Risk Management Report for Brisbane MacVille Cafe in Toowoomba

This report analyzes the risk factors associated with Brisbane MacVille Cafe in Toowoomba, a family-owned cafe business. As the senior manager, the report assesses the effectiveness of current risk management practices, identifies critical success factors, and explores the roles of internal and external stakeholders. It utilizes PEST and SWOT analysis to identify potential risks and opportunities, providing recommendations for improvement. The report highlights key areas for attention, including water usage, cash management, workplace safety, and data security.

Report on Risk
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Table of Contents
Introduction................................................................................................................................3
a). Frameworks of effectiveness of the Risk management by supporting the principles and
process of Risk management..................................................................................................4
b). Identification risk management scope:.............................................................................5
c). Identification of critical success factors, goal and objective in that scope:......................6
d). Role of internal and external stakeholders in the risk management process:...................7
e). PEST analysis and the SWOT analysis for the identification of the associated risks in
the given scenario:................................................................................................................10
f). Research methods that has been utilised in PEST and SWOT analysis..........................12
h). Completion of analysis by summarising the given scenario and providing a list of risks.
..............................................................................................................................................13
Conclusion................................................................................................................................14
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Introduction
This task is reviewing the risk factors that are associating with a cafe business that is
established on the city of Toowoomba by the name of Brisbane MacVille café. As senior
manager of the cafe my role is to assess the risk factors and help the business family to
achieve their long term business objectives.
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a). Frameworks of effectiveness of the Risk management by supporting the principles
and process of Risk management
There are different types of elements has been involved in the risk management assignment
of the Macville Pty Ltd that has been helping the organisation to become an effective and
efficient operation for the organisation. There are various elements has generally been
included in the risk management process of the Macville Pty Ltd such as procedures and
policies, budgeting and business planning, risk management review, external audits, various
monthly reports are all taken into consideration for understanding the recent status of the
organisation and enable prompt feedback so they can eliminate the risks regarding the
commercial as well as the strategic risk. Various policies relating the finance and corporate
governance, human resources has the Macville Pty Ltd in understanding the different types of
the issues they are currently facing so that they can take the effective risk management
strategy to solve this (Grant, 2016). To harmonise the risk management for present as well as
future standards they are following the standards of ISO 31000:2009. This standard helps the
company in dealing specific level of risks and also providing a common approach for dealing
with all level of risks so that the standards are not able to replace. This standard provides
guidance for dealing with the risks because effectively because the mentioned standard is not
promoting uniformity of the management of risk in the organisation (Grant, 2016).
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b). Identification risk management scope:
There is huge area of analysing the risks as a supervisor of the Toowoomba Cafe as a
manager of cafe. Various policies of the movement of risk can be implemented. As a senior
manager of the cafe effective and appropriate risk management strategies has to be applied
and more internal control has to be applied (Bhimani, 2013). There is also huge area in
assessing factors for the assessment of management of risk strategies due to evaluation and
identification of the issues in where risk can be possibly evolved. Along with this, review and
update of the current strategies of risk management so the major issue in the recent strategies
of risk management may be able to be discovered in a process which can produce the chances
to implant the effective strategies of management of risk. As a senior person of company,
there is a possibility for the identification of the areas of the management of risk that are not
properly taken care. As a Senior manager of a firm there should be possibility for the senior
manager to provide proper and timely valuable suggesstion to the CEO so the necessary
advice can be taken on right time (Bhimani, 2013).
Below risks has been identified:
 Risk in Banking – Risk of theft.
 Compliance risk By -Law –Loss of Brand image and heavy penalty
 Travelling risk of manager –Possibility of accident while on travel
 Risk of loss of recognition of brand - Staff is not wearing the Uniform of McVille and
that is a sign of non brand compliance or altering tge service expectations and processes
of McVille.
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c). Identification of critical success factors, goal and objective in that scope:
Objectives and Goals:
The primary role of the senior manager in the procedure of management of risk is assessment
of the present risk management procedure effectiveness. The responsibility of the manager
is to advice members of board about the issue in recent risk management strategy that is
identified by them and advice the members with the other strategy by which the issue can be
resolved (Bromiley, et. al.,2015)..
