Risk Management Assessment & CEO Report: MacVille Pty Ltd Analysis

This report provides a comprehensive analysis of the risk management framework at MacVille Pty Ltd, including a review of the company's business scenario, an assessment of the effectiveness of its risk management framework, and identification of potential risks associated with the acquisition of Hurley Cafe. The report includes a SWOT and PEST analysis, an identification of relevant stakeholders and their concerns, and recommendations for improving risk management processes. The analysis identifies compliance, physical, financial, operations management, and WHS risks. The report also details communication strategies with stakeholders, including the CEO, to gain support for ongoing risk management activities and to identify additional risks. It emphasizes the importance of aligning risk management with business objectives and ensuring the safety and well-being of employees and customers. The report concludes with a summary of key discussion points with the CEO, focusing on strict risk assessment during acquisitions and stakeholder engagement.

Running head: RISK MANAGEMENT AT MACVILLE PTY LTD
Risk Mangement at MacVille Pty Limited
Name of the Student:
Student Id:
Trainers’ Name:
Assessment Due Date:
Actual Submission Date

1
RISK MANAGEMENT AT MACVILLE PTY LTD
Assessment 1:
1. Review of MacVille simulated business scenario information and documentation:
The review of MacVille Proprietary Limited’s business scenario showed that the
company had a strong management. This was evident from the vision and mission statement
and risk management policy statement of MacVilley Pty Limited. A review of the documents
and the strong management of MacVille clearly shows that it abides by laws in force in
Australia like Work Health and Safety Act 2011 (legislation.gov.au 2018).
2. Report for the CEO:
a. Effectiveness of MacVille Risk Management Framework:
The risk management framework of MacVille worked under the leadership of the
apex management which made it very strong. One can infer in the light of the ISO
31000:2009’s eleven principles that risk management purposes of MacVille, mitigating risks
and ensuring WHS are aligned to them (iso.org 2018). The key elements of the risk
management policy of the MacVille reveal that the organisation identifies potential threats
followed by intervention of the apex management and participation of all other departments
to manage the risks (Shrivastava and Rathod 2017).
b. Identification of risk management in the role of a manager:
A manager plays the role of identifying the potential risks the firm could face in the
future and obtain intervention of the directors if required. The manager would also review the
risk management policies annually and update the management duly about it
(theguardian.com 2018).

2
RISK MANAGEMENT AT MACVILLE PTY LTD
c. Identification of critical success factors, goals or objectives for areas of scope:
The success factors of MacVille were support from the apex management and
directors and a strong communication network within the company. These success
factors were aligned to the business objectives or goals of MacVille which was offering high
quality beverage and gourmet food to the customers in a safe and comfortable
environment (McNeil, Frey and Embrechts 2015).
d. Relevant internal and external stakeholders, their roles, issues or concerns:
Stakeholder
Internal/
External
Role in process
Stake in
process
Issues or concerns
Customers
External
Feedback and
generation of revenue Critical
Demand high quality
food products and safe
cafe environment
CEO
Internal
Approves main
business decisions and
represents the company
to stakeholders
Pivotal
High organisational
performances and high
market position
Managers
Internal
Provides suggestions to
the CEO to take
decisions Intermediary
High performance of
subordinates and
resultant high
appraisals by senior
management.
Council External Makes laws and
policies for business
organisations to operate
Key role High revenue in form
of taxes and legal
compliance from

3
RISK MANAGEMENT AT MACVILLE PTY LTD
business organisations.
Financers
Internal
Provides with financial
resources to the
company
Supportive
High ROI
HR
Internal
Acquires and maintains
talents
Strategic
High quality human
resources
Employees
Internal
Executes decisions
Strategic
Proper compensation
and career growth
Supply chains
External
Supply raw materials
Supportive
Proper invoice
clearance and
payments
Society
External
Directs organisation to
function ethically Key role.
Ethical and sustainable
operations of business
organisations.
Note: The first four columns are of Appendix 3 provided while fifth column pertains to
the issues or concerns of the stakeholders.

