LMAD 3.1 Student Assessment 1

ASSESSMENT TASKS
SBTA Term reference: LMD-20_3.1_Business Risks

Units of competency: BSBOPS504 Manage business risk (BSBRSK501 Manage risk)
Student’s ID and name: 46830 LUCILYN LATOSA
Assessor’s name: Glenn BUCKINGHAM
ASSESSMENT TASK 1: PRACTICAL ACTIVITIES

Assessment task instructions:
This is the first assessment task which consists of 6 activities which include a research, written task and role-play. You must complete all the knowledge questions at the
required level to get a “Satisfactory” outcome.
Purpose of the assessment task:
The purpose of the assessment task is to assess your knowledge in the following:
 the purpose and key elements of current risk management standards, legislative and regulatory context of the organisation in relation to risk management and
organisational policies, procedures and processes for risk management including document storage as well as tools and techniques to identify risks to scope risk
management processes
 analyse information from a range of sources to identify the scope and context of the risk management process, including: types of business risks, options for treating
risks and risk management process, stakeholder analysis, political, economic, social, legal, technological and policy context, current arrangements, objectives and
critical success factors for the area included in scope and risks that may apply to the scope
 consult and communicate with stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management
processes and develop and implement an action plan to treat risks
Assessment conditions and resources:
Assessment will be conducted in a safe simulated environment where you will have access to:
 technology, resources, workplace documentation and templates relating to risk management, scenarios, workplace information to complete this assessment task
 access to others (e.g. other students to complete role-plays)
 access to legislation, regulations, standards and codes relating to risk management
Activities:
Case Study 1
Read the Case Study - Coffeeville Coffee Shop and complete all activities as indicated.
Case Study 1 - COFFEEVILLE Coffee Shop
Siblings Rufus and Emma have both trained and worked in the hospitality industry over
many years. They decided to open Coffeeville in 2009. Since then, the siblings have been
providing quality products to the busy CBD population. The family-oriented siblings
understand the importance of healthy communities and they endeavour to run a business
that values and supports communities on a local and global scale.
CoffeeVille only serves certified fair-trade coffee. The coffee shop provides a friendly
environment for staff and customers. Where possible, CoffeeVille sources local
ingredients and products and the coffee shop also aims to provide healthy choices:
 the coffee shop sources organic ingredients and products; and
 vegetarian and gluten-free options.
Now CoffeeVille is entering its third year of business operations. Due to effective positioning, the cafe has been well-received by
the local community and the consumer market.
According to the company mission, CoffeeVille provides a unique and compelling cafe experience for the socially aware city
coffee drinker.
CoffeeVille provides:
 high quality, fair trade, coffee
 superior hot and cold gourmet food and beverages
 consistently high level of expert and knowledgeable, fast and friendly service.
According to the CoffeeVille vision, within five years, the company will have established itself as a premier provider of gourmet
coffee and food for the ethically and socially aware coffee drinker. CoffeeVille will have expanded in the CBD to open
additional locations and in the current location open shifts open evening trading to capture workers who are working long hours,
e.g. professionals with no children at home, that wish to have healthy dinner options prior to driving home to the suburbs.
CoffeeVille aims to achieve company mission and vision through the implementation of several key strategic directions:
 increase revenue through targeted marketing campaigns
 control direct and indirect operational costs
 maintain superior product and service quality standards
 establish CoffeeVille brand as ethical and environmentally responsible company
 maintain highly trained and motivated staff.
As the current location is successful and prior to opening any other coffee shops, Rufus and Emma have decided to open and
trade in the evenings. It is important that prior to opening the coffee shop’s new times and shifts and employ new staff that the
siblings consider risks associated with changing of their services.
Note: base your activities using CoffeeVille virtual organisation or refer to your own organisation. If you are to use your own
workplace and stakeholders, you must discuss the organisation and its services with the assessor who will check if the scenario can
be based on your workplace or communicate with Student Services team. The assessor will also be able to determine if any of the
LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

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stakeholder meetings, required by this assessment task, can be role-played in front of the assessor using colleagues or if the student
can to use own workplace managers or other suitable individuals and records, collect and supply evidence of all communication
and meetings. All meetings not conducted in front of your assessor MUST be recorded and uploaded with your assessment task.
Refer to the virtual company website “Coffeeville” – website link is:
http://coffeeville.simulations.australiantrainingproducts.com.au/.
Activities:
Using the virtual company, read all the questions below and provide answers to each question.
1.1 Review the CoffeeVille website and access the intranet. Locate CoffeeVille’s policies and procedures and the
business plan and establish:
a) The coffee shop’s internal and external stakeholders
b) Identify who would be responsible for establishing a risk management process and procedures and explain
why?
c) Identify what policies, procedures, strategies and information is available for the organisation for staff to
access. (guide: 80+ words)
a. In internal stakeholders, workers are the most important resources. So, it is crucial for the
organizations to adopt successful selection/recruitment and induction process. Staff will be selected
through word-of-mouth, through trade publications, and through online recruitment offices. Staff
performance will be continually observed and managed in accordance with the CoffeeVille
performance management policy. Managers and workers will collaborate to produce work plans to
build skills and guarantee alignment of employees efforts and abilities with company strategic
directions. The partners and business owners are very responsible for guaranteeing that safe systems
of work are stablished, implemented and maintained.
b. Management and workers of CoffeeVille have obligation for implementing aspects of this policy.
CoffeeVille recognises that risk management is an fundamental component of good management
practice. CoffeeVille is committed to ensuring the implementation of risk management processes that
focus on the proactive management of risks across the organisation. This risk management policy
forms part of CoffeeVille's internal controls and corporate governance arrangements.
c. The process for developing a risk management profile.
 . Define and identify the environment, characteristics and stakeholders, their goals and
objectives, and the scope of the specific risk management process.
 Identify and describe risks
 Conduct current risk analysis and estimate their probability and consequences. This analysis
provides the basis for working on the ‘right’ risks.
 Conduct risk evaluation
 Develop and implement proposed risk treatments
 Monitor, report, update and manage risks. As risks change constantly, the risk profile is
continuously monitored, review and updated by management. New risks may be identified as
more information becomes available and existing risks may be eliminated through the
effectiveness of the risk treatments/actions. Record risks identified through regular audit on
the risk audit log. Record risk management activities on the risk management register.
1.2 Access the organisation’s risk management information from the intranet and:
a) review the and explain the strengths and weaknesses of the coffee shops business risk that Rufus and Emma
are aware of for their current structure.
b) list your identified strengths and weaknesses about the coffee shop in the space below and
c) add others that you believe would be relevant for the coffee shop that Rufus and Emma may have not
identified. (guide: 50+ words)
Strengths / Opportunities Weaknesses / Threats
 Great location  Limited space to serve more customers
 Hight Customer loyalty  High cost of sales associated with choice to
 Excellent staff, highly skilled at coffee making provide fair trade and organic food and coffee.
and food preparations.  A limited marketing budget to develop brand

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 Coffee and food offerings that exceed awareness.

competitors offering in quality and speed.  Uncertainty of worldwide coffee supplies.
  Potential shifts in Population when building and
streets are developed.
 There are no such established process to deal
with the injuries that could be happened in the
workplace.
 To deliveries of the bakery product from the
central plant to the store makes the delivery of
the fresh bakery products very much impractical
 The banking of all of the cash is not done every
day that premises the cash on the cash register
overnight. Therefore, it increase the risks related
to the safety of the cash.
 Lack of professionalism in handling the business
because the business is currently run by the
family and some of the employees are the family
members as well.
1.3 Explain how Rufus and Emma should communicate the Risk Management Strategy Plan and risk management
requirements with the staff and other relevant stakeholders and invite them to participate in future risk
identification for the coffee shop. Your answer must provide good detailed points. (guide: 50+ words)
Rufus and Emmas should determine what types of risk are acceptable and which are not and approve major
decisions affecting CoffeeVille’s risk profile or Exposure. They also need to perform annual review of CoffeeVille’s
approach to risk management and approval of changes or improvements to key elements of its processes and
procedures then monitor the management of significant risks to reduce the likelihood of potential organisational
risks and threats or failure. Their employees should familiarise themselves with the content of the risk management
policy and clarify any aspects necessary with a senior team member and consider any risks they feel could impact
on them meeting their objectives and either manage the risk if it is in their control to do so, or inform
management/partners of their concerns. It is important that Rufus and Emmas undertake an annual review of the
effectiveness of systems of internal control and provide an annual report for partners, including a summary review
and respective recommendations.
1.4 If Rufus and Emma decide to open in the evenings, the coffee shop’s risks will increase. Read the scenario below
and answer.
Scenario 1
Emma and Rufus have accumulated the following data through their research:
Large percentage of office workers (80% of daytime trade) / 50 % of office workers leave their offices after 6pm in the city and
these are the ones the business wishes to attract.
 Area population for office workers is growing at 8% per year
 Immediate geographic target is the area of within 500 meters of the cafe.
 The total area population is estimated at 45,000.
Demographics - male and female.
 Ages 20–60; this is the age-group that makes up 83% of the available daytime market.
 Full-time employment.
 An income over $50,000 plus.
Behaviour factors
 Eat out most times for lunch in a week
 Seek fast service cafes
 Enjoy a high-quality meal
 Eat dinners in local pubs or restaurants occasionally for dinner prior to going home
 Are worried that eating out each day or night is not healthy
 Value quality of food
 Value healthy eating
 Value ethical and sustainable practices

