Manage Risk

Submission details

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

For this task you are required to determine the risk context associated with establishing a new business outlet within the existing business structure. You will be required to review internal and external environment factors, obtain support for activities and liaise with relevant stakeholders to identify risks.

Assessment description

For the MacVille Pty Ltd simulated business scenario provided, you are required to assume the role of Brisbane store Assistant Manager, Ash, who has just been promoted to be Manager of a new store. Ash has been tasked with conducting a risk management analysis of this new venture.

There are three stages to this project: (1) review, (2) analyse and plan, and (3) monitor. This project is divided into three assessment tasks as follows:

Assessment Task 1

Risk review report, email to stakeholders and meeting with CEO

Assessment Task 2

Risk analysis report, action plan and risk treatment

Assessment Task 3

Monitoring report

For this assessment task, you will need to review the simulated business’s risk management processes and determine the scope and objectives, taking into account stakeholders and both internal and external environmental factors affecting the organisation. Once you have gathered this information, you are to identify risks and write a draft report to the CEO. You will meet with the CEO to discuss your report, seek support for your findings, and approval to communicate risk management processes to relevant stakeholders for their feedback and participation.

Report on risks

Specifications

You must provide:

A risk review report, including a completed table of stakeholders

Risk review Report

The (FARM) finance, Audit and Risk management committee is mandated to report at every inter controls board meetings. The committee pays a lot of attention to the risk management of the company. The CEO of the company is required to brief the directors from time to time on the development of policies and procedures to facilitate efficient and effective operations, the strategies laid down for risk management and implementation. Also, the FARM committee is supposed to oversee both the internal and external audit. Therefore, the committee is well placed to provide advice to the board of management om how the control system is effective, including the strategy the organization has laid down for the management of risks.

Email communication to stakeholders

Dear all stakeholders,

I am asking my stakeholders for their feedback regarding the current status of risk management and what else the team needs to consider when addressing the risks associated with Mac Ville Café opening a store in QLD.

Script to all stakeholders:

1. Greet all

2. State the purpose of the communication

3. Explain current risk practices

4. Ask for input and feedback to modify or alter current policies and procedures

5. Thank them

HR management risk:

· There is no written policies and procedure manuals and limited training of staff. This can lead to inappropriate actions and errors too.

· The system of authorization is implicitly defined. It can lead to fraud.

· There are no sales adequate sales promotion techniques.

Financial operation risk:

· There are no separation duties since this can lead to fraud.

· Money was kept in the premises overnight without since banking was done every day. It could easily lead to theft since the assets were not properly protected.

· Most of the cash that was taken by the family was not recorded and this could easily lead to misappropriation of funds.

WHS risk:

· Manager could drive two hours to and from the meetings and this could easily lead to physical injury in case of an accident.

· There were unstable and broken chairs that were still being used. Customers can be easily get injured if he or she is unaware is some of this seats are broken.

· Most of the carpets that were worn out were taped over and this can lead to reputation loss.

· There was no established process that could deal with causalities happening in the organization. Staffs are entitled to quick and organized response to injuries.

Supply chain risk:

· There was some difficult in delivering fresh pastry from the company’s central bakery plant in the required time. This can lead to brand, service and quality loss too.

Local governance and compliance risk:

· Water was not properly used. The company could be fined and this can lead to reputation loss.

· There were some incomplete employment records. The company could be sued by the union and get penalized by the government. The reputation and the brand of the organization will be at danger.

· There was no guaranteed confidentiality of records. The law of privacy was breached.

It is my pleasure to inform you that our external audit will happen from 1st September to 19th December 2018. The audit of financial statements is controlled by external chartered accountants who provide feedback to the Board through the FARM committee.

Thank you all for your time and input into our company.

Regards

Thiago Costa Lessa

Summary notes from your meeting with the CEO.

· We discussed my findings, particularly my understanding to critical factors to leader to organization success and achievement of its goals.

· I explained the MacVille the process of risk management.

· I discussed how to communicate with stakeholder about the process of risk management in this scenario and how to invite them to be part of the discussions to identify if there are more risks associated with the scenario.

· Obtained the CEO’s support the still ongoing risk management activities.

· The broader asked for a monthly financial reporting.

· We agreed to conduct an external audit.

© 2015 Innovation and Business Industry Skills Council Ltd 1st edition version: 1

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