Risk Management at MacVille Pty Ltd

This article discusses the risk management plan for MacVille Pty Ltd, an online library for study material with solved assignments, essays, dissertation etc. It includes a review of MacVille, risks, their likelihood and consequences, risk matrix, suitable options for treatment of risks, and an action plan.

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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RISK MANAGEMENT AT MACVILLE PTY LTD
Assessment 2:
1. Review MacVille:
MacVille Pty Limited is a financially strong company providing coffee and gourmet
food in the cafes it owns. The values of the company are customer benefit, safety, teamwork
and high quality performances. The firm maintains a stringent risk management plan under
the supervision of CEO which involves all the departments (Mudambi, Piscitello and
Rabbiosi 2014).

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RISK MANAGEMENT AT MACVILLE PTY LTD
2. Report for the CEO:
a and b. Risks, their likelihood and Consequences:
Types of risks Components Likelihood Consequences
1. Compliance risks 1. No written records of
ob responsibilities,
policies and procedures
of works.
Medium
Disputes between
superiors and
subordinates
2. Physical risks 2. The long distance
would result in long
delivery time leading to
spoilage of the pastries.
High
Deterioration of
product quality
3. Financial risks 3. Poor maintenance of
cash and high cash in
hand.
Low Cash thefts
4. Resultant fine due to
wastage of resources.
Medium
Increases in
expenditures
5. Drawings were not
recorded accordingly.
Low
Lack of financial
control.
6. Wages and
superannuation of
employees were
incomplete.
Low
Lack of employee
record maintenance.
Management risks 7. Wastage of resources Medium Loss of resources

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RISK MANAGEMENT AT MACVILLE PTY LTD
like water
WHS Risks 8. No policies to work
place risks and there
have been reports of
injuries.
High Loss due to accidents
Security Risks 9. Free access to
confidential business
data.
High Data thefts
c. Risk matrix:
Impact
High Medium (7) High (8) High (9)
Medium Low (3) Medium (1) High (2)
Low Low(6) Low (5) Medium (4)
Low Medium High
Likelihood
Note: The numbers in the bracket would refer to the specific components shown above.
Numerical values:
The three risks identified as ‘high’ should be dealt on priority as they are capable of
causing massive financial losses of more than AUD 50000. The medium risks like lack of
written records like employment contracts may not cause huge financial damage
immediately but may cause conflict between employees and employer causing losses worth
less than AUD 50000. The low risks like lack of recording of drawings can be implemented
easily and do not attract much expenditure. For example, the graph below shows that a huge
percentage of Australian internet users including companies were victims of data thefts
(Glaser, Stam and Takeuchi 2016). This means that MacVille, going by the graph should

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RISK MANAGEMENT AT MACVILLE PTY LTD
Representatives of MacVille meet representatives of Hurley Cafe
Use ethics as away to impose data protection methods (because Hurley is not yet
taken and hence no direct control can be imposed)
Well protected data system would enable easier adoption Hurley information
with MacVille post acquisition
impose strong data control methods upon its future subsidiary on immediate basis as shown
in the flowchart below.
Figure 1. Graph showing sources of data theft identification
(Source: abs.gov.au 2018)

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RISK MANAGEMENT AT MACVILLE PTY LTD
Figure 2. Flowchart showing how MacVille can impose data protection onto Hurley Cafe
(Source: Author)
d. Suitable options for treatment of risks:
Types of risks Components Suitable treatment options
1. Compliance risks 1. No written records of
ob responsibilities,
policies and procedures
of works.
1. Maintaining of written records.
2. Communication of employment terms to
employees on email.
2. Physical risks 2. The long distance
would result in long
delivery time leading to
spoilage of the pastries.
1. Setting up manufacturing facilities near
Hurley Cafe.
2. Manufacturing of warehouses where pastries
can be stored.
3. Financial risks 3. Poor maintenance of
cash and high cash in
hand.
1. Proper deposition of cash into bank account.
4. Resultant fine due to
wastage of resources.
2. Reduction of wastage of resources.
5. Drawings were not
recorded accordingly.
3. Drawings should be recorded.
Approval for drawings should be mandated.
6. Wages and
superannuation of
employees were
incomplete.
1. Proper maintenance of records.
2. Aligning the documentation with the
employment documentation.
4. Management risks 7. Wastage of resources
like water
1. Minimise wastage of resources.
2. Use the dishwasher only when necessary.
5. WHS Risks 8. No policies to work 1. Install proper risk management system.

