Risk Assessment and Management Report for Mcville Toowoomba Store

This report presents a comprehensive risk assessment for Mcville's new store in Toowoomba, analyzing various aspects of the project. The report begins with a detailed report to the CEO, outlining the risk management framework, roles of senior management, and identified risks, including lack of internal controls, non-compliance with laws, and operational challenges. It also includes SWOT and PEST analyses to evaluate the external environment. The report identifies key stakeholders and their roles in the risk management process. The methodology used includes primary and secondary research methods. The report concludes with the identified risks associated with the new store, including compliance, resource management, and organizational culture. The report also contains emails to stakeholders and the CEO, along with a summary of a meeting with the CEO and references. The report provides detailed insights into the potential risks and offers recommendations for mitigating those risks and ensuring the successful operation of the new store.

Task 1
REPORT ON RISKS

TABLE OF CONTENTS
Report to CEO.............................................................................................................................1
Email to stakeholders..................................................................................................................6
Email to CEO..............................................................................................................................7
Discussion with CEO..................................................................................................................8
Summary notes of meeting with CEO........................................................................................8
REFERENCES................................................................................................................................9

Report to CEO
From: Assistant Manager – Ash
To: CEO – Paula Kinski
Re : New Toowoomba Store
Thank you, ma’am, for your regards. This is to provide you all the information that I gathered
about our new project of store in Toowoomba. I would like to seek your attention to the
following areas as discussed below.
The evaluation of the risk management framework of Mcville provided with the following
information:
As per the risk management principles ISO 31000:2009, the guidelines are not for any specific
industry. These principles can be applied to any risk. These principles are used to harmonize
process of risk management. The risk management framework of Mcville includes number of
elements that help the organisation in undertaking its business operation more effectively and
efficiently. The policies and procedure under risk management framework includes policies like
HR policy, Financial policies and corporate Governance policies. However, after the survey of
the place and all records, it has been found that the organisational cultural policies are not being
implemented effectually that resulted in less participation of employees. Along with these
policies, framework also comprises monthly reporting and business planning and budgeting
system. Under these business objectives are standardised, action plans are undertaken along
with allocation of required resources. From the analysis of these policies and systems, a
drawback that is visible in the organisation is that the records of the employees are not being
maintained properly. And also, committee requires to make some guidelines for the staff so that
they know how to carry their work.
Role and scope of senior management under risk management process:
 Senior managers are required to implement policies that are essential in risk
management at the appropriate areas (Pritchard and PMP, 2014). This will include
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implementation of internal control over operational activities of the organisation.
 Identification and evaluation of risky areas and making them consider to the directors.
 Providing suggestions regarding the areas where risk management is not being properly
addressed and how to implement the process.
 Upgradation and reviewing of risk management strategy.
In order to follow up all these roles, following risks are identified in the expansion of new
business plan:
 There is lack of internal control policies, no cash management and maintenance of
records.
 Policies and procedures have failed to meet the requirement of the compliance of
industrial relation and privacy laws.
In order to make new plan successful, following factors need to be considered:
 Location of the store, that need to be feasible for locals as well as outside customers.
 Quality of food need to be fresh. Delivery of pastry from the central bakery should be
revised as it would take at least 2 hours to reach at new store.
 Improvement of cash management system and maintaining the operations of banking.
 Establishment of medical aid store at the organisation for dealing with any injuries that
can happen at store.
 Development of innovative range of dishes.
 Protecting the computer with password where all the information about employee and
their salary record has been stored.
Goals and objectives of risk management:
Main objective of managing the risk would be approaching to all the areas and identifying ball
the risks that are associated with each function of the organisation along with providing
suggestions in order to overcome all risks in an effectual manner (Glendon, Clarke and
McKenna, 2016). The goal is to minimize risks as much as possible and providing suggestions
in order to increase the performance and profitability of the organisation.
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Here is the table of relevant stakeholders for the new store along with their role in risk
management process:
Stakeholders Internal/
external
Role in process Stake in process
Directors Internal Determining acceptable and
non-acceptable risks, setting
of standards and code of
conduct, providing approval
to major decisions,
monitoring the risk
management, implementing
controls in the area where
required and reviewing the
whole process annually.
Invested capital and
reputation
Senior management
team and store
management
internal Implementation of policies
and internal control system,
Identification of risky areas
of Mcville, providing
advice to directors
regarding the areas where
management has not been
properly implemented,
reviewing and updating risk
management process.
Their job, growth
opportunities,
recognition and
rewards