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 Review the information available for the coffee shop and identify the business risks for the additional
opening hours and address the following common business risks in the table below.
 Prior to deciding the overall risks address each of the following categories and explain what risk would
be associated with each that the coffee shop owners should be aware of.
(guide: review all information available and complete the table – 100+ words)
Financial risk; Moving operations from the normal working hour is a big jump in terms of logistics
and costs. The management must offer their employees who will be working after 6pm
more money for the night shift job. They also need to invest for the healthcare of their
night shift employees because workers on the night shift have to face the pros and
cons of working odd hours while also attempting to preserve their work-life balance;
such a drastic change of schedule can work both ways, after all.
Management risk; Rufus and Emma need to hire extra store managers that can work after 6pm to
manage the business. They need to create and implement the proper safety guidelines
in working at night.
Staffing risk; CoffeeVille employees working after 6pm may not perform their duty correctly and
eventually left their job to find a better job opportunity. Some employees accepted the
job because of higher compensation or benefits but eventually they will get tired of
working at night. The CoffeeVille management must hire and train more competent
candidates.
Social risk; Your own schedule will undoubtedly contradict your family’s schedule. If you enjoy
the hustle and bustle of a busy day, the silence will bore you. Most of the people prefer
to have their dinner at home with their families. Lack of social media advertisement
about the opening of business at night.
Legislative risks; The Work Health and Safety Act. There are several types of risks that are
incorporated with the organization that are involved in selling food product.
Therefore, the government generally had taken an effective part in the risk
management by implementing different food safety law. Along with that government,
also implement some employment law and safety at work law so it can protect
employee in the workplace.
Safety risk; More prone to health issues and it may cause.
Technological risk; The computer in the store was not password protected so anyone can access the
details of the employee and the financial record. The management need to hire more
I.T that can make a new system for CoffeeVille because all takings from the cash
registers are not well recorded. The company should use internet advertising method
to promote its vacancies and to reach the talented and skilled candidates. This will
ensure that the company is hiring best candidates who will be most beneficial for the
business in future.
Customer Service delivery Some staff might feel tired, lazy and sleepy at night. Good customer service reflects
risk; the company. The speed of service will be affected because some employees will
become lazy because they are sleepy.
Reputation risks; Employees are the critical factor of any company’s reputation. The behavior and
attitude of the employees toward the customer creates a brand identity of the
CoffeeVille, Managers and staffs may not meet the expectations of their customers. It
will lead to potential loss of customers.
1.5 Using the risks, you identified in question 1.4, now you are to: (guide: 80+ words)
a) analyse each risk; and
b) assess the impact or consequence of the risks occurring; and
c) list the likelihood of the risks occurring; and
d) explain the reasons for coming to the conclusions you have.
Note: one risk has been completed to be included in the form and as an example.
Factor impact or consequence likelihood of the risks occurring

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explanation
Financial; Ongoing Financial problem because High. Because they are new to this kind of
the business is small and not business, and they need to allocate new
achieving the targeted income. budget for the business operation
Management; They might hire an incompetent High – because it will lead to failure of
managers and staff business operations.
Staffing; Staff should be trained competently Medium- short of skills and failed to perform
but they are having difficulties on their duties and responsibilities.
sourcing and training skilled staff
because of lacking in financial
assistance.
Social; Most of the families prefer to have High- Insufficient advertisement, promotion
dinner at home so they may not want and information campaign about the Coffee
to attend an evening dinner on the shop’s new offer of late-night dinner for those
restaurants or café. who does not have to cook dinner at home.
Fire safety certificate for the building is running out Very high and needs to be organised as soon as possible so the
and will be out of date in 2 months. fire plan can be re-registered and the coffee shop can be opened.
.Legislations &safety; The health of employees will be High- If the employees don’t have enough
compromised due to night shift duty sleep, it can affect their overall medical
conditions.
Technological; The computer in the store was not High- Company and employees’ confidential
password protected so anyone can information can be easily access by anybody
access the details of the employee and it will compromise the confidentiality of
and the financial record. the company. Management must hire an IT
specialist to make a new protected computer
system
Customer Service; Some staff may become lazy because High- It will affect the business and some
of their night shift job. customers will complain about the service.
The employees need proper seminar and
training to be able to give good customer
service.
Business Reputation; Staffs cannot meet the expectations of High- In order to maintain the quality of
their customers service and to fulfill the demands of
customers, management must retrain their
night shift workers.
1.6 Role-play 1
You will be required to organise meeting and participate in the meeting with Rufus, Emma and other employees
from the coffee shop. You are to discuss each point listed below and invite your colleagues to provide comments
and feedback; and complete a meeting minutes’ template.
Note: if you are meeting online using MS TEAMS, you must also record your session. If you can attend the Academy and
conduct the role-play in front of your assessor, you will receive feedback from the assessor and you do not need to record the
role-play. Your assessor will be required to give you a completed Assessor Observation Checklist (AOC)
(guide: organise group for you to conduct your role-play. Each student must take notes during the meeting and complete own
meeting minutes as evidence of attending the meeting which must be in their own words and not copied from others from the
meeting – minimum of 15 minutes – as long as it takes)
The meeting will address discussions about current processes and procedures and requirements for understanding
risk management at the coffee shop. You will be required to review all company documentation and:
 discuss and determine with the group everyone’s understanding of the risk management process for the
coffee shop
 review the finding from the tables you identified in question 1.4 and 1.5 and confirm with the other team
members if they agree with the risks you identified and the impact or consequences and likelihood.
 during the meeting you will also be required to address the following points and discuss and confirm:

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a) how the coffee shop management and staff should communicate business risks identified;
b) processes on how risk management policies and procedures are to be implemented;
c) how risk management procedures and communication processes should be implemented into the
existing risk management strategies and plans;
d) how to continuously maintain ongoing monitoring program of the coffee shop’s risk management;
and
e) how Rufus and Emma should ensure that monitoring and review processes are achieved;
f) confirm and ensure that all staff, stakeholders and management support the risk management
strategies, activities and plans
 Use the template provided to complete the meeting minutes’ document based on all topics discussed in
the meeting.
Use the following table to take own notes from the meeting to demonstrate own contribution to the meeting. These notes can be
handwritten and attached to the task or typed below. If you choose to handwrite you must advise if your notes are attached so it
explains why this table was left empty.
Do all staff understand the current risk management process Coffeeville risk management framework design to gain good
for the coffee shop management practice and committed so ensuring the implementation
of risk management process that focus on the proactive management
of risks across the organization. Its helps to identify, evaluate,
control and manage risk without having any future problems. Assign
correct roles and responsibilities to directors, senior management
and all other staff members, not only that it also helps to get an idea
about potential threats and opportunities that will going to happen in
future. The risk management process is dynamic and is designed to
adapt to CoffeeVille’s developments and any changes in the risk
profile over time. Compliance measures are used as a tool to address
identified risks. The risk management system is based on a structured
and systemic process which takes into account CoffeeVille’s internal
and external risks.
The main elements of the risk management process are as follows:
 Establish the context – establish the external, internal and
risk management context in which the rest of the process
will take place – the criteria against which risk will be
evaluated should be established and the structure of the
analysis defined.
 Identify risks – identify where, when, why and how events
could prevent, degrade, delay or enhance the achievement
of CoffeeVille’s objectives.
 Analyse risks – identify and evaluate existing controls.
Determine consequences and likelihood and hence the
level of risk by analysing the range of potential
consequences and how these could occur.
 Evaluate risks – compare estimated levels of risk against
the pre-established criteria and consider the balance
between potential benefits and adverse outcomes. This
enables decisions to be made about the extent and nature
of treatments required and about priorities
 Treat risks – develop and implement specific cost-effective
strategies and action plans for increasing potential
benefits and reducing potential costs.
Does the team agree with the risk’s impact/consequences and Yes
likelihood of the risks from table 1.4 and 1.5
a) how does the coffee shop management and staff should Our managers are committed and trained to provide you with the
communicate business risks tools
and positive working environment for you to do your job to the best
of

