MacVille Expansion Project: BSBRSK501 Risk Review & Identification

This report provides a comprehensive risk review for MacVille Pty Ltd's expansion project, specifically focusing on the acquisition of Hurley's Cafe. It identifies both negative and positive risks associated with the venture, considering factors like location, existing business practices, and market opportunities. The report outlines MacVille's Risk Management Framework, including risk categorization, selection, implementation, assessment, authorization, and monitoring. It also references the AS/NZS ISO 31000:2009 risk management standard, emphasizing its principles and purpose. Critical success factors and goals of the risk management process are discussed, highlighting the importance of proper implementation for the project's success. The assessment includes an analysis of potential risks such as distance, supply chain issues, lack of formal policies, and security concerns, alongside opportunities presented by the local market and unique cafe positioning. The report concludes by stressing the significance of effective risk management for MacVille's business expansion strategy.

Running head: MANAGEMENT OF RISK
MANAGEMENT OF RISK
Name of the Student:
Name of the University:
Author Note:

1
MANAGEMENT OF RISK
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Task 1:.........................................................................................................................................2
Task 2:.......................................................................................................................................14
Task 3:.......................................................................................................................................22
Conclusion.....................................................................................................................................23
References......................................................................................................................................25

2
MANAGEMENT OF RISK
Introduction
Risk in the project is defined as the raise of the sudden unexpected change in the flow of
the development. The risk can be positive or negative. The success of the project management is
largely dependent on the managing of the risks associated with the project. The project managers
use different project management tools and techniques in order to evaluate the risks associated
with the project. There is no way to eliminate the risks from the project in a complete way
(Cagliano, Grimaldi and Rafele 2015). However, the risk management is concerned about the
identification of the risks and planning the mitigation of those identified risks. It has been seen
that most of the project managers are not concerned about the managing of the risks in the
project. This leads to the failure of the project. The main objective of this paper is to evaluate the
different aspects of the risks associated with the project. The project is concerned about the
expansion of the business of the coffee chain named MacVille Pty Ltd. MacVille Pty Ltd runs a
coffee chain and has cafés in the Central Business District (CBD) of Brisbane, Queensland and
the CBD of Sydney, NSW. Now, the organization is planning to expand the business by
purchasing and renovate one existing cafe Hurley’s cafe. In order to carry out these plans in the
business certain blueprint is needed to be carried out by the project managers of the MacVille
Pty Ltd. The managing of the risks associated with the project of redeveloping and expansion of
the business of this organization is needed to be evaluated from the different aspects. The
planning of entire project is the responsibility of the assistance manager of the store.

3
MANAGEMENT OF RISK
Discussion
Task 1:
Risk review report:
The risk review report is associated with the identification of the risks associated with the
project. The project is associated with the expansion of the business regarding the coffee chain.
Business scenario of MacVille:
MacVille Pvt Lty of Australia is trying to expand the business in the beverage market. In
order to do this the company is acquiring Hurley’s Café in Toowoomba, 130km west of
Brisbane. The successful acquiring of the cafe needs the proper evaluation of the risks associated
with the project. The evaluation also discusses about the negative risks those can be harmful for
the expansion of the business, apart from that the positive risks associated with the project will
help to provide some of the opportunities for the organization (Bruins et al. 2014). The risks are
evaluated based on the current business status of the project. Currently, the policies and the
procedures are set up by Mr. Hurley, the head of the cafe. The cafe is owned by the family. Most
of the staffs are the members of the family. James Mansfiled is appointed by the Hurley family
as the senior operation manager.
Review of the ongoing operation of the Hurley’s cafe:
The Hurley’s cafe is situated away from the two hours of drive time from Brisbane. The
cafe is operating on its own currently. As, the project manager, the assistance manager of the
MacVille is going to conduct a meeting with the officials of the Hurley’s cafe. The organization
is going to conduct a meeting with James Mansfield , the current operation manager of the cafe

