BSBRSK501 Manage Risk: Woolworths Risk Management Case Solution

This assignment presents a case study solution for BSBRSK501 Manage Risk, focusing on Woolworths. It involves a comprehensive risk assessment, starting with defining the scope and objectives of risk management, taking into account stakeholder input and internal/external environmental factors. The solution includes a PEST analysis to evaluate political, economic, socio-cultural, and technological factors, and a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Stakeholder roles and concerns are detailed, and research information relevant to the scenario is summarized, providing a complete overview of risk management strategies for the given case. Desklib offers this and other solved assignments to aid students.

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Course SIT60316 - Advanced Diploma
of Hospitality Management
Unit Code BSBRSK501
Unit Name Manage risk
Assessor
Name
Student
Name
Student ID
Date Due
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Assessment Items
Task 1 Case study
Task 2 Report
Final Result for this unit
Student Declaration: I declare that I have
been assessed in this unit, and I have
been advised of my result. I am also aware
of my appeal rights.
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Task 1
Assessment Instructions
For the case study provided with this Assessment Task, you are required to review risk
management processes and determine scope and objectives, taking into account
stakeholder input and both internal and external environmental factors affecting the
organisation. With the information gathered, you are to identify risks and present this to
relevant parties for feedback.
Procedure
For the provided case study, you will assume the role of the risk manager/assessor,
and you are required to review the provided Woolworths Risk Management Policy and
complete a written report for your manager (your assessor) that addresses the
following steps.
1. Scope – Identify the scope of risk management required in your identified role.
The scope of risk management is to identify risk associated with products or services
and operations of business and analyze all the aspects that may adversely impact
business process. After analysis and evaluation of risk, risk management is required to
make strategies to mitigate risk that may impact process and functions of organization.
Identification and control of risk in organization is very essential for success of entity.
Risk management in company is responsible for understanding and evaluation internal
and external context and setting risk assessment criteria to develop strategies required
to mitigate medium and high level risk. In the case the risk management is responsible
for identifying operational, strategic and investment risk related to new project. The
scope of risk management is not limited with internal factors or limited to any
department but it is a wide concept and includes examination of internal as well as
external factors and every department i.e. risk associated with organization as a whole.
The risk management is required to review, analyze, plan and monitor each and every
aspect that may adversely impact organization. It is responsibility of risk management
not only to make plans and strategies but also to monitor and control the gap between
plan and actual.
2. Goals – Identify and describe the critical success factors, goals or objectives
for areas included in scope.
There are various success factors that would help risk manager to measure the
accomplishment of goals and objectives. The key success factors are strategic focus,
people, operations, marketing and finances. The risk manager can ensure accomplishment
of goals and objectives if risk involved in all these factors are identified and mitigated so
that it may not impact business and success. Strategic focus involves leadership,
management and planning. Effective leadership and management is very essential for
effective business operations. The lack of internal control, monitoring and recording, failure
to comply laws and regulations and failure to monitor external environment are strategic
and operational risk highlighted. The success of identification, analysis and developing plan
for mitigating risk can be met if all the factors impacting strategic focus and operations will
be minimized and mitigated. People involve personnel, staff, learning and development of
people who are associated with organization. The lack of policies and procedures to guide
staff in carrying out their duties is factor impacting people risk which will ultimately
influence organizational operations. The goal and objective of risk management is to cut
down risk identified by developing effective risk management plan and monitoring the result
by implementing plan. The alleviation of all risk identified by risk management shall be the
proof for accomplishment of goals and objectives of risk management.

3. Stakeholders – Identify internal and external stakeholders, their role in the
process, and any issues or concerns they have. Present this using the table
format provided.
Stakeholders are individuals or group that have interest in organization and its outcomes.
The stakeholders who are involved in this case of risk management are mangers,
employees, government, owners, suppliers, customers.
Stakeholder Internal/external Role in process Stake in process
Management team Internal The management team of
Queensland has given
permission for
conducting risk audit by
visiting premises of
organization.
The interest of
management team in risk
management procedure
will be high as risk
negatively impact the
operations of business and
it is necessary for
management to identify
and mitigate risk.
Therefore, involvement of
management team in risk
identification and
mitigation process will be
high. They will support
risk manager as it is also
there need to minimize
risk.
Supervisor Internal Supervisor of Harley's
cafe had given details
about operations and
policies of Harley's cafe.
Supervisor has also
highlighted areas of
improvement.
The supervisor will have
moderate stake in risk
management process as it
may or may not impact
duties and responsibility
of supervisor.
Employees/ staffs Internal Scope of risk
management involves
risk associated with
people i.e. employees or
staff of organization. It
was identified that there
was lack in internal
control and policies to
guide staff regarding their
duties.
Relatively low as risk
related to employees and
their safety are only
concern for employees not
overall risk in
organization.
Government External The local government
provided details about
laws and regulations to be
complied and where
organization had failed to
meet compliance
standards, privacy and
industrial relations laws.
Government is external
body and interest in risk
process will be moderate
as they would be only
concern if organization is
complying with all laws
and regulations or not so
that they can ensure safety
and protect interest of
people associated with

