2013

Alexander William Brun ID: 4102433112

MSIT TAFE LOGANLEA

ALEXANDER WILLIAM
BRUN

RISK ANALYSIS AND

MANAGEMENT PLAN
BSBWOR501A

Alexander William Brun ID: 4102433112

BSBWOR501A

Contents
Risk 1 - Banking risk theft of cash left on premises ............................................................................. 2
Risk 2 - Managers travel risk physical injury ....................................................................................... 2
Risk 3 - By-law Compliance risk reputation/brand loss and fines ........................................................ 3
Risk 4 Competition ............................................................................................................................... 4
Risk 5 Unprotected computer system.................................................................................................. 4
Risk 6 Broken objects ........................................................................................................................... 5
Likelihood Table ...................................................................................................................................... 6
Consequence Table ................................................................................................................................. 6
Risk Magnitude Table.............................................................................................................................. 7
Priority level table ................................................................................................................................... 7
Risk Management Plan ........................................................................................................................... 8

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Alexander William Brun ID: 4102433112

BSBWOR501A

Risk 1 - Banking risk

Currently at Hurleys Caf there is no security installed such as protective shutter or alarms making
the store very easy to break into. Along with no security, currently there is no safe to store the
money that was not banked. The current employees leave up to $4,000 overnight on the premises
because they run out of time to bank.
Currently the likelihood of a break in is unlikely considering the type of people who live in the area.
In the case of a break in where money left overnight was stolen, if it was around $4,000 it is
considered a minor consequence in the context of MacVilles investment of the shop.
This is a minor risk, so it wont be prioritised over other issues with the caf. Although this is still a
risk which will need to be fixed at some point and can be done so by using one of the following
possible methods:

Buy and install a safe with a timing mechanism which allows only the managers or higher
authority to access the safe and only at certain times. This allows employees to count their
money at the end of the night and drop it off in the safe where it will be protected until it
needs to be banked the following day. Proper onsite training will need to happen to ensure
the employees know how the system works and when they are supposed to bank and drop
money into the safe
Swap banks to a closer bank which will allow for more frequent and later drop offs
Install security such as protective shutters, alarms and cameras. In the case someone does
manage to break in, then there would be footage of the crime allowing for correct
procedures of insurance and police involvement to ensure no money is lost

Considering the other risks that are involved with the opening of the new store, this problem should
be fixed within the first 3 months of the opening. In addition, insurance should be looked at for
items in the store that might be broken or stolen during the case of a robbery

Risk 2 - Managers travel risk

When traveling to Brisbane from Toowoomba for MacVille manager meetings, there is always the
chance that while driving you may have a car accident. Car accidents are very dangerous in the sense
that you can either die or become seriously injured.
The likelihood of having a car accident is unlikely but it could happen at any given moment. Even if
the driver were drive carefully, following the speed limit and not do any risky turns or overtake
anyone, you cant rule out the other drivers on the road who may somehow crash into you.
This is considered a catastrophic risk because there is a risk of someone dying. Unfortunately there is
no real way to avoid it happening while you are driving. The only thing that can be done is possible
alternatives to driving so the manager would not have to risk himself
I have come up with a few options which the manager could do to avoid having a car accident:

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Alexander William Brun ID: 4102433112

BSBWOR501A

Install a teleconferencing system

Finish management meetings at 3:00pm, this will allow the manager to get back to
Toowoomba without getting stuck in huge traffic
If the previous cant happen, give the manager an excusal letter allowing them to leave any
meeting at no later than 3:00pm every day

A car crash is very hard to avoid when driving with the amount of factors that come into play, but
these options will help with solving that problem. If the teleconferencing system option is chosen, it
should be sorted out within the first month of opening the new caf.

