University Risk Management Analysis Report for MacVille Cafe

This report presents a comprehensive risk management analysis for MacVille cafe, focusing on the opening of a new store. It begins with a risk review, identifying key stakeholders and utilizing PEST and SWOT analyses to assess internal and external factors. The analysis then delves into specific risks, including operational (system failure), financial (lack of funding), market (service delivery), and compliance (legal penalties) risks. Each risk is evaluated for likelihood and impact, and mitigation strategies are proposed. The report culminates in a monitoring plan, outlining steps to manage and control the identified risks, with a focus on continuous monitoring and the implementation of risk management tools to ensure business continuity and success. The report also includes evaluation of the risk management plan effectiveness.

Running head: RISK MANAGEMENT ANALYSIS REPORT
MANAGEMNT OF RISK IN MacVille café
[Enter name of the Student:]
[Enter Name of the University:]
[Author Name:]

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RISK MANAGEMENT ANALYSIS REPORT
Assessment Task 1
Risk Review Report
a. The role of risk management is very much needed in the role of the manager of MacVille
café in Brisbane. The risk management is necessary as because the several internal and
external risks are associated in a café. The several guidelines associated with the risk
management in the AS/NZS ISO 31000:2009 standard are that it can be applied to any
type of risk and throughout the life of an organization. The risk management factors are
integrated after analyzing the structure, operations, functions and assets of a company.
b. The scope of risk management is needed in order to successfully deploy and organize the
new branch named Toowoomba store. The qualitative risk analysis is needed in order to
access all the risks that may be associated with the café.
c. The critical success factors comprises the entities which must be adopted in order to
successfully implement the goals of the project. The success factors include customer
service orientation of the café, using multiple frameworks in order to implement the long
term goals. The success factors in the risk management is the people working, operations
of the café, marketing strategy and financial accounting.
d.
Stakeholders Internal/external Role in process Stake in process
Manager Internal To identify the risks
and threats.
The stake of the
manager is
organizing and
managing the entire

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RISK MANAGEMENT ANALYSIS REPORT
organization.
Employees Internal To implement the
various risk treatment
plans.
To satisfy the
customers and deliver
products successfully.
Customers External To successfully
maintain a healthy
relationship with the
organization.
The feedbacks of the
service and product
by the customers will
help the café in
enhancing its
products and
services.
e. The PEST and SWOT analysis describes the various social, political, economic and
technological risks that are associated with the company. The SWOT analysis reveals the
strengths and weaknesses of the café in terms of operational structure of the company.
Through the SWOT analysis the various threats of the organization are identified which
might affect the performance and sales of the cafe.
f. The data that has been used for the PEST and SWOT analysis for this case study is the
qualitative method of research.
g. The summary of the scenario is that the new store that is opening has certain business
risks which most of the similar organizations have and thus the risk management is
necessary in this scenario and the identified risks are compliance, market, operational and

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RISK MANAGEMENT ANALYSIS REPORT
financial risks. The appointment in the managerial post thus needs the risk identification
in order to make the organization safe from external and internal risk factors.
Assessment task 2
Risk analysis report
a.
Risk Likelihood Impact Action plan
Operational (System
failure)
Medium High The system failure
risk can be
mitigated by
developing strong
computer
framework and
also continuous
monitoring of the
system.
Financial (Lack of
proper funding)
Low Medium The mitigation of
financial risk can
be done by
regularly updating
the transaction
history and also

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RISK MANAGEMENT ANALYSIS REPORT
having a financial
expert.
Market (Fail to deliver
proper service to
customers)
Medium High The service to the
customers can be
increased by
giving proper
training to the
employees on
customer service.
Compliance (Legal
penalties)
Low Medium Legal risk can be
mitigated by not
involving in illegal
activity and also
by registering the
legal activities
taken by the
company.
The four risks identified in the above assessment are the operational, financial, compliance risk
and the market risks.
b. Consequence of the identified risks occurring:

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RISK MANAGEMENT ANALYSIS REPORT
Risk Consequences
System failure Operational failure of the company, delay in
customer support resulting in profit loss.
Lack of proper funding Failure in adapting new strategies,
maintenance failure and thus decrease in
performance.
Fail to deliver proper service to customers Fail to retain customers, poor customer
satisfaction.
Legal penalties Loss of property or staff, loss in finance and
also impact in brand image.
d. The treatment options for the identified risks:
Risks Treatment
Operational risk (System failure) Proper strategy in operational plan and also
implementing proper measures in company
strategy.
Financial risk (lack of proper funding) Having adequate amount of financial support
before implementing any process and also by
constantly monitoring the financial activity of

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RISK MANAGEMENT ANALYSIS REPORT
the cafe.
Marketing risk (failure in customer
satisfaction)
By implementing proper marketing
executives and also maintaining proper
relation with the clients of the café.
Compliance risk (Legal risk) Adapting proper legal structure and executive,
also not engaging in any illegal activity.
e. The risk that have been mentioned are assessed by using the risk management standards that
are associated with such an organization. The process used to identify the risks are the
quantitative process and the likelihood of the risk occurrence is mentioned above. The priority of
the risk are ordered in the manner in which they might affect the organization. The steps that are
mentioned to mitigate the risks are thus effective and feasible for the organization.
Assessment task 3
Monitoring report
a. Plan: The initial risks that have been pointed out are the operational, financial, market
and compliance risk that affect the working structure of the organization. The plans for
treatment of the risks that are suggested in the assessment task 2 are to continuously
monitor and control the various departments and also to implement various factors in the
functional structure of the café.
b. Implementation:
Risks Attempts to manage the risks

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RISK MANAGEMENT ANALYSIS REPORT
System failure Adopting of a centralized system for
operations.
Lack of proper funding Having a clear financial plan and hiring of
proper financial expert.
Failure in customer satisfaction Maintaining proper relations by giving
them adequate discounts and services.
Legal penalty risks Maintaining proper legal policy and also
consulting legal advisor for proper
business execution.
c. Outcomes: The various attempts that have been made to manage the identified risks are
the implementation of the various departments and also the implementation of the risk
management tools and structure within the organization. The risk management plan will
be effective if all the aspects of the risk assessment plans are properly executed and the
various employees and the staff of the café are trained and motivated in proper manner.
Risks Identification outcomes

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RISK MANAGEMENT ANALYSIS REPORT
System failure Continuous monitoring of the
system by the manager or higher
authority.
Lack of funding Having a financial expert who can
suggest proper plans well before.
Failure in customer satisfaction Having more customer focused
employees and operational structure.
Legal penalty Having legal advisory and loss of
café property.
d. Evaluation: The risk management plan will also be effective if the manager and the
assistant manager successfully implement the risk analysis and various mitigation steps
that have been mentioned to successfully rule out the operational, financial, marketing
and compliance risk associated here.