Comprehensive Risk Management Report: MacVille Cafe Expansion Plan

This report provides a comprehensive overview of risk management strategies for MacVille Proprietary Limited, an Australian café company planning to expand its business within Queensland by acquiring Hurley’s Café in Toowoomba. The report outlines the company's risk management framework, aligning with AS/NZS ISO 31000:2009, and includes a PEST analysis covering political, social, economic, and technological factors impacting the business. A SWOT analysis identifies strengths, weaknesses, opportunities, and threats, while risk matrices are used to evaluate different kinds of risks. The report also emphasizes the importance of identifying risks through monthly reports, policies, and processes, referencing Harley’s Café external audit report and MacVille Private Limited’s current policies. The document concludes by addressing risks related to cash handling and the absence of proper developmental plans, highlighting the need for effective risk mitigation strategies. Desklib offers similar solved assignments and past papers for students.

RISK MANAGEMENT
NAME OF THE STUDENT:
NAME OF THE UNIVERSITY:

INTRODUCTION
The documents of MacVille Proprietary Limited would reveal that the café
company is based in Queensland, Australia.
The documentation of the firm would show that the coffee restaurant is planning
to expand and looking forward to expand its business within Queensland.
The management of the MacVille is looking forward to take over and rebrand
the Hurley’s Café in Toowoomba.
It can be inferred from this acquisition of the Hurley’s Café by the MacVille that
the balance sheet of the latter would these acquisitions as a part of its assets.
The café has been operating successfully in Queensland which infers it follows
the laws laid down by the Government of Australia and Government of
Queensland.
It can be inferred from the present state of the company that it complies with the
laws like licensing laid down by the Food Authority of Australia
(foodauthority.nsw.gov.au, 2018).

RISK MANAGEMENT FRAMEWORK
 The risk management framework of the MacVille Café shows that the apex
management of the company lays great emphasis on management and
mitigation of risk, if total prevention is not feasible.
 The risk management framework of the firm was in line with the risk
management framework laid down by AS/NZS ISO 31000:2009.
 The AS/NZS ISO 31000:2009 provides generic guidelines and principles
for the companies to follow while operating.
 However, the principles and guide lines of AS/NZS ISO 31000:2009 are not
legally binding on the companies.

PEST ANALYSIS
 Political- Australia has strict laws regarding the utilization of water. This
implies the excessive amount of water being treated by the organization.
The Federal Government of Australia has ensured the implementation of
stricter rules to utilize water in a sustainable way (Bromiley et al. 2015).
 Social- The changing preferences and the choices of the customers of the
company have been mainly because of the health concerns. Health concerns
has now transformed into one of the most key aspects that determines the
level of success and the sustainability of the organization.

PEST ANALYSIS
 Economical- The ongoing global recession is the most important external
economical drivers of the Toowooamba Cafe. The following factor has the
capability to reduce the profit earning of the store.
 Technological- The broadband network of the federal government has been
rolling out at the Toowomba. This allows the business to be effective and
efficient in terms of video conferencing and teleconferencing. As said by,
Brustbauer (2016) the utilization of the technology of the brand of the
following café can help to monitor the communication much more easily
and efficiently.

SWOT ANALYSIS
STRENGTH WEAKNESSESS
 Easy Accessibility
 Development of New Food
 Distributional problems
 False registers
 Absence of injury policies
 Absence of other kind of policies
OPPORTUNITIES THREATS
 Opening new branches
 Government Aid and helps
 Presence of able competitors
 Enquiry from large MNC’s

ASSESSMENT OF RISKS
Risks regarding the handling of cash can happen while the
management fails to control the employees and also the
management
The absence of proper developmental plans by the
management leads to the absence of proper focus of the
organization

RISK MATRICES
The risk matrices are one of the most effective tools to evaluate
the different kinds of risk.
The first task of the organization will involve a very lower
level of medium services and probability.
The risks that are related to the written policy of the
organization has high severity area and low probability.

IDENTIFICATION OF THE RISKS
According to, Bessis (2015) the consequences, priority and the
likelihood of the reports can be easily identified from the
different monthly reports, policies and processes.
This includes the likes of Harley’s Café external audit report
and the current policies and practices of MacVille Private
Limited.

REFERENCES
Bessis, J., 2015. Risk management in banking. John Wiley & Sons.
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
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Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal, 34(1), pp.70-85.
Chance, D.M. and Brooks, R., 2015. Introduction to derivatives and risk management. Cengage
Learning.
Farrell, M. and Gallagher, R., 2015. The valuation implications of enterprise risk management
maturity. Journal of Risk and Insurance, 82(3), pp.625-657.
Foodauthority.nsw.gov.au. (2018). Starting a food business. [online] Available at:
http://www.foodauthority.nsw.gov.au/ip/starting-a-food-business [Accessed 7 Jul. 2018].
Glendon, A.I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc Press.
Grace, M.F., Leverty, J.T., Phillips, R.D. and Shimpi, P., 2015. The value of investing in
enterprise risk management. Journal of Risk and Insurance, 82(2), pp.289-316.
Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.