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your ability. You will be treated with respect and dignity by all of our
management personnel and we will try our best to recognise and
reward your hard work and accomplishments. CoffeeVille
recognises that risk management is an essential component of
good management practice. CoffeeVille is committed to ensuring the
implementation of risk management processes that focus on the
proactive management of risks across the organisation. Coffeeville
risk management framework facilitate effective and efficient
operation, its helps business to react variety of operational,
financial, commercial and strategic risk. It includes policies and
procedures, monthly reporting, business planning and budgeting,
risk management review and external audit.
b) how to implement processes needed to manage risk As the manager the main goals and objectives of situation of
management policies and procedures Coffeeville in the risk management procedure is identification of the
effectiveness of the current risk management procedure. If there is
any problem in the current risk management strategy is identified by
as the manager, then it is manages responsibility to advice board
members some strategy by which this problem can be resolved.
According to all the risk related issues can be solve using effective
risk management strategy. Need to implement more risk policies
regarding the issues and do more internal control procedure to
overcome to those issues. During the research I identified several
risk environments and how to avoid those areas by doing better risk
management practice. First need to do some modifications and
update the current Coffeeville risk management framework and
apply it to current situation, then we can understand which area
need to be improve during this phase and how we can manage risk
according to newly updated Coffeeville risk management framework.
It is possible to identify the areas of the risk management that are not
correctly addressed. Therefore, it helps for the manager to provide
effective advice to the director so appropriate can be taken.
c) what procedures and communication processes should  Support and effective level of commitment from the top
be implemented into the existing risk management level of management.
strategies  Effective level of communication among the higher
authority, the staffs and the customers.
 Good organizational culture that facilitates collaboration
and the cooperation.
 Effective organizational culture that facilitates a good flow
of information
 Good utilization of the information technology.
d) how do you continuously maintain ongoing monitoring By conferences and the printed documents, supervisors will be aware
program of the coffee shop’s risk management about the risk management. Feedback will be gathered whether staff
have understood the information or not. Staff communication will be
on the priority as they are the part of business.
e) how Rufus and Emma should ensure that monitoring By implementing effective performance review system within the
and review processes are achieved office including performance appraisal and performance policies.
The system should manage individual performance and
communication between manager and employees.
f) how best to communicate about risk management with With respect to employees as stakeholders, there are collectively or
relevant stakeholders and invite future participation individually affect risks that could have an impact on business
when designing risk management strategies and plans operations. Therefore, effective communication, honest and free
information exchange environment, active contribution to a clear
reward system will result in high productivity and motivate
employees to work toward goals and achieve objectives. This is to
say better decision making executing will be enabled by the culture
of risk understanding.
g) how to gain ad establish support from management and All their issues should be identified as it helps in coming up with a

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staff when conducting risk management activities in risk management plan especially for those stakeholders who are
future closest to various risk areas, their issues should be identified in
order to come up with a thorough risk management plan. Identifying
stakeholder’s issues would also help solve any problems arising in
the organization. This would also help leaders in coming up with
strategies and responses.
Meeting Minutes Template:

Meeting Minutes
Meeting name CoffeeVille Risk Management Meeting Date: / /
Chair 46830 LUCILYN LATOSA Minute taker
Attendees Student names and student IDs Other students’ names and ID’s
Topics discussed General comments discussed and agreed on and confirmed at the Responsibility for changes or
meeting implementation or other
Impact on Profitability. Ongoing Financial problem because the business is small Rufus and Emma and all
and not achieving the targeted income. employees must be
responsible in maintaining
good profit.
Maintain high customer Some staff might feel tired, lazy and sleepy at night. Good CoffeeVille should train
service. customer service reflects the company. The speed of service more employees that may
will be affected because some employees will become lazy fit on evening job.
because they are sleepy.
Improve menu The CoffeeVille Chiefs must create new menu specially for Employees must be ready
dinner as they are opening the restaurant at night. Healthy for some customer
and fancy foods must be considered. complaints about foods
Monitoring cash flow Rufus and Emma should address proper liquidity and Evaluate business
proper cash flow management. operations for efficiency,
nurture your talent and
outsource where it makes
sens.
1.7 You will be required to have the meeting minutes checked by your supervisor (assessor or someone appointed to
act as your supervisor) prior to moving into the next task. Use the following to copy and paste a return email to
show that feedback and approval to share the meeting minutes has been done. (guide: receive feedback via email
from supervisor and paste below)
Email from supervisor to demonstrate approval and feedback on the meeting minutes

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ASSESSMENT TASK 2: DEVELOPING RISK MANAGEMENT PLAN

This is the second assessment task which consists of 6 activities which include a research, written task and role-play. You must complete all the knowledge questions at the
required level to get a “Satisfactory” outcome.
 lead at least one risk management process for an organisation or work area and during the above, the candidate must:
 analyse information from a range of sources to identify the scope and context of the risk management process, including: stakeholder analysis, political, economic,
social, legal, technological and policy context, current arrangements, objectives and critical success factors for the area included in scope and risks that may apply to
scope
 consult and communicate with stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management
processes and develop and implement an action plan to treat risks
 monitor and evaluate the action plan and risk management process and maintain documentation.
Assessment will be conducted in a safe simulated environment where you will have access to: technology, resources, workplace documentation and templates relating to
risk management, scenarios, workplace information access to others to complete practical activities and access to legislation, regulations, standards and codes relating to
risk management
Case Study 2
Read the Case Study - Coffeeville Newtown Coffee Shop and complete all activities as indicated.
Case Study 2 - COFFEEVILLE Newtown Coffee Shop
Rufus and Emma have both decided that they will open another coffee shop in Newtown in the next 3 months.
The reason for selecting Newtown is because one of their friends, Stanislav, who owns the “Newtown Bubbles Bar” is moving
and needs to sell because he is moving to Queensland. The bar is in a very busy location on the main street. It is currently open
for from lunch time to midnight from Thursday to Saturday and from lunch to 9pm on Sundays.
The bar is well established and is well known by the locals. It has a kitchen which is used for preparing small snacks, the bar has
a coffee machine already and a display cabinet which has soft drinks in it. Rufus and Emma could use this to display they food.
The bar also has a large glass door fridge for takeaway drinks, wine and other alcoholic drinks.
The kitchen is old but operational. There is limited cooking required for the bar so the kitchen lacks pots, pans and some utensils
but otherwise is okay.
Stanislav will close the bar in 2 months. This will give Rufus and Emma one month to prepare the bar and transfer it into a coffee
shop, refresh the look and brighten it up so the establishment does not look like a night club. Now the colours on the wall are
dark. Rufus and Emma are quite happy with keeping the license for the bar (in case they wish to expand their service in the
future) and the lease for another 2.5 years.
Stanislav is selling the licensed business for $30 thousand and the rent is $500 per week. Rufus and Emma are happy to pay this
if they can take up the lease, do not need to change too much and can open the coffee shop with the current kitchen until they
make enough to cover the cost for an upgraded kitchen in approximately 8 months’ time.
If Rufus and Emma will purchase the bar they will need to establish different trading hours. Also, Newtown has a different
customer demographic and has other restaurants close by but are mostly open for lunch and dinner but not breakfast.
CoffeeVille aims to source local ingredients and products and the coffee shop provides healthy choices and sources organic
ingredients and products and provides vegetarian and gluten-free options. This means that they will also require to seek local
producers and contractors for ingredients.
CoffeeVille provides a unique and compelling cafe experience for the socially aware city coffee drinker with high quality, fair
trade, coffee, superior hot and cold gourmet food and beverages and consistently high level of expert and knowledgeable, fast
and friendly service.
Opening another coffee shop goes in line with their 5-year business plan which has listed that CoffeeVille will expand and open
additional sites. CoffeeVille aims to achieve company mission and vision through the implementation of several key strategic
directions which includes increase of the company revenue, increase direct and indirect operational income while maintaining
superior product and quality services and maintain highly trained and motivated staff.
It is important that prior to opening any new coffee shops in the chain, the siblings must consider risks associated with altering
their new structure.
Note: For this task, you will need to refer to the virtual company website “Coffeeville” – website link is:
http://coffeeville.simulations.australiantrainingproducts.com.au/.
Note: This task is an individual activity where you will be required to “Develop a Risk Management Plan” for CoffeeVille’s new
coffee shop which will be opened in Newtown. (or if you wish to use the workplace for this assessment please check with your
assessor who must approve it and check it for suitability).
Review all company documents and complete activities below.

