Comprehensive Risk Management Report: Macville's Policy Review

This report provides a comprehensive analysis of Macville's risk management plan, focusing on banking, manager's travel, and by-law compliance risks. It begins with a risk assessment, outlining the initial risks and the implemented plans to mitigate them, including insurance for cash, opening a bank account, and implementing water-saving devices. The implementation section details the actions taken, such as securing insurance, opening a bank account, and installing water-saving devices. The report evaluates the outcomes, stating the current risk levels and reasons for changes, like reduced risk in banking due to insurance and in compliance due to the new devices. Finally, the evaluation section analyzes the effectiveness of the risk management plan, highlighting areas for improvement, such as the need for teleconferencing to reduce travel risk and further compliance with water conservation measures.

1. Risk Plan for Macville
a. Banking risk
The slack management of cash management led to theft of cash
i. Insurance on ‘cash on premises’.
The Hurley’s café should gain insurance against cash theft on premises.
ii. Open an account with closest bank.
The management of the café should open account with the closet bank.
iii. Policy and procedure requirement to bank daily.
The management of the café should establish policy and procedure to bank the closing
cash in daily basis.
b. Manager’s travel risk – physical injury – initially rated as extreme.
The roads leading to the Hurley’s café was prone to accidents due to traffic
congestion and very heavy traffic like trucks.
i. Management meetings to finish 3:00pm:
The management should finish the meeting within 3 pm to enable managers
depart safely.

ii. Install teleconferencing:
The management of Hurley’s café should install teleconferencing system to enable the
employees hold meetings with the other staff.
iii. Management training shift to morning half day sessions.
The management training shifts should be shifted to half day sessions to
enable manager’s return early.
c. By-law Compliance risk – reputation/brand loss and fines – initially rated as high:
The management of Hurley’s café should comply with the laws pertaining to
sustainability and water use.
i. Apply for time to ‘make good’.
The firm should adopt with systems of operations.
ii. Policy and procedures to change work practices.
The management of Hurley’s café’s should make measures to change work practices.
iii. Install water saving devices such as native plants, tank, dual flush toilet
systems, 5-6 star (WELS) dishwasher.

2. Implementation should include:
a. Banking risk – theft of cash left on premises.
i. The financial controller had taken out $5,000 the insurance cover on cash
held on premises overnight from the opening week as planned.
ii. The company bank account was opened about 4 weeks after opening at the
bank two shops down the street.
iii. The training on daily banking has been successfully completed.
b. Manager’s travel risk – physical injury – initially rated as extreme.
i. The weekly management meetings are finishing close to 3:00pm.
ii. The assistant management training has been shifted to the mornings
allowing the manager to leave before 1:00PM.
c. By-law Compliance risk – reputation/brand loss and fines – initially rated as high.
i. An external audit was completed and presented to the board 6 months after
settlement.
ii. The board and CEO included a new policy regarding compliance with the
Toowoomba by-law on water conservation.

iii. The plants have been changed to natives.
iv. The dual flush toilets are ordered and in stock.
v. The 5 star rated (WELS) dishwasher was installed.
vi. The application to make-good by Goldsmith Partners on behalf of
MacVille, was accepted by the Toowoomba City Council.
vii. There has been one internal audit arranged by the store.
viii. A water tank had been built in to the courtyard.
There is a weekly water usage monitor in the staff room.
3. Outcomes should include statement of current risk and reasons.
a. Banking risk – theft of cash left on premises – initially rated as moderate now low
due to insignificant consequence (insurance cover) and ‘unlikely’ likelihood
because cash rarely kept on the premises.
b. Manager’s travel risk – physical injury – initially rated as extreme still high.
Likelihood reduced to rare with the change in time travelled.
c. By-law Compliance risk – reputation/brand loss and fines – initially rated as high
now moderate due to unlikely likelihood with the installed water saving devices
and processes.
4. Evaluation.
a. Banking risk – theft of cash left on premises – initially rated as moderate reduced
to low. Could be made more effective by 100% compliance with the daily banking
directive and removal of expensive insurance on overnight cash on premises.

b. Manager’s travel risk – physical injury - initially rated as extreme and reduced to
high because of the continued travel. Introduction of tele-conferencing would
reduce this risk to nil. CEO should provide an excusal letter to ensure the manager
leaves at the appropriate time.
c. By-law Compliance risk – reputation/brand loss and fines - initially rated as high
and reduced to moderate but could be reduced again to low by having Brisbane
plumbers install the tank and the dual – flush toilets in the next 14 days. Monitor
should be constantly updated to keep staff motivated and a procedure should be
written. More internal audits are required.