Risk Management for Macville Company

This report focuses on the different managerial approaches that might be undertaken by the Macville Company while making the business expansion. It also includes the identification of the different risks that are indulged with the undertakings of the organization and the effectiveness of the risk management framework.

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the student
Name of the university
Author note

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Assessment 1
1. Introduction
The Macville has chain of cafes across Australia mainly in the Central Business Districts
of Brisbane, Queensland, Sydney and NSW. The identification of the different risks that are
indulged with the undertakings of the organizations helps in the proper management of the
business concern. The different strategies that were applied and the manner in which the
manager of the business communicated the different risks with the stakeholders and the CEO is
the major concern for undertaking the report. The assessment of specific risk factors that might
be faced by the organization while undertaking its expansion in the international markets helped
the same in formulating the strategies. The report will focus on different managerial approaches
that might be undertaken by the business while making the business expansion.
2. Effectiveness of the risk management framework
The risk management framework that is confirmed by the organization is dependent on
the establishment if sound communication strategies for the assessed risks and thereby facilitate
the modifications in the systems. The strategies that are designed by the organization helped to
mitigate the issues that the business might face while undertaking the specific activities. The
policies and regulations that are created by the business relating to staff satisfactions will be
helping the organization to build on the enterprise. On the other hand, the different internal and
external audits on risk assessment helped the organization to create different strategies for
avoiding varied unfortunate circumstances related to lower staff turnover and productivity of the
business. The monthly reporting systems of the organization helped the same to keep their
strategies updated with the situation of the organization in the market.

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The risk management framework, which is created by the business, will be helping the
same to assess the levels of risk while considering the current expansion through acquisition of
the new store. Evaluation of the monthly budget and reporting systems will be helping the
management of the business to assess the risks and thereby bring forth changes in the methods of
the business.
3. Scope of the risk management strategies
The scope of the risk management strategies that are undertaken by the business is
limited to the identification of the different levels of changes in the systems of the business. The
assessment of risk will be dependent on the evaluation of the market and the different
preferences of the consumers.
4. Critical success factors
The success factors of the risk assessment will be dependent on the identification of the
levels of risk that might be faced by the organization while undertaking the expansion. The
critical success factors are dependent on the efficiency of the assessment that are undertaken by
the evaluators of the risk management systems that are imposed by the organization. The
evaluation will be helping the risk management systems of the business to undertake the smooth
functioning of the business while operating in the markets.
5. Identification of internal and external stakeholders
Stakeholders Internal/ External Role in the process Stakes in the process
The employees Internal Identification of the
change that is
implemented by the
organization and
Employability of the
employees are
dependent on the
profitability of the

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making continuous
efforts to achieve the
target of the
organization
business
The investors External Making investments for
facilitating the smooth
functioning of the
business as per the
objectives of the
expansion
The investments that are
made by the investors
and rate of returns to the
same depend on smooth
performance and
profitability of the
business.
The management Internal The involvement of the
management and the
strategies in which the
expansion can be
undertaken helped the
organization in bringing
forth changes
The involvement of the
management of the
business enterprise
helped in enhancing the
functions of the
organizations.
6. SWOT and PEST
SWOT analysis
Strengths
 Premium quality of the products
 Easily accessible store and outlets
Weaknesses
 Lack of knowledge on consumer
preferences which affects the

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 Reputation and brand name
 Smooth functioning of risk assessment and
management teams
satisfaction of the same
 Lack of integration between the
different departments
Opportunities
 Expansion in the different international
markets
 Flexible policies of the organization
which helps in the sustenance of the
business in the different economies
Threats
 The threat of new entrants in the market
PEST analysis of the organizational expansion
Political The establishment of the Australian Competition
and Consumer Commission (ACCC) has facilitated
in providing a fair ground where business and
consumer rights are equally considered. Stability of
the political scenario in Australia has helped in the
significant growth of organizations.
Economic The expansion of the economy of the nation has
helped in the expansion of the organizations, which
resides within the economy. It has also helped in
bringing forth developments in the position of the
nation among the world units. The financial
fluctuations of the world have affected the
functioning of the organizations in the country.

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However, the nation faces better accomplishment
compared to the other developed nations due to
appropriate positioning of government funds.
Social Diversity in the regions of the nation has affected
the organizational capabilities of identifying the
preferences of the customers while operating in the
markets.
Technological The implementation of the different technological
systems helped in maintaining the cost reduction,
high quality and wider connectivity to the
operational market. Technological innovation has
enabled changes in the systems of the business. .
7. Risk analysis
The analysis of the risks that the organization might face while undertaking the expansion
of the operations helped the same in making important assumptions and formulating strategies
for the proper functioning of the business. The risks that are recognized by the organization
while undertaking the expansion are Banking risk, Travel risk, By-law compliance risk and
Brand recognition risk. The enumeration of the different risk factors helped the business in
conducting a safe processing of the business operations.
8. Email to the stakeholders
Dear Sir/Madam,