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Task guide:
 all tasks must be typed
 the length of the project must be no less than 8 to 10 A4-size pages;
 written as a report with bibliography and references to any researched information.
 use the style guide which is:
o Font: Arial or Century Gothic
o Use of company logos and document styles
o The font sizes are:
 Main heading/cover heading: Size 16pt or 18pt Bold
 Other main headings: Size 12pt Bold
 Subheadings: Size 12pt or 11pt (underlined optional)
 Normal font: Size 10pt, 11pt or 10 Normal
 Action Plans and Risk Management Matrix can be included within the 10 pages.
 You may refer to the example template *appendixes A and B below or create your own Risk Management Plan
Activities:
The Risk Management Plan you are developing should include the following sections that are relevant to determining
your competency, knowledge and skill level for this unit.
2.1. Establish the Risk Context.
Review the Business Plan, Risk Management Strategies, Policies and Procedures and Marketing Plan for
CoffeeVille and address the following points,
a) Who are the internal and external stakeholders relevant or / and responsible for the risk management plan?
Engaging with a variety of stakeholders provides a platform for different voices to be heard.
Different risk stakeholders can be consulted at different stages of the risk management process.
They are included:
 INTERNAL
Emma and Rufus, responsibility for the risk rests on the organisation/people that
have control of it. This includes the person who controls the budget, the spending
and who is responsible for ensuring that decisions have been carried out.
 EXTERNAL
Local council, to monitor operations, assess exposure, and create strategies to
reduce risk.
b) Determine the general scope of risk for the coffee shop plans and determine existing strengths and
weaknesses of existing arrangements
STRENGHT WEAKNESS
 The bar is well established.  The lack of the knowledge for the
 Well known by the locals.  competition.
 Great location.  Need to upgrade kitchen.
 High customer loyalty.  Different customer demographic.
 Coffee and food offerings that exceed  Competitors nearby
competitors’ offerings in quality and speed.  The lack of the relationships with the local
 Keeping license for the bar.  producers and contractors for ingredients.
 Vegetarian and gluten free options.  High cost of sales associated with choice
 Owner operated.  to provide Fairtrade and organic food and

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ASSESSMENT TASKS
 Owner previously experienced in hospitality  coffee.

industry.  Limited access to marketplace data
 Unique theme.  Limited market share
 High grade coffee and tea.  More funds to open CoffeeVille in the
 Consistently high level of expert and  Newtown.
knowledgeable, fast, and friendly service.  New staff to be trained prior to opening
 new coffeeshop
c) Design a communication strategy to communicate to relevant parties (internal and external stakeholders)
about the risk scope and risk management process. Cover how you will invite stakeholders for partition in
assessing and managing risks and how you will gain the support for the risk management process from the
stakeholders and managers.
Ongoing communication of the importance of risk management and the role of staff in managing risk is critical to
success of the risk management framework. Rufus and Emma must ensure that relevant risk management information
is communicated to staff on a regular basis. This may be done through a range of mediums including:
Notice or bulletin boards are often used for items such as health and safety posters. However, they
become part of the furniture, are often overcrowded with information, and are usually ignored.
Electronic bulletin boards are now in common use, but again may be ignored by staff if their message changes too
infrequently.
Newsletters and in-house magazines provide regular, changing content and are suitable to highlight issues, and
features relating to health and safety. They, too, may be distributed electronically as well as in print form but are also
easily ignored.
Letters addressed to individual employees should be reserved for issues of major importance, such as changes in
personal work practices. They are, however, more likely to be read than internal memos or emails. Emails and
intranet messages can be targeted to particular groups and sent rapidly, but in certain, mobile environments not
everyone has access to email so other methods may be needed. Feedback facilities can be incorporated in intranets, so
there is some opportunity for two-way communication. Presentations by a senior manager direct to the workforce can
be effective, although they are dependent on the delivery skills of the individual. A questions and answers session are
another option, but employees may be nervous about having a full and frank public discussion with senior
management. Team briefings or group meetings with line or local managers can enable proper dialogue. Be aware,
though, that if different managers are tasked with giving the same message, they may vary the emphasis, leading to
misunderstandings. This scope for misunderstanding may increase where some of the workforce are not native English
speakers. One-to-one meetings, where individuals can express their views directly to line managers, are a good
method of two-way feedback, but managers need to understand the importance of upward transmission, and success
may depend on how consistently they behave in this respect.
d) Document the critical factors, goals and objectives to be included in the risk management plan…
This will include training, communication, commitment and support from top management,
awareness of risk management process, teamwork, clear objectives and guidelines for risk
management and management styles, increase of the company revenue, increase direct and
indirect operational income while maintaining superior product and quality services and maintain
highly trained and motivated staff.
e) Identify and summarise the appropriate legislations concerning business risk, both state and federal, that
applies to the business;
Work Health and Safety
It involves the management of risks to the health and safety of everyone in your workplace. This

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ASSESSMENT TASKS
includes the health and safety of anyone who does work for you as well as your customers, visitors,
and suppliers.
- Competition and Consumer Act 2010
It covers most areas of the market: the relationships between suppliers, wholesalers, retailers,
and consumers. Its purpose is to enhance the welfare of Australians by promoting fair trading
and competition, and through the provision of consumer protections.
- Fair work Act 2009
It is the primary piece of legislation governing Australia’s workplaces. It is the foundation to all
standards and regulations for employment and something that employers in all industries and within all business sizes
should be familiar with.
- Taxation Administration Act 1953
An Act to provide for the administration of certain Acts relating to Taxation, and for purposes
connected therewith.
- Australia New Zealand Food Standards
The standards in the Australia New Zealand Food Standards Code are legislative instruments under
the Legislation Act 2003. The authoritative versions of these standards are on the Australian
Government Federal Register of Legislation.
- Food Act 2003 (NSW)
The purpose of the Act is to ensure that food for sale is both safe and suitable for human
consumption. It also prohibits any misleading conduct surround food. The Act also gives effect to
the Food Standards Code (the Code). The Act details the offences relating to food, orders that can be made against a
business, and safety programs.
- Privacy Act 1988
The Privacy Act regulates the way individuals' personal information is handled. As an individual, the
Privacy Act gives you greater control over the way that your personal information is handled.
- Anti-discrimination Act 1977 (NSW)
It is an Act of the NSW Parliament, relating to discrimination in employment, the public education
system, delivery of goods and services, and other services.
- The Copyright Act 1968
The Copyright Act provides for fair dealing in a copyright work for the purpose of research or study,
criticism, or review, reporting news, judicial proceedings, or giving professional advice.
f) Review all critical success factors, goals, legal, technological factors and policies relevant to the coffee
shop..
Organizational Structuring and Design, communication, organizational culture, trust, strategic focus (leadership,
management, planning), people (personnel, staff, learning, development), operations (processes, work), marketing
(customer relations, sales, responsiveness), finances (assets, facilities, equipment). Required to get a business license,
health department permit and food safety certification. And needs to get facilities inspected before opening and will
also need to register if you collect state, local or national sales taxes. And also, will probably need to register to
collect income taxes from employee pay, unemployment insurance and other deductions. These days, 32% of operators
think their business is lagging in restaurant technologies. So, I hand picked 9 types of tech that deliver the most
bottom-line bang for your buck. It includes, online ordering, it will give the benefits such as higher revenue, more
accurate orders, and data tracking. Also, there are Digital POS system, customer facing tabletop tablets, loyalty
programs, email service providers, WI-FI, handled entertainment, reservation
software and scheduling software. Also, there are policies relevant to the coffee shop.
It includes:

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ASSESSMENT TASKS
- Customer service policy

- Dress code
- Management/employee relations policy
- Equal employment opportunity policy
- Anti-discrimination, Anti-harassment, and Anti-bullying policy
- Remuneration and performance appraisal policy
- Performance management policy
- Gross or serious misconduct policy
- Grievance policy
- Occupational health and safety policy
- Smoking policy
- Risk management policy
2.2. Identify Business Risks associated with the coffee shop (or selected business)
a) Identify the causes of the business risks by identifying the risk categories;
Financial risk: There will be an increased cost as they are opening new coffee shop in Newtown. The
costs include (fixed, variable, direct, indirect).
- Management Risk: Unreviewed recruitment process, untrained managers, have not open
transparent process for raising grievances, whistleblowing. Loss of profit or missing profit.
- Staffing risk: Staff needs additional training and there will be needed a new hiring process and more
personnel to cover the night shift as they are opening new coffee shop.
- Social risk: Social risk for a business includes actions that affect the communities around them. This
will include labour issues, human rights violations within the workforce, and corruption by company
officials. Public health issues can also be a concern as they can impact absenteeism and worker
morale.
- Legislative risks: Political instability, legal and regulatory constraints, local product safety and
environmental laws, tax regulations, local labour laws, trade policies, currency regulations.
Untrained employees on regulations.
- Safety risk: Risk to facilities, buildings, and contents, invest in storm protection, fire prevent and etc.
Inaccurate health and safety policy, untrained staff, unidentified hazard.
- Technological risk: Network failure, information security incidents, cyberattacks, password theft,
service outages, inadequate data backups, old or inconsistent hardware and software, inadequate
power protection, weak tech support, insufficient training.
- Customer service delivery risk: Inability to transact due to network/service downtime, insufficient
agent liquidity, complex and confusing user interfaces, inadequate provider recourse, not transparency of fees and other
terms, fraud perpetrated on customers, inadequate privacy, and
protection of customers’ personal data.
- Business reputation risk: Negatively impacted Reputational risk occurs when performance does not
match expectations. Track evolving stakeholder expectations to manage the risk Put a plan in
place to manage a reputation crisis Monitor sentiment online using social media monitoring tools,
engage promptly.
b) Create your Risk Matrix to assist in the identification of each risk;
RISK MATRIX

