Assessment Tool BSBRSK501 Manage Risk

This report focuses on managing risks associated with McVille cafe's plan to rebrand Hurley's cafe. It covers risk assessment, analysis, monitoring, and knowledge testing with strategies for effective risk management.

Assessment Tool BSBRSK501
Manage Risk
Name of Candidate
For Office use only
Results C/NYC Date
Candidate ID Assessment
Name of Trainer/
Assessor Re-assessment
Place of
Assessment:
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Candidate Declaration:
I declare the work contained in this assignment is my own, except where acknowledgement of
sources is made.
Candidate Signature Date:
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Contents
Introduction......................................................................................................................................3
Assessment Task 1: Establish Risk Content....................................................................................4
Assessment Task 2: Risk Analysis................................................................................................11
Assessment Task 3: Monitoring report..........................................................................................17
Assessment Task 4: Knowledge test..............................................................................................19
Conclusion.....................................................................................................................................23
References......................................................................................................................................24
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Introduction
This report is based on the McVille cafe which deals in coffee and gourmet food and ensures that
high-quality products are served to the customers. As per the case study, McVille is planning to
rebrand Hurley’s safe which is situated in Toowoomba. The manager is responsible to handle all
the operations and activities of the cafe. There are various risks which are associated with
Hurley’s cafe which is to be managed by the manager considering all the aspects of the business.
Stakeholders are essential in the development of the business as a result of which they are
required to be considered in the various operations and Process of decision making of the
company.
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Assessment Task 1: Establish Risk Content
After reviewing the case study and the entire risk management policy of McVille, some of the
following points were obtained.
Scope: Managing the risks associated with the business is quite important for the company. The
areas in which the risk management is required and its scope as discussed as follows:
 Managing the cash of the business.
 Policies, as well as procedures, are mentioned in the form of document which becomes
easy for the employees to access.
 The company is a family owned business which is required to be made professional.
 Influence and impact of the external factors are required to be assessed.
 All the legal compliance of the company are to be ensured (Aebi, et. al., 2012).
Goals: For the success of the plan of risk management, it is quite important and essential for the
management to set the goals and objectives to be achieved in an effective manner. The designed
goals should be aligned with the company’s policies. The business goals of McVille are as
follows:
 Increasing the number of customers by making them available with the quality products
as well as services.
 Expand the business and maximize the stores across Australia.
Stakeholders: Stakeholders are the one who affects the operations of the business or the ones
who gets affected by the business operations. They are employees, vendor, manager, society,
government etc.
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(Source: Stakeholder of the business, 2015)
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Stakeholder
s
Internal/
External
Role Stake in process
CEO Internal Sponsor Responsible for overall project
FARM Internal Management Review and advice on the financial
matters to the top management.
Suppliers (E) External Supply the materials
required by the company
Expand its connection with the
business and build a long-term
relationship.
Staff Internal Carry on the process of
the business.
Grow the business and work with the
company for a longer time.
Council External Compliance Makes sure that the business is carried
on within the legal rules and
regulations.
Government External Collect the taxes and
makes the company free
from harmful activities.
Reduce the negative effects of the
company over the society and benefit
the society with the collected taxes.
Union External Manage employee
relations
Manage relations with the employees
with the company and safeguard the
interest of the employees.
Analysis: Analysis includes SWOT and PESTLE tools which enables the company to analyze
the internal and external factors influencing the business.
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SWOT: This is a tool used by the company to evaluate the internal factors and take effective
measures to control them.
Strengths  The location is easily accessible.
 The existing staff is quite skilled and knowledgeable.
Weakness  The existing staff of the acquired company is not much competent
and skilled to handle the operations of the business.
Opportunities  Expand the business by merging or acquiring the other businesses.
 Training costs are saved due to the experienced employees.
Threats  The practices of the company may not be effective enough which
affects the profitability of the business (Alhawari, et. al., 2012).
PESTLE: This is a tool used by the company to evaluate the external factors and reduce the
impact of such factors.
Political  The issue of conserving water.
 Laws on development may affect the business.
Economic  The economic condition of the country affects the business.
 Unemployment rates are below the average of national level.
Social  Behavior and attitude of the customers towards the company
influences the business (Bolton, et. al., 2013).
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Technology  Wi-Fi facilities, payment technology, equipment, etc. available with
the company influences the business.