4
MANAGEMENT OF RISK
regarding the process of the acquiring. The meeting results the raising of the few points
regarding the Hurley’s cafe. Theses identified points are regarded as the possible risks. Some of
these issues are making the opportunities for the expansion of the business. Other issues may
become constraint in the business. The differentiation is done between the positive constraint
and negative constraint.
Negative risks associated with the program:
1. The distance of the Hurley’s cafe needs to cover two hour long drive from Brisbane. This
will become the constraint in the monthly meetings between the managers. Apart from
that it will also become problematic during the six months training of the managers.
Moreover, there is a chance of accident at road.
2. The two hours long drive from Brisbane to Hurley’s cafe will make the possibility of
delivering the fresh pastries to the Hurley’s cafe from the MacVille’s impractical.
3. The CBD store at Brisbane get the easy access of the suppliers and the brand. However,
the Hurley’s store may face problem for getting the goods from the branded supplier as
the two hours long driving distance will count.
4. Hurley’s cafe is run by the family members. This can be a problem as it has been seen
that there is a lack of professionalism in the conduction of the business process in the
Hurley’s cafe.
5. There is no written policy or manual for the running of the business for Hurley’s cafe.
6. There is no security for the storage of the cash.
7. No concern is taken in case of accidental injuries during the working hours of the cafe.
8. Te record regarding the information about the employees are stored in the computer are
not password protected.

5
MANAGEMENT OF RISK
9. There is no practice of sales promotion is present for the marketing of the Hurley’s cafe.
These are the main risks associated with the acquiring of the Hurley’s cafe. In order to
improvise the business and expansion of the business MacVille needs to solve these problems so
that the risks associated with it can be mitigated.
Some of these opportunities are-
 Toowoomba , where Hurley’s cafe is situated has growing numbers of the retirees. Apart
from that the population is growing in a rapid speed. Those are the great opportunities for
the newly modified cafe.
 The Hurkley’s cafe is far away from the mainland. However, the unique positioning of
the cafe will attract the tourists and the locals.
MacVille Risk Management Framework:
MacVille Risk Management Framework has several steps that identifies the risks
associated with the project. The mitigation techniques of the risks are based on the identifies
risks. There are several steps in MacVille Risk Management Framework which are based on
principal process of the risk management:
Categorization of the risk: The risks are categorized on the basis of the consequences and
the effectiveness of the risks. In this project the risks are categorized in two sections . Positive
risk and negative risk. The positive risk will enhance the opportunities to the modification and
the running of the Hurley’s cafe acquired by the MacVille. On the other hand the negative risks
will become the possible constraints for the development of the business in Hurley’s cafe.

6
MANAGEMENT OF RISK
Selection: In this phase the selection of the basic security controls are done . These
security controls will assist the business process to run smoothly. In this project it has been seen
that there is a lack of security in maintaining the accounts and the storage of information in
Hurley’s cafe. Certain security measures are needed to be taken by MacVille coffee chain to
maintain the security.
Implementation: The implementation phase is concerned about the execution of the
security plans and the controls in practical way. In this case MacVille is needed to select the right
project management methodology and the procurement planning in order to implement the
security controls in maintaining the business of the Hurley’s cafe.
Assess: This phase is concerned about the extent to which the implementation of the
security control will work. In this project the assessment will be evaluated on the basis of the
effectiveness of the risk management plans taken by the MacVille.
Authorization: Authorized system operation is based on the determination of the risk for
the organizational operation due to the policies of the government and the market situation in the
business. The project regarding acquiring of the Hurley’s cafe by MacVille is dependent on the
government policies regarding the expansion of the business and the local market situation for
the beverage items.
Monitor: The monitoring process is associated with the evaluation of the implemented
process and the security risk management in the system. In this project the monitoring process is
associated with the evaluation of the effectiveness of the business decision of acquiring of the
Hurley’s cafe and its impact of the expansion of the business of MacVille coffee chain.
Effectiveness of the risk management framework:

