Strategic Risk Management in Projects

This assignment explores the concept of strategic risk management within project environments. It delves into various risk assessment techniques, drawing upon established frameworks like ISO 31000 and emphasizing the importance of integrating social considerations into risk management plans. The assignment also highlights the significance of a comprehensive risk management framework in ensuring project success by identifying potential threats and vulnerabilities, developing mitigation strategies, and fostering effective communication throughout the project lifecycle.

Running head: MANAGE RISK BUSINESS
BSBRSK501: Manage Risk Business
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Assessment 1 - Case Study - Risk Review......................................................................................4
1.1 Introduction............................................................................................................................4
1.2 Scope......................................................................................................................................4
1.3 Goals......................................................................................................................................5
1.4 Stakeholders...........................................................................................................................6
1.5 Analysis.................................................................................................................................8
1.5.1 PEST Analysis................................................................................................................8
1.5.2 Value Chain Analysis.....................................................................................................9
1.5.3 SWOT Analysis..............................................................................................................9
1.6 Describe...............................................................................................................................11
1.6.1 Occupational Health and Safety (OHS)........................................................................12
1.6.2 Government Compliances............................................................................................12
1.6.3 Financial Operations.....................................................................................................12
1.6.4 Human Resources.........................................................................................................13
Assessment 2 - Case Study - Risk Analysis..................................................................................15
2.1 Risk Identification...............................................................................................................15
2.2 Manager’s Travel Risk........................................................................................................16
2.2.1 Manager’s Travel Risk: Likelihood..............................................................................17

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2.2.2 Manager’s Travel Risk: Consequence..........................................................................17
2.2.3 Priority..........................................................................................................................17
2.2.4 Manager’s Travel Risk: Options...................................................................................18
2.3 By-law Compliance Risk.....................................................................................................18
2.3.1 By-law Compliance Risk: Likelihood..........................................................................18
2.3.2 By-law Compliance Risk: Consequence......................................................................19
2.3.3 By-law Compliance Risk: Priority................................................................................19
2.3.4 By-law Compliance Risk: Options...............................................................................19
2.4 Banking Risk.......................................................................................................................20
2.4.1 Banking Risk: Likelihood.............................................................................................20
2.4.2 Banking Risk: Consequence.........................................................................................20
2.4.3 Banking Risk: Priority..................................................................................................21
2.4.4 Banking Risk: Options..................................................................................................21
2.5 Risk Management Plan Table..............................................................................................22
Assessment 3 - Research Project...................................................................................................24
3.1 Manager’s Travel Risk........................................................................................................24
3.1.1 Plan...............................................................................................................................24
3.1.2 Implementation.............................................................................................................25
3.2 By-Law Compliance Risk....................................................................................................25
3.2.1 Plan...............................................................................................................................26

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3.2.2 Implementation.............................................................................................................27
3.3 Banking Risk.......................................................................................................................27
3.3.1 Plan...............................................................................................................................28
3.3.2 Implementation.............................................................................................................28
3.4 Outcomes.............................................................................................................................28
3.5 Evaluation............................................................................................................................32
Bibliography..................................................................................................................................34

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Assessment 1 - Case Study - Risk Review
1.1 Introduction
A detailed investigation is to be performed in this Toowoomba MacVille Café study. To
identify several risks that are currently involved in the system are mentioned as following: New
goals are to be achieved; Involve certain stakeholders as per their expertise; technological,
economic, political, and social features; identify weaknesses and strengths; find out risks and
opportunities; and Analyze project outcomes. Specific reason based on which this particular
investigation should be conducted is identification of the good and bad perspectives about risk
management planning. The report should convey what are the necessary changes required for
implementation in MacVille café. The changes should be identified based on work efficiency
increasing with involving certain legislative laws. Conducting investigation is important for
viewing the consideration of staff member allocation, community incorporation, and project
management activities. Moreover, the investigation should be conducted in a manner to
demonstrate the aspects in which management, staff members, and government should be
involved along with community.
1.2 Scope
MacVille Pty Ltd have implemented chain of café and shops in central distract of
Brisbane, Queensland, and CBD of Sydney for becoming central tycoon in Australia. The re-
branding strategy for existing Hurley Café in Toowoomba should be incorporated with decisions
taken by board of directors. This particular report focused on identifying the risks in Toowoomba
along with exposing analytical outcomes and likelihoods, consequences of risks, and priority in
risk treatment.

