Vous êtes sur la page 1sur 14

6/14/2016 MacVille Pty Ltd

Risk Management Report

Alvi Tafa
OZFORD
CONTENTS
ASSESSMENT 1 MACVILLE RISK MANAGEMENT POLICY AND STRATEGY REVIEW ............................................ 2
Introduction ....................................................................................................................................................... 2
Scope .................................................................................................................................................................. 2
Goals ................................................................................................................................................................... 2
Stakeholders ....................................................................................................................................................... 3
Analysis............................................................................................................................................................... 4
PEST Analysis.................................................................................................................................................. 4
SWOT Analysis ............................................................................................................................................... 4
Describe.............................................................................................................................................................. 5
Occupational Health and Safety (OHS) .......................................................................................................... 5
Government compliances .............................................................................................................................. 6
Financial operations ....................................................................................................................................... 6
Human Resources .......................................................................................................................................... 6
ASSESSMENT 2 RISK ANALYSIS AND MANAGEMENT PLAN .............................................................................. 7
Risk indentification ............................................................................................................................................. 7
Managers travel risk ..................................................................................................................................... 8
By-law compliance risk .................................................................................................................................. 8
Banking risk .................................................................................................................................................... 9
Risk Management Plan Table ........................................................................................................................... 11
ASSESSMENT 3 RISK MANAGEMENT PLAN EVALUTATION ............................................................................. 12
Managers Travel Risk ...................................................................................................................................... 12
plan .............................................................................................................................................................. 12
implementation ........................................................................................................................................... 12
By Law Compliance Risk ................................................................................................................................ 12
plan .............................................................................................................................................................. 12
implementation ........................................................................................................................................... 12
Banking Risk ..................................................................................................................................................... 13
plan .............................................................................................................................................................. 13
implementation ........................................................................................................................................... 13
Outcomes ......................................................................................................................................................... 13
Evalutation ....................................................................................................................................................... 13

Page | 1
ASSESSMENT 1
MACVILLE RISK MANAGEMENT POLICY AND STRATEGY REVIEW

INTRODUCTION
An investigation was recently conducted at the at the Toowoomba MacVille caf, in order to find out
numerous things involved with opening a new store such as:

new goals that can be achieved


the stake holders involved
the social, economic, political and technological features
the strengths and weaknesses
opportunities and risks
research analysis

The reason the investigation was conducted was to gauge what was both good and bad about the new caf
opening, what needs to be changed in order to increase efficiency at work and any legislative laws involved.
The conduction of the investigation was done in a way to view the aspects of staff members, the community,
management and the government.
This investigation has been conducted in a way which sees the aspect of management, staff members,
governments, and the community.

SCOPE
Macville pty Ltd have developed a chain of cafes in the central business district of Brisbane, Queensland and
CBD of Sydney. Re-branding the existing Hurley caf in Toowoomba is a new decision made by board of
directors. This report will be focusing on the risks that Toowoomba store exposed to and analyse its likelihood
consequences of the risks foreseen, priority in treating each risk and its optional in treating.

GOALS
The purpose of the risk management is to ensure a smooth transition to the Macville Pty Ltd and give ongoing
support for companys risk management initiatives.
Some of the aims are listed below:

Ensure a smooth transition to the MacVille systems.


Employ all existing staffs and get everyone to understand his/her role & responsibilities.
Will meet compliance standards in OHS, Privacy and industrial relations law.
Set up written policy and procedures to guide staff in carrying out their duties.
Reduce water use and install a water tank.
Build up a professional business culture in the business.
Monitor the external environment and find opportunities and threats to the business.

In opening the new store in Toowoomba there are two main goals for this project. The first goal involves how
the business will grow with the opening of the new store. The second goal focuses on the potential risks
involved in opening the new store.

Page | 2
The first goal is aimed at opening a new base of consumers for MacVille as well as expanding their business.
The new store will raise the overall profit of the business as well as help spread awareness of the caf which
will help bring in new customers.

The second goal is to identify the potential risks involved with opening the store and the actions that need to
be put in place to eliminate or reduce the identified risks. The identified risks can be sorted in to internal risks
and external risks, each of these risks need to be looked at and assessed appropriately.

