Minimise Agency and Consumer Risk

CPPDSM4015A Minimise agency and consumer risk

Scenario:

Wizz Bang Real Estate is a competitor of Evansdale Realty. They have been having a few problems with their long time plumber and feel it is time to replace him. Your job is to put some Risk Management Processes in place to help Wizz Bang.

Read the case study on page 2 before attempting the task and use the risk management document templates located under “Forms” on the Evansdale Realty site.

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Your task

Part 1 – Risk Register

Use the Risk Register document to:

• identity the potential risks from the case study including any extreme risks
• assess the level of each risk using the Risk Matrix and give each risk a rating
• determine the best treatment option for each risk and the effect the treatment will have
• document the strategies developed during the risk management process.

You are expected to be able to identify and analyse a number of risks and document them in the Risk Register.

Part 2 – Risk treatment action plan

You are to then complete a Risk treatment action plan choosing a minimum of four risks from the Risk Register where the risk level was assessed as a high or extreme risk. Ensure that your treatment focusses on minimising the risk and included risks that relate to consumers as well as the agency itself.

Case study – Selecting Tradespeople

Property manager Julian is in deep discussion with Col (the licensee of Whiz Bang).

They’ve been using Pedro the plumber for a number of years but he’s getting on a bit and is getting a bit forgetful. In fact, the other day he forgot which was the hot and cold water tap and connected the new office taps round the wrong way. Luckily Dolores realised when she was washing out the tea cups and it was changed before any harm could be done, but it could have been serious – Col’s tea would have been cold and everyone knew how grumpy that made him.

Julian and Col have decided that they must find a new plumber and are discussing how to find a good plumber at a ‘good’ (cheap) price.  Mandy is passing by and hears the gist of the conversation and suggests that they should use Stewie, her brother. He’s just finished his apprenticeship and is looking for work. He would be very reasonable and he’s very good, finishing in the top 75 in his TAFE class, even getting one credit for one module (safely use adjustable spanners) in his Certificate III plumbing course.

They get Stewie to come into the office so they can have a chat with him and are impressed – he’s very cheap, almost too good to be true. They check his license (driving), and it seems to be fine. Stewie assures them that he’s spoken to the Office of Fair Trading and he should be getting his license as a plumber very shortly. Not only that but although he hasn’t yet qualified as a gas fitter or roofer, he has read the course notes because his best mate’s got a copy and understands almost all without even going to a lesson!

Julian and Col are impressed by Stewie’s obvious grasp of the plumbing industry and decide that he’s the man for them. Being cautious however, before they finally give him the OK, they ask about insurance. Stewie tells them that his dad has promised to lend him the money and that he would send a copy of the policy when it is fixed up. Col thanks him for that because he wants to make sure Stewie is covered if anyone sues him.

With everything sorted they give Stewie his first Whiz-Bang job. They give him the address of the property, the tenant’s name and the key from the biscuit tin where the keys are kept. They also show him the key book that he must sign every time he takes a key to show which key he has got. When he returns he is to either give the key to Dolores or, if she’s busy, put the key back in the biscuit tin himself, so everyone will know what is going on. There is also the system of worksheets that Stewie assures them he will pick up in no time flat. It’s actually quite simple. When a report comes in for a repair Dolores, or whoever else takes the call, writes the details on the pad of A4 paper kept specifically for that purpose. When Stewie comes into the office he simply tears out the sheets that have his name on top and when the job is finished sends Whiz-Bang an invoice.

Nothing could be easier!

Minimise Agency and Consumer Risk