Risk Management Plan Implementation: The Steyne Hotel, Assessment 2

This report presents a risk management plan for The Steyne Hotel, a hotel, restaurant, and bar located in Manly, NSW, Australia, adhering to the AS/NZS ISO 31000:2009 standard. The plan identifies internal and external stakeholders and potential risk concerns for each, covering political, economic, social, technological, legal, and environmental categories. It outlines the organization's strengths and weaknesses in risk management, defines success factors, goals, and objectives, and proposes a qualitative risk assessment methodology. A risk assessment matrix is created, evaluating the likelihood and consequences of risks like food safety, bad reputation, and injuries, along with proposed treatments. The report develops detailed action plans for each treatment, specifying required actions, responsible parties, timelines, monitoring processes, and communication methods. It also summarizes the necessary documentation and describes the methodology for evaluating the action plans' success. Finally, the report details the required insurance coverage for the business, including business indemnity insurance, to mitigate potential risks. The analysis provides a practical and comprehensive approach to risk management for the selected organization.

Assessment 2
Action plan for implementing risk treatment
Prepare a risk management plan for a business of your choice in accordance with
the Australian and New Zealand Risk Management Standard AS/NZS ISO 31000
2009 Risk Management – Principles and Guidelines.
1. Select an organization you are familiar with, preferably one that you’ve
worked for/with. This organization will be the basis for all of your
responses for Assessment 2. (6 marks total.)
a. Name of Company
THE STEYNE HOTEL
b. Location
75 The Corso, Manly NSW 2095, Australia
c. Nature of business
Hotel and Restaurant cum Bar
2a. Identify 5 internal stakeholders and
1. employees
2. shareholders
3. agents
4. managers
5. owners

b. Provide an example of a risk concern for each of the internal stakeholders. (3
marks)
Employees - Employee may commit negligence
Shareholders - May repudiate the actions of the board
Managers- Mangers may not comply with legislations
Agents- there actions would bind the company
Owners- owners will be bound to the acts of the agents
3a. Identify 5 external stakeholders and
1. Local community
2. Government
3. Investors
4. Suppliers
5. Consumers
b. Provide an example of a risk concern for each of the external stakeholders. (3
marks
Consumers - Can make claim under Consumer Law
Suppliers – suppliers can refuse to give goods
Local community- the environment and the society may be affected
Investors- may deny making investment
Government- can enact new laws

4. Give one example of the organisation’s risk concerns in relations to each of the
following catagories;
A. Political- Change in government
B. Economic- market downfall
c. Social- Social change
d. Technological- Technological failure
e. Legal- Non compliance
f. Environmental – pollution caused by operations
(2 marks each)
5a. Give 2 examples of strengths of the organization risk management practices:
1. The organization has a risk management committee which measures and
manages risk
2. The organization takes risk management as a planned activity
b. Explain why you consider these strengths
1. The first practice is a strength because it involves the identification of risk
and then appropriately addressing them
2. The second practice is a strength because it involves planning. Planning
enhancing the chances of risk to not occur and to be addressed properly.
d. Give 2 examples of weaknesses of the organization risk management
practices: and
1. reckless risk taking
2. inefficient governance
e. Explain why you consider these weaknesses.

Reckless risk taking is a weakness because a good risk management
practice involves risk taking in a calculated manner.
Poor governance is weakness to risk management as it does not consider
organizational, process and behavioral indicators.
(2 marks each)
6. Outline the following in regards to your risk management plan
a. Success factors
 Close involvement of executive boards
 Senior executive as a driving force
 Involving stakeholders
 Identification of new risk
 Promotion of risk management cultures
 Use of advanced methods and techniques
b. Goals and objectives
 To identify risk before they occur
 To address risk which arise during business operations
 To ensure compliance of the organization with existing regulations
 To prevent any unwanted losses
(2 marks each)