Cafe employees Internal Make themselves familiar
with the risk management
Their job, growth
opportunities,
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process, manage risk or
inform to the senior
management if they
consider any risk in the
process, seeking attention of
senior management or board
of directors if considered
with any fraud or unethical
practice.
recognition and
rewards
Government external Providing guidelines for
managing and
implementing some
policies, reviewing
regulations to which the
organisation is subjected to,
providing funds if required
Tax revenue, growth
of economy,
employment
Local authority External Providing help in
establishing new store,
improvement of
infrastructure like roads that
are risky to reach new store
Tax revenue and
recognition.
CustomersExter
nal
Providing suggestions to the
management about any
changes if required or about
any problems that have
been identified by them
Quality services,
health, money
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Further, in order to identify weaknesses, opportunities, threats and effects of external
environment swot and pest analysis has been conducted (Bull and et.al., 2016).
SWOT analysis:
Strength
 Easily accessible to the local
customersFamily run store, all the
members are familiarCentral location
of the store and easy access to the local
bus standardised
Weaknesses
 Bad infrastructure from Toowoomba to
BrisbaneLong delivery time from
central bakery plant to storeNo written
policies and procedure manual
Opportunities
 Can attract large number of retirees
 effective and efficient use of video
streaming and tele-conferencing
 Growing populationExpansion of
cafe's to footpath after implementation
of a law
Threats
 Only 50% chance of break-ins
 Misuse of cash as all the records of
cash are not maintained in register
PEST Analysis:
Political factors: Implementation of Hygiene and food standards by government
Economic factors: Effect of state and unemployment rates. Monetary policy, taxation and
exchange rates
Social factors: Changes in lifestyle, demographic changes, income distribution, health and
welfare (Shabanova And et.al., 2015).
Technological factors: Speed of change in technology, technological obsolescence, new
discoveries and development
The method of research that has been used is primary as well as secondary method of
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research (Methods of research) that includes collection of data through survey and meeting with
related parties along with going through old records of employees and risk management
policies of Mcville.
 At the end from overall review of risk that is associated with opening of new plant
following risks have been identified:Compliance of regulatory and legislationPhysical
and human resources
 There are no policies in order to guide the staff.
 Professional and organisational cultures need to be improved.
 Management has also failed in monitoring the external environment in order to identify
associated opportunities and risks of the business.
Regards
Ash
Assistant manager
(Mcville)
Email to stakeholders
To: all the stakeholders
Subject: Seeking attention to risk management process
Respected all stakeholders,
Research has been conducted on risk management process and risk associated with the
opening of new store in Toowoomba. From the research following risks has been identified in
the overall process:
 There is lack of internal control policies, no cash management and maintenance of
records.
 Policies and procedures have failed to meet the requirement of the compliance of
industrial relation and privacy laws.
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 There are no policies in order to guide the staff.
 Professional and organisational cultures need to be improved.
 Management has also failed in monitoring the external environment in order to identify
associated opportunities and risks of the business.
It is requested from all of you to please go through from these identified risks and provide
your valuable inputs in assessing these risks as well as identifying any further areas of
risks.Thanks and Regards
Ash
Assistant manager
(Mcville)
Email to CEO
To: CEO
Subject: Requesting for a meeting
Dear sir,
Research has been completed and various risks has been identified. It is to request you to
please organise a meeting to discuss identified risks and provide your valuable guidelines for risk
management process.Thanks and Regards
Ash
Assistant manager
(Mcville)
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Discussion with CEO
Following things has been identified:
 Only 50% chance of break-ins is there, the outcome of which is moderate
 Dishwasher that company already have is of rating 3 while we need to install dishwasher
of ration 5 or 6 which will cost us about $6,000 and above.
 There is need to implement Dual flush which would cost about $7,500
There are many risks that are associated with the opening of new store in Toowoomba. The risk
management process that Mcville is already using includes:
 Internal control policies and corporate governance arrangements.
 Various roles have been delegated to directors, senior management team and store
managers and employees of the cafe.
 Ensuring identification and management of threats and opportunities.
 The organisation is committed in achieving business objectives, visions and missions.
Summary notes of meeting with CEO
 Reporting all the identified risks
 reporting of further requirement of investments
 Reporting of suggestions and inputs received from stakeholders.
 Suggestion from Paula Kinski
◦ Installation of software for maintaining records
◦ Opening a bank account at nearest bank so the banking can be done regularly.
◦ Providing a separate space for bakery so the pastry's need not be brought from central
bakery.
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REFERENCES
Books and Journals
Bull, J.W. and et.al., 2016. Strengths, weaknesses, opportunities and threats: A SWOT analysis
of the ecosystem services framework. Ecosystem services. 17. pp.99-111.
Glendon, A. I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc
Press.
Pritchard, C. L. and PMP, P. R., 2014. Risk management: concepts and guidance. CRC Press.
Shabanova, L.B. And et.al., 2015. PEST-Analysis and SWOT-Analysis as the most important
tools to strengthen the competitive advantages of commercial enterprises. Mediterranean
Journal of Social Sciences. 6(3). pp.705.
Online
Methods of research, 2017. [Online] Available
Through :<http://www.mymarketresearchmethods.com/primary-secondary-market-
research-difference/>.
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