STAKEHOLDERS
A stakeholder is the "person, or organization that is actively involved in the project, or whose
interests may be positively or negatively affected by execution or completion of the project. A
stakeholder may also exert influence over the project and its deliverables."

Is important for the risk management to identify the stakeholders of the project to have a clear vision of all the
figures involved in the Business Process.
The table before lists the stakeholders of the MacVille business mainly divided by Internal or External.

Stakeholders Internal/External Role in Process Stake in Process


The board of directors Internal Decision making. MacVilles Business
Supporting and performance.
reviewing CEOs
performance.
Accounting to
stakeholders for the
business performance.
MacVilles Caf QLD CEO Internal Report to the board of MacVilles Business
- Paula Kinski directors. Manage day- performance.
to-day operations.
The assistant manager of Internal Manage the new store. Smooth transition of
Brisbane Queen Street Managing the risks of Toowoomba store.
store take-over.
All existing staff External Hurleys caf existing Secure employment.
employee
Current supervisor External 2nd in charge by Been offered a 2nd in
James Mansfield MacVille charge
The legal firm External Legal advice. Will help with legal or
Goldsmith Partners any compliance issues.
The landlord Ron External Assist in getting Landlord. Getting rental
Langford established in payment from new
Toowoomba. tenant.
The customers External None Enjoy same quality or
better coffee and food.

Page | 3
ANALYSIS

PEST Analysis
It consists of analysis of political, economic, social and technological environment of organization:

POLITICAL
Tariff on import of espresso machines will be removed. Strong possibility of introduction to impose carbon tax
on all energy intensive products used for commercial use.

ECONOMIC
Strengthen of Australian dollar against trading partners in coming years.

SOCIAL
Lifestyle trend to eat out is becoming more affluent and frequent. Steady population growth rate.

TECHNOLOGICAL
New espresso machines are developed which use 30% less energy. Home market for espresso
machines is experiencing high growth.

VALUE CHAIN ANALYSIS


Inbound logistic: Lack of experience personnel for custom and importation.
Operations: State of art Management information system provides for internal control and
strategic planning.
Outbound logistic: Contracted Delivery Company is not able to deliver machines on time due to fast
expansion plans.
Sales: Marketing and sales department are doing quite well and are strong points for profit well
massage can be expanded using internet.
Service: Macville enjoys good reputation for after sales services to customers.

SWOT Analysis
It is a structured planning method that evaluates those four elements of a project or business venture.
The analysis is divided by four category Strength, Weakness, Opportunities, Threats:

STRENGTHS

The location of the store on the corner of the two main streets of the city makes easy access
for local customers and highly visible for tourists.
The cafe attracts a large % of retirees because of the easy access to busses and the stores
central location.

Page | 4
One of the staff was a qualified chef who had developed an innovative and popular range of
rice wraps that were tasty, gourmet and healthy. None of the other cafes in the area
offered these.

WEAKNESSES
Hurleys cafe was a family run store and some family members were employed on the staff. James was
engaged by the family to supervise the operations of the store and Mr Hurley as manager would
authorise wages but anyone can authorise deliveries.

There is no written policy and procedures manual in store.


The store currently uses 41,500lt a week.
The same staff member that completed the cash register balancing also completed the bank
deposit form and did the banking as well. The banking was not done every day and often
$4,000 was kept on the premises overnight in the cash register.
Not all takings from the cash register by family staff members were recorded.
The fit-out in parts looked old and unattractive, with some chairs unstable and broken and
some parts of the worn carpet was simply taped over with gaffer tape.
No established process for dealing with injuries that happened at work.
Lack of sales promotion techniques.
The wage and superannuation records seemed to be incomplete with many calculations being
worked out by the number of hours worked multiplied by a set in the hand amount.

OPPORTUNITIES

An innovative frozen par-bake cooking system that was under the limit set by council for an
exhaust system yet it cooked fresh bakery items in 30 minutes from frozen par-baked
pastries.
Opportunities for opening more cafes in the surrounding shopping centres like Wilsonton,
Clifford Gardens and K-Mart Plaza.
The Federal Governments National Broadband Network being rolled out in Toowoomba that
would allow efficient and effective video streaming and teleconferencing.
The current by-law that was due for implementation on the 1st of next month allowing cafes
to expand their footpath dinning and so put more tables and chairs outside their premises.