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It is to bring to your notice that the MacVille is willing to expand its business through an
acquisition. In this regards the team of risk assessors has put forward different risks that the
organization might encounter while undertaking the activities. The risks that might be
encountered by the business while undertaking the expansion are Banking risk, Travel risk, By-
law compliance risk and Brand recognition risk. However, we request you all to come up with
any other risks that we might face while undertaking the expansion of the business through the
acquisition. The organization requests its stakeholders to contribute to the establishment of the
organization and thereby contribute to the goals of expansion of the business.
Thanking you
Yours sincerely,
Manager at MacVille
9. Email to the CEO
To the CEO
MacVille Limited,
Dear Sir,
The following email has been sent to the stakeholders of the organization asking them to extend
their contribution in identifying the different risks which our organization might face while
undertaking the expansion. Here the message is being forwarded to you for evaluation.

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Dear Sir/Madam,
It is to bring to your notice that the MacVille is willing to expand through the Lakes
Entrance store. In this regards the team of risk assessors of the organization has put forward
different risks that the organization might encounter while undertaking the activities. The risks
that might be encountered by the organization while undertaking the expansion are Banking risk,
Travel risk, By-law compliance risk and Brand recognition risk. However, we request you all to
come up with any other risks that we might face while undertaking the expansion of the business.
The organization requests its stakeholders to contribute to the establishment of the organization
and thereby contribute to the goals of expansion of the business.
Thanking you
Yours sincerely,
Manager at MacVille
10. Summary of the events
 The assessment of the risks that might be faced by the organization while undertaking the
expansion
 The risks being communicated to the stakeholders via email and thereby asked for their
assistance

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 Forwarded the email to the CEO of the organization for further evaluation and thereby
undertake complete communication

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Assessment 2
Part 1
Macville business review
The Macville Company is highly famous in the Australian market because of providing
high quality coffee with customer satisfaction. The company has chain of cafes across Australia
mainly in the Central Business Districts of Brisbane, Queensland, Sydney and NSW. It can be
seen that the company operates in the major cities of Australia. The mission of the Macville
Company is to serve competitively priced and high quality coffee as well as maintaining a good
image by keeping focus on the food safety and the comfortable cafe style environment. The
vision and values of the company are also intertwined with the mission statement of the Macville
Company and set their values primarily on the Customer satisfaction, safety and performance
excellence. In this regards, the strategic directions of the company is stapled with the mission
and vision statement of the company by putting emphasis on the improvement of the quality of
food and creating high performance in organisational activities. As a matter of fact, it is
important for Macville to maintain proper management in order to protect the employees and the
customers from possible risks. Recently the Macville Company is going to expand its business
operation by purchasing and rebranding the existing Hurley’s Cafe at Toowoomba in Brisbane.
Therefore, it requires proper understanding of the risk factors and at the same time implementing
risk management plan is essential for business operations of the Company further.
Report of risk management
Possible risks

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There are four risks that the Macville Company has to deal with in order to retain
its business activities in the competitive market of Australia. The possible risks are as follows:
 Banking risk- It can be argued that theft of money is considered to be a high risk in
business. In this regards, to protect the money it is important for the company to keep a
check on the daily business transactions. In case of the Macville Company this will be a
detrimental factor in order to continue its business. Ethical factors are also lingered with
this issue.
 Travel risk- There are a number of physical injuries can be happened in course of doing
jobs. Death while working can fosters a negative image of the Macville Company.
 By-law compliance risk- Australia has an intense competitive market and the coffee
industry can be identified one of the mostly competitive. Market fluctuations and the loss
of reputation or brand imagery will lead towards devastation to the business of Macville
Company. Violation of business laws is also included in this regard.
 Brand recognition risk- In the intense competitive market in Australia, the Macville
Company has to put focus on its recognition. Besides setting up effective plan it is also
imperative to maintain proper environment inside the outlets. Not wearing MacVille
uniforms indicates lack of organisational efficiency and awkward for the customers.
Moreover, the quality of food and services has to be maintained to continue business
effectively.
Risk matrix

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Catastrophi
c
5 10 15 20 25
Significant 4 8 12 16 20
Moderate 3 6 9 12 15
Low 2 4 6 8 10
Negligible 1 2 3 4 5
Improbable Remote Occasional Probable Frequent
Treatment
Based on the understanding regarding the intensity of the risk factors it can be
argued that a series of necessary measures have to be implemented in order to mitigate the
organisational risks in Macville Company. The first treatment can be identified as the business
rules and regulations for the Macville Company employees. In other words, to keep the
organisational activities flawless the Macville management has to implement some code of
conducts that the staff are compelled to follow. The next treatment is referred as the measures
regarding brand recognition. Both the marketing and the organisation tools are required in order
to build strong brand recognition.
Explanation
For identifying the risks and implementing an effective plan, the management
must have proper risk management strategies. It can be estimated that the first step will be
identifying the risks and then taking a deep investigation on the degree of risks. Based on this

