Risk Assessment Report

The aim of this report is to present the Venue Risk Analysis for making further development and refurbishment of the chosen premises. In this Report the chosen venue is Max on Hardware Lane restaurant, Melbourne. The report has explored the purpose and method of risk management followed by the risk management plan for the chosen venue. From the venue analysis it has been found that there are many elements that need sincere attention of the facility department of Max on Hardware Lane restaurant, Melbourne for proper risk assessment and management.

Running head: RISK ASSESSMENT REPORT
Risk Assessment Report
Name of the Student
Name of the University
Author note

2RISK ASSESSMENT REPORT
Executive Summary
The aim of this report is to present the Venue Risk Analysis for making further
development and refurbishment of the chosen premises. In this Report the chosen venue is
Max on Hardware Lane restaurant, Melbourne. The report has explored the purpose and
method of risk management followed by the risk management plan for the chosen venue.
From the venue analysis it has been found that there are many elements that need sincere
attention of the facility department of Max on Hardware Lane restaurant, Melbourne for
proper risk assessment and management.

3RISK ASSESSMENT REPORT
Table of Content
1. The Notion of Risk.................................................................................................................4
1.1. Definition of Risk...........................................................................................................4
1.2. Subjects of Risk..............................................................................................................4
1.3. Risk Management...........................................................................................................5
1.4. The Importance of Risk Management............................................................................6
2. Venue Risk Analysis..............................................................................................................7
2.1. The Risk Rating System.................................................................................................7
2.2. Venue VRA....................................................................................................................8
2.3. Findings..........................................................................................................................9
2.4. Recommendations........................................................................................................11
Reference List..........................................................................................................................13

4RISK ASSESSMENT REPORT
1. The Notion of Risk
1.1. Definition of Risk
Defining the risk requires explanation of the standardization of risk factors. ISO
31000 is a standardisation procedure of risk management that offers the definition and
management framework for various risks (Olechowski et al. 2016). According to ISO 31000
risk is the effect of uncertainty on some objectives that could cause negative consequences. In
other words, risk is an unintended outcome that can cause temporary or permanent damage to
the system or any object. Risk has to major factors that define its severity namely the
likeliness and impact. Likeliness refers the probability of occurrence of the risky situation in
a stipulated and specific time period (Anderson and Xie 2013). On the other hand, the impact
of risk refers the outcomes after occurrence the particular event or situation. The severity of
the risk depends on both of these components. In order to measure the severity both likeliness
and impact of any particular risk are calculated through multiplication. The product of these
two values denotes the severity of any risk.
In this context risk is more related to commercial and professional consequences that
can have major or minor impact on the business or operation. However, hazard is another
essential term that sometimes becomes confusing while differentiating the risk factors from
hazards. While hazard refers only the physical damage or damage on human resource, risk is
however may or may not be involved with the physical concepts of a business. As an
example risk of financial dearth is a risk, while it is not a hazard.
1.2. Subjects of Risk
In any business operation or in any systematic workflow the risks can be
found in many ways because of the dynamic potentialities for operational restrictions. The
risks in any systematic or business operation can be categorised by four categories namely

5RISK ASSESSMENT REPORT
Risk to physical asset, Risk to human asset, Risk to financial asset and Risk to non physical
assets. Before implementing any operational plan or any change management plan in any
organisation, examination of all four risk factors are essential. Risks can be characterized
through impacts on traditional cost, schedule, and performance parameters. Risks should also
be characterized as impact to mission performance resulting from reduced technical
performance or capability.
The risk of physical assets includes the risk of loss of receiving damage in physical
objects such as building and equipments. Therefore risk to physical assets is related to
furniture, garden, floor, windows, doors, logistics stocks, vehicles and other related physical
components. Physical damage reduces the physical resource while weakening the structural
accommodates of any business operation (Hopkin 2018). On the other hand, the risk to
human assets refers the risk of losing or damaging the human resource. Risk of workplace
hazards such as physical or chemical hazards, high turnover, sudden epidemic and others are
considered as the risk to human assets. It can reduce the workforce strength and the
operational integrity and any business operation.
Risk to financial assets refers the financial loss due to poor budget planning, over
investment, lack of funding, huge liabilities and any other related situations. The financial
risk can temporarily or permanently paralyse any business operation. The risk to non
physical assets cannot be measured by a positivist approach. It involves social structure,
human psychology and other sociological factors. For a business operation, the non physical
assets are company reputation, employee engagement, ethical values, brand equity and others
(Le and Arcodia 2018). Risk to non physical assets can weaken the operational integrity and
the information interchange.