4
RISK MANAGEMENT AT MACVILLE PTY LTD
e. PEST and SWOT analyses:
Political:
1. Australian government is stable and makes
laws to promote trade.
2. The local government bodies like the
Toowoomba Council make legislations,
regulations and standards to encourage
advancement of technology which ultimately
profits the business houses (tr.qld.gov.au
2018).
Economical:
1. The Australian economy provides with
resources for food businesses to continue
production.
2. Easily available financing networks.
3. High talented human resources.
4. Logistics and other support facilities for
businesses
Social:
1. The Australian society has growing
population of aged people who enjoy cafes.
2. Growing demand for cafes in the
Australian society is evident form entry of
international chains of cafes.
Technological:
1. Highly developed communication
facilities.
2. Growing danger of cyber threats.
Strengths:
1. MacVilla has a strong apex management.
2. Strong risk management facilities.
3. Financially strong evident from its
acquisition strategy.
Weaknesses:
1. The low risk management standards of
Hurley might prove costly post acquisition of
the firm.
Opportunities: Threats:

5
RISK MANAGEMENT AT MACVILLE PTY LTD
1. Business expansion
2. New innovative products like rice wraps. 1. Low compliance standards of subsidiaries
like Hurley as pointed out in the case study
may add to legal actions against MacVilla
post acquisition.
f. Methods applied for conducting SWOT and PEST analyses:
The methods applied in conducting SWOT and PEST analyses were primary,
secondary approach and mixed approaches. For example, to gain information on business
operations of Hurley, primary approaches like interviewing employees of the cafe were used
by Ash (Vrhovec et al. 2015). The secondary methods of gaining information consisted of
consulting the official websites of Toowoomba and other legal websites for gaining
information on legislations and regulations. Ash would also use mixed methods like gaining
information about slack risk management methods of Hurley and then assessing their impact
financially (Cagliano, Grimaldi and Rafele 2015).
g. Risk analysis of scenario:
An analysis of the business scenario of Hurley identifies the following risks:
Risk Source Types of risks
No written records of job responsibilities,
policies and procedures of works.
HR 1. Compliance risks
The long distance between Sydney and
Hurley would result in long delivery time
leading to spoilage of the pastries.
Physical
distance
2. Physical risks
1. Poor maintenance of cash and high cash Finance 3. Financial risks

6
RISK MANAGEMENT AT MACVILLE PTY LTD
in hand. There have been reports of cash
thefts.
2. Drawings were not recorded
accordingly.
4. Wages and superannuation of employees
were incomplete.
5. Resultant fine due to wastage of
resources.
department
Wastage of resources like water Operations Management risks
No policies to work place risks and there
have been reports of injuries.
Managers WHS Risks
3. Submission of report:
The report would be submitted to the CEO.
4. Email to relevant stakeholders:
From: Sender of the email
To: (Relevant stakeholders as pointed out in appendix 3)
Cc: CEO, directors....
Subject: Request for inputs and assistance towards identification of additional risks
Dear Mr/Ms/M/s,
Please find attached the risks identified belonging to the cafe named Hurley Cafe which M/s
MacVille Proprietary Limited intends to acquire.

7
RISK MANAGEMENT AT MACVILLE PTY LTD
Types of risks Components
1. Compliance risks No written records of job responsibilities, policies and procedures of
works.
2. Physical risks The long distance between Sydney and Hurley would result in long
delivery time leading to spoilage of the pastries.
3. Financial risks 1. Poor maintenance of cash and high cash in hand. There have been
reports of cash thefts.
2. Drawings were not recorded accordingly.
3. Wages and superannuation of employees were incomplete.
4. Resultant fine due to wastage of resources.
Management risks Wastage of resources like water
WHS Risks No policies to work place risks and there have been reports of injuries.
Security Risks Free access to confidential business data.
You are hereby being requested to peruse the same and put in your precious inputs. We
would be very grateful to you if you assist us by identifying any additional risk which you
may locate in the acquisition.
Regards,
......... (Sender’s name and designation)
5. Email to CEO for review and requesting a meeting on risk management:
The email sent to the stakeholders should also be sent to the CEO as shown above
along with a request for a meeting with him. The motto of the meeting would be discussing
identifying risks and additional risk assessment methods which can be adopted (Hofmann,
Burke and Zohar 2017).

