Risk Assessment Report for Hungry Jack's Restaurant in Queensland: Findings and Recommendations

In this report we will discuss about risk assessment report and below are the summaries point:- This is a risk assessment report on a specific restaurant in Queensland called Hungry Jack's. The report covers risk theories, the importance of risk management, and elements of risk management. The report identifies major risks under four categories - physical, non-physical, financial, and human resources - and provides control strategies and recommendations to manage these risks.

Assessment 3: Risk Assessment Report
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Executive summary
This is a risk assessment report on Hungry Jack’s, Queensland restaurant. It includes brief
analysis on risk theories, importance of risk management and its elements. Second part include
application of discussed theories stating risk associated with selected venue using risk ranking
system and venue analysis form. Major findings highlight risks under four key headings i.e.
physical, non-physical, financial and human resource. For each identified hazard, possible
control strategies have been discussed and final recommendations are also given.
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Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Notion of risk..............................................................................................................................................4
Definition of Risk....................................................................................................................................4
Subjects of Risk.......................................................................................................................................5
Physical...............................................................................................................................................5
Non physical........................................................................................................................................5
Financial..............................................................................................................................................6
Human.................................................................................................................................................6
Risk Management........................................................................................................................................6
The Importance of Risk Management......................................................................................................7
Venue risk analysis......................................................................................................................................8
Risk ranking analysis for Hungry Jack’s.................................................................................................9
Venue risk analysis................................................................................................................................12
Findings.....................................................................................................................................................14
Recommendations.....................................................................................................................................14
Conclusion.................................................................................................................................................15
Bibliography..............................................................................................................................................16
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Introduction
Primary agenda of this assignment is to evaluate present and future risks associated with selected
business venue. Risk is inevitable to business but creative and forward thinking can help in
tackling these risks optimally. This paper aims to highlight all possible business risk encountered
by Hungary jacks and prepare a risk management plan to deal with it.
Notion of risk
Definition of Risk
Various definition are given to risk but in simplest form it can be regarded as uncertainty and un-
desired outcomes. According to oxford dictionary, risk can defined as a situation that involve any
form of danger, it involve any possibility of unpleasant scenario (oxforddictionaries.com, 2018).
According to association of project management, it can be defined as a combination of chances
of occurrence of any unpleasant event and extent of impact of its consequences of occurrence.
Risk has also been defined as likelihood of any form of variation that can take place in planned
event leading to negative consequences (Saouma, 2012). It is an activity that can cause harm,
unpleasant or negative scenario, causing hindrance in goal achievement (Kendrick, 2015). Term
risk also holds different meanings in different context, such as business, finance, economics,
industry etc. different level and type of risks are involved in business (Clifton, 2012). A business
also involve different type of risks such as financial risk associated with financial transaction,
competitive risk, strategic risk associated with business operation, industry environment and
investor relationship, reputational risk, project risk, legislation risk, compliance risk, operational
risk associated with business operations and administrative decisions etc. (Ehsan, Alam, Mirza,
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& Ishaque, 2010). In business terms, risk includes uncertain, unknown events that might impact
business profit or loss adversely.
Subjects of Risk
Physical
While analyzing risk associated with facility, assessing physical risk is very crucial. It includes
internal and external environment conditions. It includes facility environment, infrastructure,
electricity, lighting, fuel impact employees and customer safety within restaurant. It also includes
risk of food contamination, equipment breakdown, employee lawsuit etc. (Roy C & Brotherton,
2008).
Equipment’s safety includes compliance of equipment requirement to appropriate standard.
Equipment protection program for electronic and corrosion issues (FEMA, 2005).
Proper security and alarming for emergency must be checked. Proper fire safety system must be
implemented including hazard evaluation; evacuation process etc. proper evaluation of power
backup must be analyzed (Ransley & Ingram, 2012).
Non physical
Brand and reputation is key element which is at risk constantly, slightest of issue might lead to
poor brand image. Hungry jack’s is a household name in Queensland with rich history and strong
customer base. Another is keeping track with different stakeholders such as investors, society,
communities and government. Different type of business contingent interruptions might take
place in supply chain due to environmental factor. Political and economic stability also impact
business process.
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Financial
This is inevitable risk associated in any business, it include transactions with vendors, customers
and loans. There are business loan taken for expansion and growth, change in interest rate impact
profitability. Cash flow and amount of credit significant impact investor relationship, in external
financing fixed amount of cash flows must be given by company. Business expansion in
different market involves investment and liquidity risk. Sometimes, changing customer
preference and intense market competition also impact business profitability significantly
(Hampton, 2012).
