BSBRSK501: Risk Management Project - Dockland Restaurant Business

This project presents a comprehensive risk management plan for a restaurant business located in Dockland, Melbourne. The report begins by defining the scope, purpose, and stakeholders of the risk management plan. It then identifies various risks, including operational, supply chain, legislation, human resources, competition, technology, reputation, financial, and natural disaster risks. The project assesses the potential impact of each risk using a risk matrix and develops a detailed risk register that outlines the heading, description, seriousness, likelihood, and grade of each risk. A risk treatment schedule and action plan are also provided, detailing preferred options, responsible parties, and timelines for mitigating identified risks. The project concludes with an evaluation of the risk management practices, emphasizing the importance of monitoring, reporting, and continuous improvement. The project aims to provide a framework for proactively managing risks and ensuring the success of the restaurant business.

Running Head: RISK MANAGEMENT 0
RISK MANAGEMENT
STUDENT NAME
1-16-2019

RISK MANAGEMENT 1
Contents
Assessment 1: Project......................................................................................................................2
1. The Scope of the Risk Report......................................................................................................2
1.1 Background Information........................................................................................................2
1.2 Purpose of the Risk Management Plan..................................................................................2
1.3 Stakeholders –........................................................................................................................2
2. IDENTIFY THE RISKS WITHIN THE SCOPE......................................................................................3
Operational Risk......................................................................................................................3
Legislation and Political Risk..................................................................................................3
Supply Chain Risk...................................................................................................................3
Man-made disasters Risk.........................................................................................................3
Human Resources Risk............................................................................................................3
Competition Risk.....................................................................................................................3
Technology Risk......................................................................................................................3
Reputation (market) Risk.........................................................................................................3
Financial Risk..........................................................................................................................3
Natural Disasters Risk.............................................................................................................3
3. Assessing Potential Risk..............................................................................................................4
4: Risk Register................................................................................................................................5
5: Risk Treatment Schedule and Plan..............................................................................................8
6. Risk Action Plan........................................................................................................................12
7. Review the risk management plan - Evaluation of the business risk management practices....14
References......................................................................................................................................15

RISK MANAGEMENT 2
Assessment 1: Project
1. The Scope of the Risk Report
1.1 BACKGROUND INFORMATION
The business is part of the food and service industry. This report will consider the risk
assessment of a restaurant business in Dockland. Dockland, Melbourne is a waterside location in
Australia, where everything for all the age groups is available to enjoy. That is there are available
events, food and wine, accommodation, and various other entertainment availability
(visitmelbourne, 2018). Among these, the focus will be over the restaurant for this project.
1.2 PURPOSE OF THE RISK MANAGEMENT PLAN
This report will discuss the risk management for a restaurant that is planning to establish in
Dockland, waterside. The overall business risk for a restaurant and considering the area will be
discussed. Risk management is assessing the risk involved while investing, and planning to
mitigate the risk (Jordan, 2018)
1.3 STAKEHOLDERS –
The stakeholders for this business are the owner of the restaurant, managers, low-level staff like
waiters, other associated party or supplier, and most importantly the customers. The target
customers for this business is the tourist visiting Dockland while targeting all age groups, with a
best quality product and luxurious dining service.

RISK MANAGEMENT 3
2. IDENTIFY THE RISKS WITHIN THE SCOPE
Operational Risk
 Interior up to the mark
 Machines and equipment failure
 Lift maintenance (HSE, 2018)
Legislation and Political Risk
 Food quality
Supply Chain Risk
 Raw food supply failure
 Conflict with Vendor (Bowers, et al.,
2017)
Man-made disasters Risk
 Damage by staff (Carvalho
& Junior, 2015)
 Damage by clients to the
property
Human Resources Risk
 Staff inefficiency
 Need for training (Abdulraheem Sal,
2016)
Competition Risk
 High competition
 Competitive innovation
(Islam, 2017)
Technology Risk
 Equipment failure
 Outdated Payment methods
Reputation (market) Risk
 Negative publicity
(Anute & Deshmukh, 2015)
Financial Risk
 The loss in business due to High
investment involved (Bradler, 2016)
Natural Disasters Risk
 Waterside restaurant has the
risk of floods
 Earthquake