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1.3 Goals
Purpose of risk treatment and management is considered for ensuring smooth and proper
transition towards MacVille Pty Ltd. The risk management plan is considered into account for
providing ongoing support to company and its risk management initiatives. The risk management
aims are listed as following:
a) To ensure appropriate manner of transition to MacVille systems
b) To meet mentioned compliance standards of OHS, industrial and privacy
relations law
c) To employ existing staffs for getting every person for understanding personal
roles and responsibilities
d) To set up written policy and procedures for guiding staffs over carrying out
personal duties
e) To reduce water usage and install water tank
f) To build up professional business culture along with business goals
g) To monitor and investigate about the changes in business, external
environment, and finding out opportunities and threats to business
While opening new café and store in Toowoomba, there exists two major goals in the
project. The primary goal is identified as involving the business with growing and running newly
opened café. The second goal is identified as focusing on potential risks that are involved in
opening the new café.
Primary goal of business is aimed at opening new base of customers for MacVille in
order to expand business and grow business popularity. New store in Toowoomba can increase

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overall profit for help spreading awareness of café with bringing new customers into service
offering. The second goal in the study is to identify potential risks that are involved in opening
new café and identification of certain actions that needs to be included in place for eliminating
risks. The identified risks and threats can be resolved with identifying the internal risks and
external risks. The internal and external risks should be resolved along with performing
assessment with them individually.
1.4 Stakeholders
Stakeholders are identified to be a person who will take responsibility for performing
certain activities in the project; the stakeholders should be included as taking part in the project
actively. The stakeholder interest is identified as positively or negatively affected with project
execution or project completion. The stakeholders can exert impact on project and their
deliverables. Stakeholders are important for performing risk management along with identifying
stakeholders with casting clear vision to mentioned figures in business process. The following
table includes details about stakeholders along with dividing them under types as ‘internal’ or
‘external’.
Stakeholders Internal/external Role in process Stake in process
Board of
directors in
MacVille Pty Ltd
Internal Providing support,
decision-making,
reviewing CEO’s
performance, measuring
stakeholder performance
MacVille’s business
performance
MacVille’s Café Internal Reporting to board of MacVille’s business

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Queensland CEO
– Paula Kinski
directors along with
managing daily operations
performance
Assistant
managers of
Brisbane Queen
Street store
Internal Managing the new store
activities, managing the
risks of taking over
process
Appropriate transition of
business to Toowoomba
café store
Existing staffs External Hurley’s café existing
staffs and employees
Securing employment
Current
supervisor-in-
charge – James
Mansfield
External MacVille second in-
charge personnel
Offered to personnel level
as second in-charge
person in operations
The legal firm
company –
Goldsmith
Partners
External Providing legal advises
and keeping MacVille
aware about legal
decisions
The legal or compliance
issues can be reduced and
the legal firm can help
with providing legal
decision-making
The landlord –
Ron Langford
External Providing assistance with
store establishment in
Toowoomba
Landlord can get rental
payment from new tenant
The customers External None Order best quality food,
breakfast, and coffee
Table 1: Stakeholder analysis

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(Source: Created by author)
1.5 Analysis
In this analysis process, PEST, SWOT and value chain analysis is accomplished aligned
with mentioned case study of MacVille Pty Ltd.
1.5.1 PEST Analysis
The PEST analysis is performed analyzing the political, economic, social, and
technological aspects in MacVille organization.
PEST
Analysis
Aspects
Political Economical Social Technological
Considered
points
For importing
espresso machines,
tariff cost should
be removed. There
is strong possibility
for introducing
impose of carbon
tax over energy
intensive products
for commercial
usage.
Economic aspect
is identified as
strengthening the
Australian dollar
against trading
partners in recent
years.
Social aspect is
considered as
lifestyle trend for
eating out rather
than taking away
foods. Eating out
is more frequent
and steady
population
growth matters as
well.
New espresso
machines should be
installed with using
30% less energy.
Currently, home
markets for espresso
machines are
following high
growth rate.
Table 2: PEST Analysis on MacVille Pty Ltd