Human
Different type of human risk includes staff and volunteers, clients and customers, third party
vendors and contractors. It is crucial to maintain proper workspace with adequate lighting,
comfortable work structure and infrastructure to enhance workers ability to get work done.
Customers are heart of any business, proper restaurant environment, facility management,
parking, and signage, adequate response by front office staff, quality food and good behavior
help in bringing more business (Galai & Mart, 2006). Finally the contractor and vendors help in
running the business properly by providing raw materials and other supportive elements.
Risk Management
Risk management is a process of planning, analyzing, forecasting and developing strategies to
reduce adverse impact of unforeseen scenarios and unpleasant activities on the company in
minimum cost and less time (Hiles, 2004). Risk is inevitable part of business, every activity
involve certain level of risk but planning helps in knowing the uncertain and make contingency
plan to deal with it. Risk management process involves five key stages such as identification,
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assessment, evaluation, mitigation and monitoring of risk. Risk management process involves
making strategies to deal with different business risk, control and compliance of legislation and
other strategic regulations.
There are two types of risk management, traditional and enterprise. Traditional approach is a
reactive risk management model that involves identification of accident possibility. Key steps
include planning, organizing, leading and controlling. It aims towards evaluation of feasible
alternative risk management technique to reduce risk through calculation of potential loss and
financing it by allocating budget and proper administration actions (Zhao, Hwang, & Low,
2015).
Another is enterprise risk management that involves strategic process of managing business risk
by ailing it with company vision and strategic goals. This method states that while planning a
facility or business, one should conduct risk analysis at initial stage to reduce different losses,
better lead time and opportunity exploitation. This method involve developing a risk
management program by a dedicated team, so that risk management framework can be integrated
with business processes, it include stages such as risk decision, treatment, risk reporting and
monitoring. However, this method involves high cost, time and resources from the company.
The Importance of Risk Management
Risk management helps company in avoiding unpleasant scenarios, difficulties and cost.
Conducting proper risk analysis facilitate in identifying risks that should be persuade or shunned.
Risk management help in understanding need of every business in detail; it helps in providing
knowledge about corporate risks. However, it is difficulty to quantify benefit of risk
management, as the records of losses or prevented accidents are kept by different departments.
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Risk management is implemented with different objectives, for instance forwards thinking
organizations implement risk management for to produce better results whereas laggards
organizations do to prevent scandals. Different legislative requirements, market risk, scandals
make it necessary to plan risk.
Risk management process helps in making business operations effective, as management can
discover different business risk and inefficiency associated in business. It also helps in enhancing
customer satisfaction and improving bottom line (Sadgrove, 2016). Risk identification leads to
optimum utilization of resources, protecting brand image, and develop a pool of data and
reusable information that can be used in number of scenarios (Landry, 2014).
Venue risk analysis
This section aims to evaluate Hungry Jack’s dining restaurant location, it include risk ranking
and risk analysis of selected location. It states different findings in consideration to risk
associated with selected location and recommendations to overcome the same.
The Risk Rating System
Risk ranking system is risk facilitation method, it is also known as risk matrix, filtering or
indexing (Royal Society of Chemistry (Great Britain), 1998). It aims to provide focus on critical
risk associated with selected business location. This method focuses on breaking one big risk
into small components and its impact. It helps in prioritizing and filtering each risk.it helps in
dealing with high degree of complexity, offer flexibility. It requires clear identification of risk
question, then subheadings related to risk must be identified. Here, key question is different
types of business risk associated with Hungary Jack’s restaurant at selected location. Keu subject
of analysis include physical, non-physical, financial and people elements of risk.
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Risk ranking analysis for Hungry Jack’s
Risk category Likelihood Severity Score Ranking
Physical
 Fire
 Fall from height
 Slips trips and
fall
 Electricity
 Hanging drapes
and decoration
 Gas
 Car parking
2
2
2
3
2
2
1
1
3
4
4
2
3
1
2
1
5 M
Non physical
 Brand and
reputation
 Stakeholder
relationship
 Economic
stability
 Political
stability
1
1
1
2
1
3
4
3
2
2
4 L
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Financial
 Business loan
repayment
 Interest rate
fluctuation
 Profitability
 High credit
 Market risk
2
1
3
2
1
3
3
2
3
4
2
3
5 M
Human resource
 Staff
dissatisfaction
 Staff safety
issues
 Clients and
customers
 Third party
vendors and
contractors.