RISK MANAGEMENT 4
3. Assessing Potential Risk
Considering this risk matrix, the risk identified can be assessed in the following:
1. Interior up to the mark – this risk occurs in a grid of rare occurrence and major
consequence
2. Machines and equipment failure - this risk occurs in a grid of likely occurrence and major
consequences
3. Lift maintenance - this risk occurs in a grid of possible likelihood and moderate
consequences
4. Food quality - this risk occurs in a grid of unlikely likelihood and severe consequences
5. Raw food supply failure - this risk occurs in a grid of unlikely likelihood and major
circumstances
6. Conflict with Vendor - this risk occurs in a grid of unlikely likelihood and major
circumstances

RISK MANAGEMENT 5
7. Damage by staff - this risk occurs in a grid of possible likelihood and minor
circumstances
8. Damage by clients to the property - this risk occurs in a grid of possible likelihood and
minor circumstances
9. Staff inefficiency - this risk occurs in a grid of possible likelihood and moderate
circumstances
10. Need for training - this risk occurs in the grid of possible likelihood and minor
circumstances (Aravamudhan & Krishnaveni, 2015)
11. High competition - this risk occurs in the grid of possible likelihood and major
circumstances
12. Competitive innovation - this risk occurs in the grid of possible likelihood and major
circumstances
13. Equipment failure - this risk occurs in a grid of likely likelihood and moderate
circumstances
14. Outdated Payment methods - this risk occurs in a grid of unlikely likelihood and severe
circumstances
15. Negative publicity - this risk occurs in a grid of unlikely likelihood and severe
circumstances (Akkermans, et al., 2015)
16. The loss in business due to High investment involved - this risk occurs in a grid of
unlikely likelihood and severe circumstances
17. Waterside restaurant has a risk of floods - this risk occurs in a grid of unlikely likelihood
and severe circumstances
18. Earthquake - this risk occurs in a grid of unlikely likelihood and severe circumstances
4: Risk Register
HEADING
(From above –
minimum 10)
Risk
(From
above)
What and
Seriousness
Likelihoo
d
Rating
Seriousnes
s Rating
Risk
Grade

RISK MANAGEMENT 6
how can it
happen
1. Machines
and
equipment
failure
Microwave,
lift, food
processing
machine
damage
 Injury to
staff
 Event failure
 Loss of
company
Unlikely Major Mediu
m
2. Raw food
supply
failure
Logistics
issue, raw
material
unable to
reach to
restaurant
 Supplier
relations
could be
disturbed
Unlikely major Mediu
m
3. Competitiv
e
innovation
New entrants
to market
with the
innovative
idea
 Lower
market share
 Loss in
business
Unlikely major Mediu
m
4. Outdated
Payment
methods
New
payments are
available like
mobile
wallets and
international
cards (Jahn,
2018)
 Customer
loss
 Dissatisfactio
n
 Organization
image
Unlikely severe High
5. Negative
publicity
Due to food
quality of
 Unattractive
for new
Unlikely severe High

RISK MANAGEMENT 7
customer
dissatisfactio
n
customers
 Sustainabilit
y issue
6. Waterside
restaurant
has the
risk of
floods
A natural
disaster is
dynamic and
unknown
 Loss of
property
 Livelihood
loss
Unlikely severe High
7. Staff
inefficienc
y
Lack of
competencie
s, increase in
the mistake
by staff
(Courtney,
2018)
 Service is not
appropriate
 Customer
loss
possible Moderate Mediu
m
8. Damage
by clients
to the
property
Breakage to
the property
of restaurant
by clients
 Breakage of
glasses or
utensils
possible Minor Low
9. Food
quality
Monitoring
negligence
(Asfaw, et
al., 2015)
 Legal issues
(business.go
v, 2018)
 Customer
will not be
retained
 Negative
publicity
unlikely severe High
10. The loss in Low market  Company unlikely severe High

