BSBRSK501: Risk Management Report on MacVille Cafes, Toowoomba Outlet

This report provides a comprehensive analysis of the risk management framework implemented at MacVille Cafes, focusing on the Toowoomba outlet. It begins by examining the effectiveness of the MacVille Risk Management Framework in relation to the AS/NZS ISO 31000:2009 risk management standard, outlining its purpose and key elements such as risk identification, evaluation, control, and management. The report then defines the scope of risk management required by the manager, including policy implementation, risk identification and evaluation, identification of weak areas, and review and update of strategies. Critical success factors, goals, and objectives are identified to increase output, promote growth, and establish standard risk mitigation practices across all outlets. Stakeholders are identified along with their roles and concerns. A PEST and SWOT analysis are conducted to identify relevant risks, supported by a description of research methods. The report concludes with a summary of the scenario, a list of identified risks, and supporting documents like stakeholder tables and email communications.

MANAGE RISK BSBRSK501 1
MANAGE RISK BSBRSK501
Name:
Institution:
Course Code:

MANAGE RISK BSBRSK501 2
TASK 1: REPORT ON RISK.
a. The effectiveness of the MacVille Risk Management Framework in supporting the
principles and processes of risk management, set out in the risk management
standard AS/NZS ISO 31000:2009. Outline the purpose and key elements of the
standard in your discussion.
The concept of risk management in any organization need to be addressed so as to mitigate risks
that can result to losses as well as poor performance of workers. For the case of MacVille Risk
Management Framework, it is very important to indicate the main purpose of risk management.
To start with, it is very important to identify risks that can bring loses to MacVille Cafés.
Through identification of risk, the company will be in apposition to lay down strategies so as to
mitigate those risks (Arnold, 2010). In that case, the process of risk identification become the
initial phase of MacVille Risk Management Framework. Another concept that need to be
addressed in this framework is risk evaluation. This is done by assessing the extent to which
risks result to losses. I that connection, MacVille Risk Management Framework require qualified
personnel to evaluate risks. It is also a core purpose of this framework to control and manage
risk. It is advisable to the new outlet in Toowoomba to avoid cases that result to risks. Managing
risks is the overall purpose of risk management framework.
Another purpose of risk management framework is to identify the main threats that can affect the
operations of the company. Threats in this case would include unfavorable policies, practices and
procedures applied in Mac Ville. It also involves competition from other business operators. It is
therefore important to ensure that potential threats are identified and managed (Kanungo &
Manuel, 2014). In that connection, the purpose of risk management framework would as well
include identification of opportunities. Through identification of opportunities, it is possible to
fill in gaps that exist in the market for MacVille to fully exploit.
The other purpose of risk management framework is to offer education to internal and external
stakeholders of the company such as staff members, directors and senior management team.
They will be in a position to adjust to their duties, roles and responsibilities. It also enhance
reporting of procedures with regard to management of threats and risks.

MANAGE RISK BSBRSK501 3
Lastly, it is the purpose of risk management framework to integrate planning policies and
procedures at all levels of organization. This purpose will promote risk mitigation across all
levels of the organization.
The key elements in risk management that can be applied in MacVille risk management
framework include.
1. Proper risk identification.
2. Proper risk evaluation.
3. Proper risk control
4. Proper management of risks.
b. Identify and describe the scope of risk management required in your role.
1. Policy implementation. As a manager of the new outlet in Toowoomba, I have various
obligations to satisfy. These obligations lies under my scope as a manager to mitigate
risk. First, I am mandated to initiate implementation of policies and procedures to
manage risks. In that connection, I am required to initiate internal control process so as to
fully mitigate risks that are likely to affect outlets such as Toowoomba.
2. Risk identification and evaluation (Marylene, 2014). As a manager of the new outlet in
Toowoomba, I am required by law to identify as well as to evaluate risks in areas of core
value that are likely to affect MacVille Company. In that case, I am require to get
assistance from directors so as to fully mitigate potential risks.
3. Identification of weak areas. There are areas where the risk management fail to address
adequately. As a manager, I am required to identify those areas and offer suggestions to
directors on what need to be done in those areas to as to reduce adverse effects of risks.
4. Review and update strategies applied in risk management. Based on the level of risks,
strategies applied to solve the risks keep of changing due to dominancy of various risks.
Thus, as a manager, I am required to undertake annual reviews so as to update these
strategies.