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(Source: Created by author)
1.5.2 Value Chain Analysis
Value chain analysis is considered in this aspect with considering viewpoints:
Inbound logistic: Lack of experience exists for personnel with custom and importing raw
materials
Operations: The management information system can provide internal controlling over
strategic planning
Outbound logistic: The outbound logistic can be contracted with delivering machines on
time due to faster expansion planning.
Sales: The marketing and sales department is performing as per business standard with
strong profit points and this department can be expanded for better performance with using
internet connection.
Service: The MacVille organization can provide better service with building appropriate
reputation on business after sales process is improved for offering services to customers.
1.5.3 SWOT Analysis
In structured analytical manner, the SWOT analysis can be performed with segmenting
the viewpoints under four quadrants as in threats, weaknesses, opportunities, and strengths.
SWOT analysis is performed as following:
Strengths: The strength aspects are mentioned as following:

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a) Location of store on corners in main streets are favorable for easier access to all
local customers
b) Café can attract large group of customers as per easier access to transportation
and stores primary location.
c) Among the staff group, particular staff was trained chef as the chef developed
innovative and popular range of rice wraps. The dish was tasty, healthy and
gourmet. Other café in this chain of business cannot offer these dishes.
Weaknesses: The Hurley’s café is identified as family business store in which Hurley’s
café family members were included among working stakeholder groups. James was considered
as another member in family for supervising café operations and as manager Mr. Hurley would
authorize salaries without authorizing deliverables:
A. There were no written policies and procedures for manuals in stores.
B. Currently, the store use 41,500-liter water a week.
C. Similar staff members who maintain cash register so that balancing can be
completed with bank deposit and staff member can perform banking activities as
well. The banking should be performed daily and often amount of $4,000 kept
unsafe in office premises overnight in cash register.
D. Cash register entry was not considered for all banking procedures over all staff
members.
E. Fit-out parts can be older and fit out chairs can be unattractive that became
unstable and broken along with some other parts. As gaffer type, the carpet was
taped.

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F. There exists no such process for dealing with injuries along with safety at
workplace.
G. Lack of sales process promotion exists for this business strategy and techniques.
H. Wages and salary records considered as incomplete along with several
calculations along with working out numbers of hours that is multiplied with set
amount.
Opportunities: Several opportunities exist for MacVille Pty Ltd:
1) Innovative frozen par-bake cooking system can be used from council with
exhaust system; yet this cooking system can cook fresh bakery food items can be
ready within 30 minutes from frozen par-baked pastries.
2) Opportunities exist for opening more café stores around the surrounding
shopping areas such as Wilsonton, Clifford Gardens and K-Mart plaza.
3) Federal Government National Broadband Network is rolled out in Toowoomba
with allowing efficient and effective way of video streaming and
teleconferencing.
4) Currently, the by-law due from implementation on first of next month allows
café for expanding footpath dining for putting more tables and chairs outside the
café premises.
Threats: Some threats can be considered as:
1. Representatives over large international chain of coffee shops can make enquiries
around the town so that new café store can be opened in Toowoomba CBD.
1.6 Describe

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Following list of risks are found throughout investigation; the issues can be involved pre-
existing risks along with other risks can be caused with opening new store.
1.6.1 Occupational Health and Safety (OHS)
OHS is considered as following points:
A. Some of the chairs can be used for dining in store; some chairs are broken and
unstable, this could make proper certain hazard of staffs, customers, with
breaching duty of care as store.
B. There exist no written policies and procedures that are available for staff,
consumers, and other third parties for referring to
C. No appropriate way of dealing injuries exists from happening in workplace
D. There exists lack of internal controls, lack of professional business culture, failure
to meet OHS, privacy, and industrial law; failure to monitor external
environmental and finding out opportunities and threat to business.
1.6.2 Government Compliances
Government compliances can exist for potential fine up to $50,000 with issuing for
excessive water breaches. The compliance exists for federal government, their rules and
regulations.
1.6.3 Financial Operations
Financial operations can be listed as following with according operational initiatives:
I. Delivery time for pastries is longer than expected from manufacturing plant to
bakery plant and would not be able to arrive to café store before morning rush.

