MNG01222: Tower Cafe Risk Analysis Report, Southern Cross University

This report presents a comprehensive risk analysis of Tower Cafe, focusing on potential hazards and mitigation strategies within the hospitality setting. The analysis employs a Risk Ranking System (RRS) to assess the likelihood and impact of various risks, including fire, equipment breakdown, food poisoning, customer injury, and theft. Specific treatments, such as insurance coverage and preventative measures, are recommended for each identified risk. The report concludes by summarizing the nine most pressing risks affecting Tower Cafe and emphasizes the importance of addressing these risks for operational continuity and sustained competitive advantage. References to relevant academic literature are included to support the analysis.

Venue Risk Analysis 1
VENUE RISK ANALYSIS
By (Student’s Name)
Professor’s Name
College
Course
Date

Venue Risk Analysis 2
VENUE RISK ANALYSIS
Introduction
Café which cook on-site like Tower’s Café remain increasingly vulnerable or susceptible
to fires especially from oil, electrical sources and grease. This venue risk analysis will
demonstration of the understanding of how to practically apply the risk management process by
conducting a risk assessment of the of Tower Café venue.
A Risk Ranking System (RRS):
This part describes “how” risks shall be assessed. It presents a description and
justification of RRS that is to be used in assessment. The RSS that will be used is to rank the risk
based on probability/likelihood and impact. This means that risk will be scored with 5 showing
severe risk and 1 showing the least severe risks. In terms of likelihood or probability, will have a
scale of 1 to three with 1 representing “rare”; 2 representing “unlikely” and 3 representing
“possible. “Possible” shows reasonable likelihood that it might arise over a five-year period;
“unlikely” shows plausible, could occur over a five ten year period and “rare” shows very
unlikely but not possible, unlikely over a ten period. Catastrophic will imply that Tower Café’s
most objectives might not be achieved, or several severely affected. Major shows that most
objectives threatened, or one severely affected. Moderate means some of Tower Café objectives
affected, considerable effort to rectify. Minor shows the risk is easily remedied, with some effort,
objectives can be achieved. Negligible risk impact shows a very small risk impact, rectified by
normal processes.
In terms of potential impact, will have a score of 1 to 5 with five representing the most
severity of the impact. 1 will denote catastrophic, 4 denote major; 3 denote moderate; 2 denotes
minor and 1 denotes negligible. This risk ranking system (RSS) is effective in this case since it

Venue Risk Analysis 3
clearly helps understand the magnitude of the risk and hence will be able to prioritize the most
pressing risk to be focused on first while leaving the minor ones to be tackled later (Edwards,
Serra and Edwards 2019).
Risk Analysis
1. Risk to fire: The fire risk damage relies on the kind of cooking undertaken, the used
equipment, and the premises’ construction. For instance, a café which is serving prepared
sandwiches alongside drinks has increasingly much lower risks than chips and fish shop with big
deep fryers , exhausts and grills which attract grease. The probability of fire in Tower Café is
possible (3) while the impact is catastrophic (5) and treatment is having fire cover insurance, and
fire extinguisher and overall risks is (probability* impact)= 15.
2. Risk of breakdown of equipment and spoilt food: Tower Café is dependent on its
cooking and refrigeration equipment used in trading. Tower owners must be prepared for
likelihood of these machines failing unexpectedly. The cover for fire insurance for Tower Café
contents and stock against such external perils as fire or weather is necessary. Nonetheless,
machinery and equipment breakdown are required to cover replacement of any broken down
equipment alongside parts whenever the unexpectedly fail (McShane, Gregory and Wilson
2016). The refrigerator equipment failure can further put perishable stock at high risk, and
providentially, breakdown of equipment cover usually further cover costs of spoilt food and
drinks replacement because of breakdown. The likelihood is possible (2) and the impact is
catastrophic (5) and treatment is equipment cover alongside less stock and the overall risk is 10.
3. Risk of food poisoning: If a customer suffers any food poisoning from Tower Café
meals provided, the owners could be become liable to provide compensation for any injuries
suffered. If a customer-or worse, many customers-sues Tower Café following contracting about