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ASSESSMENT TASKS
DESCRIBE INHERENT RISK

RISK/HAZARD Consequences
LikelihoodRisk Level
R IDENTIFY
RISK TREATMENT MITIGATION
ef RISK/HAZARD
The building will be

non-compliant, and
the coffee shop will 5
5
Building fire plan is not be able to open Mo 5
Sev Organise Council or fire contractor
1 due to renew next and trade until the st hig
e to register by next month
month by council building is fire plan likel h
re
is updated and y
registered with the
council
There will be an
increased cost as There will be needed Fundamental
they are opening analysis, the process of measuring a
1 Financial risk new coffee shop. 5 5 5 security's intrinsic value by evaluating
The costs include all aspects of the underlying business
(fixed, variable, including the firm's assets and its
direct, indirect). earnings.
Due to the opening

new coffee shop,
there will be many CoffeVille will have to structure
changes, policies their policies and procedures in
2 Management risk and procedures 5 4 3 order to be profitable, for that
changes, there will reason will be needed new
be more legal policies and procedures.
requirements
needed
Develop a written policy that

defines rules and procedures,
establish a consistent process for
Discrimination,
resolving discrimination issues,
3 Social risk harassment, and 4 3 3
continually educate the
bullying may occur.
employees on their role in
preventing discrimination and
keep monitoring them.

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ASSESSMENT TASKS
If employees are
not fully trained
cannot provide It needs to be organized and fixed
Customer services high-quality as soon as possible. Then the
4 4 5 5
deliver risk services, which is coffee shop can continue its
the reason for business without any problems.
customers’
dissatisfaction.
Frequent network It needs to be organized and fixed

5 Technological risk 2 3 3 as soon as possible. Then the
failure
coffee shop can continue its
business without any problems.
c) Determine the severity of each business risk and prioritise on the Risk Matrix;
Prioritise on the Risk Matrix -

1. Financial risk
2. Customer services delivery risk
3. Management risk
4. Social risk
5. Technological risk
2.3. Analyse and evaluate the Business Risks in your selected business:
a) Using the Risk Matrix, (you have completed in section 2 above), analyses the potential impact each risk has
on your business;
Financial risk – They will be affected by credit risk suffer from increased cost from the coffee shop and they
will get a loan, and the vicious cycle will repeat.
- Customer services delivery risk – If they cannot provide high quality services, and it has a big influence on
customers dissatisfaction.
- Management risk – If they do not comply with the legal requirements, such as licence, they will be got fine.
- Social risk – Employees who are bullied are in suffer, and employees cannot cooperate with each other.
So, their job performance decreases, and their working environment worsens.

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ASSESSMENT TASKS
- Technological risk - Network errors have a direct influence on the coffee shop. For example, the POS
system does not work, and everything must be manual.
b) Identify the top 5 risks and explain the likelihood of those risks happening in the future
Financial risk – There will be an increased cost as they are opening new coffee shop. The costs
include (fixed, variable, direct, indirect).
- Customer services delivery risk - If employees are not fully trained cannot provide high-quality
services, which is the reason for customers’ dissatisfaction.
- Management risk – Due to the opening new coffee shop, there will be many changes, policies and procedures
changes, there will be more legal requirements needed.
- Social risk – Discrimination, harassment, and bullying may occur.
- Technological risk – Frequent network failure.
c) Evaluate and priorities the business risks for treatment;

1. Financial risk – Finance is an essential element for any business to become successful. Financial risk management
allows employees to guide a company when difficult situations arise in the financial market. It helps enterprises create
strategies to avoid losses and maximize profits as much as possible.
2. Customer services delivery risk – It is a second priority because it is retaining customers and extracts more value
from them. By providing top-notch customer service, businesses recoup customer acquisition costs and cultivate a
loyal following that refers customers, serves as case studies, and provides testimonials and reviews.
3. Management risk – It is a third priority, because CoffeeVille already have well-organized policies and procedures
for making profits.
4. Social risk – They already developed a written policy that defines rules and procedures, establish a consistent
process for resolving discrimination issues, and they are continually educate the
employees on their role in preventing discrimination and keep monitoring them.
5. Technological risk – While knowing your customer is more important than ever, it is essential to also make sure that
their data is secure. However, in my opinion this is a lower possibility than other risks, so it is the last priority.
2.4. Select and implement treatments and monitor the “Action Plan”
a) Create your Action Plan;
WHAT ACTION IS
COMMENTS ON
TO BE TAKEN TO
DESCRIBE THE TIMELIN PERSONS THE OUTCOME
MITIGATE OR
RISKS/HAZARDS. E RESPONSIBLE OF THE ACTION
CONTROL THE
TAKEN
RISK
Rufus will be
required to
contact the
The council will
The building will Organise Council council and
be coming in to
become non- or fire contractor organise
2 weeks check the building
compliant in one to register by next professional to
prior to the old
month until fire plan month come in and
fire plan expiring.
is updated and check the
registered with the building and
council. update records

P a g e | 16
ASSESSMENT TASKS
There will be
needed
Fundamental
analysis, the
process of
Rufus and
measuring a Rufus and Emma
Emma will be
security's intrinsic will keep
2 months required to
There will be an value by analysing the
analysing the
increased cost as evaluating all costs.
budgets.
they are opening aspects of the
new coffee shop. underlying
The costs include business including
(fixed, variable, the firm's assets
direct, indirect). and its earnings.
If employees are not
fully trained cannot Needs to be
Rufus and
provide high-quality organized and They will keep
Emma will be
services, which is fixed as soon as monitoring
4 weeks required to
the possible and need employees’
organized
reason for to train employees performance.
training process
customers’ properly
dissatisfaction.
CoffeVille will have Rufus and
to Emma will be
Rufus and Emma
Due to the opening structure their required to
established new
new coffee shop, policies develop policies
policies and
there will be many and procedures in and procedures
4 procedures for
changes, policies order to be for new coffee
weeks the new coffee
and profitable, for that shop. And
shop. The council
procedures changes, reason will be contact the
will be coming in
there will be more needed new council for the
to check.
legal requirements policies new legal
needed. and procedures. requirements
Discrimination, Develop a written 4 weeks Rufus and Rufus and Emma
harassment, and policy that defines Emma established new
bullying may occur rules and will be required policies and
procedures, to procedures for
establish a develop a resolving
consistent written discrimination
process for policy that issues, and they
resolving defines rules will keep
discrimination and monitoring
issues, procedures, employees.
continually establish a
educate consistent
the employees on process
their role in for resolving

P a g e | 17
ASSESSMENT TASKS
preventing
discrimination and discrimination
keep monitoring issues.
them.
It needs to be
organized and
fixed
Rufus and
as soon as
Emma The technician
possible.
Frequent network will be required will be coming in
Then the coffee 2 weeks
failure. to to check and will
shop
contact the fix.
can continue its
technician.
business without
any
problems.
b) Implement the treatment of each business risk. Discuss the procedures need to be implemented to ensure the
risk is unlikely to happen;
To implement an action plan, create a communication plan, raise awareness, build capacity, motivate, and
track and monitor.
- Financial risk – Rufus and Emma should address credit and liquidity risk with proper cash flow
management. Cash is the lifeblood of a business and is critical for the other forms of risk management. It
includes, evaluate business operations for efficiency, nurture your talent and outsource where it makes
sense, create a strong foundation for your HR practices, use metrics for every decision, be prepared to
cover a loss.
- Customer services delivery risk – To implement, hire the right people, train the right people, create a
culture of service, constant and never-ending improvement and always have back-up support with customer
relationships.
- Management risk – To implement, identify risks, minimise, or eliminate risks, identify who has to do what
should a disaster occur, determine and plan recovery contingencies, communicate the plan to all the people
it refers to.
- Social risk – To implement, identify risks, minimise, or eliminate risks, identify who has to do what should
a disaster occur, determine and plan recovery contingencies, communicate the plan to all the people it
refers to.
- Technological risk – To implement, identify risks, minimise, or eliminate risks, identify who has to dowhat
should a disaster occur, determine and plan recovery contingencies, communicate the plan to all the people
it refers to.
c) How will you communicate the risk management procedures and Action Plan to the relevant parties (internal
and external stakeholders);
Letters addressed to individual employees should be reserved for issues of major importance, such as
changes in personal work practices. They are, however, more likely to be read than internal memos or
emails.
- Video and in-house television is used by larger organisations for introducing new products or policies.
However, remember that absorbing information from television and video is a mainly passive pursuit, not a
dialogue.