Critical Success factors:
The senior managers are usually engaged to find out the gaps in the recent procedures of
management of risk (Bromiley, et. al.,2015). Proper application of risk management will
require five different types of activities such as support from top management, everyone
should be involved in structure of business, various types of cultural imperatives,
measurements patter and the integral parts of whole management process along with the
structure.
Behind the scope of the role of senior manager there are various critical success factors
as per given below:
 Communication should be effective among the staff, customers and to the higher
authority.
 Effective level of Support and commitment from top management.
 Organisation culture should be good that is establishing cooperation and cooperation.
 Organisation culture should be effective that is helping a smooth travel of information.
 Effective utilisation of the present information technology platform.
 Staff are to be trained effectively so they can put their efforts in implementation of the
strategies for effective risk management.
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d). Role of internal and external stakeholders in the risk management process:
There are various forms of internal investors of the mentioned cafe such as employees,
Clients and suppliers and external investors of the mentioned cafe is the local government
and authorities etc.
Stakeholders External / internal Role in the process Stake in the process
Customer Internal
Employees those
have some care for
the organisation and
are loyal in nature
can participate in the
process of the risk
management. They
have some
expectation from the
organisation and can
participate by
providing some
advice in the risk
management process
(Arena, et. al., 2012).
Very low stake in the
procedure of risk
management.
Staff or employees Internal The audit, finance
and the risk
management
committee has the
role to assess the
action against the
risk management.
The CEO team and
Top management and
the internal staff has
a high level of the
stake in this
procedure of
management of risk.
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Stakeholders External / internal Role in the process Stake in the process
the senior level of
committee have the
responsibility for
managing the risks
by providing Varoius
Suggestion regarding
the risk control.
Director and the staff
are aligned with the
monitoring, Risk
assessment and
taking action that is
associated to the risk
it can be managed
judiciously.
Application of proper
management of risk
is the primary role of
the board of directors
of the organisation
(Arena, et. al., 2012).
Local Suppliers Internal Suppliers can take an
effective
participation on risk
management by
providing their
valuable inputs to the
middle management
along with the
employees of the
Medium level of a
stake in the Process
of management of
risk.
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Stakeholders External / internal Role in the process Stake in the process
organisation. There
inputs will benefit
both the organisation
and the suppliers.
Local Government External
There are various
forms of risks that
are associated with
the company that are
selling food items.
Therefore the
government Usually
had taken a sound
participation in the
management of the
risk by implementing
various law of food
hygiene. Along with
government, also
implement work
safety law along with
the employment law
so that it can preserve
the staff in the
company (Arena, et.
al., 2012).
They have very high
level of stake in
strategy of risk
management.
Table 1: Stakeholders analysis
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e). PEST analysis and the SWOT analysis for the identification of the associated risks in
the given scenario:
PEST analysis:
Political Water utilisation has comes under the strict law. Huge amount of fine
can be imposed on them due to excessive utilisation of water.
Economical
Recession factor going on globally is one of the major external drivers
at the Toowoomba cafe affecting it economically because this factor
may provide negative impact on the profitability of the cafe. Local
currency exchange rates, economic development in various markets and
the taxation level will create a huge impact on the cafe (Easley, et. al.,
2012). As Toowoomba is a small place and generally retirees will live
there it is not too much affected by the recession so the cafe can
manage their facilities of the strong economic system.
Social
Customers are more concerned about the health and their preferences
are changing at rapid pace (Easley, et. al., 2012). Customers will appeal
to the bakery because of fresh bakery produce and the bigger two hour
transportation time will make the customers hesitant to use the bakery
product so it is very important that the bakery should be on nearest
location from the store.
Technological
For efficient and effective video conferencing and teleconferencing the
federal government is launching the federal government broadband data
connection in Toowoomba. By using the technology the various levels
of the cafe can talk smoothly among selves and can plan meetings with
the head office as per need or urgency. They can even set Wi-Fi
connection on their store and give benefit to the customers by free
internet services that will help them in enhancing their brand image.
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Table 2: PEST analysis
(Source: Bhimani, 2013)
SWOT analysis
Strength
cafe is planning to start their main store near the corner of the two main roads that is
providing them quick accessibility for the local customers. A very unique rice has been by the
cafe that is tasty and healthy and very much liked by the customers and innovative of its kind
from competitors.
