BSBRSK501 Risk Management Plan: Oakwood Espresso Coffee Shop

This risk management plan assesses the potential risks facing Oakwood Espresso Coffee Shop, a small café in Toronto. The plan identifies internal and external stakeholders, conducts a PESTLE analysis to review external factors, and performs a SWOT analysis to pinpoint strengths, weaknesses, opportunities, and threats. A risk register is developed to document identified risks, their likelihood, impact, and current control strategies. The plan further outlines potential treatment options for each risk, assigning responsibility and estimating costs and timeframes for implementation. The document also explores alternative risk identification methods, such as scenario analysis, fault tree analysis, and surveys, to enhance the café's risk management capabilities. This detailed analysis aims to help Oakwood Espresso Coffee Shop mitigate potential risks and achieve its business objectives.

Running head: RISK MANAGEMENT PLAN
Assessment 1: Risk Management Plan
Oakwood Espresso Coffee shop
Name of the Student:
Name of the University:

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Table of Contents
Task 1...............................................................................................................................................2
a. Company overview and Objectives.............................................................................................2
b. Identification of internal and external stakeholders.....................................................................2
c. Review of external factors.......................................................................................................3
Task 2...............................................................................................................................................5
Risk assessment...............................................................................................................................5
Task 3...............................................................................................................................................6
Risk identification............................................................................................................................6
c. SWOT analysis........................................................................................................................6
Task 4 and Task 5........................................................................................................................8
Task 6.............................................................................................................................................11
Task 7.............................................................................................................................................12
Bibliography..................................................................................................................................14
Appendix........................................................................................................................................15

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Task 1
a. Company overview and Objectives
Oakwood Espresso Coffee shop is a very small but local favourite for the neighborhood
Homewood residents and Oakwood Village, located in Toronto. This unassuming café shop is
just off the main Oakwood Village retail band that is fronting on Holland Park Ave on west side
of the Oakwood Avenue. The Oakwood Espresso Coffee shop is gaining commercial revenue
and competitive advantages due to neighbourhood resident rush who are heading to work
looking to get the caffeine fix before initiation of the commute. The café runs by tony and his
small team. Due to lack of business and operational strategies the Oakwood Espresso Coffee
shop is facing certain risks and details of these risks are elaborated in this paper.
The goal or objectives of Oakwood Espresso Coffee shop are as follows:
 To identify different risks and challenges that may interrupt the annual revenue of the
café shop
 To conduct both internal and external market analysis respectively through SWOT
analysis and PESTLE analysis
 To develop accurate risk management strategies for Oakwood Espresso Coffee shop so
that they can avail commercial revenue and competitive advantages as well
 To achieve 15% of additional revenue on the current investment and gain 50% more
consumers regardless of their age

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b. Identification of internal and external stakeholders
Stakeholder Role Stakeholder’s agenda for
risks
Owner Internal The agenda of the Owner
(Tony) is to offer reasonable
services considering the
consumers demand so that
maximum profit with positive
Return on Investment (ROI)
can be generated
Cashier Internal Agenda of a cashier is to
implement much effective
payment processing method to
satisfy the consumers and
make the payment process
smoother and quick
Customer External Agenda is to provide timely
feedback so that tony and
team can improve their
business and commercial
revenue as well
Local residence External Agenda is to support and give
feedback to the food products

4RISK MANAGEMENT PLAN
of the café so that they can
understand the demand of the
consumers.
Suppliers External To supply timely and needful
products
c. Review of external factors
Political Technology
 The café follows the rules and
regulations those are imposed by the
government of Toronto.
 Oakwood Espresso Coffee shop obeys
all political policies. If any changes
occur then also they become
completely ready to follow the new
policies.
 No modern technology is applied by
Oakwood Espresso Coffee shop.
 Though, these days some advanced
payment processes such as Paytm, debit
card payment are also using.
 The coffee shop should use app and uber
coffee opportunities
Economic Environmental factors
 Though Oakwood Espresso Coffee
shop is a small sized café but still it
provides financial needs to boost up the
country economy so that they can
compete similar other café.
 The café is evaluated in terms of different
environmental aspects.
 The café has ensured that the company
would always follow the facilities as well
as technologies needs to be carries out by

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the products and services.
 The food products are served using
reusable products
Social issues Legislation
 The product quality and reasonable
price of Oakwood Espresso Coffee
shop coffee and snacks may encourage
much profitable behavior,
 The customer can even control the third
place
 All the regional laws and regulations are
followed by the company for long term
environmental protection and food
production.
Competitors Others
 As the size of the café is very small
therefore, the company has no such
global competition
 Oakwood Espresso Coffee shop has no
social challenges because the cafe is very
famous for their product quality and price
among the neighbourhood customers
Task 2
Risk assessment
a. All the identified internal and external factors are analyzed for the coffee shop. The
current organizational process followed by the café includes work determination, goal
accomplishment, assigning individual task and arrangement of those tasks for developing a