(Source: Performance works, 2013)
8

Research: On reviewing the case study the following information is available-
 The location of Hurley’s cafe is easily accessible to the customers.
 The traveling time from Brisbane to Toowoomba is high due to the logging trucks in the
passageway.
 The cafe is a family owned business due to which the deliveries are authorized by any
member.
 No safety for the accidents occurred at the workplace.
 The procedures are not followed by the current staff members.
 No appropriate staff to handle the operations of the business.
 No proper infrastructure.
 The systems containing the details of the employees and the business are not protected by
the password.
Describe: From the analysis, it has been found that there are many changes which are required to
be done in Hurley’s cafe and risks associated with it are required to be minimised with effective
strategies and plans.
Summary Notes: The following points have been covered-
 The overall structure of Hurley’s cafe is ineffective.
 There are various risks which are involved in the business.
 The manager recommended formulating effective strategies to overcome the risks
involved in the business and also the company.
 Training is required to be provided to the staff to deliver high-quality services to the
customers.
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Communication draft: A draft has been developed mentioning the necessity of the involvement
of the stakeholders in the development of the business and seeking their opinions to grow the
business. The stakeholders are invited to put forth their viewpoints and the issues related to the
growth of the business (Ryan, et. al., 2013).
Draft script: The following information are required to be shared with the stakeholders-
 Laws related to the making of changes in the cafe.
 Procedure to be followed for development of the business.
 Installation of the water tanks.
 Local area developments.
 Local café surrounding developmental plans.
 Growth prospects for Hurley’s cafe.
 Strategies for local surrounding issues.
 Plans for a hygienic environment.
 Security measures and cameras arrangements
The input of the stakeholders: The managers and existing staff of Hurley’s cafe are invited to
give their views on the several issues and risks which are associated with the business. They are
required to be asked with several aspects of the business and develop strategies according to the
issues and risks they have mentioned so as to make the business more effective (Frigo &
Anderson, 2012).
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Assessment Task 2: Risk Analysis
Risk analysis and Management plan
A completed risk analysis report
Risk analysis is that business process which helps the organization in defining and evaluating all
the threats or dangers which can influence negative impact on employees, organizational
functions and future growth of a company. This concept is applied to business projects, security
issues, information technology and other actions where risk can be evaluated on a qualitative and
quantitative basis.
(Source: Risk assessment in industry, 2016)
The biggest advantage of risk analysis is that it assists a company in removing all those potential
risks or dangers which can affect organizational growth as well as financial profit. As per given
case scenario, McVille organization which wants to rebrand its existing café namely Hurley's
cafe and for that, it needs to analyze all those risks which can affect financial operations,
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technical factors, and human resource management. There are various risks which have been
analyzed by key people of McVille and these are followed as under:
A) Less employee safety:
The biggest problem with McVille and its key people is that there is no safety measures and
equipment which can be used by employees at the time of emergency. There are some tools and
techniques like likelihood scale, consequences scale and risk treatment table (Sadgrove, 2016).
Likelihood scale: In this scale, a likelihood of risk is determined in terms of rate. The likelihood
scale of above-mentioned risk is followed as under:
Level Likelihood Description
A Almost certain This type of business risk occurs when business
enterprise implements some new changes within a
workplace and also takes some big decision.
B Likely It occurs when the changes are fairly equal of having
and not having.
C Rare When the chances are not present of any risk.
Consequences scale: This risk analysis tool helps the organization in determining financial and
non-financial consequences of potential risk.
Level Health and safety consequences Financial consequences
1 Minor medical treatment required Small impact
2 No medical treatment is required No Impact
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3 Hospitality required Huge impact
As per given scenario, In Hurley's café, there is minor need of medical treatment which will
influence less impact on the financial condition of a company.
Priority scale: In this scale, level or priority of a specific risk analyzed by business managers
(Trevino & Nelson, 2016).
Priority of risk
Very low
Very high
Medium
Low
Less employee safety is the highly prioritized risk.
Risk treatment: It is that risk analysis tool which helps the organization in evaluating risk
treatment so that risk can easily be removed from the workplace.
Options:
Consequences
Likelihood Minor Major Critical
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Rare This is low risk
which can be
managed by
routine
management
This is the medium risk
which requires specifying
reasonability.
In the critical situation, this risk
should be review by senior
managers.
Likely Medium risk
requires specifying
responsibility.
High risk and requires
senior manager review.
