Risk Assessment and Management Plan: Macville Pty Ltd Company Report

This report presents a comprehensive risk assessment and management plan for Macville Pty Ltd, starting with an overview of the company's risk management policies and elements. It details the identification of the scope of risk management, critical success factors, goals, objectives, and stakeholders. The report includes PEST and SWOT analyses to evaluate political, economic, social, and technological factors, as well as strengths, weaknesses, opportunities, and threats. Research methods used for the analyses are described, along with a final analysis of the business. Part 2 focuses on assessing the likelihood and consequences of risks, prioritizing them, and exploring options for treatment. The risk management plan is presented, detailing the evaluation of risk factors and mitigation strategies.

Running head: MANAGE RISK
Manage Risk
Name of the Student:
Name of the University:
Author note:

1MANAGE RISK
Table of Contents
Risk Review.............................................................................................................................2
Part 1........................................................................................................................................2
i) Identification of the scope of risk management.............................................................2
ii) Identification of critical success factors, goals and objectives......................................3
iii) Stakeholders..............................................................................................................4
iv) PEST and SWOT Analysis........................................................................................5
v) Research...................................................................................................................6
vi) Completion of the analysis.........................................................................................7
Risk analysis and Management Plan.......................................................................................8
Part 2........................................................................................................................................8
i) Assessing the likelihood of the risk occurring................................................................8
ii) Assessing the consequences of the risk occurring.......................................................8
iii) Prioritizing the risks....................................................................................................9
iv) Options for treating the risks....................................................................................10
Evaluation of Risk Management Plan....................................................................................12
Part 3......................................................................................................................................12
i) Plan.............................................................................................................................12
ii) Implementation............................................................................................................13
iii) Outcomes................................................................................................................13
iv) Evaluation................................................................................................................14
References.............................................................................................................................16

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Risk Review
Part 1
a) Macville Pty Ltd company’s risk management policies involve various types of
elements which help them in facilitating effective as well as efficient operation.
The several elements of the risk management includes various procedures
and policies, reviewing the risk management, budgeting and business
planning, external audits and monthly report for getting a clear view of the
company’s current position.
i) Identification of the scope of risk management
Being the risk manager of Macville Pty Ltd, there are various scopes for the
assessment of the risks. Various policies as well as procedures can be implemented
regarding the risk assessment. In addition to that, more strategies for internal control
are possible, which can be done by proper application of effective as well as
appropriate risk management strategies and skills. There is a huge scope for
strategic assessment in order to manage the risky issues of the company. It is
possible to evaluate and identify the areas where risk may occur. Moreover, updating
and reviewing the risk management strategies on a regular basis will help in
identifying the current issues. Implementation of effective strategies is possible only
when the issues are identified in an appropriate manner.
As the risk manager, it is very important to identify the risk management
areas, which are incorrectly addressed. Therefore, the manager can provide the
director with effective advice in order to take appropriate actions. The manager

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needs to conduct an annual review of the company, in order to provide the directors
with the report regarding the current issues, along with recommendations. Thus, the
manager can undertake several strategies of risk management such as, identifying
the risk, quantitative as well as qualitative analysis, planning the risk management as
well as risk responses and lastly monitoring the risks (Arena, Arnaboldi and Azzone
2012).
ii) Identification of critical success factors, goals and objectives
Goals and Objectives: The objectives and goals of a risk manager in this
procedure of risk assessment are to identify the efficiency of the present procedures
and policies. If there are any issues with the risk management strategies, the
manager should advice the board members to resolve those.
Critical success factors: The managers are highly involved in identifying of
loopholes in the current procedures of risk management. The risk management’s
application requires five various types of activities such as, proper support from top
level management, various cultural imperatives, involving everyone in business
structure, measurements and lastly integral part of entire management structure as
well as processes. Furthermore, there are various success factors which are:
support and commitment from top level management, effectiveness in the
communication level among higher authority, staffs as well as customers, good
organizational culture by facilitating cooperation as well as collaboration, effective
and efficient organizational culture by facilitating good information flow, good
utilization of information technology and efficient training among workers for
implementation of effective strategies of risk management (Beasley, Clune and
Hermanson 2012).

