Review and update your risk management plan

Assessment- 1

Ans 1. McVille is planning to expand its business in Queensland and rebranding their Hurley’s cafe in Wollongong. Therefore, the three documents to be considered are-

Identification of all internal and external pure risks including natural risks.
Review of existing risk control measures and offering comments.

Training sessions at regular intervals

The external areas that should be covered while planning a risk management plan are-

Political

Federal government has implanted the cut down water usage especially to the industries and if this is not followed than the fine may be imposed of $ 50,000.
Current law was imposed by the government from the next month to expand their footpath dinning by putting more chairs and tables.

Economic

Increase or decrease for interest rates

Customer’s budget should be kept in mind while setting up the prices of the products.

Technical

Analysing the market tools and new techniques

Strength

Weakness

Lack of financial income management.
Lack of written rules and regulations for the staff.

Opportunity

Great customers’ attraction as easy access for the retirees due to near bus stops and easy access to the local customers due to located on the corner of two major streets.
More dining area as the government has allowed putting more chairs and tables on the footpath.

Threat

Proper management of the cash.
Easy delivery
Better first aid facilities.
Proper advertisement of the cafe and its products.

Stakeholder	Internal/external	Role in risk management process	Communication mode to contact the stakeholders
Board of Directors	Internal	They help in decision making for the company and implement the particular policy there.	Via e-mail.
Senior management team and finance manager	Internal	They provide internal control.	Via teleconference.
Cafe employee	Internal	They promote growth to the cafe and inform the management about any risk coming across in the future.	Directly meeting them.
FARM committee	External	It reports the board management about the audits.	Via teleconference.
Goldsmiths partner	External	Advising of M&A and legal compliance issue.	Through direct meeting.
Supplier	External	Offers financial help to the company.	Through direct meeting.

Senior management team and store managers.
Cafe employees.

Monitor

The risk should be analysed at first and work upon the strategy accordingly. There should be proper risk management framework designed so as to implement it as soon as possible to work upon it. The monitoring should be done properly.

Using brainstorming diagram, it is easy to predict the risk in any project or company. In this technique, it is recommended that you have a defined project scope and that it happens before the first sprint planning [Storming, 2021].

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To determine the risk level, by assigning the risk level as low, moderate and high.

Ans 11. There are three treatments that could be considered to treat risks-

Sharing

Ans 12. Risk assessment should be viewed in the overall context of risk management and seen as one of the three key activities – risk analysis, risk assessment and risk mitigation – which facilitate the taking of decisions and actions to control risk appropriately.

Risk	Likelihood	Frequency
Policies updated and mandated regularly.	Rare	May only occur in exceptional circumstances.
Policies mandated but not updated regularly.	Possible	Might occur at some time.
No controls in place.	Almost Certain	Expected to occur in most circumstances.
Training is provided when needed.	Possible	At least once in a year.
No management monitoring reviews.	Likely	Will probably occur.

Measure frequency and severity
Examine alternative solutions

We need to test, evaluate and update risk management plan regularly as risk can change business, industry and environment from time to time.
Regularly reviewing is necessary to identify new risk and monitoring the effectives of your risk treatment strategies [Management, 2021].