Manage Risk: A Risk Management Plan for Smith Cafe

MANAGE RISK

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Scope of risk report......................................................................................................................3
1.1 Background information.......................................................................................................3
1.2 Purpose of risk management plan.........................................................................................3
1.3 Stakeholders..........................................................................................................................3
2. Identification of risks with scope.................................................................................................4
3. Assessing potential risk................................................................................................................5
4. Risk register.................................................................................................................................6
5. Risk treatment schedule...............................................................................................................7
6. Risk action plan. ..........................................................................................................................8
Risk action plan table:.................................................................................................................8
7. Review the risk management plan.............................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term risk can be defined as a possibility of loss on invested project. It is essential for
companies to minimise risk so that higher return can be gained (Giannakis and Papadopoulos,
2016). Though, this is being said in the business that “higher risk leads to higher return” but
companies can take too much risk as they invest huge amount of capital. The project report is
based on a restaurant which is located near waterside location. The name of restaurant is Smith
cafe. The project report covers information about risks which are faced by chosen business and
way to manage risks.
MAIN BODY
1. Scope of risk report.
1.1 Background information.
The business which is chosen in this report is a cafe which is located near waterside. It is
involved in providing food services to customers.
Operations- The cafe will provide all sort of food including breakfast, lunch, dinner as well as
bar and catering services. Apart from it, it will also offer kinds menu too for children.
Customer base- The cafe' s menu states that it is suitable for all types of customer including
male, female, children.
1.2 Purpose of risk management plan.
The risk management plan is a type of risk assessment matrix which find out estimated
risks, make projection of impact and set responses towards risk. It is crucial for companies in
order to minimise negative effect of risk on performance. For above Smith cafe, this plan can be
beneficial in order to overcome those risks which may occur in establishing business such as risk
of existing competitors.
1.3 Stakeholders.
(a) Stakeholders for which risk management report will be prepared?

Companies prepare risk management report for different stakeholders including internal
and external stakeholders. In regards to Smith cafe, they will prepare risk management plan for
below mentioned stakeholders:
 Customers- This is main external stakeholder for companies, and it is essential for them
to prepare risk management report (Brustbauer, 2016). Such as for above Smith cafe,
there can be risk of lack of attraction of customers. Hence, it is important for them to
prepare risk management plan.
 Government- It is also a stakeholder which can affect companies. If government makes
change in their plans and policies against businesses then there can be risk of lose. Like
in above cafe, they should make risk plan to overcome negative impact of changed
government policies.
(b) Which stakeholders will be involved in risk identification?
 Managers- These are the main internal stakeholders who should be included in the
process of risk analysis. It is so because they are responsible for preparation of plans and
policies.
 Employees- The employees should also be included in the process of risk identification.
Such as for above Smith cafe, it is important for them to include employees in order to
find out the risks.
2. Identification of risks with scope.
Risk which may be faced by above cafe?
1. Operational risk- Operational risk describes
the ambiguities and risks faced by a firm when
attempting to conduct its day-to-day business
operations within a particular field or industry
(Van Staveren, 2018). Such in above company,
they can face this risk due to any injury to
their staff members or because of any reason.
6. Natural disaster risk- This is a form of risk
that is uncontrollable by human resources. For
example the above Smith cafe can face this
risk if any natural disaster occurs like flood.
2. Supply chain risk- Supply-chain risk is a 7. Competition risk- This is a risk which is