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BSBRSK501 Assessment Task 1 Report on Risks

Executive summary:

Following is a summary of the main points of the plan.

  • We will discuss the background of MACVILLE PTY Ltd in our report
  • Identifying the risk which is related to the MACVILLE business.
  • We also describe about MACVILLE risk management purpose and key elements which are set out in the risk management standards AS/NZS ISO 31000:2009.
  • Discussion of the scope of risk management which currently affecting the business.
  • This report also includes different critical success factors, goals or objectives and those critical factors help to reduce the risk.
  • We will describe about stakeholders because they are important part of the business and we also include internal and external stakeholders in our report with their roles in the risk management process.
  • The issues and concern which has risen by stakeholders.
  • In the report we also focusing on PEST and SWOT analysis to identifying the risks which are related to the MACVILLE Pty Ltd.
  • What are the research techniques or methods used to complete both PEST and SWOT analysis?
  • We will also include the risk list regarding the scenario and then we will send the email to our stakeholders by including this all risks and then same email to CEO to review.
  • When CEO organise the meeting we will discuss some of the things such as MACVILLE risk management process and support from the CEO for ongoing risk management activities.

Introduction:

The MACVILLE Pty Ltd has developed a chain of cafés in the central Business district (CBD) in Brisbane, Queensland and the CBD of Sydney, NSW. On the other hand Board of the Directors has decided to expand their business level as well as its operation in Queensland with the purchase and re branding of the existing Hurley’s café in Toowoomba which is located 130 km in west of Brisbane. However, the MACVILLE café recently appoint Ash as assistant manager in queen street, Brisbane and this things offer great opportunity to Ash to manage the store in Toowoomba. According to MACVILLE risk management policy Ash is also a member of the Finance, Audit and risk management Farm committee areas. Also CEO Paula Kinski of this company gives task to Ash regarding the managing the risks. MACVILLE café mission is to deliver good price and with high quality coffee to their customers and it is served by well trained staff of this café. Additionally, company established its image within three years’ time period across the Queensland and NSW even though opening of others café. Also company build up its value by focusing on customer needs, safety and with extraordinary teamwork. Moreover, to achieve all the objectives company always research about their customers and improving quality of the products to meet the customer expectation and to make good status in the market they tried to performed very well So this all the information introduce MACVILLE café and its mission and its aim.

Report for the CEO

Purpose and key elements

This report provides the three stages in risk management review and risk analysis of Toowoomba store located in Toowoomba 130 km west of Brisbane. The purpose of this report is to manage the risks in the business and meet MACVILLE business plan. There were three areas where we need to work, Review, Analyse and plan and Monitor. The scope of new cafe in Toowoomba is to consider and risks that could impact on human resources management, financial operations, OHS, our supply chain and the local governance and overall compliance issues. The purpose of this risk assessment is to identify risks related to the MACVILLE CAFE, Toowoomba. The risk assessment will be utilised to identify risks related to the café such as

  • Identify, evaluate, control and manage risks
  • Ensure potential threats and opportunities
  • Inform directors, senior management and staff members about the roles, responsibilities, and reporting procedures regard to risk management.
  • Ensure that risk management would be integral part of planning.

The key elements are

  • The risk management strategy should create and protect values.
  • It would be integral part of the business
  • The risk management strategy should assist all the staff member
  • It should be explicit and address uncertainty
  • The risk mange strategy should be systematic, structured, and timely.
  • It would be based on the best available information
  • It should be tailored
  • It should it into account human and culture functions
  • It would be transparent and easy to understand for all employees and management team
  • It will be flexible, dynamic, iterative and responsive to change.
  • It would be focused to facilitate the continual improvements of organisations.

Scope of risk management

Scope
The main purpose behind this report is to manage the current risks that are currently affecting the MACVILLE Cafe, Toowoomba and to enhance any opportunities available to the organisation.
The purpose of this risk assessment is to identify risks that are related to the MACVILLE Cafe, Toowoomba. The risk assessment will be utilized to identify risks related to the cafe. During inspection of the organisational premises, many risks have been identified as potential high-risk. Investigate, identify the risk, analyse, plan and monitoring. Risk related with the extend goal of MACVILLE business, specifically in the rebranding of existing Hurley’s Café Toowoomba. In this report we will review then analysis and then plan and monitor the performance of café. As an assistant manager the Ash has a huge responsibility to assess the risk management. She has to take the overall review of the café. She is assigned to assess all the risks within the business and monitor the risks also she has to notify to CEO of the company.

