Risk Management at MacVille Pty Ltd

This article discusses the risk management plan for MacVille Pty Ltd, which is acquiring Hurley Cafe. The plan includes strategies for financial, compliance, security, physical, and WHS risks. The article also evaluates the effectiveness of MacVille's risk management policies and suggests that they should be imposed on Hurley Cafe post-acquisition.

Running head: RISK MANAGEMENT AT MACVILLE PTY LTD
Risk Mangement at MacVille Pty Limited
Name of the Student:
Student Id:
Trainers’ Name:
Assessment Due Date:
Actual Submission Date

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Assessment 3:
1. Review of MacVille business scenario:
MacVille is a financially strong Australia cafe company following a strict risk
management policy. The company is acquiring Hurley cafe which a very slack operational
strategy and would require to bring about massive operational advancements. MacVille
operates under able leadership of the CEO and board of directors (Nyman et al. 2018).
2. Report to the CEO:
i. Plan:
The initial risks recognised in Hurley Cafe consist of financial risks, compliance risks,
security risks, physical risks and WHS risks. The management can implement the following
plan to manage them:
1. The management of MacVille should hold meetings with the top managers of Hurley to get
a clearer picture about the severity of these risks identified and the management tools they
use to minimise them.
2. The apex mangers, directors and all the departmental/store heads of MacVille should meet
internally to discuss on their findings of the discussion with the Hurley management (Nitm et
al. 2017).
3. They should recognise the existing risks and the future risks which can happen post
acquisition.

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4. All the store managers should categorise the risks according to their departments. For
example, the financial risks like thefts due to poor cash management can be controlled by the
accounts department.
5. The departmental heads should make strategies department wise which would finally
tantamount to the organisational risk management policies in accordance to the risk
management policies of the company already laid down (Li et al. 2016).
ii. Implementation:
The risk handling actions adopted by MacVille clearly shows that methods the firm
takes to manage risks. The risk management policies of MacVille define the roles which the
directors, senior management team and the store managers have to play. Once risks are
identified, the directors identify the types of the risks and clearly define the expectations they
have from the staff managing the risks. They them approve the extent to which the firm can
take the risk (Tupa, Simota and Steiner 2017). The directors ensured that the risks are
managed and reviewed efficiently. The senior management and store managers on their part,
identify, review and manage the risks as per the guidance of the directors and company
policies. The risk management methods of the company also contains monthly reporting,
planning and budgeting, external audit and continuous monitoring which involves lower,
middle and upper level employees. This shows that the actions take to date to manage risks
are extremely effective (Bromiley et al. 2015).
iii. Outcomes:
The efficient risk management system and policies of MacVille show that the
company has succeeded in reducing and mitigating the risks. The graph below shows that fall
in the fatalities among workers In Australia from 2003 to 2016. The graph shows that fatality
rate and the numbers of death have fallen to 1.5 and 2 respectively. This means business

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organisations like MacVille should implement more stringent WHS measurements even in
their subsidiaries like Hurley post acquisition (Li et al. 2016).
Figure 1. Graph showing falling fatality rates in Australia
(Source: safeworkaustralia.gov.au 2018)
iv. Evaluation:
An evaluation of the risk management plan and assessment which MacVille has
implemented shows that the company has a strong risk management policy. The company
should impose ts strong risk management policies on its future subsidiary Hurley Cafe on
urgent basis.

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