MANAGE RISK BSBRSK501 4
c. Identify and describe the critical success factors, goals or objectives for areas
included in the scope.
The success factors in risk management include reduction of risks, prevention of risks from
occurring, controlling of risks from bring further damages and management of risks to reduce
cases of low performance and losses (Maslow, 2013). From that concept, as a manager of the
new outlet in Toowoomba, I have to set goals or objectives that will be initiate the process of risk
management and creation of opportunities. These goals are strategic in nature.
1. To increase output of the new outlet in Toowoomba. This will be achieved if all risking
factors are mitigated.
2. To promote growth, development and expansion of MacVille business. If risk are
mitigated at the new outlet in Toowoomba, then the whole part of MacVille business will
experience growth and development.
3. Setting standard risk mitigation policies, practices, procedures and strategies that can be
applied in all outlets of MacVille business not just in the new outlet in Toowoomba.
d. Identify relevant internal and external stakeholders, their role in the risk management
process, and any issues or concerns they have raised. Complete the Table of
Stakeholders Template (provided in Appendix 3 of this task) and attach to your report.
stakeholder Internal/external Role in process Stake in process
1. Directors Internal
Determining the
types of risk which
are acceptable and
those unacceptable.
Setting of policies,
procedures, practices,
strategies, standards
and expectations of
Receive feedbacks
from senior
management team
and outlet managers.

MANAGE RISK BSBRSK501 5
staff with respect to
conduct.
Initiate approval of
core decisions
affecting MacVille’s
risk profile or
exposure
2. Senior
management
team/store
managers.
Internal Identification of
risks.
Evaluation of risks
Controlling risks.
Managing risks.
Oversee the progress
of outlets of
MacVille business.
3. Café employees Internal
Familiarize
themselves with the
content of the Risk
Management Policy.
clarify any aspects
necessary with a
senior team member
Consider any risks
they feel could
impact on them
meeting their
objectives.
manage the risk if it
Offer advice to senior
management.

MANAGE RISK BSBRSK501 6
is in their control to
do so, or inform a
management team
member of their
concerns
4. Human
resource
manager.
Internal Recruit risk
management teams.
Recruit other
employees of
MacVille business.
Head of recruitment
department
5. External
auditor.
External Assess MacVille
records so as to
evaluate levels of
risks.
Acts as controller and
regulators of records
of MacVille business.
6. Government External Licensing business
operations.
Processing policies
and procedures
enacted by risk
management teams in
MacVille Business.
Overall regulator and
controller.
e. Complete a PEST analysis and a SWOT analysis to identify risks associated with the
scenario. Outline the relevant legislation, regulations and standards (including those
at a local level, i.e. Toowoomba Council).
PEST analysis

MANAGE RISK BSBRSK501 7
Political
1. The licensing policies for Toowoomba
need to be favorable.
2. Trading policies and procedures
should not be limiting.
Economic
1. The business should have favorable
terms of trade.
2. The business should mitigate risks
associate to unfavorable balance of
payment.
Socio-cultural
1. The business should incorporate the
local community in business
operations.
2. It is important to recruit local
community in various job positions
such as Café employees.
Technological
1. Technology should be used in product
innovation.
2. Technology should be applied in
process innovation to mitigate risks
associate to adverse legislation
procedures.
SWOT analysis
Strengths
1. Ability to satisfy customers.
2. Ability to adjust to risks.
3. Ability to control and manage risks.
Weakness
1. Lack of adequate manpower in the
outlets.
2. Delays for fund from MacVille as the
head office.
Opportunities.
1. Able team to identify and evaluate
risks.
2. Adjustments in regulations and
standards so as to update strategies for
Threats
1. Competition from outsiders.
2. Inadequate resources.

MANAGE RISK BSBRSK501 8
risk management.
f. Describe the methods of research that you used to complete your PEST and SWOT
analysis. For example, how you approached the simulated business information;
legislation, regulations, etc.; and any other information or research on risk that
applies to the scope of your report.
Methods of research applicable is use of qualitative and quantitative data. Political factors can be
gathered from case studies. Economic factors can be assessed through comparative paradigm.
For the case of SWOT analysis, primary data can be collected to assess mechanisms to mitigate
weaknesses and threats and how to contingent strengths and opportunities.
g. Complete the analysis of risk for the scenario by summarizing the scenario and
identifying a list of risks to the project.
In summary, it is very important to understand that risks in any business organization can be
mitigated. The best way to do this is to initiate risk management frameworks so as to identify,
evaluate, control and manage potential risks that are likely to affect MacVille business
(McGregor, 2012).
The risks areas identifiable in MacVille business include:
1. Financial area
2. Organizational area
3. Project management
4. Governance
Email communication to stakeholders.
Email from Ash, the managers of outlet in Toowoomba
From: Ash Manager of Toowoomba outlet
To: stakeholders