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RISK MANAGEMENT AT MACVILLE PTY LTD
place risks and there
have been reports of
injuries.
2. Install camera etc within the premises
6. Security Risks 9. Free access to
confidential business
data.
1. Stringent data security.
2. Mandatory password and official mail ids for
all.
e. Risk identification and assessment of likelihood, consequences and priorities:
The process used to identify the risks and assess their likelihood, consequences and
priority was analysis of the primary data obtained about the Hurley’s cafe.
i. Likely to be effective:
The treatment methods suggested to manage with each risk is effective because they
would enable the management MacVille to minimise the risks after it acquires Hurley.
ii. Feasible for the organisation:
The risk management options are feasible because the firm would be able to adopt
them easily. For example, it is feasible to obtain a strong data security system.

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RISK MANAGEMENT AT MACVILLE PTY LTD
3. Action plan:
Appendix 3:
Risk Assess
risk(score)
Control Monitoring Action
priority(1
-5)
Timeline
s
Responsibl
e
1.
Complianc
e risks
1 1.
Maintaining
of written
records.
2.
Communicati
on of
employment
terms to
employees on
email.
Administratio
n department
2. Physical
risks
4 1. Setting up
manufacturin
g facilities
near Hurley
Cafe.
2.
Manufacturin
g of
warehouses
where
Facilities
department

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RISK MANAGEMENT AT MACVILLE PTY LTD
pastries can
be stored.
3. Financial
risks
3 1. Proper
deposition of
cash into
bank account.
Accounts
department
2 2. Reduction
of wastage of
resources.
Production
department
5 3. Drawings
should be
recorded.
Approval for
drawings
should be
mandated.
All the
departments
5 1. Proper
maintenance
of records.
2. Aligning
the
documentatio
n with the
employment
documentatio
n.
Technical
department
1. Minimise Production

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RISK MANAGEMENT AT MACVILLE PTY LTD
wastage of
resources.
2. Use the
dishwasher
only when
necessary.
department
5. WHS
Risks
1. Install
proper risk
management
system.
2. Install
camera etc
within the
premises
All the
departments
6. Security
Risks
1. Stringent
data security.
2. Mandatory
password and
official mail
ids for all.
Technical
departments
4. Communication to board of directors:
The risk analysis table shown above and the risk management plan should be
communicated to the board of directors and CEO for circulation among the departments. An
email should be addressed to the CEO as below:

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RISK MANAGEMENT AT MACVILLE PTY LTD
To: Email id of the CEO
Cc: Email ids of senior managers
Subject: Risk analysis report
Dear Sir,
This is to inform you that the risk assessment of the acquisition of Hurley’s Cafe has
been conducted taking into account the present operations and risk management norms. It can
be pointed out that the risk management methods of the cafe are below expectations. The
documents related to the risks as pointed out above show that acquisition of the cafe would
require the management of MacVille to put ethical pressure on the Hurley management to
upgrade their risk management methods with immediate effect. This would require your kind
assistance, guidance and intervention to ensure strong pressure on the management of Hurley.
Please find attached the relevant documents for your perusal and kind action.
Regards,
....... (Name of the sender)
Designation
Attachments:
All risk related documents mentioned above
5. Risk management plan for one key risk: Brand recognition
The following are risk management treatment which the Macville can implement to
deal with the risk of decreased brand recognition among customers which the cafe would
suffer if it fails to provide them with its signature pastries due to its distance from
Sydney( the second risk):

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RISK MANAGEMENT AT MACVILLE PTY LTD
1. The company must acquire a manufacturing setup close to the Hurley Cafe post
acquisition.
2. The company must also manufacture a warehouse where it would be able to store signature
products and offer them readily to customers.
3. The firm must promote its signature products in the area.
These three activities would enable MacVille make its signature products available to
customers post acquisition of Hurley and boost the goodwill (Barak 2016).

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RISK MANAGEMENT AT MACVILLE PTY LTD
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