Critical success factors, Goals and objectives:


The critical success factors, goals, and objectives for area included in the scope

All the management team is involved to assess the risks and they have to identify if there is any gaps. They will go to support each other’s and then they will discuss the all the risks and opportunities with each other.

There are several critical factors which include following areas.

  • They are going to Support each other
  • They will do the best of commitment from the top level of management and discuss the entire breakdown into the report.
  • They will create Effective level of communication among the higher authority, the staffs and the customers to get better result and customer’s satisfaction.
  • They will create an effective culture that facilitates a good flow of information and all the information will be easy accessible for all the staff.
  • They will use all the information technology and try to make job easier for everyone
  • They are going to provide effective training to all the staff to make the job easier and assess the risks easily.

The management is going to set up policy and procedure to guide staff role. Also they will provide the information to all staff. And if there is any breakdown into the policy they will go to investigate. The management is going to help the staff to reduce the wastage in this way the will be going to have more savings Install water tank and training staff to reduce water waste. Then they focus on Pastry delivery they decide to get the delivery after the morning rush. Then they discussed the large percentage of customers who are retries because they can easily access to buses and the stores central location. The more important the banking was not done properly and often $4,000 was kept on the premises overnight in the case register and there was no safe. So they decide to investigate all these factors. Some people were taking case from the register and nobody even keep the records of it. In that way they are going to investigate all these problems and try to increase of Sales Promotions - by encouraging the staff to get involved with these main goal and objective and the senior manager in the risk management procedure is identification of the effectiveness of the current risk management procedure. If there is any problem in the current risk management strategy is identified by them then it is manger responsibility to inform advice board members and they have to apply some strategy by which this problem can be resolved.

Internal and external stakeholders and their role in the risk management process:

There are several internal stakeholders of the cafe such as supplier, customers and employees and the external stakeholders of the cafe are government and many more.

Stakeholders

Internal/external

Role and the issue and concern they raised

Customer

Internal

The role of the customer to give positive feedback to the company about its all the services that they provided Only loyal employees and customers are going to do the risk management process because they have some care for the organisation. They can participate in the risk management procedure by providing some advice and their expectation from the organisation.

Board of directors

Internal

They have responsible to determine which type of risk are acceptable and which are not acceptable

They have responsibility to set the standard of the organisation

They have responsibility to monitor the management and reduce any risk if they have any

They are going to review the approach of MACVILLE café and review the policies.

They have responsibility to implement where needed

They can review and update the risk management strategy

They have responsibility to review and provide recommendations if needed

Employees

Internal

They have responsivities to familiars with all the policies and procedures

They have responsibility to inform all the staff about any risks

The finance, risk management and the audit committee generally has the responsibility to review the action against the management of the risks

The senior management and the CEO team have the responsibility to manage the risks by providing different advice regarding the control of the risks.

Staff and the director are associated with the identification, monitoring and taking action related to the risk so it can be effectively managed.

The board of directors are associated with the application of the proper risk management strategy in the organisation.

Suppliers

Internal

The employees, suppliers can take an effective part to manage the risks by providing different advice to the middle level management of the organisation so both the suppliers and the organisation can be benefitted from those advise

Government

External

There are several types of risks that are incorporated with the organisation that are involved in selling food product. Therefore, the government generally had taken an effective part in the risk management by implementing different food safety law. Along with that government, also implement some employment law and safety at work law so it can protect employee in the workplace.

Table 1: Stakeholders analysis

PEST analysis and SWOT analysis for the identification of the risks

PEST Analysis:

Political

There are one of strict law regarding

The utilisation of the water. Therefore, the excessive

Amount of the water utilisation can cause a huge amount of fine on them.

Economical

Ongoing global recession is one of the prime external economical drivers of the Toowoomba cafe because this factor can reduce the profitability of the cafe.

Local rates of the currency exchange, taxation level and the economic environment in different markets create a huge impact on the cafe.

As Toowoomba becoming an effective place or the retirees then it can be said that global

Social

The customers are continuously changing because now they became more concern about their health.

Therefore, to attract them very fresh bakery product is required so the two-hour transportation time can make their customers reluctant to utilise their product so it is important to establish their plant in the nearest location from their store.

Technological

The federal governments’ broadband network is rolling out in the Toowoomba that allows them to have an effective as well as efficient teleconferencing and the video conferencing. By utilising the technology the different brand of this cafe can communicate with each other effectively and they also can hold their weekly meeting with the main branch with more effectiveness.