Risk 3 - By-law Compliance risk

The local council has recently had legislation approved to have fines of up to $50,000 for business
that have excessive water breaches. The council does give leeway to fix the breaches, but that goes
on a case by case basis.
The likelihood of this happening is possible if we dont take the correct measures to save and
shorten our water use. This is considered a moderate consequence for MacVille and should be
treated as such, meaning this will take priority over most other risks that are involved with the store.
To help combat this risk there are a few options which can be considered in order to preserve water:

Installing native plants to cut down water use

Install a water tank and reduce dependence on council water

Install dual flush toilets

Installing native plants to cut down water use

Install a water usage graph in the staff room

Write new policy and procedures for water use in Toowoomba

Introduce new processes on water use and conservation. This could include this such as how
much water to use for certain tasks and when it should be done

This water compliance risk is one where significant time and resources are required to ensure that
any fine which would arise from this issue is avoided. The council has sent out water patrols to
monitor the water use of business which means being discovered of over-water usage is very likely.
As long as the suggestions are followed and completed within the first two weeks of the store
opening, then there should be no problem.

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Alexander William Brun ID: 4102433112

BSBWOR501A

Risk 4 Competition
The new MacVille Caf being opened on two main corners in the Toowoomba CBD has the potential
to have lots of business from the community considering the great spot its placed in. But with all its
potential, there is currently a risk of competition moving in. Recently large international coffee shop
chains have been making enquiries to opening a store in the Toowoomba CBD area.
Considering the type of location and the growing population of Toowoomba, the likelihood of
competition moving in is almost certain. This is considered a major risk because of the chance that
the community will want to go to the big brand name stores that I have all heard of before.
To help with the risk of competition, I have come up with a few ideas to help counter these
problems:

Have excellent customer service which will want the customer coming back for more
Excellent product range with great taste which will help keep the customer coming back
Better advertising then the competition
Great deals and discounts for customers
Excellent store environment to show that the store isnt dirty or unhygienic

These are just a few options to help but can have a big impact on the community if done properly. It
will take time for the restaurant chains to move in, so in that time MacVille should work on these
methods for the store and have them up and running within the first 3 months to ensure the
community has a great opinion about the caf.

Risk 5 Unprotected computer system

Currently within the store, the only computer which holds all employee details and financial records
is not properly secured. The computer does not have any sort of password protection system
meaning anyone can access any and all information.
The likelihood of anyone accessing this information is unlikely, but any employee could easily access
their own as well as anothers financial information and may take advantage of that information
which could lead to a possible theft.
If anyone can easily access an employees information, then this is breaching the terms and policies
of privacy and can have a bad result if someone were to take action. The consequences of this could
equal high financial lose so it is considered a moderate risk and must be dealt with swiftly.
The following options will help combat any problems arising from this issue:

Buy a new computer system which includes better connectivity and easy access to the
MacVille cloud terminal to easily store employee information without risk of an
unauthorised person accessing it

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Alexander William Brun ID: 4102433112

BSBWOR501A

Password protect the computer and relevant areas so only the managers and other
authorised personal can access the computer

There arent that many options to help prevent this issue, but the issue is easily prevented by both
or either option. This risk should be sorted out within the first week of the store opening, although
the risk is high, it wont take long to prevent it.

Risk 6 Broken objects

Currently some of the chairs for the dining area of the caf are unstable or broken; this can be a
potential injury waiting to happen and must be replaced with new equipment ASAP. All broken
equipment and parts of the store that have a risk involved with them such as customers possibly
tripping on the worn carpet, must be addressed as it is breaching the Duty of Care that is expected
of the store.
The likelihood of someone hurting themselves on the broken objects is likely to happen considering
the state of them. Injury in the store is considered a major risk, if someone were to trip or fall or land
on a broken object and severely hurt themselves, it could mean a huge financial lose from people
suing.
To make sure this doesnt happen, here are a few options to help prevent the risk:

Throw out all of the old tables and chairs and replace them with new ones
Replace the worn out carpet with new carpet

These options are very straight forward and will solve the problem if followed through. Injury of the
customer will not help the reputation of the store and will also financially damage the company,
which is why this problem needs to be sorted out prior to the opening week of the store.

