BSBRSK501 Manage Risk: MacVille Toowoomba Branch Risk Analysis

This report assesses the risk management strategies for MacVille’s Toowoomba branch, covering effectiveness of the risk management framework, scope, critical success factors, and stakeholder roles. It includes internal and external analysis using PEST and SWOT frameworks to identify potential risks such as financial, supply chain, human resources, OHS, and compliance risks. The report also contains an email to the CEO outlining identified risks and a risk management action plan, addressing issues like inadequate cash management, lack of written policies, poor promotional strategies, and non-compliance with industry standards. The analysis uses secondary data, organizational policies, risk management reviews, and potential employee surveys to inform its findings and recommendations.

Risk Management and Assessment
Name of the Student:
Name of the University:

Table of Contents
Introduction 2
Assessment Task 1 3
Report for the CEO 4
2. Email to CEO 10
4. Summary Notes 12
Assessment 2: Analyse and Treat Risk 12
Part A 13
1. Report for CEO 13
2. Risk Management Action Plan 20

Introduction
The aim of this report is to evaluate the potential risks and manage MacVille’s
Toowoomba branch. This report shall be divided into three tasks- risk review report and
communicating with the CEO, risk analysis report and risk treatment, and monitoring report.

Assessment Task 1
This assessment task shall help assume the role of Brisbane store Assistant Manager who
has been promoted to be manager of a new store at Toowoomba. This report is written for the
CEO while outlining the MacVille Risk Management Framework. This report also describes the
scope of risk management required in the assistant manager’s role. The critical success factors
are also identified while addressing the goals and objectives for the areas included in the scope.
The internal and external stakeholders are identified such as CEO, store supervisor and others.
The role played by the stakeholders is also analysed. An external and internal analysis is
conducted using the PEST and SWOT framework.

Report for the CEO
a. Effectiveness of Risk Management framework at MacVille Pty Ltd
The risk management framework at MacVille Pty Ltd involves multiple elements to be
effective. It includes the policies and procedures relating to human resources, finance and
corporate governance. The different policies are Staff Travel policy, Parental Leave Policy,
Equity/ Discrimination Policy, WHS Policy, Bad Debt policy, Board Protocol and various others.
It also includes business planning and budgeting, audits and reviews that support the ISO 31000:
2009 standards. This standard is an effective guideline as it involves different risk management
techniques in the organization. The standard helps in reliable decision making and planning
while practically advising on the ways MacVille can manage risk.
b. Scope of Risk Management
The management of MacVille decided to expand its operations in Queensland and
purchasing and-rebranding their existing café in Toowoomba. There is a huge scope for
assessing strategies for risk management factors. The manager at the café can undertake an
annual review for assessing the effectiveness of the system. The manager shall also be
responsible for updating and reviewing the risk management strategies for decreasing the
chances of failure and losses. Therefore, the risk management shall include identification of
risks, planning and management.
c. Critical Success Factors
The critical success factors involve commitment level from the top management,
effective communication, good organizational culture and behaviour. Further, the critical success

factors also include effective utilization of information technology, smooth flow of information
within the organization. The senior managers are involved for identifying gaps in the risk
management procedure. There must be effective communication from the top management,
employees and customers. Another critical success factor is good organizational culture as it
shall facilitate smooth flow of information. Effective training in the organization can smoothen
transition with the organization. The top management shall require less effort in applying risk
management strategies.
Goals or Objectives
The main goal of the senior manager in the risk management process is identification of
risks. The manager is responsible for identifying the issues in the risk management strategy. The
goal also involves managing risks in the operation of Toowoomba store. The goal also involves
smooth transition to the MacVille systems.
d. Role of Internal and External Stakeholders
Stakeholder Internal/
External
Role in Process Stake in Process
The board Internal Overall risk management They are at stake as there is a risk of
loss of tangible and intangible
assets.
Ron Langford Internal Councillor and Landlord There is a potential loss of tenant.
Goldsmith
Partners
External Legal and Compliance Advice The firm may lose a client and there
is potential for being sued for a

wrong advice.
James
Mansfield
Internal Hurley’s Store Supervisor The store supervisor may lose
employment.
Queensland
management
team
Internal Management team in the
transition and ongoing
management.
There team has its promotion and
reputation at stake.
Hurley’s staff Internal The employees play the role of
running the café and serving its
customers.
Only loyal employees can
participate in the risk management
process because they have some
care for the organisation. They can
participate in the risk management
procedure by providing some advice
and their expectation from the
organisation.
e. PEST Analysis and SWOT Analysis
The PEST analysis is conducted as under:
PEST Analysis
Political The by-laws are related to water conservation and a huge amount of penalty can be
imposed upon excessive water usage.
Economic Due to global recession, the profitability of Toowoomba café may decline. The currency

exchange rate, taxation and economic environment in multiple markets can also affect
the café. As Toowoomba is becoming an effective place for retirees, global recession
won’t affect them thereby not impacting the facilities of the café.
Social As customers are becoming more health conscious, their preferences of food and
beverage are changing. There is a need to bake fresh food but the two-hour transportation
time is discouraging the customers
Technologica
l
With the advent of technology, broadband can enable video conferencing and
teleconferencing. Free internet services can attract a large number of customers in the
store.
Table 1: PEST Analysis
SWOT Analysis
Strengths
 The location in the corner of two streets
gives more accessibility to the local
customers.
 There are healthy and innovative food
options such as rice wraps giving a
competitive edge.
Weaknesses
 No effective sales promotion
techniques.
 Computer is not password protected
that gives access to the financial
records.
 Risk of cash embezzlement as the
register is not well maintained.
 No written evidence for policies and
processes as it is stated verbally.

