Risk Management Report

Risk Plan:
Banking risk – theft of cash left on premises:
Could be made more effective by 100% compliance with the daily banking directive
and removal of expensive insurance on overnight cash on premises.

Manager’s travel risk –physical injury:

CEO should provide an excusal letter to ensure the manager leaves at the
appropriate time.
By-law compliance risk –reputation/brand loss and fines. More internal audits are
required.
Loss of brand recognition risk – brand non-compliance of staff not wearing the
MacVille uniform, or altering MacVille processes and service expectations:

Implementation:

Banking risk – theft of cash left on premises:

 The financial controller had taken out $5,000 on insurance cover for cash held
on the premises overnight from the launch week as planned.
 The company bank account that was planned to be opened in the first week
was actually opened about four weeks after the café’s launch at the bank two
doors down the street.

Manager’s travel risk –physical injury:

● The teleconferencing system, planned for six months after launch, has not yet
been installed, due in part to the delay in the rollout of the federal government’s
National Broadband Network.
● The weekly management meetings are finishing close to 3.00pm as planned
but sometimes the manager has to stay on at the request of the head office
team.
● The assistant manager training has been shifted to the mornings, allowing the
manager to leave before 1.00 pm as planned.

By-law compliance risk –reputation/brand loss and fines:

 ● The plants have been changed to natives that require minimal water as
planned.
● The installation of dual-flush toilets were planned for completion six months
after settlement, and although the dual-flush toilets have been ordered and are
in stock, they cannot be installed due to the backlog of work by district
plumbers.
● The five-star rated (WELS) dishwasher was installed by the supplier within the
six-month timetables planned.
● 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.
● There is a weekly water-usage monitor in the staff room.

Loss of brand recognition risk – brand non-compliance of staff not wearing the
MacVille uniform, or altering MacVille processes and service expectations:
● All the original staff members are wearing the MacVille uniform. However, these
original employees are now responsible for directly supervising new
employees. The original staff members are not explaining the uniform
requirements to new employees and are not delivering any warnings for
uniform non-compliance.
● As a result, there has been an increase in uniform non-compliance.

Outcomes:
Banking risk – theft of cash left on premises – initially rated as could be made more
effective by 100% compliance with the daily banking directive and removal of
expensive insurance on overnight cash on premises.
 Now minor 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 CEO should provide an
excusal letter to ensure the manager leaves at the appropriate time. And now this
will become low. The consequence is minimal now and the likelihood is reduced to
rare with the change in travel time.
By-law Compliance risk – reputation/brand loss and fines – initially rated as the
plants have been changed to natives that require minimal water as planned now
minor due to unlikely likelihood with the installed water saving devices and
processes.
Loss of brand recognition risk – now high risk due to increased likelihood of new
staff not wearing the uniform and original staff not communicating the importance of
upholding the MacVille brand. The likelihood is ‘likely’ and the consequence is
moderate due to new staff who are not aware of the uniform policy.

Evaluation:
Banking risk – theft of cash left on premises:
 Could be made more effective by 100% compliance with the daily banking
directive and removal of expensive insurance on overnight cash on premises.
Manager’s travel risk – physical injury:
 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:
 By having Brisbane plumbers install the tank and the dual – flush toilets in the
next 14 days this will make the risk low.
 More internal audits are required.
Risk of decreased brand recognition:

 Could be reduced by another presentation on brand importance to new staff

and training of original staff in upholding MacVille systems and procedures.
 Risk Matrix

Moderate

Severe
Minor

Major
Minimal

Consequence

Likelihood

Almost certain

Likely Loss of
brand
recognitions
risk

Possible

Unlikely Banking
risk

Rare Managers
travel risk