7. Describe a research methodology that the organization may utilize to conduct
research about risk management practices by summarizing the specific steps in
the methodology and including an explanation of each of the specific steps.
(2 marks)
The methodology used would be qualitative risk assessment
It includes the steps of risk screening into Low Impact, Low Probability and High
Impact, High Probability, High Impact, Low Probability and Low Impact, High
Probability
8. Create a risk assessment matrix:
a. Cite 3 examples of a risk in the organization (3 marks)
b. Utilising a risk assessment matrix you’ve created, asses the likelihood of each
of your risks in 8a. (3 marks)
c. Utilising a risk assessment matrix you’ve created, asses the consequences of
each risk in 8a. (3 marks)
d. Describe a treatment for each risk. (6 marks)
Likelihood Consequence Treatment Priority
Risk 1
Food Safety
It is very
likely that if
appropriate
measures are
not taking to
ensure the
safety of food
than risk in
relation to
food safety
would occur.
As the
restaurant
The risk in
relation to
food safety
can cause
significantly
detrimental
circumstances
for the
Restaurant.
The
restaurant
may have to
pay
The risk has
to be
addressed by
deploying a
mechanism of
periodically
testing the
safety of the
food served to
the
consumers.
Must be given
utmost
priority

involves no
continuous
production of
food the risk
is very likely
to occur.
significant
amount of
damages and
the license of
the restaurant
may be
cancelled if
any failure of
food safety is
detected.
Risk 2
Bad
Reputation
It is not very
likely that the
well
established
restaurant
would be not
be subjected
to Bad
reputation.
However such
risk cannot be
discarded
totally.
Bad
reputation
can have fatal
consequences
on the
restaurant as
completion in
the industry is
high and
consumers
have a variety
of options to
choose from
and they
would not
select a
restaurant
giving bad
reputation.
Any situation
which might
lead to a bad
reputation
has to be
indentified
and dealt with
immediately
and
effectively
Significant
priority needs
to be
provided
Risk 3
Injuries and
Liabilities
Injuries are
likely to occur
in a
restaurant
business
Injuries may
result in
compensation
and damages
paid to the
injured party
with respect
to the
provisions of
negligence.
The business
must have in
place a
business
indemnity
insurance to
protect it
from any form
of negligence
claim
Requires
significant
priority
9. Develop an action plan for each of the treatments contained in your response
to Q.10

a. What actions are required to implement the treatment based on the hierarchy
of control. (6 marks)
b. Who is taking responsibility? (3 marks)
c. What is the timeline for the implementation of each? (3 marks)
d. What monitoring process will you put in place (3 marks)
e. how will you communication to the relevant parties. (3 marks)
Treatment
(from
question 8)
Actions
required for
implementa
tion
(based on
hierarchy of
control)
Responsibl
e person
Deadlin
e
Review
Treatmen
t date
Communicatio
n method
Periodic
testing of
food safety
Random
testing of
food which
is served to
the
customers
Head chef Daily 12.11.20
17
Head chef
communicatin
g to
departmental
chefs through
direct
communicatio
n
Identifying
and
addressing
bad
reputation
situation
Proactively
ensuring
rood
relations
with human
Relationshi
p Manager
As and
when
require
d
12.11.20
17
Direct
communicatio
n of
relationship
manager with

customers
Having in
place
business
indemnity
insurance
Having the
insurance in
place from
the best
provider
Safety
officer
always 12.11.20
17
Indirect
communicatio
n with
insurance
provider
10. Summarize the documentation required for your action plans contained in
your response to Q.11
(2 marks)
The action plan is in place to ensure that a proper risk assessment system is
established within the organization which would be able to proactively access
and address risks which are most likely to occur by setting out roles and
involvements of various stakeholders proactively.
11. Describe the methodology you will use to evaluate the success of the action
plans contained in your response to Q.11
The methodology used would be qualitative risk assessment
12. Provide details of insurance you would consider necessary for your business
including companies that provide it. (5 marks)
The insurance would by business indemnity insurance. The role of the insurance
would be to provide protection to the organization in case of any kind of
negligence which is done by its employee. The insurance would compensate the

parties who have suffered from the negligence. The insurance would help to
mitigate various risks which includes food safety, illness or injuries caused to the
owners or the customers.