organization.
Suppliers External It was identified that
there was difficulty for
company to get branded
supplies.
Low as they are not
concern about risk
involved in operations or
function of organization.
4. Analysis – Complete a PEST analysis and a SWOT analysis for risks associated
with the scenario.
PEST analysis is tool that is utilized to identify and analyze external environment of
business that are out of control of organization and impacts business performance and
process.
 Political factors- Political factors are related to policies imposed by government of
country. The policies related to economy and others keep changing in country due to
changes in economic situations. The company is required to keep a close eye on
changing business and economic policies which may impact business operations.
Company is also required to comply with all policies imposed by government of
Australia. The case has highlighted failure of organization to comply with standards of
WHS, privacy and industry related laws. This results into political risk and will
negatively influence future growth of organization.
 Economic factors- The economy of Australia is good and it stands at 13th spot in the
largest economy worldwide. The economy is continuously growing despite household
income, business investment and inflation. The economic factors such as inflation,
foreign exchange rate, interest rate, disposable income, etc impacts business. The
increase in inflation rate increases price of raw materials and ultimately result into
increase in price of products.
 Socio-cultural factors- The population of Australia is small and is multicultural and
multiracial. The organization operating in Australia is required to understand culture
of people and provide products according to their culture and preferences. The
growth in population positively impacts business as it will increase revenue. The busy
lifestyle of people in Australia has increased demand for ready-made food and
increased demand for food and beverage industry.
 Technological factors- Australia is known for technological innovations and
businesses operating in Australia is required to keep updated with technological
advancements to maintain competition in market. Government has imposed new
technological policies and research.
SWOT analysis is a tool which is used to identify and evaluate internal environment of
organization and to analyze strengths, weaknesses, opportunities and threats of business.
 Strengths- The most potential significance to open new shop in Toowoomba is its
location. It is located in intersection of two streets which will attract local customers
as well as tourists.
 Weaknesses- The weakness of new shop is its distance from Brisbane. It will make it
difficult for delivery of fresh pastries due to heavy traffic and it is also be difficult to
find branded suppliers for store.
 Opportunities- There is great scope for opening new store in surrounding premises.
Increase in population will ensure large group of customers and boost profit margin.
The changes in Government policies will also act in favor for cafe and provide new
growth opportunities.
 Threats- The threats identified are risks which affect operations of company. The
excessive use of water will result into impose of penalties and fines by government.
Company is required to establish new technologies to minimize excessive use of
water. The another threat is increase in competition level.
5. Research – Review and summarise the research information provided in the case
study, as well as any literature available that is relevant to this scenario.

The case is about opening of new store in Toowoomba and assessment of risk of other
chains of organization to develop risk strategies to mitigate the risk and to minimize
investment risk of opening new store. The task for risk assessment covered three stages i.e.
review, analyze and plan and monitor. The task started from site visit at Toowoomba and it
was noticed that site is around two hours far from CBD of Brisbane. The location of store is
at great place at it is easy accessible to local customers and tourists. The distance from
Toowoomba to Brisbane will make it difficult for manager's weekly meeting. The distance
would be also hinder for delivery of fresh pastries from central bakery plant. There is
another concern related to branded suppliers who can supply goods to stores. Hurley's cafe
is family owned cafe and is supervised by James. The policies and procedure for guiding
staff are manual and the owner of cafe weekly visit cafe and verbally explain all policies to
staffs. There is no proper assignment of duties and responsibilities among employees as the
member who is maintains cash register is also doing bank related work. There is no other
staff to check the work of cash maintaining staff. The records are not maintained properly
and computer that have details of staff are not password protected which leads to security
risk. After the visit of Hurley's cafe there was a meeting with Ron Langford. Ron had
explained opportunities of opening new store in Toowoomba and also provided extract of
economic brief. The research has identified following problems and risks:
 Lack of internal control and management of different duties and responsibilities.
 Failure to comply with standards in WHS, privacy and industrial relation laws.
 Lack of written policies and procedures to guide employees.
 Lack of professional business culture.
 Failure to monitor external environment and identify opportunities and threats that
may impact business.
6. Describe – Complete the analysis of risk for the scenario by summarising the
scenario and associated risks, accompanied by checklists, diagrams or
flowcharts that support the summary.
The scope of risk manager was to identify and analyze risk that may adversely impact
business and its success. The scope included identification of operational, strategic and
investment risk. This could be possible only by visit in different premises and personal
analysis. The visit to different locations has enabled risk manager to assess all the risks in
organization that would influence business operations. The first risk identified was security
risk. The computer that contains all details of employees were not password protected and
there was risk of easy access of all information by anyone. Organization is required to
protect the details of employees as per law related to safety. There was internal control risk
as no one was accountable to anyone and the work of one staff was not audited or checked
by others. This will give chances for fraud and possibility of break-ins. There was no proper
segregation of duties and responsibilities among employees as the employee who was
handling cash was also responsible for doing bank related work. There is no person to check
maintenance of cash as both the duties are to be given to two members for cross- check
and effective monitoring and handling of cash. It is essential for organization to make
policies and procedure for guiding employees and also to protect their rights in
organization.
The written policies and procedures would ensure effective and efficient compliance of
duties and responsibilities by employees. There is a lack of written policies and procedures
for directing employees and there is only verbal communication regarding explanation of
these policies and procedures. This may result into future conflicts among employees and
employer. As Hurley's cafe is family owned business there is no professional culture
followed in cafe. The owner weekly visit cafe and has no sense of responsibility towards
business and no professional culture if followed in cafe. This will impact working culture of
cafe and will also impact performance of employees in cafe. The external environment is not
monitored by anyone and this will adversely impact business due to changes in external
environment. Organization would not be able to take advantage of opportunities in market

