Risk Management Report for BSBPMG616: Dominos' Strategies Analysis

This report provides a comprehensive analysis of risk management strategies within Dominos, focusing on its online food delivery operations. The report begins with an executive summary, followed by a detailed introduction outlining the key factors considered in the risk management plan, including food resources, quality, cost, reputation, and time management. The core of the report centers on risk assessment, differentiating between external and internal risks, and identifying specific risk factors associated with online ordering and drone delivery. A risk register is presented, detailing potential risks such as consumer uncertainty, order decline, and wrong information, along with proposed mitigation strategies. The analysis and evaluation section assesses risks based on likelihood and seriousness, categorizing them into impact grades. The report concludes with a discussion on risk mitigation, including preventive and contingency measures to address identified risks, emphasizing the importance of customer satisfaction and the use of technology like GPS and insurance to minimize potential losses. The report also includes a Gantt chart and a reference list to support the findings.

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RISK MANAGEMENT
STUDENT NAME:
STUDENT ID:

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Executive summary
The main purpose of risk management is to secure and eliminate the uncertainty coming in the
path of project execution. Company like Dominos is prospering through adequate and timely
management of risks. Risk mitigation refers to the strategic approach that helps to reduce the
threats faced by the Dominos. Dominos prioritizes risk from severe risk to least appealing risk.
Customer satisfaction is a key part of all success and thus the customer must be provided with all
the benefits he has in terms of quality, time and delivery. For these several strategies are made to
remove the risk causing factors. Government’s fund mostly depends on the gathered funds that
are required to balance out the budget priorities. Investing in the current projects and maintaining
the budget for the present and future phases of the project with the consideration of service
delivery and providing the maximum value of investment. Using the appropriate business model
for enforcing various procurement strategies can help in procuring better outcomes while
improving the value of money and saving time at the same time.

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Table of Contents
Introduction..........................................................................................................................................4
Risk assessment....................................................................................................................................4
a) Establish the context.....................................................................................................................4
b) Identifying and risk register..........................................................................................................5
c) Analysis and evaluation................................................................................................................9
d) Risk mitigation............................................................................................................................10
e) Risk monitoring..........................................................................................................................11
Roles and responsibilities...................................................................................................................11
Assess program risk management outcomes.....................................................................................12
Agenda for risk management outcomes.............................................................................................13
Reference list......................................................................................................................................15

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Introduction
Risk management insures analyses and monitors the level of uncertainty to be looked upon for
minimizing or omitting risks and threats. Dominos being the largest online food delivery chain in
Australia also pertains to risk and uncertainty. Managing food resources, quality, cost, reputation of
Dominos and time are the key factors to be considered in the risk management plan. The
stakeholders are the parties affected by the transaction process and service. The stakeholders in
online food delivery are order giver, order receiver, the cost manager, resource finder, the quality
and time checker, driver. In Dominos, Checking the availability of resources before packing and
packaging, fixing time of delivery and receiving post-delivery feedback are the key factors to be
monitored in the program of risk management. The main purpose of risk management in
DOMINOS is to secure the uncertainty embedded with the project execution. Dominos like
Dominos is prospering through adequate and timely management of risks.
Figure 1: Gantt chart
Risk assessment
a) Establish the context
Risk assessment is the process to be programmed from the onset of defining risks, analysing and
evaluating risk, mitigation and monitoring through several quantitative and qualitative approaches.
The existence of risk is manifested through risk assessment. Risk assessment helps in redirecting
ideas for reduction of uncertainties. In the Dominos context there are two types of risks:
External risk: External risks are those risk factors which are beyond human control or power
these can be divided into natural, political and economic factors. Natural factors are like any
natural disasters like floods, earthquakes are beyond human strength. Political issues also affect
the economy as a result there is always a risk of inflation and recession. Economy changes also
play an important role in generating risks.