6RISK ASSESSMENT REPORT
1.3. Risk Management
Risk Management is a systematic application of management system that includes
various procedures, policies and practices to identify the risks and to minimise the likeliness
and impacts of the risk. The risk management procedures also have different phases namely
Identifying, Assessing, Planning, Implementing, and Controlling, reporting and reviewing.
Each of these phases has a particular set of working procedures (Nyikos et al. 2013). The
identification of risk involves direct and indirect inspection of physical, non physical,
financial, and workforce assets. After identification of major risks, in assessment section the
severity of the risks has been analysed through prioritised scoring system. As discussed
earlier the scoring system has two attributes namely likeliness and impacts.
In Hospitality industry after assessing the risks and sorting as per the prioritisation the
risks was documented for action plans. These action plans can be categorised into two types,
namely contingency plan and mitigation plan. The contingency plan is for minimising the
likeliness of any possible occurrence. On the other hand, the mitigation plan allows any
organisation to minimise the impacts of any occurrence if risk factor. In order to develop a
successful risk management plan the documented action plan is chiefly essential while
considering the feasibilities of the chosen plans. In Hospitality Business, The feasibility of
any risk management action plan requires tangibility in financial plan and tangibility on
timeliness. Both over costing or delay can reduce the efficiency of any risk management plan.
During implementation of any action plan monitoring is essential in order to ensure
that the actions are being properly executed. Monitoring can be done through direct
surveillance or error reporting. Finally, the reviewing process is essential to examining the
attainability of the implemented actions. Collecting feedback from the ground level
employees and the supervisors are equally essential for the review process. After conducting
the review the requirement for further changes are required.

7RISK ASSESSMENT REPORT
1.4. The Importance of Risk Management
Risk management is very essential for any organisation. Risk management can change
the current business operations and infrastructure in a very specific and measurable way that
can minimise the risk factors. Apart from that, in terms of financial implementation proper
risk assessment plan can reduce the potential financial loss. Besides, the risk of dealing with
frauds is also minimised through proper monitoring and controlling on the human resource
and work process. Risk management can also improve the customer relationship while
increasing the employee engagement and motivation (Snijders 2015). Risk assessment is
crucial before implementing any project plan and in maintenance procedure of hospitality
business and others.
2. Venue Risk Analysis
2.1. The Risk Rating System
The purpose of this risk rating system is to identify the possible risks associated with
the venue named Max on Hardware Lane. The venue is a restaurant situated at the centre of
Melbourne, beside the famous Hardware Lane. Because of their recent renovation scheduling,
the risk of this venue has to be identified their possible risks and potential hazards in order to
resolve those issues through effective risk management. In this situation the risk rating
system is essential as a part of the risk identification and severity calculation for the chosen
restaurant. The risk rating system depends on the likeliness and consequence scoring. The
risk factors have been divided into major attributes namely Structural Risk, FF&E Risk of
Hazard, Electronics and HVAC Risk and Hazard handling system (Shaw, Bailey and
Williams 2014).
For each of the major risk identification attributes the likeliness and the severity
points have been developed. For likeliness, the number 0 refers the lowest likeliness and the
number 5 refers the highest likeliness. Similarly, in consequence the 0 refers the negligible