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iii) Stakeholders
Internal stakeholders: Suppliers, employees and customers.
External stakeholders: Government.
Stakeholders Internal/External Role in process Stake in process
Employees Internal Finance, risk management committee and the
audit committee are highly responsible for
reviewing all the actions against the risk
management. The CEO team as well as
senior management is responsible for
managing risks and providing various advices
regarding its control. Directors and staffs
identify, monitor and take several actions for
managing the risks effectively. Board of
Directors applies proper management
strategies within the organization.
Top management
as well as internal
employees has
higher stake level
in this procedure of
risk management.
Customer Internal Loyal customers can participate in this
process of risk assessment as they care for
the company’s well being. They can provide
advice or feedback regarding the
management of risks. Moreover, they can
provide the company with a clear idea
regarding their expectations, demands and
desires. This will benefit the company to a
huge extent.
Fewer stake in the
whole procedure of
risk assessment.
Suppliers Internal Even the suppliers can participate in the risk Medium level of

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assessment procedures by providing advice to
the management. By this, both the
organization as well as suppliers will get
benefitted.
stake in the risk
managing
procedure.
Government External The government takes effective part in this
procedure. There are various risks of any
organization. Therefore, government helps by
implementing different laws, work safety
policies and others.
High stake level for
the risk
management’s
strategies.
iv) PEST and SWOT Analysis
PEST Analysis:
Political factors Strict laws against the excessive water usage. Therefore, excessive
usage can impose huge amount of fines upon them.
Economical factors Global recession can be considered as the major economical factor.
This factor reduces the company’s profitability. Economic
environment, local rates of currency exchange, taxation level in
various markets may create a huge impact on the organization.
Social factors Customer preferences change continuously. It is to be taken care.
The organization can implement different strategies in order to
understand the behavior and attitude of the consumers.
Technological factors The company can use various technologies for improving their
services. Consumer loves fast services; therefore implementation of
new and innovative technologies can benefit the company to a huge
extent.

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SWOT Analysis:
Strengths The local customers have effective accessibility. Various offers have
been introduced for luring the customers.
Weaknesses Lack of well written policies as well as procedures, most of them are
settled verbally, no workplace safety measures, logistics and
marketing, communications, infrastructure and equipment.
Opportunities More opportunities of opening new branches, new business
opportunities. The company can also implement innovative ideas and
arrange for outdoor sitting, which will attract the customers.
Threats Water usage, lack of innovative technology and logistic systems,
workplace safety issues and other financial issues.
v) Research
For conducting the SWOT and PEST analysis, number of methods is used.
The framework of risk management helped in facilitating efficient as well as effective
operations. In addition to this, it also assisted in quickly generating the responses of
various types of strategic, operational, financial and commercial risks. The different
types are the organization’s monthly report, review report of business planning as
well as budgeting, organizational procedures and policies, risk management as well
as external audits’ review. PEST and SWOT analysis is conducted by using several
secondary documents of the organization, in order to provide a clear scenario.
Moreover, strategic positioning of the company can be analyzed and identified by
conducting surveys of the employees and regular customers, which will provide
useful insights (Bhimani 2013).

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vi) Completion of the analysis
According to the scenario, Hurley’s Café is a family owned business, where
the maximum amount of staffs is the family members. It is evident from this fact that
there can be huge lack of professionalism in the whole business. The policies and
procedures of the company are verbally set. The employees are also instructed
verbally, which in turn, gives an idea that there is no strict workplace rules and
safety. In addition to this, the company is also facing issues related to water
utilization. There are financial issues as the register is maintained by the family
members. Moreover, the interior and exterior decorations are not that attractive, with
unstable and broken furniture. The store’s information is not secured as there is only
one computer without any password. There is no competitive advantage, as there
are issues of internal control, financial control and lack of professionalism,
concentration and monitoring. As a result, the company doesn’t have any
competitive advantage (Bromiley et al. 2015).