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Internal risks: Internal risks are born within the organisation and can be said as a part of the
organisation. Internal risk occurs during normal execution of any project. These risks are forecast
able and are easily assessed and mitigated. These risks can also be avoided. Human risk factors are
often called as internal risks they include, union strikes, ineffective control of management,
unroyally of employees are some examples of internal risks. Technical risks like using out-dated
version of operating and database management system, can lead to the risk of lagging behind in a
competitive market scenario. Physical risk like loss or damage of Dominos risk leads to cost related
risks.
A Dominos can reduce the internal and external risks with the help of insurance and hedging.
Companies can also obtain credit insurance on their accounts receivables. The process of risk
management assessment is done throughout the project.
Identifying: The harm causing factors in online app and drone delivery are identified in this step.
In online ordering the person who orders and dominos order recipient are supposed to be loyal to
each other in terms of transaction. There is a chance of getting a wrong call or wrongly assessed
data and information of the customer. The same risk is also involved in drone delivery as robots
are human creations and cannot stay apart from wrong doing thus there is a chance that the drone
may not be able to meet the required destinations.
Managing product quality and cost: There is a risk in both sections that while preparing and
delivering process. The food must meet all its integrity. The cost of product, transport, and
delivery agents are to be well defined. Product of the Dominos must go through several quality
check tests which will help in creating a high rated consumer product. This is only achieved by
strict quality check of resources and its production. As pizzas are a food quality product they are
subject to be perishable with the lapse of time thus quality check is the core necessity of Domino's
pizza. Again cost management is also required to acquire best resource at the best price.
Manufacturing costs, labour costs, maintenance charges must be best allocated to each group.
b) Identifying and risk register
Risk register is the tool of risk management that includes all information about the nature of the
risk, mitigation and its handling. Domino’s pizza enterprise ltd also manages risks in a very

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structured manner so that risk incurred from various resources, costs, time, quality and reputation
of the Dominos can be managed and maintained. The Dominos is going to enhance its performance
by drone delivery facility along with door to door services. Risk register is the document that
basically related to identification and evaluation of risk and threats. Several risks are encountered
in the use of mobile app online ordering they are as follows:
Uncertainty of consumer, declining of order, disagreement, wrong conduction of information,
unusual behaviour is the expected risk factors in online ordering. Apart from this drone, delivery is
also subject to risks as uncertainty regarding correct destination, loss of the machine including the
drone, high costs and insurance related risks, and the biggest risk such as loss of control due to
radio frequency interference.
Risk mitigation refers to the strategic approach that helps to reduce the threats faced by the
Dominos. Dominos prioritizes risk from severe risk to least appealing risk. Customer satisfaction is
a key part of all success and thus the customer must be provided with all the benefits he has in
terms of quality, time and delivery. For these several strategies are made to remove the risk causing
factors.
Risks Impact Change Mitigation Responsible Cost Timeline
Uncertainty of Medium No Needs and Project $12,000 1 week
consumers change demands of the manager
consumers
need to
identify so that
right product at
right time can
be delivered to
the consumers

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Declining of
order
High Change An integrated
system needs
to be
implemented
so every order
can be
monitored
wisely.
Project
manager
$5,000 1 week
Wrong
destination
High Change Adoption of
new technology
such as GPS
and navigation
system that help
in track the
location and
delivered the
right product to
right
consumers.
Technical
department
$12,000 3 weeks
Loss of
machine
High Change Adoption of
new technology
and
tools for
Procurement
manager
$8,000 1 week

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Progressive
development.
Loss of
control
Medium No
Change
A proper
monitoring
system needs to
be established
for effective
result.
Project
monitoring
system
$7,000 1.5 Weeks
Food quality Medium No
Change
Food quality
procedure and
instructions
need to be
improved for
effective result
Project
manager
$2000 2 weeks
wrong
conduction of
information
Low No
Change
Social media
and Email are
effective tools
for
communication
between
employees
Project
manager
$6000 1 week
High cost High Change All the
deliverables are
needed to be
identified so
that budget can
Financial
department
$2500 2.5 weeks

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be allocated
evenly.
c) Analysis and evaluation
Likelihood
Seriousness
Low Medium High Extreme
Low Wrong
conduction of
information
Loyalty of
customer
Food quality
Medium Unpredicted
costs
Loss of machine Uncertainty of
consumers
Loss of control
High Customer
feedback
Declining of
order
Wrong
destination
High cost
Loyalty of customers: There are many competitive choices for the customer it is quite usual that
he might search for anew better choice. Apart from this drone delivery can also gain loyal but not
all customers can stick to the new way of delivery.
Unpredicted costs: In vast competitive market the customers look for the best prices. The risk is
also similar in drone delivery. The costs are supposed to get reduced for getting higher demands as
a result there is always a risk of achieving lower profits.
Food quality: It is the major concern for dominos that when the pizza reaches the customer it
must be in good condition in terms of packing packaging and quality. Using mobile customer is
only saturated by the words of the order receiver as the customer is not supposed to view the
processing. Thus quality must be maintained. Again in drone delivery if the customer is not
happy with the quality of food a drone carries leads to the misconception of the customer.
Customer feedback: Dominos’ is prospering through positive feedback of its customers thus