7
MANAGEMENT OF RISK
There are certain effectiveness of the risks management framework those will be helpful
for the MacVille in making the business decisions:
 The risks and the purpose of identification of the risk has been evaluated.
 The planning in the project life cycle phase can be carried out in such a way that it
will help to mitigate the identified risks or the issues.
Risk management standard AS/NZS ISO 31000:2009:
The risk management standard provided by AS/NZS ISO 31000:2009 works as a guideline
for the management of the risks for the public, private or community enterprises. It is not specific
to any industry or sector. It can be used in the expansion of the business, decision making
process, functions or projects in the company. This framework can be applied to any kind of
risks and its consequences. It does not needed for the organization to hold the certification in
maintaining the framework. This framework has four components:
 The definition of the risks.
 11 principals of the risks.
 Five attributes for the enhancement of the risk management.
 Development of the risk management framework that will cover up the entire enterprise.
The purpose of the risk management framework:
 The framework helps to merge the gap between the different risks in the enterprise risk
management.
 The alignment of the governing framework is done through the application of this
framework.

8
MANAGEMENT OF RISK
 The reporting of the embedding system can be done in a right work through the
application of this framework.
 The uniform criteria of the risks along with the evaluation metrics can be adopted through
this framework.
Scope of risk management:
As the assistance manager of the MacVille cafe flagship store, it can be said that the
acquiring of the Hurley’s cafe is a crucial decision for the MacVille. The implementation of the
project regarding this is needed to be completed in a right way. The right implementation can
bring the positive change in the business planning of the MacVille coffee chain (Muriana and Vizzini
2017). There are certain government policies those be exploited for the expansion of the business
of Hurley’s cafe. There are other scope of improvements which are referred as the negative risks
in the process of the development of the business of Hurley’s cafe. It can be said that the scope
of the risk management framework is present in the project.
Critical success factors and goals of the risk management process:
The scope of the risk management process in the framework ensures that right
implementation of the management framework will ensure the success of the project (Ibanez et al.
2017). There are certain scopes in this projects. Some of them are related to the accountability and
the current managing process of the business. The population around the locality of Hurley’s
cafe is growing rapidly. This can be a opportunity for the cafe to interact with more people and
draw the attention of the more customers. Apart from that the proper marketing of the cafe can
be helpful as the Hurley’s cafe is going to face the competition with other cafes in the locality.
The goal of the risk management process in the project:

9
MANAGEMENT OF RISK
 Expansion of the business across the Queensland and NSW, through the opening of
additional cafés.
 Delivering the quality services to the consumers and providing the best quality of the
services.
 Focusing on the customer service , teamwork and excellence in the performance.
Identification of the internal and external stakeholders and their roles in risk management
process:
Stakeholder Internal/external Role in process Stake in process
MacVille Pty Ltd Internal This organization
handling the coffee
chain, is going to
acquire the coffee
shop Hurley’s
cafe.
The organization is
preparing the plan
for the process of
acquiring the
coffee shops and
the possible
modification and
improvisation of
the coffee shop.
Hurley’s cafe Internal This family owned
coffee shop is
going to be
acquired by the
MacVille Pty Lt.
The authority of
this coffee shop is
ready to handover
the full operational
functionality to

10
MANAGEMENT OF RISK
MacVille Pty Ltd.
CEO of MacVille
Pty Ltd
Internal The decision of the
expansion of the
business and
acquiring the
Hurley’s cafe is
taken by the CEO
In order to
implement the
process in a right
way, CEO is
distributing the
workload in the
project panning o
the different
employees in the
organization.
Finance, Audit and
Risk Management
(FARM)
Committee
External Has the
responsibility to
review the risk
management plan
on six month basis.
The review of the
proposed
framework has
been done by
FARM.

11
MANAGEMENT OF RISK
Board of Directors
in MacVille Pty
Internal The board of
directors are
responsible that the
risk management
plan is taken place
in the right order.
They are involving
in the process of
the development of
the risk
management
planning.
Consumers External The consumers
will enjoy the
modification and
the improvised
service of the
coffee chain.
The consumers are
responsive to the
good quality of the
services. They
have the options
for giving the
preference for a
particular shop as
there are many
coffee shops
opening in the
locality.
Project manager Internal The project
manager is
responsible for the
implementation of
the project
The project
manager is a part
of the development
process and the
risk management