THREATS

Representatives of a large international chain of coffee shops had been making enquiries
around town about opening a store in the Toowoomba CBD.

DESCRIBE
Below is a list of all the risks that were found through the investigation. These issues involved pre-existing risks
as well as risks that can be caused by the opening of the new store.

OCCUPATIONAL HEALTH AND SAFETY (OHS)

Page | 5
Some of the chairs that are used for dining in the store are unstable and broken, which could
potentially make a hazard to staff and customers, as well as breaching the Duty of Care as a store.
There is currently no written policies and procedures available for staff, consumers, and other parties
to refer to
There is no established process of dealing with injuries that happen in the workplace
There are a lack of internal controls, a failure to meet compliance standards on OHS, Privacy and
Industrial Relations Law, lack of a professional business culture, and failure of the business to monitor
the external environment and find opportunities and threats to the business

GOVERNMENT COMPLIANCES
A potential fine of up to $50,000 can be issued if there excessive water breaches

FINANCIAL OPERATIONS
The delivery time for the pastries is to long from the companys central bakery plant, and would not
be able to arrive to the store before the morning rush
Company branded supplies wont arrive as quickly as the Brisbane CBD stores would, which may come
as an issue
A potential loss of money that was not banked can be taken from the business overnight if the correct
procedures are not taken into effect
There is no safe in the store, which could come as a risk in the case that a break-in occurs the valuable
contents of the store can easily be taken
There is no extra security measures, such as an alarm system and shutters in place the store.
There are reports of not having all takings from the cash register by family staff members recorded

HUMAN RESOURCES
Large international chains of coffee shops have been making enquiries around town about opening a
store in the Toowoomba CBD area
The computer systems in the workplace need to be brought up to a reasonable standard to comply
with protection of details, and correct payment procedures
The computer system contains employee details and financial records, and the computer is not
password protected, meaning anyone can assess this information
The employee wage and superannuation records seemed to be incomplete, and seemed to be
calculated with an in the hand amount based on the number of hours the employee had worked

Page | 6
ASSESSMENT 2
RISK ANALYSIS AND MANAGEMENT PLAN

RISK INDENTIFICATION
On this section we will be clarifying the major risks of the project defying them by

a. Likelihood - For each risk, assess the likelihood of the risk occurring. (Low [1], Medium [2], High [3],
Extreme [4])
b. Consequence - For each risk, assess the consequence of the risk occurring. (Insignificant [1], Minor
[2], Major [3], Catastrophic [4])
Catastrophic Risk: death, multiple injuries, regulatory intervention, net revenue loss or asset
damage for large amount of money, damage to reputation at international level and long-
term environmental damage.
Major Risk: single stakeholder, breach of licenses, legislation, regulation or mandated
standards; net revenue loss or asset damage for significant amount of money, damage to
reputation at national level and medium-term (1-5yr) environmental damage.
Minor Risk: breach of internal procedures, net revenue loss or asset damage for a minimal
amount of money, adverse news in local media and environmental damage which requiring
up to $250,000.
Insignificant Risk: no breach of licenses, standards, guidelines or related audit findings; net
revenue loss or asset damage for insignificant amount of money, public awareness may exist,
but there is little public concern and negligible environmental impact.

c. Priorities - The likelihood and consequence of risk are combined to determine the rating of priories. A
risk table is shown below, where the identified consequence meets the identified likelihood, a risk
rating is given between 1 and 16.
Very Low Priority Rating 1
Low Priority Rating 2-3
Medium Priority Rating 4-6
High Priority Rating 8-9
Extreme Priority Rating 12-16

Classification Low [1] Medium [2] High [3] Extreme [4]


Insignificant [1] 1 2 3 4
Minor [2] 2 4 6 8
Major [3] 3 6 9 12
Catastrophic [4] 4 8 12 16

d. Options - For each prioritised risk, outline options for treating the risk.