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II. Company with branded strategies and supplies would not arrive as quickly as
possible for Brisbane CBD stores can come up with issue.
III. Potential loss of money can be taken from cash register overnight when correct
procedure is followed without taken care into effect.
IV. There exists no safe in the store that this issue could came up as potential risk if
proper procedure is not followed
V. No extra security measures exist for entire department such as alarm system and
shutters in the store
VI. There is no reports for having cash register entries by family staff members
recorded
1.6.4 Human Resources
Human resources are considered in this research in following aspects:
i. Large international chain for coffee shops makes enquiries about opening store in
Toowoomba CBD area
ii. Computer systems based workplace required for bringing reasonable standards for
complying with fundamental information protections, appropriate payment
procedures.
iii. Computer systems should include employee details and detailed financial records
along with password protection; so that unauthorized persons cannot access the
computer for stealing information.

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iv. Employee wages and salary record considered as incomplete as the information
seemed to be estimated with in-hand amount depending on the number of hours
the employee works.
These aspects are considered in the description in order to assess risks in later sections.
This section of the report considered major risk reviewing process that acquires proper analysis
works. The analysis activity includes PEST analysis, SWOT analysis, and value chain analysis
so that the risks and threats can be identified without making certain issues about research. The
stakeholders are identified in this report showing how the entire deliverables can be managed
with allocation of time and stakeholders.

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Assessment 2 - Case Study - Risk Analysis
2.1 Risk Identification
In this section, the risk identification is performed based on clarifying their impacts,
severity, and importance. The risks are defined to be as following:
Likelihood: For individual risk, the likelihood is assessed based on risk occurrence such
as low (1), medium (2), high (3), extreme (4).
Consequences: The consequences of risks can be addressed from occurring such as
insignificant (1), minor (2), major (3), catastrophic (4).
A. Catastrophic risk: Casualties, fatal injuries, regulatory interventions, violation of
rules, loss of revenue, asset damage causing loss of bigger amount of money,
reputation damage and long-term environmental damage – these are generally
considered as catastrophic risks.
B. Major risk: Utilization of single stakeholder, license breach, legislation issue,
regulation standard violation, net revenue loss, significant-value asset damage,
reputation damage for national level and medium-term environmental damage –
these are potential threats and can be identified as major risks.
C. Minor risk: The internal procedure breach, spreading adverse information, local
media damage – these are identified as minor risks.
D. Insignificant risk: The standard, license, guideline breach in which insignificance
exists towards project agenda. Public awareness may exist for the risk; though
negligible environmental impact exists are generally considered as insignificant
risk.

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Priorities: The likelihood and consequences to risk are considered together for
determination of risk rating about priorities. Generally, risk table is considered with indentified
consequences that meet identified likelihood; risk rating is considered between 1 to 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
Options: Once, the risks are prioritized some outlines options are identified for treating
the risk. From meeting conduced regard the business risk management and strategy review from
first assessment part; three main criteria’s are being considered as a major concern over the
course of acquisition of Hurley’s Café in Toowoomba by ranking from its severity to the
moderate one, are as followed;
2.2 Manager’s Travel Risk

