BSBRSK501 Manage Risk Sample Assignment

Assessment Task

Part 1

According to the case study these are the four risk Coffeeville board has reviewed the previous report

Banking Risk

There is possibility of theft of cash that is left on premises as the banking in Café was not done every day and often $4000 was kept on the premises overnight in the cash register. It is a possible risk. Failure to meet the compliance standards of the industrial relationship law, privacy law etc.

Manager’s Travel Risk

It is an unlikely risk that the manager would involve in an accident in spite of being a competent driver because of the steep narrow climb up the range with trucks blocking the way that is quite difficult in daylight hours.

By-law Compliance Risk

It is an unlikely risk that if the employees or the manager use more water, they could get the fines for excessive usage of water and consequently breaching the current by-law will occur.

Loss of brand recognition risk

It is an unlikely risk that staff members not wearing the uniform or altering Coffeeville process and service expectation. During their day to day operations they should have to wear a common uniform to while serving to customers. Otherwise customers unable to recognize the staff members mix with other peoples.

Consequence: Failing to address risk can lead to consequences that span the spectrum from mere inconvenience to grave danger. The general level of consequence are Catastrophic, Major, Minor, and Insignificant.

Catastrophic Risk: like multiple injuries, regulatory intervention, net revenue loss or asset damage exceeds $x, damage to reputation at international level and long-term environmental damage.

Major Risk: such as single stakeholder, breach of licenses, legislation, regulation or mandated standards; net revenue loss or asset damage between $xxx, damage to reputation at national level and medium-term (1-5yr) environmental damage.

Minor Risk: like breach of internal procedures, net revenue loss or asset damage between $x-$xx, adverse news in local media and environmental damage which requiring up to $250,000.

Insignificant Risk: like no breach of licenses, standards, guidelines or related audit findings; net revenue loss or asset damage $x, public awareness may exist, but there is little public concern and negligible environmental impact.

	Insignificant	Minor	Moderate	Major	Catastrophic
Almost Certain	High	High	Extreme	Extreme	Extreme
Likely	Medium	High	High	Extreme	Extreme
Moderate	Low	Medium	High	Extreme	Extreme
Unlikely	Low	Low	Medium	High	Extreme
Rare	Low	Low	Medium	High	High

The allocation of a risk rating should prompt a decision to be made about the action to be taken, as below.

Extreme – immediate senior management action, e.g. multiple deaths of employees.

High – Action plan needed, allocated responsibilities, e.g. damage to valuable assets.

Medium – Risk requires only monitoring and review, e.g. loss of assets due to staff theft.

Low – Risk accepted – but not ignored, e.g. a paper cut

Priorities	Reason
High	Banking risk, Keeping cash of $ 4000 on the premises overnight is an extreme risk as there is possibility for theft and dangerous to employees.
Extreme	Manager’s travel risk is a high risk because of the long drive. Then the company has to substitute for the manager as well as to do the insurance for the manager in order to support the manager.
High	By-law compliance risk is medium risk as it is important to use the water effectively; otherwise the company end up with fine up to $ 50,000
Low	Loos of brand recognition risk is law level risk but company management should have to take the necessary action to prevent this risk too. Because customers may mix employees with other customers, instead of wearing uniforms helps to overtake this risk.

Risk	Risk treatment process
Banking risk	Deposit cash balance everyday Open bank account in nearest bank to the store.
Manager’s travel risk	Introduce life insurance to all the managers who are going to travel store by store for business purpose. Arrange accommodation to the managers
By-law compliance risk	Stay touch with all local laws and community laws in the area. Providing training to employees so they can deal their organizational work with more professionalism
Loos of brand recognition risk	Provide common uniform to all the employees. Train the employees to do effective customer service.

The consequences, priority and the likelihood of the risks can be identified from different monthly report, policies and process, risk management report and external audit report of the previous store and the current policy and practices of the Coffeeville Pty Ltd.

Risk action Plan

Risk	Assess Risk (L,M,H,E)	Controls	Monitoring	Action Priority(1-5)	Timelines	Responsible
Banking Risk	High	Depositing the money in the bank every day	By getting the weekly bank statement	5	2 weeks	Financial Controller
Manager’s Travel Risk	Extreme	Works, meetings should be finished before 3pm, so that the manager doesn’t have to drive at peak hours.	By checking the meeting times like what time the manager is finishing up the shift	4	1 week	CEO, New Policy
By-law Compliance Risk	High	Educating the employee about the effective usage of water	By checking the water usage bills monthly, read the water usage manual with the local councils.	3	1 – 2 weeks	Goldsmith partners, Store manager
Loss of Brand Recognition Risk	Law	Provide uniform to all employees. Educating all employees about the customer satisfactions and the customer service expectations	Advice all employees to wear uniform at all the work time and monitor and identify who is not going to follow the company rules.	1	1 – 2 weeks	CEO, New Policy, Store Manager

Part 2

Risk Treatment

Risk treatment involves a process to modify a risk by changing the consequences that could occur or their likelihood. This process requires creative consideration of options and detailed design, both inputs being necessary to find and select the best risk treatment.

Once implemented, risk treatments will either create new controls or amend existing controls.

The following need to be considered when choosing an appropriate treatment for a risk: acceptability to all, administration efficiency, capacity compatibility, continuity of effects, cost effectiveness, economic and social environment, equity, individual freedom, jurisdictional authority, objectives, regulatory, risk creation and timing

Loos of brand recognition risk is law level risk but company management should have to take the necessary action to prevent this risk too. Because customers may mix employees with other customers, instead of wearing uniforms helps to overtake this risk. If the employees not provide satisfaction customer service it could also cause another risk of their operations.

Provide advice all employees to wear uniform at all the work time and monitor and identify who is not going to follow the company rules and educating the employees about effective and satisfaction customer service can helps to overcome with this risk. Company management should have to start training their employees prior to new store opening and solve these issues within 2 weeks after the café opening...