business operations
• High risk areas • Data, systems integrity, reputation, financial theft, health and safety. Risks vary between organisations in different sectors e.g. primary – importance of mitigating risks associated with health and safety.
• Functions that have a role in managing risk • Strategic planning, marketing, compliance operations, legal and accounting, insurance, treasury/accounting, management and quality assurance, internal audit, health and safety, environmental.
• Risk management process • Risk assessment, risk reporting, decisions, risk treatment, residual risk reporting, monitoring – ongoing and formal audit, modification. Potential risks
• Uncertainty in profits e.g. legal issues, market trends, stock market fluctuations, increase in production costs, changing trends and fashions, inadequate forecasting.
• Danger of loss e.g. natural disasters such as floods and earthquakes, technology failures, physical factors such as machine failure, fire, theft; personnel issues such as strikes, talent management
• Events e.g. political factors such as change of government, compliance and regulations, global incidences, security breaches.
• Business impact analysis.
• Analysing level of risk (consequence x likelihood), rating risks e.g. severe, high, moderate, low Risk management plan.
• Prevention, preparedness, response, recovery. Preventive, corrective, directive and detective.
• Risk financing options.