From meeting conduced regard the business risk management and strategy review (see section Assessment
1) three main criterias are being considered as a major concern over the course of acquisition of Hurleys
Caf in Toowoomba by ranking from its severity to the moderate one, are as followed;

Page | 7
MANAGERS TRAVEL RISK
This risk presence according to the geographic setting of Toowoomba branch in which it is locate in regional
area reached by winding road. It is raise the concern in term of safeties when driving in poor light condition,
especially during evening and late at night.

LIKELIHOOD
This risks possibility are consider to be medium; this raise the necessity to mitigate the risks involved. Risk
presence are mainly the danger from traveling between headquarter in Brisbane and Toowoomba branch for
weekly meeting which are typically finish late in the evening or night.

CONSEQUENCE
In term of loss of life or any injury are considered as a catastrophic consequence. There is a possibility for the
manager to have an accident because of the long drive and also the navigating the steep narrow climb up the
range. If there is any accident occurs, the company has to insure the manager as well as to find a substitute for
the manager and this will slow down their Caf business and have an influent impact on the business
economy.

PRIORITY
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2]
Major [3]
Catastrophic [4] 8

The priority for this risk can be classified as High since the rating of the combination of likelihood and
consequence is 8

OPTIONS
The possible changes are as followed;

Installation of teleconferencing system


Finish management meeting no later than 3:00 pm
Manager whose attend the regional office can be excusal from meeting by 3:00 pm
Change the meeting time to morning session

BY-LAW COMPLIANCE RISK


This risk arise due to the recent reformation of local council legislation in term of exceed water usage. It is also
important for MacVille Pty Ltd to comply with the legislation set out by local council since it is their
responsibility as a corporate citizen.

LIKELIHOOD
The risk presences moderate threats to the continuity of the business due to the fee imposed by local council if
the water usage had been exceed. There is a medium risk that, if the employees or the manager use more
water, they could get the fines for excessive usage of water and consequently breaching the current by-law
will occur.

Page | 8
CONSEQUENCE
Risks arise from failing to comply with legislations are;

Large amount of fine impose by council


Brand and reputation damage
Uncontrollable cost of operation
Inefficient in resource allocation

For this reason we can classify the consequences of the risk as minor.

PRIORITY
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2] 4
Major [3]
Catastrophic [4]

The priority for this risk can be classified as Medium since the rating of the combination of likelihood and
consequence is 4

OPTIONS
The possible changes are as followed;

Installing native plants to reduce water consumption and usages


Install water tank to take advantage of rain water and use less water from council
Install dual flush system in restroom to increase cost saving
Change and reinforce new water usage rule and regulation as well as monitoring the water usage
Replace machine to be more water efficient

BANKING RISK
This risk arise from the lack of controlling and monitoring procedure of the store financial records and their
method of keeping cash with in the store after hour. The lack of rules and regulations as well as procedures in
term of depositing cash daily, the record keeping of sale and cash paid out, and detection and prevention
control in term of fraudulence.

LIKELIHOOD
There is medium possibility of theft of cash that is left on premises as the banking in Caf was not done every
day and often $4000 was kept on the premises overnight in the cash register

CONSEQUENCE
The risks from the lack of controlling and monitoring are as followed;

Chance of losing more assets in case of robbery and it is also consider to be a motivated luring robber
to attempt to break in.
Fraudulence activities in which employees can steal money when the caf dose not maintains
appropriate financial record keeping.

Page | 9
Impractical financial system in place, due to the previously family own caf with the lack of
appropriate and proper record keeping of any financial transactions both income and expense,
making it impossible to generate the accurate financial report in compliance with legislative.

This financial risk hides may be considered minor but the consequences of a robber braking in the business
may put the employees in danger, causing possible injuries; the consequences of this risk can be classified as
major

PRIORITY
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2]
Major [3] 6
Catastrophic [4]

The priority for this risk can be classified as Medium since the rating of the combination of likelihood and
consequence is 6

OPTIONS
The possible changes are as followed;

Setting up rules and regulations for banking its sale every day and eliminate the need of carry cash
overnight other than minimal till amount.
Switch bank to the nearest one to reduce both traveling distance and risks in handling large sum of
money.
Insure overnight cash holding.

