MacVille Pty Ltd. Risk Management Framework: A Comprehensive Analysis

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Manage Risk
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Introduction
Risk management helps in identifying and controlling the threats to an organization’s invested
amount and the retained earnings. The threats or risks arises from numerous sources which
includes financial uncertainty, errors in working of management, accidents or any natural
disaster or calamity.Risk is an uncertain course of event which can occur at any point of time and
can create positive or negative impact on your company’s goals and objectives. Risk can arise in
any form be it political, economic, social, legal, technological and to manage these risks
effectively it requires proper risk management strategies. There are certain tools and techniques
which helps in generation of risk and consequences and helps in generation risk treatment plan.
The best way to implement plan requires effective communication and proper written
documentation. In this report we will discuss about the MacVille Pty Ltd. Companyhow they
manage risks in effective manner and their contribution towards the achievement of goals and
objectives.
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PART A
Risk Report Writing.
Effectiveness of the MacVille Risk Management Framework.
The risk management framework includes numerous elements which helps the company to
operate effectively and offer best services to gain maximum customer satisfaction. In this the
risks which are financial, strategic and related to management are identified and properly
handled within the specified time.
Mac Ville has made certain risk management framework which will help company to deal with
problems that arises during the company operations are explained below:
 Rules and Measures: These rules helps in control the internal functions of the company
and keep an eye on the factor which ensure the business is running smoothly. These
includes all the departments of the company such as human resource, financial
department etc.
 Reports on monthly basis: The management of the company takes meetings in which
they address the problem which are not taken into consideration by authorities. In this
detailed reports on these meetings are discussed and proper solutions have been provided.
 Budget plans: The authorities of the company makes the proper budget plans in
accordance with the strategies of business which will serve the purpose of company and
helps in achievement of the goals and objectives (Aebi and Schmid, 2012).
 Review: The committee generates the report on internal control and they put main
emphasis on risk management. These reports are given to senior management of the
company and they assigns the internal and external audits in timely manner.
The above written framework ensures the company’s performance does not have any impact and
they can handle these situation in proper manner.
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Scope of the risk management.
The scope of the risk management is not certain it works on the hypothetical or assumptions of
organizations external and internal environment. MacVille has known basically what kind of
risks can while going through the operations and they have analysis these which help in the
functions of new store (Bessis 2015).
As the new manager of the store meetings are scheduled with the current manager regarding the
lease of land and discussion with the manager of Hurley’s café. The tasks of the new manager is
to look after the risks related to the expansion and report is made in which steps are taken into
consideration accordingly.
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Factors on which risk management will be judged.
The factors which affect the risk management are distance between Brisbane and Toowoomba.
The problem of distance results in the delivery of fresh food items which is a bigger concern.
The next concern is regarding the lease of the land as we do not have written documents and also
same with the employees too as MacVille is a bigger chain and contract is a necessary
requirement to carry forward the business operations. Another and main problem is the cash
handling which requires a person who can ensure the safety of cash. In this Macville has to make
sure the cash register is used in a proper manner (Banaitiene and Banaitis, 2012 ).
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Table of Stakeholders.
Stakeholders Internal/External Role in Process Stake in Process
Workers Internal Deals with customer
during the business
operations.
They get
remuneration for
their services.
Manager Internal Managing of the
property properly and
ensuring their
functions are
entertained in proper
way.
Manager ensures
the company
should retain
maximum profits
from the store.
CEO Internal Focusing on the
expansion of business.
They help the
company to reach
to its maximum
potential and
expansion.
Suppliers External The person takes care
of the supply of
ingredients and raw
materials.
Retain them as
their biggest
purchaser.
Customer External They help company to
make the sales.
Retain profit.
Shareholders Internal Involved as they Profit retained by
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acquire shares of the
company.
the shares.
Investors Internal They invest the
money for expansion
of the company.
They generate
maximum returns
on their
investments.
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Political
The new rules and regulations are taken into consideration by the
government which will help the MacVille in running their
operations and solves the issues regarding the problems at the time
of running business operations especially problem of water has
become a crucial part.
Economical It focuses on the current infrastructure of the store and which in
return help MacVille to expand in every area.
Social
In this the existence of Hurley’s ensures that customers would be
remain loyal and the place becomes their first priority when they
thought of going out. Their main goal is to retain maximum
customer.
Technological
MacVille has investing in technology up gradation which helps in
the water supply systems so any penalty should not incur on them.
PESTLE ANALYSIS
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SWOT ANALYSIS
 Strength: Location acts as biggest strength and it is set on the main street which
provides maximum attention and attracts maximum consumers. On the top of the
place is easily reachable and availability of public transport is high which helps
consumers to reach on place without facing any hurdles (Hull, 2012).
 Weakness: The area of concern here is problem which arises by the trucks and at the
same time investigation begins which require solutions in timely manner.
 Opportunities: The landlord is opening more shops in the area through which
consumers will increase and it will help generation of maximum profit.
 Threats: There are two threats which can create huge impact on business such as fine
imposed on excessive water consumption and increased competition in the market.
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A list of risks to the project of opening the new store.
Business is another name of risk and initiation of business comes with numerous risks which are
explained below:
1 Failure of restaurant.
2 Bad reputation.
3 Food safety.
4 Fire safety and proper installation of fire alarms.
5 Storage of food.
6 Proper hygiene and cleanliness.
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TASK B
Stakeholder Communication.
1. Email to the stakeholders of the company.
To,
The stakeholders of MacVille Ltd.
Subject: Explaining the different stakes at work.
Dear Sir/Mam,
This mail is to inform you that Macville is establishing a new store at Toowoomba and the
process has identified some issues and problems regarding the operations of the company and
identified the solution regarding that problems. We have requested to kindly contact the
management of MacVille which can help you in getting the detailed solution and which helps in
assessing the situation and as well as advices them which will help in serving the services better.
Thanking You,
The Manager,
MacVille, Toowoomba Shop.
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2. Email to the C.E.O of the company.
From: Assistant Manager- Toowoomba Store
To: C.E.O
Subject: Risk in new Toowoomba Store
Hi Sir,
Greetings for the day.
This mail is regarding the discussion for the risk management process and review of the risk plan
which is made through the research. We have identified certain threats which are needed to be
dealt with in specified amount of time. You are kindly requested to review the plan properly and
advice some necessary changes and discuss the things which can further can take into
consideration.
We are looking forward to meet you in person and discuss all the details of risk management
process. Kindly let us know the when you are available for the meeting.
Thanking You,
The Manager, Toowoomba store.
3.
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