Extreme risk and require
monthly review of senior
managers.
Almost
certain
Medium risk and it
needs to specify
treatment
Extreme risk and needs
monthly review of
managers
Extreme risk and should be
analyzed by senior managers on
monthly basis.
B) No guarantee of business success:
While analyzing the potential risk of a company, key people of Macville has evaluated that there
is less guarantee of business success. Purchasing and rebranding of Hurley’s café can result in
business success as well as business failure.
Risk Likelihood Consequences Priority Risk treatment
No guarantee of
business success
This is highly
likely.
This risk can
result in negative
financial
consequences
It is the high
level of risk.
For treating this
risk business
manager should
check new
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business project
on the
continuous basis.
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A completed risk management table
For managing business risks, a board of directors and other committee members of Macville can
take help of risk management table which is discussed below:
Risk Assess risk Controls Timelines Responsible
Less
employee
safety
It is a
medium risk
For controlling this risk,
the business enterprise
should provide all safety
measures and equipment
to employees so that in the
case of emergency they
can protect themselves.
For overcoming or
removing this risk,
managers require a
time period of 2 to
3 months.
For this task,
middle
management
is responsible.
No
guarantee
of
business
success
It is a large
and highly
prioritized
risk.
While acquiring a new
business enterprise and
doing its rebranding
organization may suffer
business failure. But with
the help of appropriate
planning and market
research, managers can
overcome this risk
(Wieland & Wallenburg,
C.M., 2012).
For removing this
risk business
managers need the
time of at least
three to four
months so that
they can complete
their market
research.
For assessing
this risk, a
company
needs to take
help of its top
managers.
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Assessment Task 3: Monitoring report
Evaluation of risk management plan:
Risk Implementation of Plan Outcomes
Banking risk Take effective advice from the
financial controller of the company.
The profits earned by the company
will be deposited every day instead
of keeping it overnight on the
premises. Banks will be chosen
which are nearer to the company.
All the finance and monetary elements of
the company will be protected from any
kind of risk. Profits of the company are
secured with the help of the implemented
plan (Peppard & Ward, 2016).
Manager’s
traveling risk
The management can install the
teleconferencing systems so that the
managers can be protected against
the risks of traveling. The presence
of the managers in the company can
be limited to the certain time period.
The traveling risk of the managers is
reduced to a large extent according to the
plan implemented.
Law compliance
risk
Functioning of the business can be
done according to the laws and
legislation set by the government so
that no loss occurs to the reputation
or brand of the company.
The reputation and brand image of the
company is protected when the
functioning is done according to the laws
and legislation.
Staff security
risk
The infrastructure will be rebuilt and
all the safety measures will be made
available so as to protect the lives of
With the safety measures, the employees
are secured from various kinds of risks
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the employees (Glendon, et. al.,
2016).
associated with the workplace.
Data security
risk
The data of the employees and the
business are the crucial elements of
the business and will be protected
through software having passwords
and will be assessed through
trustable members of the company.
With the software and the passwords, all
the related information of the business
and the employees are protected and it is
successful to a large extent.
Water
compliance risk
Installation of the native plants so as
to cut down the use of water.
Installation of the water tank so as to
minimise the dependence on water
council. Installation of new processes
on usage and conservation of water.
Installation of water usage graph so
as to track the usage. Replace the
dishwasher which makes use of less
water.
The implemented plan enables the
company to save water to a large extent
and the plan is highly successful
(Hammer, 2015).
Evaluation:
By comparing the outcomes with that of the implementation, it is found that risk management
plan is quite effective. Implementation of the plan is quite important for gaining effective
outcome and results for the development of the business. Water saving devices, as well as
processes, are important for conserving the resources and water for the future processes. With
effective banking strategies and plans the company is able to save the cost of insurance.
Managers are ensured with the safety measures. Implementation of the plans is important so that
employees are motivated towards the working of the organization in an effective manner.
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Assessment Task 4: Knowledge test
1: What are three ways that research can be conducted on risk-related issues? For each
way, briefly describe how it may be done.
The ways for analyzing the issues of the risks related matters are explained as follows:
 Qualitative analysis: It includes the information and details which are collected by the
company to take effective decisions on managing the risks associated with the business.
 Semi-quantitative analysis: In this type of research method, the risks associated with the
business and the company are mentioned according to the level they would influence the
business (Hopkin, 2017).