8
RISK MANAGEMENT AT MACVILLE PTY LTD
6. Meeting the CEO:
The following would be the minutes of the meeting as the outcome of the meeting
with the CEO.
a. Discussing the findings:
The critical success factors of MacVille are strong management and its powerful risk
management structure which works under the strict supervision of the CEO.
b. Explanation of MacVille risk management process:
The powerful risk management process of MacVille consists of identification of risks,
and reporting them to the apex management which facilitates decision making by the apex
management. This is followed taking appropriate steps and monitoring of the risk factors to
avoid future risks (Hale, Borys and Adam 2015).
c. Communication of risk management processes to stakeholders:
Stakeholders Methods of communication
CEO, Management,
Investors
Emails, conferences
Customers and society Newspapers, digital media
Government and local
councils
Emails and letters from the office of the CEO.
Employees, HR,
Auditors
Meetings and official emails
d. Obtaining of CEOs support for ongoing activities:
The support of the CEO must be obtained and the emails to government bodies should
forwarded from his official email id.

9
RISK MANAGEMENT AT MACVILLE PTY LTD
e. Additional input of CEO:
The additional support of the CEO should be obtained towards recognition of
additional risks. For example, the table below clearly shows that workers’ deaths from 2017
has fallen due to the adoption of WHS in the business organisations n Australia. It must be
noted that MacVille belongs to the food and accommodation industry. The table shows that
the deaths the industry experienced after 2017 is extremely low (Stulz 2015). This means
firms like MacVille should implement WHS policies in all their acquired subsidiaries as a
part of the implementation of risk management policies mentioned above. It should be
pointed out to the CEO to gain his support and inputs.
7. Summary of discussion with CEO:
 The risks associated with acquisition of Hurley Cafe should be assessed strictly.
 The apex management should be intimated about the findings of the risks Ash
recognises at the Hurley’s Cafe.
 The stakeholders should be informed about the risks and their support should be
gained in the risk management.

10
RISK MANAGEMENT AT MACVILLE PTY LTD
Figure 1. Table showing accidents by industry
(Source: safeworkaustralia.gov.au 2018)

11
RISK MANAGEMENT AT MACVILLE PTY LTD
References:
31000:2009, I. 2018. ISO 31000:2009 - Risk management -- Principles and guidelines.
[online] Iso.org. Available at: https://www.iso.org/standard/43170.html [Accessed 14 Feb.
2018].
Abs.gov.au. 2018. 4528.0 - Personal Fraud, 2010-2011. [online] Available at:
http://www.abs.gov.au/ausstats/abs@.nsf/0/90A4971FB1FC0992CA2579E40012060A?
opendocument [Accessed 15 Feb. 2018].
Barak, M.E.M., 2016. Managing diversity: Toward a globally inclusive workplace. Sage
Publications.
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk
management: Review, critique, and research directions. Long range planning, 48(4), pp.265-
276.
Cagliano, A.C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management
techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.
Farrell, P. 2018. Australian Bureau of Statistics reports 14 data breaches since 2013. [online]
the Guardian. Available at:
https://www.theguardian.com/australia-news/2016/jul/29/australian-bureau-of-statistics-
reports-14-data-breaches-since-2013 [Accessed 15 Feb. 2018].
Glaser, L., Stam, W. and Takeuchi, R., 2016. Managing the risks of proactivity: A multilevel
study of initiative and performance in the middle management context. Academy of
Management Journal, 59(4), pp.1339-1360.