Risk Analysis of MacVille Cafe

RUNNING HEAD: RISK ANALYSIS OF MACVILLE CAFE
Risk analysis of MacVille Cafe
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RISK ANALYSIS OF MACVILLE CAFE1
Introduction:
Macville Pty Ltd has established a chain of cafes in the Australian market like the
Central Business District (CBD) of Brisbane, Queen's land, and Sydney, New South Wales.
The Board of directors of this company has decided to expand its business. By purchasing
Hurley’s café in Toowoomba, Macville Pty Ltd has decided to expand its business in
Queensland. Paula Kinski, the CEO of Manville's cafe in Queensland, has assigned Mr. Ash,
the new manager of Toowoomba Store, to conduct risk management analysis for this new
project. This report will analyse the risk for the new project through the scope of risk
management, factors, and objectives of the scope of risk management, internal and external
stakeholder, PEST analysis, SWOT analysis, and the risk for the expansion of the business.
This report will help Paula Kinski to evaluate and manage risk factors. Managing the
identified risks through an efficient manner will help the company to deliver the best service
to the consumers.
The effectiveness of Macville Risk Management Framework:
The risk management framework of Macville Pty Ltd tries to manage the significant
risk elements such as policies and procedures, monthly reporting, business planning and
budgeting, risk management review and external audit (Aithal 2016). The risk management
framework will help the company to deal with the identified risks efficiently.
Policies and procedures:
Policies and procedures are made to manage the internal operation of the company.
There are three types of policies, which are Human resources policies, financial policies, and
Corporate Governance. The human resource policies include staff travel policy, return to
work policy, parental leave policy, harassment policy, work-life balance policy,
organisational culture policy, discrimination policy. The financial policies include bad debt

RISK ANALYSIS OF MACVILLE CAFE2
policy, Finance, Audit and Risk management (FARM), Expenditure recognition policy, and
cash reserving policy. Corporate Governance policies include sitting fees policy, board
protocol, and Director's remuneration policy.
Monthly reporting:
The senior management team of Macville Pty Ltd conducts meeting every month to
identify risks and disputes. The company is interested in taking sufficient precautions to
resolve the disputes and manage the risks so that the company can deliver the best services to
the customers.
Business planning and budgeting:
To accomplish the targeted goal, the Board of Directors of this company develop an
appropriate business plan and allocate sufficient amount of money to execute the business
planning appropriately.
Risk management review:
Report of internal controls will be submitted in the Board meeting by the Finance
Audit and Risk Management Committee. This committee prioritises the risk management
sector of the company. The report created by the FARM team is submitted to the CEO of the
company. The Board of directors gets the report from the CEO. By conducting internal and
external audits, the FARM team suggests the Board of Directors develop the best strategy for
the business organisation (Torabi, Soufi and Sahebjamnia 2014).
External audits:
External expertise of chartered accountant will conduct the final audit and control the
final financial report of the company. The external expertise rechecks the financial statement
and provides feedback to the senior managers, the CEO, and the Board of directors through
the FARM committee (Sadgrove 2016).

RISK ANALYSIS OF MACVILLE CAFE3
The Risk Management Framework helps the company to detect the risk potentials. To
manage the risk elements and resolve the disputes, the report of this framework is essential.
The senior management team can prepare an appropriate strategy to manage the risk elements
and continue its business successfully.
The scope of risk management required and the role of a new manager:
Macville Pty Ltd has decided to expand its business. The Macville Pty Ltd purchases
the Hurley's Café in Toowoomba, and the company is interested in rebranding the existing
café. The risk management framework can detect the underlying risk factor. However, Mr.
Ash has the responsibility to identify specific risk factors for the Toowoomba project. To
govern the new projects, this company will conduct risk analysis through the framework, and
the report of Mr. Ash will help the framework to complete.
The risk elements of Macville Pty Ltd can be divided in to four parts, which are
operational, financial, governance, and project management. Operational risk includes
technology, marketing, communications, logistics, consumer interaction, product quality, and
market needs. The financial risks include accountability, capital investment, finance, fraud or
theft, interest rates. The governance risk includes conflict of interest and conduct of the Board
of Directors. The project management risk includes financial resources, processes, and tools
for project management, human resources, and relationship with stakeholders. This
framework covers most of the potential risk elements. The driving distance between
Toowoomba and Queensland is a problem for MacVille Café. Due to distance, it is difficult
for suppliers to deliver fresh food and raw material. Fresh food and raw material are needed
to maintain the quality of the café. The increasing competition in the Toowoomba area is
another problem for MacVille Company. Several international café companies are interested
in setting up a new branch in this area. Another issue is the traffic in this area. There are