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Manager’s travelling risk exists as routes to Toowoomba is too steep and winding up
along with regional areas. This risk is identified as major concern in which driving safety should
be maintained during evening and late at night under poor light conditions.
2.2.1 Manager’s Travel Risk: Likelihood
This particular risk has possibility as under category to be medium and this risk increases
necessity of mitigating the risk. As the risk presence increases threat for travelling between
MacVille headquarter in Brisbane and Toowoomba location. The travelling is required for
managers to attend weekly meetings that finish late in evening or night.
2.2.2 Manager’s Travel Risk: Consequence
When the risk involves certain casualties, personal injuries, and fatal accidents, those
risks are considered to be with catastrophic consequence. Moreover, there exists possibility of
accidents for managers during long-drive under unfavourable conditions of narrow and steep
road. In case any accident occurs, organization requires to bear insurance cost for manager and to
hire substitute manager in place of injured manager. This concern can slow down operational
efficiency and can cast significant impact on business process.
2.2.3 Priority
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2]
Major [3]
Catastrophic [4] 8

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Risk priority from this assessment can be stated to be high as the rating behind
combination of consequence and likelihood is 8.
2.2.4 Manager’s Travel Risk: Options
To address risk mutation, some essential changes of plan should be included as
following:
1. Teleconferencing system installation requirement
2. Management meeting should be scheduled to complete before 3:00 PM
3. Manager who wants to visit regional office can be considered as excuses from
meeting activity before 3:00 PM
4. Changes required for meeting time to be shifted to morning session
2.3 By-law Compliance Risk
This particular risk can occur due to the recent reformation of local council legislation
where water usage exceeds. This concern is essential for MacVille Pty Ltd for complying with
set out legislation standard from local council since the legislation standard can be considered as
their responsibility as they are corporate citizen.
2.3.1 By-law Compliance Risk: Likelihood
The risk presences moderate threats to the continuity of the business due to the fee
imposed by local council in case water usage is exceeded from natural limit. Once, the likelihood
of risk is considered to be medium; when the employees or associated manager utilizes more
water. They managers can cost with large fines for excess water usage and consequent breach to
current by-law compliance risks.

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2.3.2 By-law Compliance Risk: Consequence
Risks arise from failing to comply with legislations are;
1) Large amount of fine impose by council
2) Brand and reputation damage
3) Lack of control in operational cost
4) Resource allocation being inefficient
Due to this particular cause, the consequences of this risk can be identified as minor.
2.3.3 By-law Compliance Risk: Priority
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2] 4
Major [3]
Catastrophic [4]
Risk priority is identified to be medium and as rating of this risk is estimated to be with
combining likelihood and consequences as 4.
2.3.4 By-law Compliance Risk: Options
In order to assess some proper mitigation activities in by-law compliance risks; some
planning changes are required as following:
I. Installation of native water plants for reducing excessive water consumption and
water usage

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II. In stallion of water tank for taking advantage of conserved rain water and usage of
lesser water from council
III. Installation of dual flush system for increasing cost saving
IV. Changes are required for reinforcing water usage according to rule and
regulations along with monitoring water usage
V. Replacement of machine for more efficient water usage
2.4 Banking Risk
This particular risk can occur from lack in control, monitoring of financial records and
method of keeping money in office premise after working hour. Lack of certain rules and
regulations exists for following process to deposit cash daily, keeping record of sales, paid out
cash, and detection procedure for fraud controlling.
2.4.1 Banking Risk: Likelihood
Banking risk is considered with medium possibility for stealing cash from office premises
as banking in cafe; banking was not done daily and often $4,000 kept in cafe premises overnight
in cash register.
2.4.2 Banking Risk: Consequence
The risks from the lack of controlling and monitoring are as followed;
i. The consequence of risk can occur for losing more asset value from robbery and
this concern is considered as increasing chances of breaking in office premise
ii. Fraudulence activities in which employees can steal money when the café dose
not maintains appropriate financial record keeping.