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Risk analysis and Management Plan
Part 2
a)
i) Assessing the likelihood of the risk occurring
Risks Occurring of the risks
Risks of cash handling The acquisition of the Hurley’s Café by Macville helped in
reducing the financial risks to some extent, as the company
is much concerned about cash handling and other financial
issues.
Risks of written policies The Macville company has a well written organizational
policy and procedure, therefore, after the acquisition, the risk
factors have lessened.
Risks of handling the
business with utmost
professionalism
Macville is very professional and handles their organizational
strategies with utmost professionalism. Therefore, after
acquisition the café will get benefitted in terms of
professionalism also, as the risk factors will reduce.
Risks of promotional
strategies
The risks related to the promotional strategies are relatively
lower, as it is possible to gain desired outcomes
immediately. Moreover, implementing new and innovative
strategies immediately is not possible.
ii) Assessing the consequences of the risk occurring
The risks related to handling of cash can occur at the time, when
management will have lesser amount of organizational control as well as on the staff

9MANAGE RISK
members. At the same time, the risks of written policies will occur, when the
organizational management lacks some important skills and qualities. This may
include lack of focus and concentration regarding the organizational development.
Moreover, if the organizational manager does not have any leadership qualities or
strategies over the employees, it may prove disadvantageous for the company.
Risks of professionalism may occur when the management of the company will fail to
implement effective strategies for the betterment of the organization. Hurley’s café at
present, does not have effective and efficient strategies, therefore, after acquisition
of the company, there can be huge opportunities of getting benefitted. However,
there can be risk factors too, as promotional strategies will not become effective
immediately (De Zwaan, Stewart and Subramaniam 2013).
iii) Prioritizing the risks
The risk matrices will assist in prioritizing the risks that are identified, as it is
considered to be an effective tool for the evaluation of risk factors. The initial risk of
handling the cash is having a low possibility level and a medium area of severity.
The following risks regarding well written policies have comparatively lower level
probability and higher area of severity. The risks of professionalism, on the other
hand, have medium probability level as well as medium severity. Lastly, the risks of
promotional strategies’ implementation have higher probability as well as higher area
of severity (Finch 2014). The calculation table is as following:
NA stands for not acceptable,
ALARP stands for as low as reasonably practicable,
A stands for acceptable.

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NA NA NA NA NA
ALARP ALARP ALARP NA NA
A ALARP ALARP ALARP NA
A A ALARP ALARP ALARP
A A A A A
iv) Options for treating the risks
Risks Risks Treatment processes
Risks regarding the cash handling More employees of commerce background must be hired.
SEVERITY
EXTENSIVE
MAJOR
MEDIUM
MINOR
NO IMPACT
PROBABILITY
HIGHLY
UNLIKELY
UNLIKELY POSSIBILE LIKELY VERY LIKELY

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All the employees must not have the accessibility to the
company’s cash.
Proper monitoring must be done by maintaining a cash
register.
Risks of written policies Effective policies must be implemented.
Guiding the employees according to the company’s policies
and procedures.
Risks regarding handling the
business with professionalism
A professional can be hired in such cases, in order to
implement more effective strategies and maintain
professionalism.
Providing the employees with regular trainings and
grooming for working more professionally.
Risks regarding implementation of
promotional strategies
Selection of effective media, like digital media, so that it can
attract huge amount of consumers’ attention.
Providing the customers with various types of coupons,
discounts and promotional offers, for attracting the
consumers to the company.
b) Risk Management Plan
The consequences, likelihood and the priority of risks could be identified from
various monthly reports, processes and policies, risk management reports, external
audit reports of Hurley’s café and current policies and practices of Macville Pty Ltd.
The Hurley’s café does not have effective number of employees who are
experienced enough. Moreover, all the employees have the accessibility to the café’s
cash (Kern et al. 2012). The treatment plan is feasible as the organization is not