Detailed Risk Management Policy Report: MacVille Expansion Project

This report analyzes the risk management policy for MacVille, focusing on its expansion plans, particularly the Toowoomba store. The assessment covers three key areas: banking risk, manager's travel risk, and by-law compliance risk. The report details the likelihood and consequences of each risk, categorizing them as moderate to extreme. The analysis includes a PEST analysis to understand the external factors influencing the risks. The report presents a risk management policy with specific actions for each risk, such as changing banks, installing safes, and implementing water-saving devices. The assessment also evaluates the implementation of the risk management action plan, assessing the outcomes and effectiveness of the strategies employed. The report includes stakeholder feedback and a review of the initial risk assessments and the implemented plans, providing a comprehensive overview of MacVille's risk management approach.

MacVille Risk Management Policy
1. Likelihood of Risks
a. Banking risk.
The banking risks at Hurley’s café stemmed from the poor cash management at the
café. The staff did not deposit cash into the bank and left immense amount of cash in the safe.
There has been incidences of cash thefts. However, it the risk was termed as moderate.
b. Manager’s travel risk:
The road leading to the Hurley’s café was accident prone due to heavy traffic.
Explain Physical injury and degree of risk involved:
The café involved physical risks since the furniture pieces like chairs and tables were
not maintained safely. The risk involved was moderate to high depending on the severity of
accidents.
c. By-law Compliance risk.
The staff of the Hurley’s café did not maintain proper codes of operations which
would attract reputation loss or brand value loss. The degree of loss was severe.
2. Consequence of Risks
a. Banking risk.
The management of the Hurley’s café did not deposit its cash in the bank which
attracted banking risks. There had been theft of cash due to this slack cash
management.

b. Manager’s travel risk
The road leading to the Hurley’s café was prone to accident. The level of risk was
very high.
By-law Compliance risk.
The non-compliance to environmental laws and wastage of water would attract
government actions and fines. This would lead to consequence like lowering goodwill and
business loss.

3. Priorities.
a. Banking risk. Theft of cash left on premises – moderate #3.
b. Manager’s travel risk. Physical injury – extreme #1.
c. By-law Compliance risk. Reputation/brand loss and fines – high #2.
Consequence
Likelihood
Insignificant
Minor
Moderate
Major
Catastrophic
Almost certain
Likely Water
Moderate Banking
Unlikely Manager
Rare
d. Risk Management Policy
For Banking risk – theft of cash left on premises.

i. Change banks to a closer location
ii. Install a safe.
iii. Take out insurance for cash on premises.

For Manager’s travel risk – physical injury.
i. Allow for overnight stay in Brisbane.
ii. Allow manager to fly instead of drive.
iii. Finish the managers meeting early.
iv. Allow the Toowoomba to use video conferencing.

For Law Compliance

i. Install a water tank for store use and change to native plants.
ii. Introduce water saving devices – dual flush toilet, 5-6 star rated
(WELS) dishwasher.
iii. Change work practices – wash fruit and vegetables in still water, only
run dishwasher when full, select economy cycle if only a light wash
required.

iv. Apply to the council for time to ‘make good’ as the new owners.
v.