RISK MANAGEMENT 8
business
due to
High
investment
involved
share, No
increase in
the customer
database
loss
 Sustainabilit
y will not be
possible in a
competitive
market
5: Risk Treatment Schedule and Plan
Risk
(From
above –
minimu
m 10)
Possibl
e
Treatm
ent
Option
s
Preferred
Options/
Actions
Risk
Grade
(From
above)
BEFO
RE
Treat
ment
Risk
Grade
AFTE
R
Treat
ment
Person
Responsi
ble for
Impleme
ntation
Timing –
when will it
be carried
out – the
timetable/s
chedule
How will it
be
reported/mo
nitored?
1.
Machine
s and
equipme
nt
failure
-Hired
enginee
r
-
Continu
ous
monitor
- highly
skilled
engineerin
g team
recruitme
nt
Unlike
ly +
Major
=
Mediu
m
Rare +
Moder
ate =
Low
Engineeri
ng
manager
Immediate Equipment
check and
maintained
on a regular
basis

RISK MANAGEMENT 9
2. Raw
food
supply
failure
- More
than
one
supplier
- better
logistic
partners
-
numerous
supply
partners
(Heckman
, et al.,
2015)
Unlike
ly +
Major
=
Mediu
m
Rare +
Moder
ate =
Low
Vendor
manager
Ongoing
task
Relationship
build with
suppliers, and
tracking of
logistics
(Ayers, 2017)
3.Comp
etitive
innovati
on
-
Compet
itive
audit
-
market
awarene
ss
-
innovative
organizati
onal
culture
Unlike
ly +
Major
=
Mediu
m
Rare +
Moder
ate =
Low
Marketing
manager
Ongoing
task
Product and
process
innovation
and market
check for
opportunity
(Anute &
Deshmukh,
2015)
4.
Outdate
d
Payment
methods
-
technol
ogy up
gradatio
n
-
maximu
m
paymen
t
options
-
technologi
cal
advancem
ent
Unlike
ly +
Severe
= High
Rare +
major
= Low
Accountin
g manager
Immediate
and
ongoing
Technology
change and
innovation
5.
Negativ
- brand
position
-
extensive
Unlike
ly +
Rare +
major
Marketing Ongoing Continuous
positive

RISK MANAGEMENT 10
e
publicity
ing
-
promoti
onal
tools
used
promotion
s
Severe
= High
= Low manager brand image
through
promotion
6.
Watersi
de
restaura
nt has
risk of
floods
-
Preventi
ve
strategi
es
-
weather
forecast
control
- best
whether
forecast
technique
and link
Unlike
ly +
Severe
= High
Rare +
major
= Low
Manager Immediate
and
ongoing
Continuous
check on
contingency
occurrence
7. Staff
inefficie
ncy
-
training
progra
m
-
recruit
ment of
skilled
staff
- training
and
developm
ent team
developm
ent
Possib
le +
Moder
ate =
Mediu
m
Rare +
minor
= Low
Human
resource
manager
When
required
Competency
report of
staff, and
customer
feedback for
staff
8.
Damage
by
clients
to the
- charge
addition
al cost
for
- intimate
the
customer
for an
additional
Possib
le +
minor
= Low
unlikel
y +not
signifi
cant =
Operation
al
manager
Immediate Checking
while billing
for customers

RISK MANAGEMENT 11
property same
- notice
through
a
printed
form
charge for
any
damage
Low
9. Food
quality
- total
quality
check
-
continu
ous
monitor
ing and
control
-
continues
quality
checking
team
Unlike
ly +
Severe
= High
Rare +
major
= Low
Event
organizer
and
product
manager
Immediate
and
ongoing
Auditing
report, and
quality check
report
10. The
loss in
business
due to
High
investm
ent
involved
-
custome
r
retentio
n by
promoti
onal
activitie
s
- best
quality
and
service
provide
-
skimming
pricing
strategy
Unlike
ly +
Severe
= High
Rare +
major
= Low
General
manager
and
sharehold
ers
Immediate Balance
sheet, and
P&L account