Risk Management Action Plan Essay

MANAGE RISK
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Table of Contents
INTRODUCTION...........................................................................................................................1
ASSESSMENT: TASK 1................................................................................................................1
Risk review report........................................................................................................................1
E-mail communication to stakeholders........................................................................................4
Summary notes from meeting with CEO.....................................................................................5
TASK 2 - ANALYZE AND TREAT RISK....................................................................................5
PART 1............................................................................................................................................5
Risk matrix...................................................................................................................................6
Risk mitigation plan.....................................................................................................................7
Risk Management Action Plan....................................................................................................9
PART 2..........................................................................................................................................10
1. Implementation of risk management treatment.....................................................................10
TASK 3 – MONITOR RISK AND EVALUATE PROCESSES..................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12
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INTRODUCTION
Every project is associated with number of risks such as operational, financial,
governance and project management. Risk management is the most important component of
good business practices that concentrates on proactive management of all the business risks. It
provides a basis to the firm for internal control mechanism and corporate governance
arrangements. CoffeeVille developed a chain of café in the Central Business District (CBD) of
Brisbane, Queensland and Sydney. Its Board of directors decided to expand their functions in
Lakes Entrance with the purchase & re-branding of its existing business. The current study
concentrate on identifying the key risks involved in the business expansion and make strategies
to overcome it.
ASSESSMENT: TASK 1
Risk review report
To: P. Kinsiki, Coffee Ville CEO
From: Ash, Assistant manager
Lakes Entrance CoffeeVille Café
Risk Management Framework
CoffeeVille defined risk as a likelihood of occurrence of risk in next 12 months and
determining their impact and consequences level to high, medium or low. High risk includes
significant shortfall by 40%, medium risk means shortfall of budget by 10%-20% or some
reduction in function or low indicates minor reduction in achieving targets or minimal reduction
in the performance. The project of expanding coffee Ville business subjected with various types
of challenges. CoffeeVille’s risk management framework aims to determine, analyze and take
attempts for the proactive management of all the risks (Connelly, 2014).
Scope
Risk management framework includes risk analysis, evaluation and taking control
measures. In order to determine risk, it is necessary to track external activities and identify
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potential threats and opportunities. Its scope encompasses policy formation, reporting structure,
business planning & budgeting, risk management review and external audit so as to adequately
respond operational, commercial, financial and strategic risks (Duckert, 2010).
Critical success factors, goals or objectives
 To develop a sound risk management framework
 To conduct external market analysis to find out opportunity and threats
 To take necessary preventive measures to control the risk occurrence
Stakeholders and their role in risk management process
Stakeholder Internal
/
External
Role in process Stake in
process
FARM (The Finance,
Audit and Risk
Management)
committee
Internal Committee plays a critical role in risk
management that is liable to timely report
about internal control mechanism to BOD.
High
Directors Internal To identify acceptable & unacceptable risks
Set standards
Approval of risk exposure decisions
Risk monitoring for significant risk elements
Change implementation
High
Café Employees Internal To follow set business standards
To actively implement the risk management
decisions
Low
Senior Management
Team
Internal Implement risk managerial policies & sound
internal control mechanism
Determining the areas of significant risks
Policy and strategy review and update
Undertake annual review of control
effectiveness and annual reporting to
Moderate
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