This broadband technology can help them to implement WI-FI in their store that can help them to provide free internet services to their customers that in turns can increase their brand image.

SWOT Analysis:

Strength:

  • The cafe has planned to open their store in the corner of two streets that can provide them the effective accessibility of the local customers
  • One of the staff of the cafe has developed a popular rice wraps that were very much healthy and tasty. It is recognising that not even any single café in this location developed this kind of offer yet.

Weaknesses:

  • Lack of concentration on the written policies and processes because all of their policies and processes
  • There is no such established process to deal with the injuries that could be happened in the workplace.
  • Anyone can easily access computer password
  • They don’t have any record about finance
  • They waste so much water
  • They always do the till in the morning so they increase related to cash

Opportunities:

  • The Toowoomba is becoming a place of the retirees and the population of the place is increasing so new business opportunities can be generated.
  • The government of Toowoomba from the next month is going to allow more expansions in the footpath dining and allow putting more tables and chairs outside of their premises.

Threats:

  • Large international chain of the coffee shop is making enquiries on the Toowoomba so they can open their new branches on the Toowoomba CBD.
  • Braches of water usage can create a huge amount of fine on them.

Methods of the research that is utilised in the SWOT and PEST analysis:

There are many methods used to conduct SWOT and PEST analysis research. The risk management framework of the Toowoomba store contains a number of the elements that helped the manger to facilitate effective as well as efficient operations. Along with that, it also helped to generate quick response to different types of the financial, strategic, operation. These different types of elements are monthly report of the organisation, review report of the business planning and the budgeting, different types of organisational policies and the procedures, review of the risk management and the external audits. Therefore, it can be sad that the main source from which the information regarding the SWOT and PEST is conducted is different types of the secondary documents analysis of which can provide an effective scenario regarding the strategic position of the organisation. However, the strategic position of the Toowoomba store can be identified and analysed by different types of survey on the employees as well as the regular customer of the Toowoomba cafe.

Completion of the analysis by summarising the scenario and providing a list of risks:

The cafe is situated in the corner of two main street of the Toowoomba city that helps them to get huge customer base however, their two hours of delivery time of the bakery item to reach from the plant to the store make their strategy to provide fresh pastry items to the customers impossible. From the scenario, it is seen that the Hurley’s cafe is one of the family run business and in this business; maximum staffs are the family member so it can be said there can be a lack in the professionalism in the business. Moreover, another key problem is related to their water utilisation. They waste water unnecessarily, which invites huge amount of extra costs. They use more Water for their dishwater. This cafe does not have any effective and established process to deal with the workplace injury. This store have only one computer in their store that is not protected with the password so there are huge possibility that it is maintained by different staff who can access all of the information regarding employee details and the financial record of the organisation. Along with that, their store also has incomplete record of their wages and there are so many calculations that are handled by multiple employees so it increases the risks related to the disparity on the calculations. Due to their ineffective promotional strategies, they are facing lack of competitive advantage for their organisation. There are several organisations are opening their branch in Toowoomba, so there is huge possibility that the store have to face huge amount of competition from those organisation.
By analysing the scenario there are several risks that have been identified. Key risks related to the cafe are as follows:

  • Lack of internal control on the employee, especially on handling the cash as well as recording and monitoring the flow of the cash in different business aspects
  • Lack of concentration in the written policies as well as the procedures that can provide an effective guideline to all of the staff
  • Lack of professionalism in handling the business because the business is currently run by the family and some of the employees are the family members as well
  • Lack of concentration in the promotional strategies
  • Failure to monitor the external environment of the business and lack of concentration in finding new business opportunities as well as the potential threats
  • Failure to meet the compliance standards of the industrial relationship law, privacy law etc.
  • By-law compliance risk because water conservation used by Toowoomba store it is very high which directly cause major issue to the company.
  • Loss of brand recognition
  • Farm committee member risk because they are commanding high power and take huge interest so it could be a potential risk to loss of expertise and large medical expenses which could be terrible to the company.
  • Manager travel risk because manager have to travel from the Toowoomba to Brisbane which is so far to attain the weekly meeting as well as the training which need to be complete within six months’ time period.
  • Stock outs risk because of delay in the delivery of its products which is caused by the long distance between the supplier and the branch.

Write an email that is intended for relevant stakeholders.

(Your email should clearly ask stakeholders for input, include a list of risks you have identified and invite them to assist in identifying any additional risks.)