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decision making framework. However, the financial record keeping process, sales reporting
system are little weak. Apart from that table booking, contact maintenance approaches are not
enough strong. In order to resolve these issues the risk management process has been undertaken
by the organization.
b. The existing processes are in accordance with the Australian Risk management
standards and processes. The Risk management standard that has been followed for the coffee
shop is based on AS/NWZ 31000:2009.
c. The consultation method needs to be applies by Oakwood Espresso Coffee shop is
face to face interview and the communication method should be always open communication.
Open consulting platform helps the consumers and owners to discuss freely regarding product
quality and expectation of the local consumers from the services. The owners should conduct
face to face interaction to understand the demand of the consumers for their food products. Tony
and team require considering the consumers feedback before improving the product quality. The
consumers or participants will feel extremely valued if their feedback is being considered by the
owners. Through open communication innovative business strategies can be developed and
shared as well.
Task 3
Risk identification
a. In order to identify and monitor risks the Oakwood Café uses the below enlisted tools,
techniques and processes:

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 Risk audit
 Risk analysis
 Reverse analysis
 Status meeting and
 Variance and trends analysis
b. Monthly face to face meeting is conducted by the Oakwood Café shop to keep all the
stakeholders engaged to the recent status of the company so that they can also help to identify the
possible risks those are interrupting the annual revenue margin of the shop.
c. SWOT analysis
Strength Weaknesses
 The demand for their food products
(snacks, coffee) is growing rapidly.
 Their business strategies create immediate
impact on the company
 The startup ideas of Oakwood Espresso
Coffee shop are sometimes fueled by
certain local competitors
 For excessive demand sometimes the
qualities of their coffee are being
compromised
Opportunities Threats
 The developing business technologies are
attracting more consumers and decreasing
the overhead cost issues
 Local competition can improve the quality
of the food products
 Troubled economy and difficult financial
situation
 Potential unforeseen risks can deplete the
cash accounts and benefits

8RISK MANAGEMENT PLAN

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Task 4 and Task 5
Risk Register Part A. Risk register: Oakwood Espresso Coffee shop
Function (activity e.g. department): Compiled by: Date:
Date of risk review: Reviewed by: Date:
Risk
Reference
(unique
identifier
code)
What is the
risk?
(Risk)
What can
happen?
(Event)
How can it
happen?
(Cause)
What can happen?
(Consequences/level of
impact)
Current
control
strategies
A (Adequate)
M (Moderate)
I (Inadequate)
Current risk level analysis
Risk
priority
(refer to
risk
matrix
and
attach
matrix
in
appendi
x)
Accepta
bility
Treat
Risk
Yes or
No
Likelihood Consequences
Level of
risk
R1 The cafe
price stock is
declining
Growing local
competitors
Similar new
shops are
opening in the
nearby
location
High level competition A
Likely (60%)
Moderate (1.5)
level of risk (60*1.5= 90)
Medium Unccept
able
Y

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R2 Lack of
technology
usage
The numbers of
customers will
be decrease
Not
availability of
online service
and product
delivery
The numbers of
consumers will decrease
M Likely (60%)
Moderate (1.5)
level of risk (60*1.5= 90)
Medium Accepta
ble
Y
R4 No use of
social media
for
advertising
products
No promotion
of products
If social
media
platforms are
not used by
the cafe owner
Fail to grab new
consumers outside the
neighbourhood
I Likely (50%)
Minor (0.75)
level of risk (0.75*50=37.5)
Low acceptab
le
Y
R10 Not
following
some of the
legal
regulations
and rules
legal risks May require
to hire
external legal
advisors
Legal issues M Possible (60%)
Catastrophic (2.5)
level of risk (2.5*60)=15
L Unaccep
table
N
R5 No use of
advanced
business
strategies
Commercial
revenue will not
be gained
If professional
business
analysts are
not hired
face commercial losses M Likely (50%)
Catastrophic (0.75)
level of risk (0.75*50=150)
Extreme Unaccep
table
Y
R4 Insufficient
security
measures
Confidential
financial data
can be hacked
Insufficient
data
protection
mechanism
Confidential data would
be hijacked
A Unlikely (30%)
Minor (0.75)
level of risk (0.75*30=22.5)
Low Accepta
ble
Y
R6 Improper
resource
allocation
Overrunning
cost
The allocated
budget rate
will increase
Fail to implement
expected outcomes
I Unlikely (30%)
Minor (0.75)
level of risk (0.75*30=22.5)
High Unaccep
table
Y

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R9 Lack of
manpower
Failed to offer
timely services
to the present
consumers
Long leave
taken by the
employees
Fail to serve food products
to the consumers who are
within the cafe
I Possible (45%)
Major (0.75)
level of risk (0.75*45=33.75)
Moderate Unaccep
table
Y
R12 Less opening
time span
the consumers
will not be able
to visit the cafe
whenever
interested
Loss some
consumers
Fail to offer services
whenever they require
M Unlikely-30%
Minor (0.75)
Risk level-(30*0.75=22.5)
Low Accepta
ble
Y
R15 No interest in
new recipes
consumer loss If the cafe
fails to show
interest in
producing
new quality
and tasty food
products
Fail to grab new
consumers and retain
consumers from Toronto
I Rare 15%
Moderate 1.5
Risk level-(1.5*15=22.5)
Low Unaccep
table
N