 Quantitative analysis: In this method, the risks are assessed with the help of numerical
data and calculations are done for making a clear understanding of the available
information. Formulas are used to calculate the results.
2: Fishbone checklists and brainstorming are both tools that can be used in risk
management. Describe each of these and when they would best be used.
Fishbone diagram: It is also known as the cause and effect diagram. It is a method in which all
the possible causes of the problems are analyzed to know the root cause.
Checklists: It is a method in which the management is able to ensure that all the activities and
operations are looked upon from all the angles and the risk list is created.
Brainstorming: It is a method in which various ideas are generated for managing the risks
associated with the project or the business (Hull, 2012).
3: What are the five stages of risk likelihood? Briefly describe each one.
1) Almost certain: Highly and most frequently likely to happen.
2) Likely: Will probably happen.
3) Possible: may happen at times.
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4) Unlikely: Not expected but there is the possibility of happening.
5)
6) Rare: Unlikely to ever happen.
4: List and give an example description for each of the five levels of consequence for risk.
List and examples are as follows:
1) Extreme consequences: It possesses an adverse impact on certain areas. For example big
loss in the profitability of the company.
2) Major consequences: Better management enables to manage the loss occurred in the
funding of the government.
3) Moderate consequences: Low damage but it can be managed.
4) Minor consequences: Moderate decline in the profits.
5) Insignificant consequences: Small reductions in the profits of the company (Johnston &
Bate, 2013).
5: What needs should be considered when treating risk? List and describe three treatments
that could be considered.
1) Making changes in the likelihood of the identified risk so as to increase the beneficial
outcomes.
2) Manipulating the possible consequences so as to maximize the profits.
3) Share the identified risk with the other related parties so that possible solutions can be
retrieved.
6: What should be included in a risk action plan? Describe the key inclusions and briefly
the type of information included with each inclusion.
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Identify the risks: The risks associated with the business are required to be identified and
analyzed so that the business can be protected from the associated risks.
Timeframe: The time frame or the time period in which the identified risk is managed with the
help of risk management strategy.
Outcomes: The results which are obtained from the implementation of the strategy are analyzed
and effectiveness are evaluated (Kerzner, 2013).
7: How does the AS/NZS ISO 31000:2009 Risk management – principles and guidelines
standard assist organizations to reduce risk?
AS/NZS ISO 31000:2009 Risk management provides the company and the management with the
standards and guidelines according to which the company can identify the possible risks and
manage them with the implementation of the effective strategy. It provides the company with the
way to manage and reduce the risks associated.
8: For each of the pieces of legislation listed, describe the intent of each and how it could
impact on the process of managing risk.
A: Privacy law: This is the law which is linked with the protection of the information about the
business and the employees. When the information is protected risked are reduced and managed
accordingly.
B: WHS regulations: This act is linked to the health and safety of the employees at the
workplace so that the employees and the staff members are protected from any kind of harm.
C: Contract law: This law governs the agreement between the two or more parties who have
signed the contract (Knight, 2012).
9: Name and give an example of three adjustments that can be made in the workplace to
assist a person with a disability.
Equipment: The disable persons can be provided with the tools and equipment which are
specially designed for their use and make their working in the workplace easier.
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Training and development: The disabled employees can be trained for using such equipment.
Suitable workplace: Lifts with lower control panels and emergency mobile phones are the ways
to make the workplace suitable for the disabled employees.
10: List two types of insurance an organization could consider purchasing, and for each
type, describe the risks covered by the insurance and the benefit to the organization.
 Public Liability: This policy protects the organization, workers, volunteers for any kind
of damage and personal injury. The third party is liable for the damage or harm.
 Volunteers workers personal accident: Any kind of harm to the workers due to the
volunteer are covered under this act and the workers are given the benefits weekly. In
such case, the volunteer is not being compensated in case of an accident (McNeil, et. al.,
2015).
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Conclusion
From the above report, it has been concluded that McVille’s cafe needs to consider all the
aspects of the business before purchasing and rebranding Hurley’s cafe. The manager is required
to identify all the risks associated with the acquiring business and then analyze the identified
risks in detail. The analyzed risks are to be managed with the help of risk management strategy
and plan which are formulated by considering all the elements and aspects of the acquired
business. The implemented plan is required to be reviewed and monitored so that the
management can ensure its effective and smooth functioning. Minimising the risks is important
for ensuring profitability of the business.
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