Opportunities
 Cafe may be opened in nearby locations
such as Clifford Gardens and K-Mart
Plaza.
 New business opportunities are rising
for the retirees in Toowoomba.
 There is opportunity of expansion on
the footpath dining
Threats
 There are huge penalties involved in
excessive water usage.
 Intense competition exists in the region
as other cafes might open in
Toowoomba to serve the customers.
f. Methods of Research Used
The main information for PEST and SWOT analysis is gathered using the secondary
document thereby reflecting upon the strategic position of the organization. The different
organizational policies and procedures, external audits and review of risk management
techniques are also used to prepare the SWOT and PEST analysis. For conducting the PEST and
SWOT analysis, a number of analysis was done. The risk management framework of
Toowoomba store encompasses a number of elements that was useful to the manager in
conducting operations. The elements include monthly reports of MacVille Pty Ltd, multiple
organizational policies and procedures, review of risk management techniques and external
audits. Additionally, the strategic position of the café can be identified using survey of
employees and the frequent visitors at the Toowoomba café.
g. List of Risks

According to the case scenario, the café involves human resources management risk.
There are no written policies and procedures due to which there is manual and limited staff
training. There is a risk of errors and inappropriate actions. Further, as the authorisation system is
unclear, it could result in fraudulent activities. There is no or less sales promotion technique that
impacts the financial viability of the stores. It is also analysed that there are financial operations
risk. As there is no separation of duties, it could result in fraud. The café lacks cash register
maintenance which is an unacceptable behaviour as it shall result in misappropriation of funds.
As banking was not done on a regular basis, it has a high risk of theft. Also, due to lack of
promotional strategies, the other café and restaurant have a competitive advantage over
MacVille.
Moreover, it is analysed that there is Occupational Hazard risks. The manager has to
drive for two hours for his weekly meeting that adds to the risk of physical injury. The interior
and exterior of the café is very poor. There are unstable and broken chairs that may lead to
compliance breach, reputation loss and suing by the customers. The carpet was also torn and was
stuck using gaffer tape. This is also a compliance breach and the customers can sue the café.
There is no established process for dealing with the injuries happening at work that can result in
poor reputation and suing by the union.
According to the case scenario, the café is located in the corner of two main streets of
Toowoomba city. This allows the café to attract a large customer base. However, the two-hour
transportation time makes it impossible for the customers to get freshly baked products. This
adds to the supply chain risk. Apart from the above, there is local governance and compliance
risk cover. The company can be penalized for using excessive water resulting in brand loss.
Water utilization for the dishwasher costs $6000 and their dual flush system $7,500. The

incomplete employment records can bring upon a fine up to $50,000 as the unions can sue the
firm. As the records are accessible, it can lead to privacy law breach due to no guarantee of
confidentiality of the records.
The key risks identified in this case scenario are:
 There is lack of internal control as the cash management is poor. There is low
monitoring of the flow of cash.
 There is lack of concentration in the written policies and procedures which acts as
a guideline for the staffs.
 There is lack of concentration in the promotional strategies that can help the
organization prosper.
 There is lack of professionalism in handling the business as it is run by family
members and not the paid staff or employees.
 The café does not meet the compliance standards related to privacy, industrial
relationships and others.
 The café fails to monitor the external environment such as strengths, weaknesses,
opportunities and threats.
2. Email to CEO
To: P. Kinski- CEO
Subject: Identified Risks and Further Risk Management Processes
Thank you for the opportunity of becoming manager of the new Toowoomba store. I understand
the importance of the tasks and have commenced several actions as specified by you. I propose

to include the risks identified and further risk management processes. This email is to inform you
about the risks that were identified during my research:
 Financial Risk- As there is no separation of duties, it could result in fraud. The café lacks
cash register maintenance which is an unacceptable behaviour as it shall result in
misappropriation of funds. As banking was not done on a regular basis, it has a high risk
of theft.
 Supply Chain Risk- The café is located in the corner of two main streets of Toowoomba
city. This allows the café to attract a large customer base. However, the two-hour
transportation time makes it impossible for the customers to get freshly baked products.
 Human Resource Management Risk- The café lacks cash register maintenance which is
an unacceptable behaviour as it shall result in misappropriation of funds.
 OHS Risk- The manager has to drive for two hours for his weekly meeting that adds to
the risk of physical injury. There are unstable and broken chairs that may lead to
compliance breach, reputation loss and suing by the customers. The carpet was also torn
and was stuck using gaffer tape.
 Local Governance and Compliance Risk- There is local governance and compliance risk
cover. The company can be penalized for using excessive water resulting in brand loss.
The incomplete employment records can bring upon a fine up to $50,000 as the unions
can sue the firm. As the records are accessible, it can lead to privacy law breach due to no
guarantee of confidentiality of the records.
There is a need to manage the above identified risks and I am looking forward for a discussion
with you about the same. Moreover, I am looking forward to your input on any other additional
risks.