Venue Risk Analysis 4
poisoning, the business might have to pay them damages for pain alongside suffering, medical
expenses, lost income from being absent from work as well as legal fees. The cost can quickly
shoot up if many customers take action against them and such costs can be hard-hitting for
Tower Café, which operate with tight cash-flow (Kristina and Wijaya 2017). The treatment is
product liability insurance since it will cover Tower Café’s business if it is sued by third party as
a consequent of injury or disease triggered by drink or food. Tower Café can still be liable if it is
providing beverages and food produced elsewhere. The likelihood is rare (1) and the impact is
negligible (1) while the treatment is public and product liability while the overall risk is 1.
4. Risk to customer injury: Illness, injuries and property damage triggered by
customers’ tipping, slipping or falling remain common in foodservice industry and might
culminate in highly significant claims. Most common claims of this type encountered in cafes
entail injuries from slips on split drinks and foods, tripping on fixtures and furniture and falling
down stairs. It is further common for customers to fall from such defective furniture as broken
chairs (Chen and Fiscus 2018). The treatment is public liability cover which covers legal costs,
damages, medical expenses, expenses incurred by first aid rendering to others and any
compensation for damaged or destroyed property of the customer. The likelihood is rare (1) and
the impact is minor (2) and the treatment is public and product liability with overall risk of 2.
5. Risk of fraud, burglary and theft: The Café premises might be burgled while they
are closed or held up by armed robbers when trading. Unfortunately, the employees and
customers might also steal from Tower Café. Both money and expensive stock like high-quality
whiskies and wines might be lucrative. The treatment is taking cover for theft or burglary which
covers stock losses and contents from theft alongside armed hold ups, but this does not usually

Venue Risk Analysis 5
include cash stolen or lost items due to fraud by employees. The impact is minor (1) and the
likelihood is rare (1) and the treatment public and product liability and overall risk is 1.
Other risks include risk to cuts and burns, risk of unfocused employees, risk of natural
disasters and security risk due to broken doors and locks.
A venue risk analysis (VRA) form. This is the tool used to measure the risk.
Risk Consequence Risk
category
Likelihood Impact/
consequence
Risk
Rank
Risk
Treatment
Owner
1. Risk to
fire
Death, property
damage and
injuries
Internal Possible Catastrophic 15 Fire cover
insurance
and fire
extinguisher
Owner of
Tower Café
2. Risk of
breakdown
of equipment
and spoilt
food
Put perishable
stock at high risk
and disruption to
operations
Internal Possible Catastrophic 10 Equipment
cover and
less stock
Owner of
Tower Café
3. Risk of
food
poisoning
Reputation
suffers, legal
actions and loss of
money for
compensating
customers
Internal Rare Minor 1 Product
liability
cover
Owner of
Tower Café
4. Risk to
customer
injury
Reputation
suffers, legal
actions and loss of
money for
Internal Rare Minor 2 Public &
product
liability
Owner of
Tower Café

Venue Risk Analysis 6
compensating
customers
5. Risk of
fraud,
burglary and
theft:
Loss of cash,
stock and money
External/
internal
Unlikely Major 8 Taking cover
for theft or
burglary
Owner of
Tower Café
6. Risk to
cuts and
burns
Disruptions of
operations and
absentee of
affected
employees
Internal Unlikely Major 8 Product
liability
cover
Owner of
Tower Café
7. Risk of
unfocused
employees
Disrupting
options due to no-
show employees
Internal Unlikely Major 8 Owner of
Tower Café
8. Risk of
natural
disasters
Death, injury and
destruction of
property
External Rare Minor 1 Owner of
Tower Café
9. Risk due
to broken
doors and
locks
Injury to
employees and
customers
Internal Unlikely Major 8 Equipment
cover and
less stock
Owner of
Tower Café
Conclusion

Venue Risk Analysis 7
The discussion has analyzed and identified the nine-most pressing risks affecting the
Tower Café. This has included specific risk that will place Tower Café at more risk and must be
addressed for continuity of operations and create sustained competitive advantage.
References
Chen, H.S. and Fiscus, J., 2018. The inhospitable vulnerability: A need for cybersecurity risk
assessment in the hospitality industry. Journal of Hospitality and Tourism Technology, 9(2),
pp.223-234.
Edwards, P.J., Serra, P.V. and Edwards, M., 2019. Managing Project Risks. John Wiley & Sons.
Kristina, S. and Wijaya, B.M., 2017, December. Risk management for food and beverage
industry using Australia/New Zealand 4360 Standard. In IOP Conference Series: Materials
Science and Engineering (Vol. 277, No. 1, p. 012025). IOP Publishing.
McShane, I., Gregory, M. and Wilson, C., 2016. Practicing safe public wi-fi: Assessing and
managing data-security risks. Available at SSRN 2895216.