Weakness:
Delivery from central plant is very much impractical as it hampers the accessibility of fresh
bakeries. Policies and guidelines are followed up casually. There is no proper framework to
avoid and deal with the injuries in the workplace. The data in computer are not password
protected and can be accessed by anybody. Sales promotion techniques are not well enough.
They are not maintaining proper record of daily wages and calculations are not cross-
checked. Excessive wastage of water and extra cost of $6,000 has to be paid for it. Cash is
not deposited on banks on day to day basis. Cash register are not up to date ( Babatunde and
Adebisi, 2012 ).
Opportunities:
Expansion of new branches of cafe can happen on new places like Clifford gardens and K-
Mart Plaza. Toowoomba is an emerging and becoming likely place for the retired people so
new business opportunities associated with retired people has been emerged.
Threats:
An international reputed coffee chain is planning to enter in the Toowoomba to expand their
branches in this region. Negative impact on their profit due to excess water duty imposed on
the cafe.
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f). Research methods that has been utilised in PEST and SWOT analysis.
In Order to properly analysing the strategic strength PEST and SWOT analysis has to be done
above and there are various methods have to use. To facilitate effective and efficient
operations the framework of risk management of the Toowoomba store various elements
have to be considered. It helps in generating them a prompt response to various types of the
commercial, financial, operational and strategic risks ( Babatunde and Adebisi, 2012 ). The
different types of methods are organisation’s monthly report, budgeting and business
planning review report, various types of organisational procedures and policies, external
auditing and review of management of risks along with external auditing. Different types of
analysing tools that can provide effective scenario after analysing secondary data and can
interpret data for the PEST and SWOT analysis. Also various customers surveys and
employee survey has been conducted to get the real interpretation about the improvement in
cafe at Toowoomba.
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h). Completion of analysis by summarising the given scenario and providing a list of
risks.
Proximity to the customers is easy due to its prominent location among the two streets in
Toowoomba city while distance from plant to store is greater. Since the cafe is a family
managed business so there may be a lack of professionalism in the business. On meeting
with the owner of the store it has been cleared that all policies and guidelines are been
verbally stated. Employee has been guided verbally about their day to day work verbally
(Finch, 2014). Their major problem is that they are over wastage of water and pay huge costs
on extra usage of water Dishwasher is using approximately $6,000 of water and dual flush
system is incurring $7,500. They are unable to handle cash flow in their cafe. They are even
not depositing daily cash to the banks on day to day basis and cash is lying idly on the safe
and may prone to theft. Big disparity in maintaining the cash register because the register is
maintained by the family peoples. They have not invested in their interior and exterior design
since long and the design of the store is generally unattractive and even some chairs are
uncomfortable to sit and also broken. They don’t have any effective mechanism to deal with
the workplace injury and avoiding the accidents. Computer on the store is not password
protected and vulnerable to risk. These all are the key risks and handled with proper
assessment (Finch, 2014).
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Conclusion
After assessing all the risks associated with the cafe business and analysing the PEST and
SWOT analysis outcomes a detailed report has been presented to the CEO of the cafe and
also make them understood the Opportunities and threats for their business and also key
weakness they are lacking and losing clients or customers. If they work on their week points
it will be beneficial in improving the overall business scenario of the cafe.
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References:
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 Bromiley, P., McShane, M., Nair, A., and Rustambekov, E., 2015. Enterprise risk
management: Review, critique, and research directions. Long range planning, 48(4),
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 De Zwaan, L., Stewart, J., and Subramaniam, N., 2012. Internal audit involvement in
enterprise risk management. Managerial auditing journal, 26(7), pp.586-604.
 Arena, M., Arnaboldi, M., and Azzone, G. 2012 . Is enterprise risk management real?.
Journal of risk research, 14(7), pp.779-797.
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 Gudienė, N., Banaitis, A., Podvezko, V. and Banaitienė, N., 2014. Identification and
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 Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
 Babatunde, B.O., and Adebisi, A.O., 2012. Strategic Environmental Scanning and
Organization Performance in a Competitive Business Environment. Economic Insights-
Trends & Challenges, 64(1). Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley &
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