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ASSESSMENT TASKS
- Emails and intranet messages can be targeted to particular groups and sent rapidly, but in certain, mobile
environments not everyone has access to email so other methods may be needed. Feedback facilities can be
incorporated in intranets, so there is some opportunity for two-way communication.
- Presentations by a senior manager direct to the workforce can be effective, although they are dependent
on the delivery skills of the individual. A questions and answers session are another option, but employees
may be nervous about having a full and frank public discussion with senior management.
- Team briefings or group meetings with line or local managers can enable proper dialogue. Be aware,
though, that if different managers are tasked with giving the same message, they may vary the emphasis,
leading to misunderstandings. This scope for misunderstanding may increase where some of the workforce
are not native English speakers.
- One-to-one meetings, where individuals can express their views directly to line managers, are a good
method of two-way feedback, but managers need to understand the importance of upward transmission, and
success may depend on how consistently they behave in this respect.
d) Describe how you will monitor the Action Plan and evaluate the ongoing risk management process
As an Action Plan for a solution to a problem is being implemented it is important to monitor its progress.
Once the plan has been implemented, you need to evaluate the success of the solution.
Monitoring the plan should not be confused with evaluating the solution. Monitoring the plan helps to
ensure that the solution is being implemented as expected. Evaluating the solution occurs after the plan has
been implemented and provides an indication of whether the solution has rectified the problem.
In order to monitor the plan, the following questions should be asked:
- Has each step been implemented correctly?
- Has each step been implemented on time?
- Has the expected outcome materialised from the completion of each step?
Based on the answers to the above questions the following questions may need to be considered:
- Is more time required?
- Are more tasks required?
- Are more resources required?
- Was the plan realistic?
- What action needs to be taken?
- Does the plan need to change?
Once the solution has been implemented its success needs to be evaluated. Evaluating the success of the
solution allows the solution to be altered or changed as required. Regardless of its success or failure
evaluating the solution allows lessons to be learned that can be utilized when solving a similar problem in
the future.
e) Briefly describe why it is important for all records to be kept and stored appropriately; and based on the
scenario, discuss and determine where all relevant documents would be kept (e.g. in the head office in the
CBD or in Newtown and why?)
Good record keeping can be your proof that you have made considered decisions and taken appropriate actions.
Records become your protection if you are questioned or challenged. Without them, you are at risk. Good record
keeping can not only protect you but can support your organisation in legal or other challenges. Record keeping is a
good work practice and should increase the efficiency of the workplace. It should be kept in the CBD head office
because files need to be secured, to ensure that unauthorized personnel cannot access them. To ensure that the
organisation’s confidentiality and the privacy of the team members and external specialists are maintained, files are
usually kept under lock and key, in a secured location.

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ASSESSMENT TASKS
2.5. You are now to complete the following template below and present it to the management [and relevant
stakeholder team] (your assessor or appointed colleague).
Select and implement treatments and monitor the “Action Plan”. You will be communicating the risk
management process to all relevant parties.
a) Risk Management Plan - Establishing the Risk Context
Ensure your plan is revised by your Supervisor (guide: appointed colleague, workmate, another student or assessor) you can use email to
communicate with your supervisor and paste the feedback below with this activity)
Risk Management Plan Name and overview Establishing risk context
To implement an action plan, create a

communication plan, raise awareness, build
capacity, motivate, and track and monitor.
- Financial risk – Rufus and Emma should
address credit and liquidity risk with proper
cash flow management. Cash is the lifeblood
of a business and is critical for the other
forms of risk management. It includes,
evaluate business operations for efficiency,
nurture your talent and outsource where it
makes sense, create a strong foundation for
your HR practices, use metrics for every
decision, be prepared to cover a loss.
- Customer services delivery risk – To
implement, hire the right people, train the
right people, create a culture of service,
constant and never-ending improvement and
always have back-up support with customer
relationships.
Risk Management Plan objectives
- Management risk – To implement, identify
risks, minimise, or eliminate risks, identify
who has to do what should a disaster occur,
determine and plan recovery contingencies,
communicate the plan to all the people it
refers to.
- Social risk – To implement, identify risks,
minimise, or eliminate risks, identify who has
to do what should a disaster occur, determine
and plan recovery contingencies,
refers to.
- Technological risk – To implement, identify
risks, minimise, or eliminate risks, identify
who has to dowhat should a disaster occur,
determine and plan recovery contingencies,
refers to.
Role of the stakeholders their responsibility towards Risk Stakeholders have legal decision-making rights and may control
management and WHS project scheduling and budgetary issues. Most project stakeholders
have responsibilities to businesses that include educating developers,
financing projects, creating scheduling parameters and setting

P a g e | 20
ASSESSMENT TASKS
milestone dates.
Internal External
Internal Stakeholders are External stakeholders, unlike internal
those parties, individual or stakeholders, do not have a direct
group that participates in relationship with the company.
the management of the Instead, an external stakeholder is
company. They can influence normally a person or organization
Communication process with each of the stakeholders listed and can be influenced by the affected by the operations of the
below. success or failure of the business. When a company goes over
Who are the most appropriate methods of communication to these stakeholders. entity because they have the allowable limit of carbon
Internal vested interest in the emissions, for example, the town in
a) owners organisation. Primary which the company is located is
b) staff Stakeholders is the second considered an external stakeholder
c) Managers name of the Internal because it is affected by the increased
d) Supervisors stakeholders. pollution.
e) Employees exposed to risk.
f) Employees exposed to lower or minimal risk. Internal Stakeholders are Conversely, external stakeholders
g) WHS Safety Officers dedicated to providing may also sometimes have a direct
External services to the company. effect on a company without a clear
h) Contractors They are highly affected by link to it. The government, for
i) Customers the decisions, performance, example, is an external stakeholder.
j) Suppliers profitability and other When the government initiates policy
k) Government representatives (e.g. WHS and Health). activities of the company. In changes on carbon emissions, the
the absence of internal decision affects business operations of
stakeholders, the any entity with increased levels of
organisation will not be able carbon.
to survive in the long run.
That is why they have a
great impact on the company
- Work health and safety

- Food safety standards (Australia only)
- Competition and Consumer Act 2010
- Fair Work Act 2009
Laws, legislations, codes of practice relevant to this industry, the - Federal Register of Legislation - Australian
organisation and risk management plan. Government
Ensure you research Federal, State and Territory Laws and Legislations. - Food Act 2003 No 43
- Privacy Act 1988
- Anti-Discrimination Act 1977 No 48 - NSW Legislation
1. Financial risk
2. Customer services delivery risk
Business Risks associated with the business both Internal and
External.
3. Management risk
4. Social risk
5. Technological risk
RISK MATRIX Financial risk – They will be affected by credit risk
Identify and Analyse the above Risks using the Risk Matrix- suffer from increased cost from the coffee shop and they
(Minimum 4 Risks on the Matrix must be included) will get a loan, and the vicious cycle will repeat.
- Customer services delivery risk – If they cannot
provide high quality services, and it has a big influence
on customers dissatisfaction.
- Management risk – If they do not comply with the legal
requirements, such as licence, they will be got fine.
- Social risk – Employees who are bullied are in suffer,
and employees cannot cooperate with each other. So,
their job performance decreases, and their working

P a g e | 21
ASSESSMENT TASKS
environment worsens.
To implement an action plan, create a communication

plan, raise awareness, build capacity, motivate,
and track and monitor.
There will be an increased cost as they are opening new
coffee shop. The costs include (fixed, variable, direct,
indirect). There will be needed Fundamental analysis,
the process of measuring a security's intrinsic
value by evaluating all aspects of the underlying
business including the firm's assets and its earnings.
Rufus and Emma will be required to analysing the
budgets in 2 months.
If employees are not fully trained cannot provide high-

quality services, which is the
reason for customers ‘dissatisfaction. Needs to be
ACTION PLAN organized and fixed as soon as possible
Including person responsible, time and action taken. and need to train employees properly.
Rufus and Emma will be required to organized training
process in 4 weeks but they will keep monitoring
employees performance.
Due to the opening new coffee shop, there will be many

changes, policies and procedures changes, there will be
more legal requirements needed. CoffeVille will have to
structure their policies and procedures in order to be
profitable, for that reason will be needed new policies
and procedures. Rufus and Emma will be required to
develop policies and procedures for new coffee shop
within 4 weeks. And contact the council for the new
legal requirements.
Develop a written policy that defines rules and

how will the plan impact on the café’s current activities e .g. training, procedures, establish a consistent process for resolving
staff inductions and the ongoing development of employees.
Include all staff-those directly related to risk areas and those who have limited
discrimination issues, continually educate the employees
exposure to Risk. on their role in preventing discrimination and keep
monitoring them.
CoffeVille will have to structure their policies
Development of Policies and Procedures from the Actions and procedures in order to be profitable,
identified. How would you implement these policies and procedures? for that reason will be needed new policies
and procedures.
Are all internal staff trained recognising the impact Risks or Yes, This will include training, communication,
Hazards on environment and what training is available to assist in commitment and support from top management,
the development of staff in this area? What Legislation applies to awareness of risk management process, teamwork, clear
Environmental Risk Impact if any (e.g. oil grease)
objectives and guidelines for risk management and
management styles, increase of the company revenue,
increase direct and indirect operational income while
maintaining superior product and quality services and
maintain