8RISK ASSESSMENT REPORT
consequences and the number 5 refers the highest consequences. The severity has been
calculated by multiplying these two major factors Likeliness and Consequences. The higher
the severity is, the more attention it will require for mitigation or contingency plan.
2.2. Venue VRA
The following table has been developed as per the identified risks in the Max on
Hardware Lane restaurant. Besides, this VRA form has been filled through visual inspection.
Risk
Consequenc
e Risk category Likelihood
Impact/
consequence
Risk
rank
Risk
treatment
Vertically
Cracked Wall
The wall can
fall off
Physical hazards
causing
musculoskeletal
damage 2 3 6
Repairing
walls
Broken Floor
tiles Slip, falls
Physical hazards
causing
musculoskeletal
damage 3 1 3
Repairing
floor tiles
Broken false
ceiling
Ceiling can
fall on
Physical hazard
head injury 4 2 8
Repairing
false ceiling
Damaged
Door
Stuck by
door
Physical hazard
hand injury 2 5 10
Repairing
door
Broken Table
table can
fall apart Physical hazard 2 2 4
Replacing
the table by
new one
Passage is
blocked by
heavy metal
Entangled
by the
metallic
object
Physical hazard
bone damage 3 2 6
Putting the
object in
safe place
Disputed
ventilation
and heating
system
Lack of
breathable
air and
concentrate
d flammable
gas
Confined space
hazard 2 4 8
Repairing
ventilation
system
Lack of
adequate
light
Person can
stuck by
objects Physical Hazard 2 1 2
Fixing and
installing
lights
Disputed
power point
and wiring
it can
electrocute
and give
shock to
anyone
Energy source or
electricity hazard 2 2 4
Repairing
wiring and
connection
Poor fire
extinguishing
Failure to
handle fire Inadequate facility 1 5 5
Installing
additional

9RISK ASSESSMENT REPORT
system hazards
fire
extinguishin
g systems
Lack of first
aid system
Failure in
emergency
first aiding Inadequate facility 2 3 6
Installing
additional
first aid
boxes
2.3. Findings
After the visual inspection many hazardous risk have been identified in the premises
of Max on Hardware Lane restaurant. The major segregations of findings are Structural Risk,
FF&E Risk of Hazard, Electronics and HVAC Risk and Hazard handling system (Penner,
Adams and Rutes 2013). In all these four components more than one risky situation has been
found. In the following section the findings are discussed briefly.
Some of the walls are found to be weakening with clearly identifiable cracks. In some
interior section of the walls the cracks are even dense as well as longer. The operational
discrepancy can cause delay in renovation procedure. Apart from that, it can increase the
overall financial expenditure significantly.
Some sections in the floor were found disputed in terms of uneven finishing and risky
inclination. Some floor tiles beside the store rooms were very slippery, which has potentiality
of causing physical hazards to the workforce.
A distributed section of Ceiling has been found deputed. Especially the false ceiling
and cladding materials were loosely connected with the structure while having high risk of
falling off. Faults in Floor Carpeting has been also found, where the quality of carpet
materials are poor while having multiple holes and uneven distribution. It can cause several
hazardous situation for both employees and consumers.

10RISK ASSESSMENT REPORT
In many doors, the sockets are broken that has made the door completely damaged
and dysfunctional. The problem is, this broken doors can caused various physical damage to
the employees as well as the visitors of the restaurants.
Some dining and kitchen tables are broken, especially at their legs. The quality of
wood is not good enough to continue the usage. At any time, the lack of weight distribution at
the top of the tables can break those apart. Disputed Storage system has been also found,
where the storing practice is risky and cause severe hazard. The potential victims of any
consequence will be the employees who are working in the storage and kitchen area.
A common passage within the connecting point of store room and refrigeration
chamber is completely blocked by a metallic object. The metallic object has high weight
which can cause severe injury to any passerby.
Fault in ventilation heating system has been found, where the quality of equipments is
poor. Due to lack functionality this can cause air isolation and confined space hazard. Two
Air Conditioners was not functioning properly because of the lack of maintenance. It has
been also found that, the poor condition can cause unintentional flame while triggering the
fire hazard.
Lights and Lamps have been also found broken and some of them are scattered in the
floors. Apart from that, some lights in kitchen and dish washing area is not properly
functional while causing lack of appropriate light or visibility.
Some of the power points are damaged and have loose connection. This type of
failure can cause serious electrical and even fire hazard. Lack of replacement and servicing of
the electric port some of the power points are even broken. In many section of the concealed
wiring and connections, the distribution box is exposed. These electrical distribution boxes