and would not be able to maintain competition and position in industry. The non-compliance
of laws and regulations will make it difficult for organization to run its business. Organization
is required to follow professional culture to mitigate all the risk identified. The very first
thing to be done is to set a meeting with managers and staffs and discuss all the risks and
make strategies and monitor them. Organization is required to make written policies and
procedures for guiding employees and effective segregation of duties to avoid malpractices
in entity and for efficient maintenance and monitoring of cash. Organization is also required
to ensure compliance of all laws and regulations imposed by government.
After you have completed the above steps, you need to meet with your manager and
discuss the draft report you have developed, especially your understanding of the critical
success factors and goals (you should check that your manager agrees with your
findings).
As part of your discussions you also need to discuss and identify how you can
communicate with
stakeholders about the risk management processes in this scenario and invite them to
participate in discussions to further identify risks associated with the scenario.
7. Summarise: In dot-point form, summarise the discussions with your manager.
 This should include any recommendations they made to you.
There are many issues that are being identified in assessment of risk:
 Lack of internal control and mishandling of cash.
 Lack of written policies and procedure for directing and guiding employees.
 Lack of professional culture within organization.
 Failure to comply with laws and regulations related to privacy and security and
standards of WHS.
 Failure to monitor external environment and to identify opportunities and threats.
The recommendations given by manager:
It is very essential for organization to mitigate all risk that are being identified and this will
take time and requires cooperation of all stakeholders who are interested in organization.
 To build good internal control it is necessary to implement administration control.
Internal administration control is plan and strategy that are adopted to promote
operational efficiency and management policies. Entity is also required to conduct
internal audit by managers to assess efficiency of duties and work done by
employees. The report of internal audit must be submitted to top management and
meeting must be conducted to discuss the improvement areas and steps to be taken
for mitigating internal risk.
 Internal control and audit will also help organization to mitigate security related risks.
 The second problem identified was lack of professional culture this can also be
improved by adopting administration control and HRM will be responsible to develop
work culture within organization and motivate employees to improve their efficiency
and performance. Written policies and procedures are required to be made by HRM
and top management for proper maintenance of work culture and for effective
segregation of employees duties.
 The failure to comply with standards of WHS, privacy and industrial relation laws are
another risk identified. An alternative control is required to be implemented to get
knowledge of all laws and regulations that business is required to comply with and
also to ensure compliance of all changes.
 The external environment are not monitored and organization fails to identify
opportunities and threats which may positively as well as negatively impact business.
Monthly report is required to be made which will include changes in internal and
external environment. It will also include strategies to be implemented by
organization to give effective response to such changes. The organization is required
to use PESTLE and SWOT analysis tools to analyze changes in external as well as

internal environment.
 Manager has also recommended to set monthly meetings with department heads and
managers to discuss monthly progress and also areas where improvement is
required.
8. Develop: a draft of the communication your manager suggested you use for
consultation with stakeholders.
 If they suggested a phone call, you should include a draft script of
information that you need to share with stakeholders.
 Whatever the form of communication, it must clearly ask stakeholders
for input, and invite them to assist in the identification of risk for this
scenario.
Stakeholder Type of
communication
Aim Mode of
communication
Frequency
Management
team
Formal
communication
To establish
effective and
efficient business
policies and
procedures and
to develop
professional
culture.
Face to face
communication
through
meetings and
email
conversation.
Weekly as well as
monthly
Government Formal
communication
To get
information
regarding
changes in
policies and laws
to ensure
compliance with
the same.
Through letters
and emails
Half yearly
Employees Formal as well as
informal
To make them
aware of policies
and for feedback.
Communication
by conducting
meetings and
through emails
and also chit
chatting during
breaks.
Weekly through
emails and
monthly
meetings
Customers Formal To know their
needs and
preferences for
making changes
in products and
services
Social media or
organization
website
Monthly or yearly
When submitting the report and accompanying documents, you need to ensure that:
 your report is titled ‘Risk review’
 your report is in order, with attachments on the back of your report as follows
 it includes notes from meeting with your manager
 it includes draft communication