BSBRSK501 TASK 3

BSBRSK501 Task 3

Risk Monitor Report for New Toowoomba store (the existing Hurley’s Café)

Plan to manage Risk:

● Banking risk – theft of cash left on premises (initially rated as medium risk):
○ insurance on ‘cash on premises’
○ open an account with closest bank
○ policy and procedure requirement to bank daily.
● Manager’s travel risk – physical injury (initially rated as extreme risk):
○ management meetings to finish 3.00 pm
○ install teleconferencing
○ management training shift to half-day morning sessions.
● By-law compliance risk – reputation/brand loss and fines (initially rated as high risk):
○ apply for time to ‘make good’
○ policy and procedures to change work practices
○ install water saving devices such as native plants, tank, dual flush toilet systems, 5–6
star rated (WELS) dishwasher.
● risk of decreased brand recognition– brand non-compliance (initially rated as high risk
threshold)
○ provide MacVille Employee Handbook to staff
○ hold a staff meeting prior to café launch to explain the importance of maintaining the
MacVille brand
○ develop a warnings system for instances of non-compliance.

Implementation Plan for Managing Risk:

● Banking risk – theft of cash left on premises (initially rated as medium risk):
○ The financial controller had taken out $5,000 the insurance cover on cash held
on premises overnight from the opening week as planned.
○ The company bank account was opened about four weeks after opening at the
bank two shops down the street.
○ The training on daily banking has been successfully completed.
● Manager’s travel risk – physical injury (initially rated as extreme risk):
○ The weekly management meetings are finishing close to 3:00 pm.
○ The assistant management training has been shifted to the mornings allowing
the manager to leave before 1:00 pm.
● By-law compliance risk – reputation/brand loss and fines (initially rated as high risk):
○ An external audit was completed and presented to the board six months after
settlement.

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○ The board and CEO included a new policy regarding compliance with the
Toowoomba by-law on water conservation.
○ The plants have been changed to natives.
○ The dual flush toilets are ordered and in stock.
○ The 5 star rated (WELS) dishwasher was installed.
○ The application to make-good by Goldsmith Partners on behalf of MacVille was
accepted by the Toowoomba City Council.
○ There has been one internal audit arranged by the store.
○ A water tank had been built in to the courtyard.
○ There is a weekly water usage monitor in the staff room.
● Risk of decreased brand recognition– brand non-compliance (initially rated as high risk
threshold):
○ Original Hurley’s staff members were provided with uniforms prior to MacVille
launch
● Warning system for uniform non-compliance is not being applied

Outcome of the Implementation of Risk Monitor Plan:

● Banking risk – theft of cash left on premises (initially rated as medium risk):

Now low risk due to insignificant consequence (insurance cover) and ‘unlikely’
likelihood because cash rarely kept on the premises.
● Manager’s travel risk – physical injury (initially rated as high risk):

Now considered potential high risk. Likelihood reduced to rare with the change in time
travelled.
● By-law compliance risk – reputation/brand loss and fines (initially rated as high risk):

Now moderate risk due to unlikely likelihood with the installed water saving devices
and processes.
● Risk of decreased brand recognition – brand non-compliance of staff not wearing the
MacVille uniform, or altering MacVille processes and service expectations (initially
rated as high risk threshold):
Now high risk due to increased likelihood of new hires not wearing the uniform and
original staff not communicating the importance of upholding the MacVille brand.

Evaluation of Risk Management Plan and Risk Assessment:

● Banking risk – theft of cash left on premises (initially rated as moderate):

○ Reduced to low risk; could be made more effective by 100% compliance with the
daily banking directive and removal of expensive insurance on overnight cash on
premises.

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● Manager’s travel risk – physical injury (initially rated as extreme):

○ Reduced to high risk because of the continued travel; introduction of

teleconferencing would reduce this risk to nil
○ CEO should provide an excusal letter to ensure the manager leaves at the
appropriate time.
● By-law compliance risk – reputation/brand loss and fines (initially rated as high):

○ Reduced to moderate risk but could be reduced again to low risk by having
Brisbane plumbers install the tank and the dual-flush toilets in the next 14 days
○ Monitor should be constantly updated to keep staff motivated and a procedure
should be written. More internal audits are required.
● Risk of decreased brand recognition – brand non-compliance of staff not wearing the
MacVille uniform, or altering MacVille processes and service expectations (initially
rated as high risk threshold):
○ Increased to high risk
○ could be reduced by another presentation on brand importance to new hires and
training of original staff in upholding MacVille systems and procedures.