Email

From: MACVILLE Risk Management Team

To: Stakeholders

RE: invitation for stakeholder involvement in risk management

Contents:

Dear valued investors/stakeholders

Hello sir/madam, my name is Ash and I am working at the MACVILE Company in Brisbane as Assistant Manager. However, due to our all of the stakeholder’s huge participation in our company achievement it is the company’s pleasure to invite all of the stakeholders for their inputs as we initiate our risk assessment procedures over the acquisition of Hurley’s Café. Also, we have already conducted our preliminary review over the matter as well as we identified various risks and we would wish to consult you for supplementary comments and additional information regarding these issues. Also I added the list of the risk which we identified during our research process and it will provide you the clear information about the each areas and it will also help you to put your point of view according each matter.

List of the risks:

  • Lack of internal control on the employee, especially on handling the cash as well as recording and monitoring the flow of the cash in different business aspects
  • Lack of concentration in the written policies as well as the procedures that can provide an effective guideline to all of the staff
  • Lack of professionalism in handling the business because the business is currently run by the family and some of the employees are the family members as well
  • Lack of concentration in the promotional strategies
  • Failure to monitor the external environment of the business and lack of concentration in finding new business opportunities as well as the potential threats
  • Failure to meet the compliance standards of the industrial relationship law, privacy law etc.
  • By-law compliance risk because water conservation used by Toowoomba store it is very high which directly cause major issue to the company.
  • Loss of brand recognition
  • Farm committee member risk because they are commanding high power and take huge interest so it could be a potential risk to loss of expertise and large medical expenses which could be terrible to the company.
  • Manager travel risk because manager have to travel from the Toowoomba to Brisbane which is so far to attain the weekly meeting as well as the training which need to be complete within six months’ time period.
  • Stock outs risk because of delay in the delivery of its products which is caused by the long distance between the supplier plant and the branch.

Should you be interested to give contribution in these difficulties to identifying any additional risks from your sides, you may also reply to this email directly at any time of your conveniences. Your inputs are highly invaluable for the success of this acquisition.

Truly yours,

Ash

Assistant Manger

MACVILLE Toowoomba

CEO for reviewing and request a meeting

(Send the same email (step 2) to the CEO for reviewing and request a meeting to discuss identified risks and further risk management processes.)

Hello sir (CEO) As I want you to inform that I send email to our stakeholders regarding the MACVILLE’s Risk management process and in that mail, I invite them to assist in identifying any additional risks from their sides. Also, I emailed them the risk lists and it includes different risks within several areas which we already identified during research process. Additionally, I am sending you the same email to review which I sent them, and I would be happy sir if you give your opinion about it or any suggestion on it. According to me, I am appealing you to organise meeting with our stakeholders to discuss identified risks and any additional risk which has been identified by our stakeholders as well as further risk management processes.

Email

From: MACVILLE Risk Management Team

To: Stakeholders

RE: invitation for stakeholder involvement in risk management

Contents:

Dear valued investors/stakeholders,

Hello sir/madam, my name is Ash and I am working at the MACVILE Company in Brisbane as Assistant Manager. However, due to our all of the stakeholder’s huge participation in our company achievement it is the company’s pleasure to invite all of the stakeholders for their inputs as we initiate our risk assessment procedures over the acquisition of Hurley’s Café. Also, we have already conducted our preliminary review over the matter as well as we identified various risks and we would wish to consult you for supplementary comments and additional information regarding these issues. Also I added the list of the risk which we identified during our research process and it will provide you the clear information about the each areas and it will also help you to put your point of view according each matter.

List of the risks:

  • Lack of internal control on the employee, especially on handling the cash as well as recording and monitoring the flow of the cash in different business aspects
  • Lack of concentration in the written policies as well as the procedures that can provide an effective guideline to all of the staff
  • Lack of professionalism in handling the business because the business is currently run by the family and some of the employees are the family members as well
  • Lack of concentration in the promotional strategies
  • Failure to monitor the external environment of the business and lack of concentration in finding new business opportunities as well as the potential threats
  • Failure to meet the compliance standards of the industrial relationship law, privacy law etc.
  • By-law compliance risk because water conservation used by Toowoomba store it is very high which directly cause major issue to the company.
  • Loss of brand recognition
  • Farm committee member risk because they are commanding high power and take huge interest so it could be a potential risk to loss of expertise and large medical expenses which could be terrible to the company.
  • Manager travel risk because manager have to travel from the Toowoomba to Brisbane which is so far to attain the weekly meeting as well as the training which need to be complete within six months’ time period.
  • Stock outs risk because of delay in the delivery of its products which is caused by the long distance between the supplier plant and the branch.