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understanding it will be beneficial for the company to prioritize the risks and conduct risk
mitigating strategies in this regard.
Action plan
Risk Assess
risk
(score)
Controls Monitoring Action
priority
(1-5)
Timelines Responsible
Banking
risk
4 Financial
controller
Board of
Directors,
Goldsmith
Partners for
legal issues,
CEO
2 June-
August
Financial
controller
Travel risk 10 Store
Manager
Board of
Directors,
Goldsmith
Partners for
legal issues,
CEO
3 August -
September
Store
Manager
Compliance
risk
25 Store
manager
Board of
Directors,
Goldsmith
Partners for
legal issues,
5 September-
December
Store
manager

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CEO
Brand
recognition
risk
20 Store
manager
and
marketing
manager
Board of
Directors
and CEO
4 December-
May
Marketing
manager
Part 2
Process of implementation
This section is primarily focus on one of the risk factors that are mentioned above. In this
context, loss of brand reputation will be the chosen risk factor that needs to be fixed in the top
priority. The reason behind choosing brand reputation is that the Macville Company is suffering
with the issue of brand reputation in a intense manner and as a result of that face huge loss in
business. Therefore, the company management realises that this problem has to be resolve in a
priority basis.
In this regards, some brand reputation tools has to be introduced to help the Macville
Company adapt with the change in the market.
Good impression
For reclaiming its brand reputation, it is important for the Macville Company to make a
good impression at first. Based on the customer behaviour, it can be argued that good impression
can be of any type. However, promotion is the best strategy to impress the customers at first.

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Self evaluation
It is important for the MacVille Company to have faith on their products. Without having
confidence in inner-self it cannot be possible for the company to resettle its reputation once
again. Therefore, the MacVille management has to build up a strong value and promotional
strategy.
Unite and conquer
The MacVille Company can set up a better communication inside the organisational
operations. It will enable to share the need and problem regarding a particular brand and the
employees can also take responsibilities for that.
Pay attention
For regaining the lost reputation the MacVille Company has to pay attention to the brand
conversation and interaction. This understanding will help the company in perceiving a clear
image of the strength and weaknesses regarding the particular product.

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Assessment 3
1. Plan
An action plan was submitted to the management of the organization six months ago and
the strategies were formulated henceforth. The strategies that the organizational management
formed have helped the same in undertaking the proper functioning of the business as per the
objectives. However, the plan that was formed by the management team of the organization has
helped the same in bringing forth improvements in the systems of the business. The risks that
was found initially were Banking risk, Travel risk, By-law compliance risk and Brand
recognition risk for which the organization formulated different strategies. The equal distribution
of the risk undertakings among the different departments and the care for creating the value out
of the risks has helped in the successful implementation of the plan on the processes. The
processes of the organization have encountered change through the strategy of lowering the
burden of accumulated risk. On the other hand, the implementation of the strategies to manage
the risks that are faced by the business has helped in undertaking the smooth processing of the
business operations.
2. Implementation
Implementation of different policies and procedures helped the business enterprise in
maintaining the congruency between the strategies and the basic development intentions of the
organization. It has helped the business in bringing forth modifications in the systems of the
business as per the change in the current operations. Alternatively, monthly business planning
and budgeting helped the organization in presuming the different risk conditions through which
the organization might make use of the expansion. The external audits have helped the

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organization in maintaining the smooth functioning of the processes as per the objectives of the
business. The internal and the external audits of the organization has helped the management
with the knowledge of the core capabilities and contingencies of the organization while
undertaking the expansion. The FARM committee helped the organization in balancing the
functions of the business while operating in the international markets.
Outcome
The outcome of the activities that were planned by the organization as per the risk
assessment reports are being discussed in this section. it helps in the proper identification of the
applicability of the strategies and the manner in which it helped the organization in making its
progress. The financial controller of the organization took out some $ 5000 from the company’s
bank account for the insurance cover. The teleconferencing system, which was planned by the
organization, was not installed in the past 6 months. A water tank was being erected by the
organization; however, the pipelines still do not connect the tank, which could have helped the
organization with the frequent supply of water. The board of directors of the organization came
out with a policy of the conservation of the water that is utilized for the processes used by the
organization. However, there are no specific strategies written for the conservation of the water.
Evaluation
Identification of the risk factors that might be faced by the organization while expanding
has helped the same in formulating strategies for growth of the business. Travelling the long
distance for the external auditors has created an impact on the proper performance of the
business. The policies and regulations that are formulated by the Board of directors of the
organization seemed theoretical which has affected the functioning of the organization. The

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organization has failed to apply the theories on the practical field, which has affected the
functioning of the organization as per the goals of its expansion in the international markets.