Risk Management at MacVille Pty Ltd

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