Should you be interested to give contribution in these difficulties to identifying any additional risks from your sides, you may also reply to this email directly at any time of your conveniences. Your inputs are highly invaluable for the success of this acquisition.

Truly yours,

Ash

Assistant Manger

MACVILLE Toowoomba

Meet with CEO to:

Discuss your findings, particularly your understanding of the critical success factors and goals.

There are several critical success factors which I found during my research of MACVILLE café because I conduct meeting with senior supervisor and also visit the store of Toowoomba which is existing Hurley’s café. Also to finding critical success factors it is require knowing about each points and I discuss with all the management team. The critical success factors are following this area.

  • They are going to Support each other (By doing the meetings with each other and discuss about the issues which they identified.)
  • They will do the best of commitment from the top level of management and discuss the entire breakdown into the report. (discuss each and every point which they include in the report with relevant person.)
  • To make their customer satisfy they will discuss with authorised person that what strategies or techniques they can use to make them satisfy for their products to improve the performance.
  • They will put WHS policy and other information to the entire person to make available easy at every time.
  • They will use all the information technology and try to make job easier for everyone
  • They are going to provide effective training to all the staff to make the job easier and assess the risks easily.

Explain the MACVILLE risk management process.

MACVILLE risk management process which include different policies and procedures, business planning and budgeting, risk management review, different monthly report and external audits, CEO responsibilities so they can easily understand the current situation of the café and it can assist and give quick response so it can be easy to avoid risks regarding the strategic as well as commercial risk. However, Different policies regarding the human resources, corporate governance policies and financial police which provide huge benefit to understand different types of problems which company currently facing so they can develop effective risk management plan to make solution of this matter. Therefore, the AS/NZS ISO 31000:2009 standard also provides a common approach for supporting the standards to deal with the specific level of risks. This standard offers relevant guideline to regulate the risk management regarding organisation.

Obtain the CEO’s support for ongoing risk management activities.

According to, the above discussion of company several risks which they are facing. So it is essential to take support from the CEO’s as well as we already discuss those issues with CEO’s by sending the email. So now it is require to get help from CEO’s to taking care for ongoing risk management activities of MACVILLE Cafés. In order to ease those issues and to come out with the solution it is important to have an effective plan because without that one it can be impossible to manage all the risk effectively. However, CEO’s have to create some strong planning for ongoing risk management. Also, there are several risks involved to check it progress that means it is still on the same stage or is there any good result come out in those areas. Therefore, it is important to resolve those issues for example, to resolve the risks regarding written policy it is important to hire personal and professional to develop policy which can be more effective and guiding employee in accordance with the policy because it is important for resolving the issue regarding professionalism. By this ongoing risk management activities process and support from the CEO’s will be offer huge advantage to reduce the risk level of MACVILLE Cafés.

Ask the CEO for input on additional risks.

Additional risks founded by CEO

  1. Misuse of assets because of the lack of staff on the duties and inadequate access controls.
  2. Fake financial reporting because local management sometime try to gain performance rewards or to hide assets theft they make wrong financial record. So that things create the risk which can cause by poor and inaccurate accounting records.
  3. Medical expenses because of the dangerous route and lack of workplace health and safety standards. Also absence of polices dealing with workplace injury.
  4. Legal process and expenses which create the risk to the company which can invite some legal process and penalty due to not complying with water usage regulation.
  5. Loss of the market share because company can loss its customers due to the potential entry of new competitors in the market as well as unwillingness of the staff to increase the market value of the company.

In dot-point form, summarise

(In dot-point form, summarise your discussion with CEO. This should include any recommendations they made to you.)

  • Discussion about finding which is done by Ash with the CEO and how she understands two areas.
  • Explanation of the MACVILLE risk management process with the CEO
  • During the meeting she asked for the support from CEO for ongoing risk management activities
  • CEO has responsibility to taking care of Risk management activities
  • Support from CEO help to reduce the risk level.
  • CEO will make some planning to handle the risk to come out with some effective solution.
  • According to CEO there is some additional risk which has been listed out upon the meeting discussion.
  • Additional risk also Support to MACVILLE Café to make some changes in the risk activities and CEO support help to the company to make some strong image in the market.

References

Manage risk BSBRSK501. (2015). East Melbourne VIC 3002: Innovation and Business Industry Skills Coiuncils Ltd.

Manage Risk BSBRSK501, section 1, pp. 10-22

Manage Risk BSBRSK501, section 2, pp. 39-45

Manage Risk BSBRSK501, Appendix 1, 2.

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