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iii. Impractical financial system in place, due to the previously family own café 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
2.4.3 Banking Risk: Priority
Classification Low [1] Medium [2] High [3] Extreme [4]
Insignificant [1]
Minor [2]
Major [3] 6
Catastrophic [4]
Risk priority can be considered as medium as rating to risk priority is under combination
of likelihood and consequence and this combination is estimated at 6.
2.4.4 Banking Risk: Options
Banking risk can be mitigated based on some certain options available within risk
management planning; the options are mentioned as following:
a) To set up certain rules and regulations for banking so that banking risk can be
eliminated for carrying cash overnight until amount of cash to be taken as
minimal in amount

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b) For switching bank from considering nearest bank in order to reduce travelling
distance for handling large amount of money
c) For providing insurance to overnight cash protection, safe system should be
installed.
2.5 Risk Management Plan Table
Risk Assess
Risk
(L, M, H,
E)
Controls Monitoring Timelines Responsible
Manager’s
Travel Risk
High Meeting work should
be completed before
3:00 PM; therefore,
the managers do not
need to drive at peak
hours
Monitoring can
be performed
with checking
meeting times
During opening
week of the cafe
CEO is responsible
for managing the
risk with
incorporating new
policy
Banking Risk Medium Banking personnel
should deposit the
money daily
Monitoring can
be performed
with getting
weekly bank
statements
During opening
week
Financial
controller will be
most responsible
person in this
matter
By-law
Compliance
Risk
Low Provide training and
proper acquaintance
role so that effective
water usage can be
maintained.
Monitoring can
be performed
with proper water
usage bill
checking
Should be
implemented
within three
months time from
opening
Goldsmith partners
are responsible for
mitigating the risk

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Table 3: Risk Management Plan
(Source: Created by author)

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Assessment 3 - Research Project
As per considered investigation in the risk management agenda for MacVille, the
likelihood and risk consequences are investigated. Based on the risk management procedure, this
monitoring report is prepared. Depending on collection of information in the research and
analysis includes first step for new shop, some important figures are considered for determining
banking problems, insurance risks, weekly meetings with head office, business policy, local
council issues and others. Therefore, the risks are evaluated in this section and overall plan and
regarding implementation procedure is discussed. From previous section, this monitoring report
is prepared with identifying risks; that are summarized and implementation plan is discussed.
3.1 Manager’s Travel Risk
Long drive towards Brisbane from Toowoomba, can arise certain difficult situation for
managers to reach the place and further attend the weekly meetings in Brisbane. The difficult
situation can arise from some meetings that did not finish until evening even after spending
certain leisure time. Some managers require attending some training session that takes next six
months to complete along with considering other associate managers. Taking shortest route to
reach Brisbane, the route is viewed to be steep and takes more time to drive for even professional
drivers. Professional drivers even take more time even in daylight hours; moreover, competent
driver can feel that accidents should be mitigated from occurring during the long drive for
reaching in favorable conditions. Moreover, chances of accident bother managers in considerable
manner. Therefore, manager has planned broadband network access for attending weekly
meetings through video conferencing session.
3.1.1 Plan

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Tele conferencing system that is identified from planning; can be installed for six months
after settlement. Time schedule for finishing management meetings is at 3:00 PM and this
schedule is likely to provide adequate time to managers. This time schedule can allow managers
to avoid meetings at no later than 3:00 PM on daily basis.
3.1.2 Implementation
Teleconferencing system that is kept under planning for six months to implement after
settlement. This teleconferencing system design is delayed due to time delay from Federal
Government’s National Broadband Network rollout situation. Weekly meetings for managers are
scheduled for finished before 3:00 PM as per previous planning; however, in some cases, the
manager has to stay from head office team request. The manager has not provided any excusal
information to CEO as per plan agreed and managers feel that they do not bear authority for
walking out of the premises at 3:00 PM. The associate managers at training has been shifted to
morning time with allowance to other managers to leave the premises before 1:00 PM as per
planning made.
3.2 By-Law Compliance Risk
In this scenario, the by-law compliance risk arises due to certain factors as lack of
guidance for staff members for completing their jobs. Again, by-law compliance risk can
consider aspect of water usage and wastage of water resource. No written policy exists and all
procedures are kept manual; therefore, the managers required setting policy and following the
procedures in verbal manner. In few days in each week’s time, manager can be present in the
store and show the staffs about professional working procedures. Manager can guide the staffs
for limited period causing the staffs taking work based on personal decision-making and this