11RISK ASSESSMENT REPORT
ware found with no safety protection. Therefore, it can cause various injuries to the
employees as well as the guests.
The fire extinguishing system is not properly functional. Besides, the water sprinklers
and smoke detection system was found defective. Therefore, in spite of having adequate
caution sigh regarding inflammable goods and prohibition of smoking the hazard control
system is significantly weak.
The major discrepancy has been found in first aid system availability. Throughout the
premise only one first aid box has been found, which was placed at far away from the
accessibility of the employees. In any emergency finding, the first aid box and executing the
first aid processes will be very difficult. The hazard can be occurred with the employee as
well as guests while making the owner and organisational authority an accusable subject.
2.4. Recommendations
The management should take immediate action to mitigate the possible risk through
both mitigation and contingency activity plan. Along with the renovation of the premises
some advanced facilities could be also installed. As per the above venue assessment, it can
be said that there are some major issues that needs proper maintenance. Therefore, it is clear
that regular maintenance and servicing is required for all the components. Besides, a new fire
extinguishing system has to be installed properly. Additional first aid boxes should be place
near the kitchen area that could be accessed very easily. Poor communication and mutual
understanding can reduce the efficiency of the process. Hence, effective communication and
cooperative approach is essential for the renovation and risk mitigation activities.
Ccollaboration with the operational users is essential to create a collective understanding of
risks and their implications. Risks can be characterized through impacts on traditional cost,

12RISK ASSESSMENT REPORT
schedule, and performance parameters. Risks should also be characterized as impact to
mission performance resulting from reduced technical performance or capability.
Along with the physical intervention the training will be also required for the
employees, which will allow them to identify potential hazards and to report immediately to
the management or immediate superior (Tarí et al. 2014). Apart from that, Max on Hardware
Lane should change their current risk management and maintenance policies in order to avoid
any kind of further inconvenience. Especially the air conditioning system needs regular
maintenance to make the premises out of risk. Disputed air conditioning system can cause
various types of hazards including the fire hazards. Doors and windows are also needs serious
assessment and maintaining. These types of discrepancy can also cause injury to the guest as
well as to the employees of the organisation. Apart from that, the ground floor of the
restaurant also requires sincere care from the facility and administration department of Max
on Hardware Lane.

13RISK ASSESSMENT REPORT
Reference List
Anderson, C.K. and Xie, X., 2013. Improving hospitality industry sales: Twenty-five years of
revenue management. Cornell Hospitality Quarterly, 51(1), pp.53-67.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Le, T.H. and Arcodia, C., 2018. Risk perceptions on cruise ships among young people:
Concepts, approaches and directions. International Journal of Hospitality Management, 69,
pp.102-112.
Nyikos, D.M., Thal, A.E., Hicks, M.J. and Leach, S.E., 2013. To leed or not to leed: Analysis
of cost premiums associated with sustainable facility design. Engineering Management
Journal, 24(4), pp.50-62.
Olechowski, A., Oehmen, J., Seering, W. and Ben-Daya, M., 2016. The professionalization
of risk management: What role can the ISO 31000 risk management principles
play?. International Journal of Project Management, 34(8), pp.1568-1578.
Penner, R.H., Adams, L. and Rutes, W., 2013. Restaurant design, planning and development.
Routledge.
Shaw, G., Bailey, A. and Williams, A., 2014. Aspects of service-dominant logic and its
implications for tourism management: Examples from the restaurant industry. Tourism
management, 32(2), pp.207-214.
Snijders, T.A., 2015. Multilevel analysis. In International encyclopedia of statistical
science (pp. 879-882). Springer, Berlin, Heidelberg.

14RISK ASSESSMENT REPORT
Tarí, J.J., Claver-Cortés, E., Pereira-Moliner, J. and Molina-Azorín, J.F., 2014. Levels of
quality and environmental management in the hotel industry: Their joint influence on firm
performance. International Journal of Hospitality Management, 29(3), pp.500-510.

15RISK ASSESSMENT REPORT