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Alexander William Brun ID: 4102433112

BSBWOR501A

Likelihood Table

Determine likelihood of risks identified. Use the following table to determine appropriate
level 1, 2, 3, 4, or 5

Level
1

Descriptor
Almost certain

Likely

Possible

Unlikely

Rare

Description
The event is expected to occur in
most circumstances (many times
a day)
The event will probably occur in
most circumstances
The event might occur at some
time
The event could occur at some
time
The event may occur only in
exceptional circumstances

Consequence Table

Determine the consequence of the risk occurring.

Use the following table to determine appropriate level 1, 2, 3, 4, or 5
Place the consequence value 1, 2, 3, 4, or 5 in the risk management table at step 8.

Level

Descriptor

Injury

Environmental Loss/ damage

Financial loss

Insignificant

No injuries

Minor

Moderate

First aid
treatment
Medical
treatment
required

Negligible
financial cost
Low financial
loss
Medium
financial loss

Major

Extensive
injuries

Catastrophic

Death

No environmental impact. Low

profile or no news item
Minor environmental impact.
Low profile news item
Significant environmental impact.
Substantiated, public
embarrassment, moderate
impact, moderate news profile,
Major environmental impact.
Substantial public
embarrassment, high impact,
high profile news, third party
actions, public ministerial
involvement.
Major environmental impact with
detrimental effects. Substantial
public embarrassment, very high
multiple impacts, public
ministerial involvement,
government censure.

Operational
Efficiency
Little impact
Inconvenient
delays
Significant
delays in major
deliverables

High financial
loss

Nonachievement of
major
deliverables

Major
financial loss

Non
achievement of
major key
objectives

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Alexander William Brun ID: 4102433112

BSBWOR501A

Risk Magnitude Table

Note: To determine Risk Magnitude:

Find corresponding likelihood in left column (use value from table 2).
Find corresponding consequence in top row (use value from table 3).
The risk magnitude is indicated in the box where the relevant row and column intersects.

Consequence
Likelihood
1(Almost
Certain)
2 (Likely)
3 ( Moderate)
4 (Unlikely)
5 (Rare)

Insignificant
1
S

Minor
2
S

Moderate
3
H

Major
4
H

Catastrophic
5
H

M
L
L
L

S
M
L
L

S
S
M
M

H
H
S
S

H
H
H
S

Priority level table

The risk priority level is determined by considering the priority criteria in column 1 and
finding the corresponding risk priority level in column 2.

Risk Priority Level

(Column 2)
L = Low Priority

M = Medium Priority
S = Significant Priority
H = High Priority

Priority Criteria (Column1)

Low Priority: managed through routine procedure
and strategies, reduction measures not normally
taken.
Medium Priority: Risk reduction measures are
considered necessary for works or event.
Significant Priority: Risk reduction measures
required. Specific risk planning required.
High Priority: Risk unacceptable. Action required
prior to works or event.

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Alexander William Brun ID: 4102433112

BSBWOR501A

Risk Management Plan

Risk Statement

Likelihood

Consequence

Risk Magnitude

Priority

Responsibility

Timeline

Banking risk

Unlikely

Minor

Low Risk

Low Priority

Alex Brun/financial
controller

First 3 months

Managers travel risk

Unlikely

Catastrophic

High Risk

High Priority

Alex Brun/ Insurance

financial controller

First Month

By-law Compliance risk

Likely

Moderate

Significant Risk

Significant Priority

Alex Brun/ Goldsmith

Partners/financial
controller

First two weeks

Competition

Almost Certain

Major

High Risk

High Priority

Alex Brun/financial
controller

First 3 months

Unprotected computer
system

Unlikely

Moderate

Moderate Risk

Medium Priority

Alex Brun/financial
controller

First week of store

opening

Broken objects

Likely

Major

High Risk

High Priority

Alex Brun/financial
controller

Prior to store opening

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