BSBRSK501 Manage Risk

Assessment Task 1: Report

2a. Discuss in their report how effective Mac Ville’s Risk Management Framework is
in supporting the principles and processes of risk management set out in AS/NZS
ISO 31000:2009 Risk management – principles and guidelines, outlining the
purpose and key elements of the standard?
For example, they included discussion that the standard:
● provides guidance to enable public, private or community enterprises, groups
or individuals to manage risk, which can allow:
○ increased likelihood of achieving objectives
○ encourage proactive management
○ promote organisational awareness of risk, etc.
● views the analysis and evaluation of risk as two separate elements

● outlines seven elements in the risk management process:

1. Establish the context
2. Identify risks
3. Analyse risks
4. Evaluate risks
5. Treat risks
6. Monitor and review
7. Communicate and consult.
For example, identifying the effectiveness of the MacVille framework in supporting
the standard may include, but is not limited to:
● the MacVille framework recognises that risk management should be integral
to all organisational processes
● the steps in the procedure reflect the process set out by the standard
● MacVille’s framework could be improved by including more explicit
requirements for communication and consultation with stakeholders.
2b. In the report, identify and describe the scope – covering at least the following:
● Project – MacVille to expand their operations in Queensland and purchase
and rebrand an existing café in Toowoomba.
● Business unit – MacVille cafés Queensland.

● Risk in relation to business functions – human resources management,

financial operations, WHS, supply chain, local governance and compliance
issues, loss of brand recognition?
2c. In the report, identify and describe goals – should include some of the following:
● to appropriately manage the risks involved with the operation of the
Toowoomba store
● to give the new manager significant insights into the store’s operations

● to ensure there is a smooth transition to the MacVille systems

● to encourage the new manager to give ongoing support for risk management?
2d. Identify relevant internal and external stakeholders and their roles in the risk
management process?
For examples, see the Stakeholder Feedback Table that follows this Marking Guide
table. This list includes possible stakeholders, and is not exhaustive.
2e. Identify risks associated with the analysis using tools, such as PEST and SWOT
analyses?
For example:
● PEST analysis included the following, at a minimum:

○ Political – federal legislation concerning efficient water usage, local by-

law allowing cafés to expand their footpath dinning, or changes to the
standard
○ Economic – gross regional product growth of 8.9%, number of visitors
down 18%
○ Social – place for retirees, population growing
○ Technology – WiFi in café, an innovative frozen par-bake cooking
system, federal government’s National Broadband Network (NBN).
● SWOT analysis included the following, at a minimum:

○ Strengths – store on the corner of the two main streets of the city,
innovative and popular range of rice wraps.
○ Weaknesses – the lack of sales promotion techniques, fit-out in parts
looked old and unattractive
○ Opportunities – opportunities for opening more cafés in the surrounding
shopping centres, local by-law allowing cafés to expand their footpath
dining
○ Threats – international chain of coffee shops opening a store in the
Toowoomba CBD, legislation concerning efficient water usage.
2f. In report, research risk that applies to the scope of risk management required for
the scenario?
For example, included description of the source, primary/secondary data, of key
information gathered:
● site visit with James Mansfield – primary data: store operations (fit-out, cash
handling, promotions, employment, water usage)
● interview with Ron Langford – primary data: external environment (by-laws,
government legislation, economic, expansion options, competition, technology
plans)
● extract from MacVille NSW – secondary data: key problems (problems with
acquiring and re-branding existing stores)
● any online research, council pages, google earth, local social media pages,
etc., such as:
○ information from Toowoomba regional council website – secondary
data: economic indicators about the area (tourist numbers,
unemployment, population growth, regional growth).

2g. In the report, summarise the scenario risks?

The student should identify a number of risks, including, but not limited to, the
following examples:
● Human resources management risk:

○ no written policy and procedures manual and limited staff training –

could lead to errors and inappropriate actions
○ authorisation system not clearly defined – could lead to fraud
○ lack of sales promotion techniques – impacts of the stores financial
viability.
● Financial operations risk:

○ no separation of duties – could lead to fraud

○ the banking was not done every day and cash was kept on the premises
overnight without a safe – assets not protected could lead to theft
○ not all takings from the cash register by family staff members were
recorded – unacceptable behaviour in
a company store and could lead to misappropriation
of funds.
 ● WHS risk:

○ manager two-hour drive to and from weekly manager’s meeting – could

lead to physical injury
○ unstable and broken chairs – customers injured; compliance breach and
customer suing, loss of company reputation
○ carpet that was worn through was simply taped over with gaffer tape –
compliance breach and customer suing, loss of company reputation
○ no established process for dealing with injuries happening at work –
staff need a quick and organised response to injuries; staff work loss,
unions suing, loss of company reputation.
● Supply chain risk:

○ impractical to deliver fresh pastry from the company’s central bakery

plant in timely manner – loss of company reputation, quality service loss
○ supply of company branded supplies – loss of brand recognition.
● Local governance and compliance risk:

○ water use – company could be fined – loss of company reputation/brand

recognition
○ incomplete employment records – unions could sue – government
penalties – loss of company reputation/brand recognition, $50,000 fine
○ confidentially of records not guaranteed – privacy law breach.
● Loss of brand recognition risk:

○ staff not wearing the company uniform, brand non-compliance

○ staff altering company processes and service expectations.
Use correct organisational naming convention for the report?
For example, in accordance with the document naming convention set out in the
MacVille scenario:
‘Files should be saved using the document name, the date and the document
version’.
4. Write an email for stakeholders to consult and invite participation?
Including:
● addressed in appropriate style and convention to the stakeholders identified in
report
● a list of risks
● invitation to participate in identifying and assessing risks.
5. In meeting with CEO, obtain support for risk management activities?
For example:
● provide compelling reasons to the CEO for supporting the need for risk
management
● negotiates support for proposed risk management process.
6. In meeting with CEO, describe processes to consult with relevant stakeholders?
For example, in explaining possible consultation with Ron Langford, describe:
● asking Ron about the likelihood of the trees being planted (to determine risk
likelihood)
● requesting information about how many parking spots will be lost (to
determine risk consequence)
● discuss consultation methods: phone call, email, face-to-face meeting.
6. In meeting with CEO, explain the MacVille risk management processes?
For example, describe the following process:
1. Establish the context
2. Identify and describe risks
3. Conduct current risk analysis
4. Conduct risk evaluation
5. Treat risk
6. Monitor, report and manage risks.
7. Include in CEO meeting notes an accurate summary of all discussions, including
recommendations made by the CEO to the student in the context of the scenario?
 Internal/ Stake in
Stakeholder external Role in process process
The Board Internal Responsible for overall risk Potential asset
management. loss both
tangible and
intangible.
Paula Kinski Internal Chief Executive Officer. Potential loss of
reputation and
promotion
prospects.
Senior Internal Responsible for the overall risk Potential loss of
management management and individually reputation and
team responsible for risk promotion
management in individual prospects.
cafés.
Finance, Audit Internal The Finance, Audit and Risk Potential loss of
and Risk Management (FARM) reputation and
Management Committee are required to promotion
(FARM) report at Board meetings on prospects.
Committee internal controls. The FARM
committee oversees internal
audit, external audit and
management as required in its
review of internal control.
Ron Langford External Councillor and landlord. Potential loss of
a tenant.
James Internal Hurley’s store supervisor. Potential loss of
Mansfield promotion.
Hurley’s staff Internal Employees. Potential loss of
employment.
Personal safety.
Goldsmith External Legal and compliance advice. Potential loss of
Partners a client and
potential for
being sued for
advice given.