P a g e | 22
ASSESSMENT TASKS
highly trained and motivated staff.
Food Act 2003 (NSW)- Improper disposal of food waste

like fats, oil and grease is one of the most common
causes of the drainage problems in the big cities in
Australia. Blockages in pipes and sewer systems can
cause major disruptions and escalating costs for homes
and businesses up and down the nation, and often it
turns out that fat, oil and grease is the culprit.
As an Action Plan for a solution to a problem is being
implemented it is important to monitor its progress.
Once the plan has been implemented, you need to
evaluate the success of the solution. Monitoring the plan
should not be confused with evaluating the solution.
Monitoring the plan helps to ensure that the solution is
being implemented as expected. Evaluating the solution
occurs after the plan has been implemented and
provides an indication of whether the solution has
rectified the problem. In order to monitor the plan, the
following questions should be asked:
- Has each step been implemented correctly?
- Has each step been implemented on time?
- Has the expected outcome materialised from the
Process to communicate, Implement and Monitor the introduction completion of each step? Based on the answers to the
of the Risk Management Plan-How / when / by whom. above questions the following questions may need to be
considered:
- Is more time required?
- Are more tasks required?
- Are more resources required?
- Was the plan realistic?
- What action needs to be taken?
- Does the plan need to change?
Once the solution has been implemented its success
needs to be evaluated. Evaluating the success of the
solution allows the solution to be altered or changed as
required. Regardless of its success or failure
evaluating the solution allows lessons to be learned that
can be utilized when solving a similar problem in
the future
Risk management is an ongoing process. Risks will
change as the environment changes. For example, you
introduce a new piece of equipment to a work site. New
risks will arise when the equipment makes a job easier
or changes the way in which other tasks are perform.
Risk will arise by the introduction of the equipment.
Comments or other areas of the plan to be covered.
Ongoing review of the risk management process is
Include: Budget, Data Management Past Failures of Risk Management Compliance
required, to ensure that the plan remains relevant to the
workplace. Factors that may impact upon risk
assessments and control measures can also change over
time. This means that the risk management process
should be repeated regularly, to ensure that the risk
management process remains effective.

P a g e | 23
ASSESSMENT TASKS
Good record keeping can be your proof that you have

made considered decisions and taken appropriate
actions. Records become your protection if you are
questioned or challenged. Without them, you are at
risk. Good record keeping can not only protect you but
can support your organisation in legal or other
challenges. Record keeping is a good work practice and
Compliance with records – how are the records safely kept for
security and future use
should increase the efficiency of the workplace.
It should be kept in the CBD head office because files
need to be secured, to ensure that unauthorized
personnel cannot access them. To ensure that the
organisation’s confidentiality and the privacy of the
team members and external specialists are maintained,
files are usually kept under lock and key, in a
secured location.
b) Risk Management Matrix
Please note that risk one has been placed into the risk management matrix for you as an example. (50+
words)
Rating key is as follows:
 Rating of Likelihood – 1 = least likely and 5 = most likely
 Rating of Consequences – 1 = minimal and 5 = severe
 Rating of Risk level – L = Low, M = Medium and H = High
Inherent risk Risk treatment
Mitigation
Consequence
Identify risk/hazard
Likelihood
Risk Level
Ref Describe risk/hazard
The building will be non-compliant and the 5

5 Organise Council or
Building fire plan is due to renew next coffee shop will not be able to open and trade Sever 5
1 Most fire contractor to
month by council until the building is fire plan is updated and e high
likely register by next month
registered with the council
1 Financial risk There will be an increased There will be

cost as they are opening needed
new coffee shop. The costs Fundamental
analysis,
include (fixed, variable,
the process of
direct, indirect)
measuring a
security's
5 5 5 intrinsic value by
evaluating all
aspects
of the underlying
business including
the
firm's assets and its
earnings.
2 Management risk Due to the opening new 5 4 3 CoffeVille will
coffee shop, there will be have to
many changes, policies structure their
policies
and procedures changes,
and procedures in
there will be more legal
order to be
requirements needed. profitable,

P a g e | 24
ASSESSMENT TASKS
for that reason

will be
needed new
policies
and procedures.
3 Social risk Discrimination, Develop a written
harassment, and bullying policy that defines
rules and
may occur. procedures,
establish a
consistent process
for resolving
discrimination
4 3 3
issues, continually
educate the
employees on
their role in
preventing
discrimination
and keep
monitoring them.
4 Customer services If employees are not fully It needs to be
deliver risk trained cannot provide organized and
high-quality services, fixed as
which is the reason for soon as possible.
Then
customers’ dissatisfaction
4 5 5 the coffee shop
can
continue its
business
without any
problems.
5 Technological risk Frequent network failure It needs to be
organized and
fixed as
soon as possible.
Then
2 3 3 the coffee shop
can
continue its
business
without any
problems.
c) Risk Management Action Plan
Please note that risk one has been placed into the risk management matrix for you as an example.
Describe the risks/hazards. What action is to be Timeline Persons responsible Comments on the
taken to mitigate or outcome of the action
control the risk taken
Rufus will be required to contact

The building will become non-compliant in Organise Council or fire the council and organise The council will be coming in
one month until fire plan is updated and contractor to register by next 2 weeks professional to come in and to check the building prior to
registered with the council. month check the building and update the old fire plan expiring.
records.

P a g e | 25
ASSESSMENT TASKS
There will be an There will be needed 2 Rufus and Emma Rufus and Emma
increased cost as Fundamental month will be required to will keep
they are opening analysis, the process s analysing the analysing the
new coffee shop. The of measuring a budgets. costs.
costs include (fixed, security's intrinsic
variable, direct, value by evaluating
indirect). all aspects of the
underlying business
including the firm's
assets and its
earnings
If employees are not Needs to be 4 Rufus and Emma They will keep
fully trained cannot organized and fixed Weeks will be required to monitoring
provide high-quality as soon as possible organized training employees’
services, which is the and need to train process. performance.
reason for customers’ employees properly.
dissatisfaction
Due to the opening CoffeVille will have 4 Rufus and Emma Rufus and Emma
new coffee shop, to Weeks will be required to established new
there will be many structure their develop policies policies and
policies
changes, policies and and procedures procedures for
and procedures in
procedures changes, for new coffee the new coffee
order to be
there will be more shop. And shop.
profitable, for that
legal requirements reason will be contact the The council will
needed needed new policies council for the be coming in to
and procedures. new legal check.
requirements
Discrimination, Develop a written 4 Rufus and Emma Rufus and Emma
harassment, and policy that defines Weeks will be required to established new
bullying may occur rules and develop a written policies and
procedures, policy that procedures for
establish a defines rules and resolving
consistent
procedures, discrimination
process for resolving
establish a issues, and they
discrimination
consistent process will keep
issues, continually
educate the for resolving monitoring
employees on their discrimination employees.
role in preventing issues.
discrimination and
keep monitoring
them.
Frequent network It needs to be 2 Rufus and Emma The technician
failure. organized and fixed Weeks will be required to will be coming in

P a g e | 26
ASSESSMENT TASKS
as soon as possible. contact the to check and

Then the coffee shop technician. will fix.
can continue its
business without any
problems.
d) When you are finished with the action plan, seek feedback from you supervisor using your email. Amend the
plan as per the feedback. Paste the email exchange in the space below
Student exchange emails evidence to be pasted here to demonstrate feedback on the action plan
2.6. Role-play 2
a) Read the scenario below and complete as indicated.
Scenario 2
The action plan has been implemented. However, Rufus had a very busy schedule and was not able to contact the
Council within the 2 weeks to sort out the building fire-plan and update the records.
It was only last week that Rufus contacted someone to check the building to review and re-register a new fire-plan
with the Council.
The Council representative came and checked the building.
As the building is very old and new fire requirements have updated and changed in NSW the building fire plan was
not passed. This means that the coffee shop will not be able to trade until the building fire plan is fully compliant
with the Council has approved it.
Rufus realises that the coffee shop opening will be delayed as the building has timber fire stairs to the 2 nd floor of
the building which houses the store room.
The stairs must have metal cladding to make them compliant which will require a trades person to come and then
the Council needs to come back.
In addition, the current kitchen needs a new range hood and ventilation addition to the stairs. This is something that
Rufus and Emma did not realise. They were hoping to update the kitchen in a few months but it looks like that they
will have to update at least some of the kitchen before they will start trading to ensure the building is compliant with
the Council.
b) You are to communicate with your manager and team members up with your team again and adjust the risk
documentation and paste the new documents below. For this you are to re-attach the updated Action Plan
and the Risk Management Plan to demonstrate your adjusted documentation because of the changes of the
implemented action plan. (guide: ensure to put a new version control onto the new document)
Note: you can use MS TEAMS to meet or emails and paste them below
Paste the new risk documents below with version control clearly displayed on the document.
BUSINESS RISK RISK HAZARD RISK MITIGATION
Financial risk There will be an increased There will be needed
cost as they are opening Fundamental analysis,
new coffee shop. The costs the process of
include (fixed, variable, measuring a security's
direct, indirect). intrinsic value by
evaluating all aspects
of the underlying
business including the
firm's assets and its
earnings
Management risk Due to the opening new CoffeVille will have to
coffee shop, there will be structure their policies
many changes, policies and procedures in