Page | 10
RISK MANAGEMENT PLAN TABLE

Risk Assess Risk Controls Monitoring Timelin Responsible


(L, M, H, E) es
Banking Medium Depositing the money in By getting the Opening Financial
Risk the bank every day weekly bank week Controller
statement
Managers High Work should be finished By checking Opening CEO, New Policy
Travel Risk before 3pm, so doesnt the meeting week
have to drive at peak times
hours
By-law Low Educating the By checking Within 3 Goldsmith
Compliance employees about the the water month Partners
Risk effective usage of water usage bills
monthly

Page | 11
ASSESSMENT 3
RISK MANAGEMENT PLAN EVALUTATION

As examined the likelihood and consequences of identified risks, we are preparing a monitoring report
evaluating the risk management process. Based on the information we collected during the research and
analysis, especially for the first step to set up the new shop, some important figures we have to consider about
which including banking problem, insurance, regular meeting with the head office, business policy, local
council issues, etc. So how to evaluate these risk and how to manage the processes are very important.

As described on the previous report the business presents few major risks; these are summarized below and
their implementation is explained.

MANAGERS TRAVEL RISK

PLAN
The teleconferencing system planned for 6 months after settlement. Try to finish management meetings at
3:00pm and give the manager an excusal letter allowing them to leave any meeting at no later than 3:00pm
every day.

IMPLEMENTATION
The teleconferencing system planned for 6 months after settlement, has not yet been installed due in part to
the delay in the Federal Governments National Broadband Network rollout.

The weekly management meetings are finishing close to 3:00pm as planned but sometimes the manager has
to stay on at the request of the head office team. The manager has not yet been issued with an excusal letter
by the CEO as agreed upon and feels that they do not have the authority to just walk out at 3:00pm. The
assistant management training has been shifted to the mornings allowing the manager to leave before 1:00
pm as planned.

BY LAW COMPLIANCE RISK

PLAN
These issues are including water saving, dealing with local council which included as follows:

Installing native plants to cut down water use


Installing a water tank, reducing dependence on council water and installing dual flush toilets
Introducing new processes on water use and conservation and replacing the dishwasher with 5-6 stat
(WELS) rating

IMPLEMENTATION
The board and CEO included a new policy regarding compliance with the Toowoomba by-law on water
conservation as planned but the specific procedure has not yet been written, although it appears that
compliance is being achieved.

Page | 12
The plants have been changed to natives that require minimal water as planned. The installation of dual-flush
toilets were planned for completion 6 months after settlement, and although the dual flush toilets have been
ordered and in stock, they cannot be installed due to the backlog of work by district plumbers. The 5 star rated
(WELS) dishwasher was installed by the supplier within the 6 months planned timetable.

BANKING RISK

PLAN
In order to minimize the banking risk, financial controller should discuss the related financial, insurance and
banking issues which including business insurance, local banking and how to make a company policy to bank
every day and eliminate the need to carry overnight.

IMPLEMENTATION
The financial controller had taken out $5,000 on insurance cover for cash held on the premises overnight from
the opening week as planned, but the insurance premium was $2,500 per year and which is considered
excessive by the financial controller.

The company bank account that was planned to open in the first week was opened about 4 weeks after
opening at the bank two shops down the street, but it is not MacVilles regular bank and there are difficulties
with getting the same level of service that the stores receive in Brisbane.

The training on daily banking appears to have been successfully completed as planned. An audit of the bank
deposit book shows that on only two occasions in the past 6 months that there is not a banking entry for the
days sales.

OUTCOMES

Manager travel risk was stream by travelling in day minimise the risk that will be outcomes insurance was done
for the cash and daily banking was done in regular basic which minimise the theft risk.

The plants has been changed to natives which minimise risk of require of minimal water. Water tank has been
build, which will minimise risk of using council water.

EVALUTATION

The bank risk essentially was moderate and daily banking is done every day so cash was not left on promises
because of these daily cash deposit in bank risk is low

Travel risk was high by reducing time to 3:00 pm make risk low.

Manager leaves meeting early thats why it reduces risk, which is low. Where the possibilities were medium
and now it is low.

Use of water risk was medium now it is reduced to low. By using dual flush toilet, using 5-6 star dishwashers.

Page | 13