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turns out several blunders and mistakes. Therefore, the organization wanted to resolve this issue
by providing written manual to every employee and activate the policy from management end.
Furthermore, the store currently utilizes 41,500-liter week running Dishwater Tank when
it is half-empty. Washing out fresh fruits and vegetables under fast-running water tank is
required from this currently installed tank capacity. However, the toilets use single flushing
system and on the other hand, dual flush system in toilet can cost up to $7,500 for upgrade from
single to dual flush system. The dishwater is set for fully washing and water efficiency is
estimated to be labeling and standards scheme (WELS) rating of 3. For more water efficiency,
reaching up to rating of 5-6; star dishwater installation can cost up to $6,000 and more. James
explained the situation to Mr. Hurley; and Mr. Hurley instructed the staffs to keep non-native
flowering plants for courtyards watering for fulltime in single day.
Therefore, store manager can make plans according to installation routine of native plants
for reducing water usage. Hence, water tank should be installed and reduction of water usage
should be performed for depending on council water. The installation of dual flash is another
aspect for toilets; the existing dishwater should be replaced with new dishwater tank with 5-6 stat
(WELS) rating.
3.2.1 Plan
Some issues are identified from this risk identification process; the dealing with local
council listed some issues as following:
1. Installation of native plants for cutting down water usage
2. Installation of water tank with reduction of dependency from council water and
installing dual flush toilets

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3. Introduction of new procedures over water usage and perform water conservation
in order to replace the dishwater with 5-6 stat (WELS) rating system
3.2.2 Implementation
Board and CEO have introduced another new policy as per associated compliance with
Toowoomba by-law on water usage and conservation planned. However, the specific procedure
cannot be written in new policy document; and this procedure appears to be achieving the
compliance as well. The plants have been changed to natives as per requiring minimal water as
per planning approval. Installation of dual flush toilet is under planning for implementation after
six months from settlement. The dual flush toilets have been ordered for installation and those
products now exist in current stock. Those toilets yet cannot be installed as backlog of district
plumber exists. Five-star rated (WELS) dishwater was installed from supplier within this six
months planned time schedule.
3.3 Banking Risk
Staff member who completes balancing cash register; he or she has another responsibility
to complete depositing in bank account. The staff member has to cover several responsibilities
regarding banking activities to perform at the end of the day. Banking is not performed in
everyday and overnight at least $4,000 was kept in the office premises. The office premise is not
safe, as the management cannot afford to install secure safety deposit box. Two blocks ahead of
the office, a bank is situated; however, the Hurley family bank is some blocks ahead of the office
and it is quite difficult to reach Hurley family bank often to perform banking for some
stakeholders. Henceforth, the organization has prepared a policy for setting regulations about
perform banking daily and reducing the risk of carrying money overnight.

28MANAGE RISK BUSINESS
3.3.1 Plan
For reducing banking risk, the financial controller required to organize discussion session
with related financial, insurance and banking issues. The issues can include business insurance,
local banking, and making company policy for perform banking daily. This policy is likely to
eliminate the threat of carrying money overnight.
3.3.2 Implementation
Financial controller considered charge of $5,000 over insurance coverage for holding
cash in premises overnight from opening week as per planning. However, the insurance premium
is estimated to be $2,500 per year and this amount is considered to be excessive from viewpoint
of financial controller. Company bank account that is under planning for opened in first week;
and this account was opened after four weeks from opening bank two blocks ahead from the
office. However, this nearby bank is not MacVille’s regular bank and some difficulties exist for
receiving similar level of service that Brisbane stores receive daily.
The training for daily banking is considered as successful; and this training session is
completed as planned. A particular audit is considered for bank deposit book for showing that
there were only two occasions in last six months; when no banking entry exists for daily sales.
3.4 Outcomes
In this section, the risk management outcomes are stated once, the risk identification and
management approaches are mentioned previously. Risks are mentioned in this section as
following:
Risk name Risk Issues Risk Implementation Remarks