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negative comments and feedbacks can tell upon the reputation of the Dominos thus customer
satisfaction is required at any cost..
IMPACT GRADE RISKS
EXTREME A Catastrophic in the case of external
risks, loss of person or personal injury,
loss of control of drone. Inflation
MAJOR B loss of assets and drone
MODERATE C non-predictable risks of cost and time
MINOR D loss due to disagreement
NEGLIGIBLE E loss due to the loyalty of customer
d) Risk mitigation
Risk mitigation refers to plan and action which helps to reduce the threats faced by the Dominos.
Dominos manages prioritize risk from severe risk to least appealing risk. Customer satisfaction is a
key part of all success and thus the customer must be provided with all the benefits he has in terms
of quality, time and delivery. For these several strategies are made to remove the risk causing
factors. Assuming the risk, adjusting it takes control of actions for minimizing the risks and
reassigning the risk to a different stakeholder who is ready to accept it, and finally monitoring the
environments of the risk. Mitigation of risk refers to identification of risks to reduce the likelihood,
this strategy of identification also include when the action to be taken and in which stage is going
to be taken. According to severity of risk mitigation is classified into preventive and contingency.
As stated above risks need to be mitigated like in the case of customer identification the wrong
information can be mitigated through correct collection into appropriate database software. On the
other hand for the food quality risk there must be a quality check test so that the quality is ensured.
In case of loss of the machine i.e. the drone must have a good general insurance to tackle the
damages. In order to look out the potentiality and impact the risks are measured through likelihood
and seriousness.
For example: the likelihood and seriousness is obviously high in case of external risk than in risk
arises due to conflicts. Risk likelihood refers to the probability of any unfortunate happening

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followed by its impact on the business. Likelihood and seriousness are defined in this stage along
with that the tolerance level is also checked. After checking, measures to be taken for eliminating
or minimizing are defined. Example: if we take the example of loss of drone first we have to
categorize it as a major issue after that we will consider its impact on the cost and time due to
damage of the drone. The cost due to damage will impact on profit.
On the other hand, risk mitigation is one of the important aspects of project that make sure each
task and activity can be accomplished within strict timeline. Risk assessment approach has been
applied to distinguish different risks and issues so that an effective strategy can be developed for
progressive growth. Risk has been categorised into different grade that helps in developing an
effective mitigation strategy.
e) Risk monitoring
Risk monitoring is the tool or process which helps for tracking and reducing risks. In the process
the risk factors are identified, analysed and then a new plan is implemented for newly discovered.
In the plan the risk owner reveals new risk and gets a close idea about it and then pursues the risk
plans. It is an iterative process that is built in the management program. It is related to the issue of
whether treated or untreated and several prevention strategies are made. The higher risks are
treated first and the lower is treated later. Total review is created in this stage through risk
registers. It is also monitored how often is the risk review is reported to the steering committee.
Roles and responsibilities
The main role of the risk manager is to integrate the communication of risk factors and policies
around the organisation. The risk manager is to abide by its duties and responsibilities. The role of
a risk manager is to provide a methodological boundary which helps the organisation to analyse
and evaluate the threats coming in the path of its growth. The risks manager divides the duty to the
following:
Steering committee: A steering committee is basically an advisory or a guiding committee which
helps in making decisions to eliminate the risk. This committee consists of all people who are
involved in the project risk management. The possible responsibilities are defined to these people
who help the task to get incorporated. Government’s fund mostly depends on the gathered funds
that are required to balance out the budget priorities. Investing in the current projects and

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maintaining the budget for the present and future phases of the project with the consideration of
service delivery and providing the maximum value of investment.
Project manager: The duty of the project manager is to manage all kinds of external and internal
risk in a structured manner. The project managers risk management includes initiation, planning,
executing, validating and evaluation of the planned or expected risk. Risk is the part of uncertainty
a project manager forecasts the risk and executes the plan to minimize its impact.
The project manager is the one who depicts the threats in terms of its impact on the organisation.
He prioritizes the highest risk at first and the lowest at last. Technical risks like using out-dated
version of operating and database management system, can lead to the risk of lagging behind in a
competitive market scenario. Physical risk like loss or damage of Dominos risk leads to cost related
risks.
Project team: a project team is a group of members who are assigned to do different tasks for the
successful completion of the project. The team is brought from different department’s that is
resource manager, cost manager, time manager and they help out in their own specifications.
External stakeholders: external stakeholders are those individuals who are outside of the project
but they can effect or can be impacted by the project. They influence long term success of a project.
Domino's external stakeholders are its customers and users. As the users are not involved in the
operations and decisions of the Dominos but they do have an impact on the Dominos.
Sponsors: A sponsor is an individual who provides financial resources or support to the project.
He supports the champions of the project and also acts as a medium to those who are unaware of
the project. He also resolves conflicts and enforces quality policies. He also provides formal
acceptance of deliverables.
Assess program risk management outcomes
If complete risk management is applied in the identification of risks and opportunities the better
outcomes are received. Reducing risks makes an organisation a better place for investors. The
Dominos acts more confidently in achieving customer satisfaction. This assessment can be done
through: