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Risk Management Plan for Oakwood Espresso Coffee Shop

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Added on  2023/04/21

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This document provides a risk management plan for Oakwood Espresso Coffee Shop, including an overview of the company, identification of internal and external stakeholders, review of external factors, risk assessment, risk identification, and SWOT analysis.

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Running head: RISK MANAGEMENT PLAN
Assessment 1: Risk Management Plan
Oakwood Espresso Coffee shop
Name of the Student:
Name of the University:

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1RISK MANAGEMENT PLAN
Table of Contents
Task 1...............................................................................................................................................2
a. Company overview and Objectives.............................................................................................2
b. Identification of internal and external stakeholders.....................................................................2
c. Review of external factors.......................................................................................................3
Task 2...............................................................................................................................................5
Risk assessment...............................................................................................................................5
Task 3...............................................................................................................................................6
Risk identification............................................................................................................................6
c. SWOT analysis........................................................................................................................6
Task 4 and Task 5........................................................................................................................8
Task 6.............................................................................................................................................11
Task 7.............................................................................................................................................12
Bibliography..................................................................................................................................14
Appendix........................................................................................................................................15
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2RISK MANAGEMENT PLAN
Task 1
a. Company overview and Objectives
Oakwood Espresso Coffee shop is a very small but local favourite for the neighborhood
Homewood residents and Oakwood Village, located in Toronto. This unassuming café shop is
just off the main Oakwood Village retail band that is fronting on Holland Park Ave on west side
of the Oakwood Avenue. The Oakwood Espresso Coffee shop is gaining commercial revenue
and competitive advantages due to neighbourhood resident rush who are heading to work
looking to get the caffeine fix before initiation of the commute. The café runs by tony and his
small team. Due to lack of business and operational strategies the Oakwood Espresso Coffee
shop is facing certain risks and details of these risks are elaborated in this paper.
The goal or objectives of Oakwood Espresso Coffee shop are as follows:
To identify different risks and challenges that may interrupt the annual revenue of the
café shop
To conduct both internal and external market analysis respectively through SWOT
analysis and PESTLE analysis
To develop accurate risk management strategies for Oakwood Espresso Coffee shop so
that they can avail commercial revenue and competitive advantages as well
To achieve 15% of additional revenue on the current investment and gain 50% more
consumers regardless of their age
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3RISK MANAGEMENT PLAN
b. Identification of internal and external stakeholders
Stakeholder Role Stakeholder’s agenda for
risks
Owner Internal The agenda of the Owner
(Tony) is to offer reasonable
services considering the
consumers demand so that
maximum profit with positive
Return on Investment (ROI)
can be generated
Cashier Internal Agenda of a cashier is to
implement much effective
payment processing method to
satisfy the consumers and
make the payment process
smoother and quick
Customer External Agenda is to provide timely
feedback so that tony and
team can improve their
business and commercial
revenue as well
Local residence External Agenda is to support and give
feedback to the food products

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4RISK MANAGEMENT PLAN
of the café so that they can
understand the demand of the
consumers.
Suppliers External To supply timely and needful
products
c. Review of external factors
Political Technology
The café follows the rules and
regulations those are imposed by the
government of Toronto.
Oakwood Espresso Coffee shop obeys
all political policies. If any changes
occur then also they become
completely ready to follow the new
policies.
No modern technology is applied by
Oakwood Espresso Coffee shop.
Though, these days some advanced
payment processes such as Paytm, debit
card payment are also using.
The coffee shop should use app and uber
coffee opportunities
Economic Environmental factors
Though Oakwood Espresso Coffee
shop is a small sized café but still it
provides financial needs to boost up the
country economy so that they can
compete similar other café.
The café is evaluated in terms of different
environmental aspects.
The café has ensured that the company
would always follow the facilities as well
as technologies needs to be carries out by
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5RISK MANAGEMENT PLAN
the products and services.
The food products are served using
reusable products
Social issues Legislation
The product quality and reasonable
price of Oakwood Espresso Coffee
shop coffee and snacks may encourage
much profitable behavior,
The customer can even control the third
place
All the regional laws and regulations are
followed by the company for long term
environmental protection and food
production.
Competitors Others
As the size of the café is very small
therefore, the company has no such
global competition
Oakwood Espresso Coffee shop has no
social challenges because the cafe is very
famous for their product quality and price
among the neighbourhood customers
Task 2
Risk assessment
a. All the identified internal and external factors are analyzed for the coffee shop. The
current organizational process followed by the café includes work determination, goal
accomplishment, assigning individual task and arrangement of those tasks for developing a
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6RISK MANAGEMENT PLAN
decision making framework. However, the financial record keeping process, sales reporting
system are little weak. Apart from that table booking, contact maintenance approaches are not
enough strong. In order to resolve these issues the risk management process has been undertaken
by the organization.
b. The existing processes are in accordance with the Australian Risk management
standards and processes. The Risk management standard that has been followed for the coffee
shop is based on AS/NWZ 31000:2009.
c. The consultation method needs to be applies by Oakwood Espresso Coffee shop is
face to face interview and the communication method should be always open communication.
Open consulting platform helps the consumers and owners to discuss freely regarding product
quality and expectation of the local consumers from the services. The owners should conduct
face to face interaction to understand the demand of the consumers for their food products. Tony
and team require considering the consumers feedback before improving the product quality. The
consumers or participants will feel extremely valued if their feedback is being considered by the
owners. Through open communication innovative business strategies can be developed and
shared as well.
Task 3
Risk identification
a. In order to identify and monitor risks the Oakwood Café uses the below enlisted tools,
techniques and processes:

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7RISK MANAGEMENT PLAN
Risk audit
Risk analysis
Reverse analysis
Status meeting and
Variance and trends analysis
b. Monthly face to face meeting is conducted by the Oakwood Café shop to keep all the
stakeholders engaged to the recent status of the company so that they can also help to identify the
possible risks those are interrupting the annual revenue margin of the shop.
c. SWOT analysis
Strength Weaknesses
The demand for their food products
(snacks, coffee) is growing rapidly.
Their business strategies create immediate
impact on the company
The startup ideas of Oakwood Espresso
Coffee shop are sometimes fueled by
certain local competitors
For excessive demand sometimes the
qualities of their coffee are being
compromised
Opportunities Threats
The developing business technologies are
attracting more consumers and decreasing
the overhead cost issues
Local competition can improve the quality
of the food products
Troubled economy and difficult financial
situation
Potential unforeseen risks can deplete the
cash accounts and benefits
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8RISK MANAGEMENT PLAN
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9RISK MANAGEMENT PLAN
Task 4 and Task 5
Risk Register Part A. Risk register: Oakwood Espresso Coffee shop
Function (activity e.g. department): Compiled by: Date:
Date of risk review: Reviewed by: Date:
Risk
Reference
(unique
identifier
code)
What is the
risk?
(Risk)
What can
happen?
(Event)
How can it
happen?
(Cause)
What can happen?
(Consequences/level of
impact)
Current
control
strategies
A (Adequate)
M (Moderate)
I (Inadequate)
Current risk level analysis
Risk
priority
(refer to
risk
matrix
and
attach
matrix
in
appendi
x)
Accepta
bility
Treat
Risk
Yes or
No
Likelihood Consequences
Level of
risk
R1 The cafe
price stock is
declining
Growing local
competitors
Similar new
shops are
opening in the
nearby
location
High level competition A
Likely (60%)
Moderate (1.5)
level of risk (60*1.5= 90)
Medium Unccept
able
Y

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10RISK MANAGEMENT PLAN
R2 Lack of
technology
usage
The numbers of
customers will
be decrease
Not
availability of
online service
and product
delivery
The numbers of
consumers will decrease
M Likely (60%)
Moderate (1.5)
level of risk (60*1.5= 90)
Medium Accepta
ble
Y
R4 No use of
social media
for
advertising
products
No promotion
of products
If social
media
platforms are
not used by
the cafe owner
Fail to grab new
consumers outside the
neighbourhood
I Likely (50%)
Minor (0.75)
level of risk (0.75*50=37.5)
Low acceptab
le
Y
R10 Not
following
some of the
legal
regulations
and rules
legal risks May require
to hire
external legal
advisors
Legal issues M Possible (60%)
Catastrophic (2.5)
level of risk (2.5*60)=15
L Unaccep
table
N
R5 No use of
advanced
business
strategies
Commercial
revenue will not
be gained
If professional
business
analysts are
not hired
face commercial losses M Likely (50%)
Catastrophic (0.75)
level of risk (0.75*50=150)
Extreme Unaccep
table
Y
R4 Insufficient
security
measures
Confidential
financial data
can be hacked
Insufficient
data
protection
mechanism
Confidential data would
be hijacked
A Unlikely (30%)
Minor (0.75)
level of risk (0.75*30=22.5)
Low Accepta
ble
Y
R6 Improper
resource
allocation
Overrunning
cost
The allocated
budget rate
will increase
Fail to implement
expected outcomes
I Unlikely (30%)
Minor (0.75)
level of risk (0.75*30=22.5)
High Unaccep
table
Y
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11RISK MANAGEMENT PLAN
R9 Lack of
manpower
Failed to offer
timely services
to the present
consumers
Long leave
taken by the
employees
Fail to serve food products
to the consumers who are
within the cafe
I Possible (45%)
Major (0.75)
level of risk (0.75*45=33.75)
Moderate Unaccep
table
Y
R12 Less opening
time span
the consumers
will not be able
to visit the cafe
whenever
interested
Loss some
consumers
Fail to offer services
whenever they require
M Unlikely-30%
Minor (0.75)
Risk level-(30*0.75=22.5)
Low Accepta
ble
Y
R15 No interest in
new recipes
consumer loss If the cafe
fails to show
interest in
producing
new quality
and tasty food
products
Fail to grab new
consumers and retain
consumers from Toronto
I Rare 15%
Moderate 1.5
Risk level-(1.5*15=22.5)
Low Unaccep
table
N
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12RISK MANAGEMENT PLAN
Task 6
Risk register Part B Risk register (Metro Inc)
Risk reference
(Unique identifier
code)
Potential treatment
options
Person responsible for
monitoring the risks
Cost to implement
risk treatment
Time frame to
implement treatment
Monitors to measure the effectiveness of
the risk treatment
Treatment of risk
complete (Y/N)
R1 The Product price stock is
declining
Tony $100 2 months Face to face survey and interview Y
R2 Lack of technology usage Tony and team $200 15 days Status report analysis Y
R4 No use of social media for
advertising products
Tony $80 1 week Discussion on Facebook age implementation N
R10 Not following some of the
legal regulations and rules
Tony $100 20 days Monitoring all newly implemented legal rules
and regulations
N
R5 No use of advanced business
strategies
Tony and team $80 10 days current business strategies analysis N
R4 Insufficient security
measures
Tony and team $150 12 days Strong security implementation for the
system
Y
R6 Improper resource allocation Tony $50 20 days Proper allocation of resources N
R9 Lack of manpower Tony and team $800 1 week Hiring new employees to support the
customer traffic
Y
R12 Less opening time span Tony $100 2 weeks Increasing time frame N
R15 No interest in new recipes Tony and team $400 1 month Introducing new snacks and beverages after
discussion with rest of the regular customers
Y

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13RISK MANAGEMENT PLAN
Task 7
a. Other methods used to identify risks
Different risk identification methods are there and in order to avoid future overhead cost
and overrunning time allocation challenges the company owner requires identifying the potential
risks. The methods that can be used by Tony and his team to identify the risks are as follows:
Scenario analysis: In order to identify the frauds and opportunities this particular risk
analysis method should be used. The participants can reflect and analyze the potential
consequences through this process.
Fault tree analysis: This approach is similar like creative thinking also known as reverse
brainstorming. This particular technique is used to identify all potential factors that are
contributing a lot in the success of the café.
Survey: In order to collect raw data regarding potential risks survey is the best suited
approach. Survey will help the café shop to gather thought of the consumers about their product
qualities.
b. The digital technologies, systems or processes available to store the risk management
plan are a digital record keeping system.
c. The recommendations to improve risk management plan include:
Determining board’s risk oversight responsibilities
Determination of risk appetite
Improving risk intelligence
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14RISK MANAGEMENT PLAN
Align management strategic risk identification
Communicating risk processes and issues with stakeholders
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15RISK MANAGEMENT PLAN
Bibliography
First, M. B. 2016. Adopting a continuous improvement model for future DSM revisions. World
Psychiatry, 15(3), 223-224.
Hornstein, H. A. 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), 291-298.
Joslin, R., and Müller, R. 2015. Relationships between a project management methodology and
project success in different project governance contexts. International Journal of Project
Management, 33(6), 1377-1392.
Kerzner, H., and Kerzner, H. R. 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., and Villanueva, P. 2014. Project
risk management methodology for small firms. International Journal of Project
Management, 32(2), 327-340.
Mir, F. A., and Pinnington, A. H. 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Fleming, Q. W., and Koppelman, J. M. 2016, December. Earned value project management.
Project Management Institute.

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Appendix
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