 Government
2
3
2
3
2
2
4
4
4
4
4
3
6 H
Notes to above ranking table:
Steps 1 – Giving rank to event likelihood from 1 to 4
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4 = Very likely - Almost certain to occur (10 year time period)
3 = likely - Probably will occur (10 year time period)
2 = Unlikely High chances that event will not occur (10 year time period)
1 = Very Unlikely - definitely it will not occur (10 year time period)
Step 2 – Giving rank on scale of 1 to 4 to the severity of risk
4 = Very High – It will certainly cause hindrance in company goal achievement
3 = High – have significant complications in achieving business objectives
2 = Medium – minor problems in achieving business objectives
1 = Low – No effect on business objective at all
Step 3 – Adding average of likelihood and severity ranking
Step 4 – Give risk ranking as high, medium, or low according to the following criteria:
6-8 High Risk highlighted with red – to deal with this risk, detailed mitigation action is required
4-5 Medium Risk highlighted with yellow – mitigation action
1-3 Low Risk highlighted with green) – No mitigation action required
Venue VRA
Venue risk analysis
Identified risks Measures of risk management
Fire might cause serious injury to staff and To mitigate this risk a complete fire risk
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customer due to smoke, gas. assessment must be conducted by a designated
team for risk management. There must be
continuous check done to ensure proper
implementation of risk control measures.
Fall from height include any form of structural
collapse, injury from infrastructure
To mitigate this risk venue must be properly
fenced, regular inspection by trained employee
on lights, electricity, equipment’s must be
done. All staircases must have handrails, all the
carpets in the restaurant area must be firmly
secured, and proper lightning facility should be
checked every month.
Car parking include injury from moving
vehicles and also staff injury during food
delivery
Proper parking supervision to be done.
Brand and reputation might hamper due to
poor venue management, customer
dissatisfaction
Continuous feedback must be taken by all
customers, after billing, customer feedback
stating customer experience, food and opinion
must be collected. All feedback must be
recorded and grievances must be resolve within
24 hours’ time.
Business loan repayment Financial managers need to continuously check
and ensure proper financial repayments and
management
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Market risk is very high from competitors,
industry regulations and political pressure
Proper risk analysis to be conducted, regular
market research needs to be undertaken at set
interval, market requirement, and customers
need and competitors changes overtime. It will
facilitate in analyzing market risk and take
strategic action.
Staff dissatisfaction Enhancing employee engagement through
regular employee feedback, addressing their
concern
Customer Unprofessional behavior, lack of quality
service or food can impact customer relation
adversely, risk assessment team also
responsible for managing customer grievances
to reduce this risk
Third party and vendors Supple chain process review, regular payment
monitoring and face to face workshops to
know any concern help in addressing these
risks.
Findings
Major findings from venue risk analysis on Hungry Jack’s Queensland outlet are as follow;
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 First element in restaurant business is facility protection due to immense risk involved in
terms of décor, heavy fire load, cooking system and heavy equipment’s.
 Next key element is employee health and safety due to risk factors due to operational
processes such as food preparation, standing, fall management, workplace violence etc.
 Restaurant is also liable towards its stakeholders and public at large, it include customer
safety, proper behavior and service, contractors and vendors payment on time,
information management, protecting food contamination.
Recommendations
Key strategies that can be implemented to mitigate or reduce mentioned risks are as follow;
 Inspecting, proper cleaning and maintenance is the key to control in-house risk, properly
trained staff needs to test the equipment’s, electricity, heating and ventilation process.
They also need to ensure all equipment’s are installed as per manufacturer guidelines.
Restaurant must implement an automatic as well as manual fire suppression alarm and
control system; all employees must be trained on using the same. Sudden emergency
check must be conducted every three months to check safety system.
 Health and safety of all employees needs proper training, written safety protocol,
employees must be involved in safety related decisions and planning, regular record
keeping on injuries and monthly safety check must be conducted. Wearing proper gloves,
quick reporting of poor health system and use of automatic machines for task like
washing dish help in controlling illness. Proper mentoring and observation by supervisor.
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 To protect food contamination proper food log must be maintained, fresh food must be
kept, uncooked food must be stored properly, and proper sanitization must be done, doing
business with reputable vendors or under strict supply chain guidelines.
 Finally, restaurant must maintain a contingency plan to deal with emergency scenario.
Conclusion
Above analysis present various risk elements associated with venue and business that
management of Hungary jacks needs to consider, ensuring smooth functioning. Ability to offer
quality service to customer, quality environment and work culture to employees is mandatory for
financial well-being of the company. Running a restaurant business require optimum
consideration toward safety measures to avoid any unpleasant scenarios.
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Bibliography
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