MANAGE RISK BSBRSK501 9
Re: input of stakeholder in management of risk in Toowoomba outlet.
I write this email with an aim of initiating a program for advancing business operations in
Toowoomba outlet. Thus the managing teams will undertake Identification of risks, Evaluation
of risks, Controlling risks and Managing risks. The café employees will familiarize themselves
with the content of the Risk Management Policy and clarify any aspects necessary with a
senior team member. The individual input played by each stakeholder will be of great
importance to Toowoomba outlet.
I have managed to identify several risks that are likely to affect Toowoomba outlet. They
include:
1. Financial risks
2. Organizational risks
3. Project management risks
4. Governance risks
I hereby request any stakeholder who have managed to identify other risk to liaise with my
department for further course of actions to mitigate these risks.
Regards
Ash
Manager at Toowoomba outlet
Summary of meeting with CEO.
a. The goals that need to be achieved so as to bring success factors include:
 To increase output of the new outlet in Toowoomba.
 To promote growth, development and expansion of MacVille business.

MANAGE RISK BSBRSK501 10
 Setting standard risk mitigation policies, practices, procedures and strategies that can
be applied in all outlets of MacVille business not just in the new outlet in
Toowoomba.
b. MacVille Risk management process involves the following steps.
 Identification of risks.
 Evaluation of risks.
 Controlling risks.
 Management of risks.
c. I am planning to email all the stakeholders so as to work as a team. We will discuss issues
pertaining risk management processes.
d. the CEO gave support to the team so as to manage risks.
e. I requested the CEO to as well offer a hand in mitigation of risks and he promise to support the
entire process. He also managed to point out more risks such as financial and theft cases.
TASK 2: ANALYSE AND TREAT RISK.
PART A.
a. For each risk (i.e. the four identified in the scenario for this task), assess the
likelihood of the risk occurring.
1. Financial risk- the risk of financial issue is very likely to occur as money change
hands.
2. Organizational risk-the organizational risks is likely to occur during operations
from head office to other outlets.
3. Project management risk-the probability of this risk occurring is also high due to
conflict of interests in the projects under consideration.
4. Governance risk- this risk will occur during delegation of duties.

MANAGE RISK BSBRSK501 11
b. For each risk, assess the consequence of the risk occurring.
Financial area- MacVille business will losses revenue through cases such as fraud.
Organizational area- this risk will delay operation due to lack of innovation.
Project management risk- there could arise cases of insider trading.
Governance risk- meeting targets and deadline will not be possible.
c. Develop a risk matrix to assist in prioritizing the treatment of the identified risks,
including numerical values (e.g. risk matrix in the Student Workbook).
Risk matrix
probability Severity Financial
risk
Organization
risk
Project
management
risk
Governance
risk
Low Low (1) Medium (4) Medium (7) High (10)
Medium Low (2) Medium (5) High (8) Extreme(11)
High Medium (3) High (6) High (9) Extreme(12)
d. Once you have prioritized the risks, for each, outline at least two suitable options for
treatment.
Financial risk
Ensure that resources are handled well.
Keep proper records of finances.
Organizational risk
Empower other workers.
Initiate innovation.

MANAGE RISK BSBRSK501 12
Project management risk
Work towards targets and objectives.
Monitor individual performance.
Governance risk
Empower other employees.
Cater for issues that affect workers.
e. Include an explanation of the process you used to identify risks and assess
likelihood, consequence and priority. Also include an explanation of why the options
you have suggested for treating the risks are:
The process of identifying risk was determine from recurrent operations taking place in the
organization. Thus, a risk matrix assessed the probability of a risk occurring by considering
severity of a particular risk.
Likely to be effective
These mitigation are likely to be effective because they promote win-win situation.
Feasible for the organisation.
They are also feasible for the organization since they do not consume a lot of resources.
Appendix 3: Risk Management Action Plan Template
Risk Assess risk
(score)
Controls Monitoring Action
priorit
y (1-5)
timeline
s
Responsible
Financial
risk
Low (1)
Low (2)
Medium
(3)
Ensure that
resources
are handled
well.
Keep
proper
records of
Monitor
records.
1 2
months
auditor