BSBRSK501 - Manage risk PDF

Running head: RISK MANAGEMENT
Risk Management
Name of the Student
Name of the University
Author note

RISK MANAGEMENT1
Task 1.
Answer 1:
The review of the case study would reveal that CoffeeVille is a high quality café located
in the Central Business District, Brisbane, Australia. The chief attributes of the café were
availability of high quality yet affordable food products as well as beverages and its strict risk
management policy. The risk management policy of the café encompassed various areas like
work healthy and safety and financial aspects. The risk management policy of the restaurant
rested on its corporate values which encompassed safety, team work, and customer satisfaction
and performance excellence. CoffeeVille had a FARM committee which looked after the risks
and took appropriate steps of risk management. The risk management strategy of CoffeeVille
even encompassed its future subsidiaries like CoffeeVille Lake Entrance. As far as
documentation is concerned, it can be pointed out that the company served a large number of
stakeholder like customers, suppliers, the management, the employees and government bodies at
both the federal as a well as at the state level.
Answer 2.
Part a.
The risk management framework of CoffeeVille was very effective in supporting the
process of risk management in the company. The risk management framework in the
organisation worked under the supervision of the finance, audit and risk management (FARM)
committee. The FARM committee of CoffeeVille worked under the guidance of risk
management process as per AS/NZ ISO 31000:2009. The process consists of eight key elements
namely, establishment of the context, risk identification, risk analysis, evaluation of risk,

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treatment of the risk, monitoring and review followed by communication an consultation. The
purpose of the standard is to establish a strong risk management method in all business
organisations to minimise risks like fire and employee injuries to the extent possible (Iso.org.
2018). However, it can also be pointed out that the risk management principles of AS/NZ ISO
31000:2009 does not and cannot enforce policies organisations.
Part b.
Risk management had a great scope in the profession of Ash, the newly appointed
manager of Lake Entrance Store, the future subsidiary of the CoffeeVille.. This is evident from
the poor risk management standards prevailing at the Lake Entrance which were very slack. The
family managing the business did not properly records of employee appointments and did not
protect business data with passwords. The restaurant showed slack cash management and there
have been thefts. Moreover, the employees did not engage in marketing activities in spite of the
fact the multinational restaurants were already eyeing the area. The Lake Entrance CoffeeVille
management did not maintain proper records of employee accidents and did not comply with
environmental laws. Thus, it can be risk management would form a very significant role in the
job responsibilities of Ash as the manager of the Lake Entrance CoffeeVille, post-acquisition of
the latter. He would have to improve the risk management standards of the Lake Entrance in
alignment with the owner company, CoffeeVille’s to risk management framework under the
stewardship of FARM.
Part c.
The critical success factors which would attribute the acquisition of the Lake Entrance
with with success are the strong financial position of CoffeeVille, The second factor would be
the stringent risk management policy of the CoffeeVille which commences under the leadership

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of finance, audit and risk management (FARM) committee. This is evident from the strict risk
management principles of CoffeeVille. The third success factor strong organisational chain of
communication prevailing within the owner firm would provide base to the first two success
factors. This strong line of communication was from the detailed meetings between Ash, Paula
Kinski, the CEO and among the high level managers which included the FARM committee as
well (Angwin and Meadows 2015).
The objective of the risk management strategy of CoffeeVille would be efficient risk
management in its new subsidiaries like the Lake Entrance CoffeeVille. This means that the
acquiring firm would require to bring about disruptive changes in the modes of operations in the
Lake Entrance. Thus, it can be pointed out that the second aim of the risk management strategy
of the CoffeeVille would be efficient change management in the Lake Entrance CoffeeVille to
ensure successful achievement of the first aim which is risk management.
Part d.
Stakeholders Internal/External Role in the process Stake in the process
Management of
CoffeeVille
Internal Forms important
decisions both in
terms of short term
and long term
decisions like
acquisitions of new
firms and forming
risk management
strategies.
Profit
Managers Internal 1. Heads the different
departments and act
as bridges between
the apex managers
and wer level
employees.
2. Forms the
department specific
business strategies.
Carrier growth,
promotion and salary

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3. The communicates
with lower level
employees and trains
them.
4. Manages tough
business situations
like customer
complaints
Investors Internal Invest in the capital
of the firm.
Dividends
Customers External Purchase products
and generates
revenue.
High quality products
and services
Government External Makes laws and
policies for industries
to function.
Taxes
Lower level
employees
Internal Executes the
strategies formed by
the apex management
Salary and career
growth.
Suppliers External Provides the
restaurant with raw
materials at economic
rates
Timely payments
Answer 3. ‘
The following are the political, economic, social and technological factors influencing the
economy of Australia.
Political:
The country of Australia is politically stable which promotes business expansion of
restaurants. The first political factor effecting the industries in Australia is that the government
both at the central and state level acts a policy and law maker. The business organisations in the
country have to comply with the laws in order to operate in the market. For example, the
employers employing the human resources in Australia have to comply with the Safe Work Act
1999 (Safeworkaustralia.gov.au. 2018). Similarly, the organisations have to adhere to the

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policies laid down by local government bodies like the Lake Entrance Council
(Eastgippsland.vic.gov.au. 2018). Similarly, the government imposes laws pertaining to
important areas like Environment Protection and Biodiversity Conservation Act 1999. The act
necessitates the body corporates to form policies to operate in ways by causing less harm to
nature. The second area where political factor comes into play is that bilateral relationships
which the Government of Australia have with other countries. The strong foreign relationship of
Australia enables the business organisations like restaurants based in Australia obtain raw
materials from different countries across the world. This access to raw materials from other
nations lead to production of superior products (Australia.gov.au. 2018). The above discussion
apparently shows that political factors are only drivers of businesses. However, it can be pointed
out that political factors like terrorism in reality are the greatest threats to industries (Bhaduri
2018).