29MANAGE RISK BUSINESS
description identified planning to reduce risks
Manager
traveling
risk
Between
Brisbane and
Toowoomba,
long distance
drive is
required. Long
distance drive
is likely to
arise issues of
accidents.
Long
distance
between
Toowoomba
and
Brisbane;
Route is not
favorable
rather the
route is
more steep
and time-
consuming
for travel.
Accident
chances
should be
reduced.
Tele
conferencing
can be
identified as
per planning
done
previously.
This system
can be
installed for
six months
after
settlement.
Implementation
is delayed for
teleconferencing
system and as
per planning;
after settlement,
this system will
be implemented.
This
teleconferencing
system design is
delayed due to
time delay from
Federal
Government’s
National
Broadband
Network rollout
situation.
The
implementation
plan is
currently
delayed.
By-law
compliance
risk
In this
scenario, the
by-law
Installation
of native
plants for
Board and
CEO have
introduced
The plants have
been changed to
natives as per
The risk is
currently under
processing.

30MANAGE RISK BUSINESS
compliance
risk arises due
to certain
factors as lack
of guidance
for staff
members for
completing
their jobs.
Again, by-law
compliance
risk can
consider
aspect of water
usage and
wastage of
water
resource.
cutting
down water
usage;
Installation
of water
tank with
reduction of
dependency
from council
water and
installing
dual flush
toilets;
Introduction
of new
procedures
over water
usage and
perform
water
conservation
in order to
replace the
another new
policy as per
associated
compliance
with
Toowoomba
by-law on
water usage
and
conservation
planned.
However,
the specific
procedure
cannot be
written in
new policy
document;
and this
procedure
appears to be
achieving
the
requiring
minimal water
as per planning
approval.
Installation of
dual flush toilet
is under
planning for
implementation
after six months
from settlement.
Those toilets yet
cannot be
installed as
backlog of
district plumber
exists.

31MANAGE RISK BUSINESS
dishwater
with 5-6 stat
(WELS)
rating
system
compliance
as well.
Banking
risk
The staff
member has to
cover several
responsibilities
regarding
banking
activities to
perform at the
end of the day.
Banking is not
performed in
everyday and
overnight at
least $4,000
was kept in the
office
premises.
The office
premise is
not safe, as
the
management
cannot
afford to
install
secure safety
deposit box;
It is quite
difficult to
reach Hurley
family bank
The issues
can include
business
insurance,
local
banking, and
making
company
policy for
perform
banking
daily.
Financial
controller
considered
charge of
$5,000 over
insurance
coverage.
However, the
insurance
premium is
estimated to be
$2,500 per year
and this amount
is excessive.
The banking
risk cannot be
resolved as
security policy
should be
included.
Table 4: Risk Analysis Outcomes

32MANAGE RISK BUSINESS
(Source: Created by author)
3.5 Evaluation
The evaluation of risk can be performed in this following format with additional risk
mitigation and management planning. The evaluation planning is performed as following:
Risks identified Risk measurement
level
Risk impact level
(after mitigation)
Remarks
Banking risk Moderate Low Negative risk
Manager traveling
risk
High Low Negative risk
Time schedule risk Low/medium Low Positive risk
Use of water risk
(by-law compliance
risk)
Medium Low Negative risk
Table 5: Risk Evaluation Process
(Source: Created by author)
As per risk evaluation process, risk mitigation can be performed according to planned
approach. The implications are found as:
A. Banking risk is considered as moderate risk primarily; however, now daily
banking is to be performed for personnel. The money should not be left
unattended in the office premises; therefore, the daily cash deposit should be

33MANAGE RISK BUSINESS
performed in bank. This mitigation planning made the risk impact lower than
before.
B. Travelling risk is considered as high regarding its impact on the stakeholder such
as managers and associates. The traveling time was reduced to 3:00 PM; causing
risk impact lower than before.
C. The time schedule risk for managers emerged from leaving early and this risk is
considered as low in impact. The possibilities for this risk to happen is medium;
now, the time scheduling risk management planning made the risk impact lower.
D. Usage of water risk can identified as in medium impact; now, the impact is
reduced to lower. Once, the dual flush system is installed and 5-6 stat (WELS)
rated dishwater is used; the use of water risk can be mitigated and impact can be
lower.

34MANAGE RISK BUSINESS
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