Restaurant Launching Risk Management Action Plan - Spices of Melacca

This risk management plan involves restaurant launching project. The business faces various threats which makes the business a risk-taking process. Such weaknesses make the business fail hence a way to curb them should be developed before the business is launched. The plan includes stakeholder analysis, risk analysis, participation and goals, risk matrix, and evaluation of risk management process.

Restaurant launching risk management action plan
Spices of Melacca Restaurant Risk Management Action Plan
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Restaurant launching risk management action plan
Introduction
Purpose of a risk management plan
A risk is an event in which during the occurrences it has a positive or negative influence
in a business. A negative influence to the business results in the failure of the business.
Management of a risk is a process that involves identification, assessing, reporting and
monitoring of risks (Tummala & Schoenherr 2011 p.474 -483).
This risk management plan involves restaurant launching project. The business faces
various threats which makes the business a risk-taking process. Such weaknesses make the
business fail hence a way to curb them should be developed before the business is launched.
Restaurant business launching faces competition from already existing restaurants. For example,
competition may be ill-health to the business hence eroding the growth rate of the restaurant. The
business also may be affected by lack of skilled labor. When launching a business one may not
manage to wholly deploy a skilled labor due to lack of enough capital (Cotton & Falvey, 2012
p.67).
This new business will have an advantage over the others as it will innovate on the
weaknesses of the already existing restaurants. This includes improving the customer services
and making them more fast and efficient. The restaurant will also make the services cheaper and
affordable.
Stakeholder
In the business, the internal stakeholders will include the ten investors. The management
will be selected from the internal stakeholders where everyone will be well represented. The ten
investors will all be included on the board of directors. The board of directors will aid in the

Restaurant launching risk management action plan
implementation of the proposed action on various identified risks and weaknesses (Arena, 2010
p.659-675).
The external stakeholders will involve the employed workers and the customers. Well-
defined roles will be established by the management to enhance the interaction between the
employees and the customers. Customers were the major facilitators for the growth of the
restaurant their issues will be highly prioritized (Cotton & Falvey, 2012 p.67).
Risk analysis
In this business, the risk can be analyzed from different perspectives which include;
political, social, economic, legal and technological.
Political understanding of various communities influences the risk condition of a
business. The restaurant is located in a place free from negative political influences such as crisis
(political risks). This prevents the destruction of properties when the political field is high in the
country. Economic wide the restaurant is located in a place where early before there was an
existence of another restaurant (Pritchard & PMP 2014 p.90).This will activate the celebrity of
spices of Melacca restaurant hence uplifting the economic background of the restaurant. Social
related risks also affect the progress of the business. For example, a certain social group may
avoid the restaurant due to lack of their representation.to curb this impact the employees will be
selected from various social groups. The works will also be expected to treat customers equally
despite their social classes. To avoid legal and policy related risks the organization will be
guided by its own regulation in an implementation of services. The rules should align with the
government description (Cotton & Falvey, 2012 p.67).

Restaurant launching risk management action plan
There also exist technological related risks which also need to be analyzed. Some of the
machinery that will be used in the restaurant e.g. POS software and cashier register machines
will be insured. This will avoid a loss to the restaurant in case of theft or fire.
Participation and Goals
The main objective of the business is to launch a restaurant that meets high-quality
service provision to the customers. The business is also objected to bringing a favorable
economic condition to both the internal and external stakeholders. As a process to meet the
obligated goals all the stakeholders should participate in curbing the risk occurrences. For
example, the internal stakeholders should help in implementing strategies that control and brings
growth to the business such as funds contribution for business expansion (CDC, 2011 p.547).
Risk Matrix
Risks that affect restaurant business include;-
 Strategic risk –this is experienced when the business strategies become less effective. The
impact and probability take time before they are identified.
 Compliance risk-this is a risk that is influenced by law and regulation of the business.
They have low impact and probability
 Operational risks-they are expected failure in a day to day operations. They have high
impact and low probability.
 Financial risks-they affect the financial status of the business. The risk has medium
impact and probability.
 Reputation risks-when a reputation is destroyed in a business an immediate effect is
noticed in the revenue level. These kinds of risks have high impact and probability

Restaurant launching risk management action plan
IMPACT
HIGH REPUTATION FINANCIAL OPERATION
MEIDIUM STRATEGIC
LOW COMPLIANCE
PROBABILIT
Y
HIGH MEDIUM LOW
High impact/probability- above 70%
Medium impact/probability- between 30%-70%
Low impact/probability- below 30%
Evaluate Risk Management Process
In the risk management a certain process if followed which involves identification,
analyzing, monitoring and curbing the determined risk. Different identified risks are controlled
using different processes where some may be expensive for a newly established business. For a
healthy running of the business, both financial and operational risk should be manageable.
Financial risks involve losing the money running inside and outside the business (Tummala &
Schoenherr 2011 p.474 -483). The money may be lost when a customer fails to pay the service
and to avoid such occurrences the management should introduce a proper remedy. Operational
risk involves risks generated during the whole processes of service provision. For example, the
cashier machines may experience a fault which leads to delay in the service provision. An

Restaurant launching risk management action plan
alternative method should be provided during the operation so as to maintain the efficiency
(Garnett et al 2011 p.767).
Some risk such as technological risks, competition risks, and compliance risk may be
expensive for a newly established business. Such risk needs a lot of time and observation to
bring them into control. Provision of the highly skilled labor is a problem which highly affects
the newly established business due to lack of sufficient funds. This forces the management to
rely on moderately skilled personnel as they wait for a business to grow (Pritchard & PMP 2014
p.90).

Restaurant launching risk management action plan
References
Tummala, R. and Schoenherr, T., 2011. Assessing and managing risks using the supply chain
risk management process (SCRMP). Supply Chain Management: An International
Journal, 16(6), pp.474-483.
Arena, M., Arnaboldi, M. and Azzone, G., 2010. The organizational dynamics of enterprise risk
management. Accounting, Organizations and Society, 35(7), pp.659-675.
Cotton, D. and Falvey, D., 2012. Market Leader Upper Intermediate: Business English Course
Book. Pearson education.,, pp.67
Centers for Disease Control and Prevention (CDC, 2011. Vital signs: asthma prevalence, disease
characteristics, and self-management education: United States, 2001--2009. MMWR. Morbidity
and mortality weekly report, 60(17), p.547.
Garnett, S., Szabo, J. and Dutson, G., 2011. The action plan for Australian birds 2010. CSIRO
publishing….pp.767
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. Auerbach
Publications..pp.90