P a g e | 27
ASSESSMENT TASKS
and procedures changes, order to be profitable,

there will be more legal for that reason will be
requirements needed. needed new policies
and procedures.
Social risk Discrimination, Develop a written
harassment, and bullying policy that defines rules
may occur. and procedures,
establish a consistent
process for resolving
discrimination issues,
continually educate
the employees on their
role in preventing
discrimination and keep
monitoring them.
Customer services If employees are not fully It needs to be
deliver risk trained cannot provide organized and fixed as
high-quality services, soon as possible. Then
which is the reason for the coffee shop can
customers’ dissatisfaction. continue its business
without any problems.
Technological risk Frequent network failure. It needs to be
organized and fixed as
soon as possible. Then
the coffee shop can
continue its business
without any problems
Email exchange and feedback – if you wish to use MS TEAMS the meeting must be recorded, use this space to advise the name of the recording.
c) Advise where the new action and amended plans are to be saved and explain the process and why? (guide:
30+ words)
Advise where the new plans are to be saved and about the security and access for staff to ensure access but also risk
of security of the document is not breached.
It should be kept in the CBD head office because files need to be secured, to ensure that unauthorized
personnel cannot access them. To ensure that the organisation’s confidentiality and the privacy of the
team members and external specialists are maintained, files are usually kept under lock and key, in a
secured location.

P a g e | 28
ASSESSMENT TASKS
ASSESSMENT TASK 3: REVIEW KNOWLEDGE QUESTIONS

This is the third assessment task which consists of 5 review questions and a report based on a scenario. You must complete all the knowledge questions at the required level
to get a “Satisfactory” outcome.
 legislative and regulatory context of the organisation in relation to risk management
 organisational policies, procedures and processes for risk management, including document storage
 types of business risks, options for treating risks and risk management process
 purpose and key elements of current risk management standards
 tools and techniques to identify risks to scope risk management processes.
Assessment will be conducted in a safe simulated environment where you will have access to:
technology, resources, workplace documentation and templates relating to risk management, scenarios, workplace information access to others to complete practical
activities and access to legislation, regulations, standards and codes relating to risk management
Review the CoffeeVille case study, scenarios and all work you have completed and answer the following questions.
Scenario 3
You and your team discussed and adjusted the risk documentation and updated the Action Plan and the Risk
Management Plan which was again implemented.
Emma and Rufus want to ensure and confirm that the café continues to be compliant they asked you to develop a
new report and review:
 And advise them of any additional requirement resulted from the improved amended action plan and risk
management practices relevant to legislative and regulatory frameworks
 the café’s policies, procedures and processes for risk management, including document storage, and meet the
regulatory requirements
 all relevant types of business risks including any new business risks identified witnin the new action plan
 additional options for treating risks and risk management process that the café can implement now that the new
action place is implemented
 and confirm the purpose and key elements of current risk management standards and how the café complies
 any additional and available tools and techniques to identify future risks to scope risk management processes.
Review questions:
3.1. Review the legal framework in relation to the café’s risk management against the new implemented action plan
and:
a. List all legislative and regulatory risk management responsibilities relevant to the updated action plan
b. List organisational policies, procedures and processes for risk management, including document storage
relevant to the new implemented action plan
3.2. List all types of business risks and options for treating risks that are relevant to the new action plan
3.3. List any new risk management processes that have been implemented since the new action plan was
implemented
3.4. Explain the purpose and key elements of current risk management standards relevant to the new action plan
3.5. List available tools and techniques to identify future risks to scope risk management processes to ensure the
café maintains compliant with their risk management practices.
Use the report template below
CoffeeVille Report
Report name Lucilyn Latosa Date
Report author Report for Rufus and Emma
legislative and regulatory risk management responsibilities This is action will be updted and added to evaluate the staff and
relevant to the updated action plan cafe job requirment
(advise which are new and why they were added)
REQUIRED DOCUMENTATION
Reclassifications, Career Progressions, and addition of
significant, permanent , the completion of the Salary Adjustment

P a g e | 29
ASSESSMENT TASKS
and Reclassification Request for Approval.

Responsibilities should have an updated job description to
reflect the change in duties.
Leading the change management activities within a structured

process framework.
Designing the strategic approach to managing change and
support operations that fall within the domain of change
management.
This is added because you can use this for clarification in the
future to implement your policies and procedure in your
workplace.
Supporting training and communication as part of change
management. Activities may include designing or delivering
specialized training resources to appropriate userbase.
organisational policies, procedures and processes for risk Evaluating the risk of change and providing actionable
management, including document storage relevant to the guidelines on reducing the impact.
new implemented action plan Evaluating resistance in adopting the change at the user,
(advise why these are needed and if they needed to be amended for future) process, and technology level.
Managing the change portfolio, which allows the organization to
prepare for and successfully adopt the change.
Authorize minor change requests and coordinate with the
Change Advisory Board for changes presenting higher risk.
Conduct post-implementation reviews to assess the decisions and
performance related to the change request.
guidance on setting the context of the strategies, as well as
providing ideas about what should and should not be
purpose and key elements of current risk management
implemented as part of the risk management strategy. Many
standards relevant to the new action plan
standards provide advice on how to best to quantify and classify
risk.
Strategic Risk
Strategic risk arises when a business does not operate according
to its business model or plan. When a company does not operate
according to its business model, its strategy becomes less
effective over time and it may struggle to reach its defined goals.
types of business risks and options for treating risks that are
relevant to the new action plan
Compliance Risk
The second form of business risk is referred to as compliance
risk. Compliance risk primarily arises in industries and sectors
that are highly regulated.
Operational Risk
any new risk management processes that have been The third type of business risk is operational risk. This risk
implemented since the new action plan was implemented arises from within the corporation, especially when the day-to-
day operations of a company fail to perform
What available tools and techniques are there available for None i think this risk management risk is enough for this action
the café to use which will help staff and management to: plan
 identify future risks  Identify future risks
 to scope risk management processes and practices Documentation Reviews
Information Gathering
Techniques
Brainstorming. ...
Swot Analysis (STRENGTH, Weakness, Opportunities And
Threats)
 To scope risk management processes and

practices
By using a scope management plan, project managers can define

and map their project, so it remains within the planned scope.

P a g e | 30
ASSESSMENT TASKS
The scope management plan helps project managers allocate

resources in such a manner that the project can finish on time,
within budget and with the quality expected by stakeholders.
Project scope management is about:
Planning the process to define the work that must be done

throughout the project
Controlling and monitoring those processes
Documenting and tracking to avoid scope creep when approving
or disapproving changes
Closing, including an audit of deliverables and assessing the
outcome against the plan

P a g e | 31

LMAD 3.1 Student Assessment 1

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ASSESSMENT TASKS

SBTA Term reference: LMD-20_3.1_Business Risks

ASSESSMENT TASK 1: PRACTICAL ACTIVITIES

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

 Coffee and food offerings that exceed awareness.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

Meeting Minutes Template:

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

ASSESSMENT TASK 2: DEVELOPING RISK MANAGEMENT PLAN

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

 Owner previously experienced in hospitality  coffee.

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

- Customer service policy

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

DESCRIBE INHERENT RISK

The building will be

Due to the opening

Develop a written policy that

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

Frequent network It needs to be organized and fixed

Prioritise on the Risk Matrix -

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

c) Evaluate and priorities the business risks for treatment;

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

Risk Management Plan Name and overview Establishing risk context

To implement an action plan, create a

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

- Work health and safety

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

To implement an action plan, create a communication

If employees are not fully trained cannot provide high-

Due to the opening new coffee shop, there will be many

Develop a written policy that defines rules and

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

highly trained and motivated staff.

Food Act 2003 (NSW)- Improper disposal of food waste

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

Good record keeping can be your proof that you have

The building will be non-compliant and the 5

1 Financial risk There will be an increased There will be

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

for that reason

Rufus will be required to contact

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

as soon as possible. contact the to check and

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

and procedures changes, order to be profitable,

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

ASSESSMENT TASK 3: REVIEW KNOWLEDGE QUESTIONS

LMAD_3.1 – BSBOPS504 Assessment Tool Version 1 dated: 16 July 2021

and Reclassification Request for Approval.

Leading the change management activities within a structured

 To scope risk management processes and