BSBRSK501B Manage risk Assessment Task 1

• Lack of internal controls, particularly over cash handling, monitoring and recording.
• Failure to meet compliance standards in WHS, Privacy and industrial relations law.
• Lack of written policy and procedures to guide staff in carrying out their duties.
• Lack of a professional business culture in the family run business.
• Failure of the business to monitor the external environment and find opportunities and threats to the business.

1. Goals – should include some of the following.
2. To appropriately manage the risks involved with the operation of the Toowoomba store.

• Case - The computer with all the stores employee details, and financial records was not password protected and anyone could access the information.
• Solution - Make a ID and Password.

1. To give the new manager significant insights into the store’s operations.
2. To ensure there is a smooth transition to the MacVille systems.

2. To encourage the new manager to give ongoing support for risk management.

3. PEST analysis should include at least the following

• Opening more cafes in the surrounding shopping centres like Wilsonton, Clifford Gardens and K-Mart Plaza.
• Government report ‘Economic Brief.’
• Toowoomba was obviously a place for retirees
• Federal Government’s National Broadband Network being rolled out in Toowoomba
• law for expansion to café
• Enquiries of a large international chain of coffee shops

SWOT analysis

• Strengths – store on the corner of the two main streets of the city, innovative and popular range of rice wraps.
• Weaknesses – the lack of sales promotion techniques, fit-out in parts looked old and unattractive.
• Opportunities – opportunities for opening more cafes in the surrounding shopping centres, by-law allowing cafes to expand their footpath dinning.

4. Research information should include the source, primary/secondary data, key information gathered.

1. Site visit with James Mansfield- primary data: store operations

• Fit-out - old, unattractive, unstable, broken, worn
• Cash handling - keep on the premises overnight in the cash register
• Employment - a family run store and some family members were employed on the staff.
• water usage - 41,500lt a week
  1. Interview with Ron Langford – primary data: external environment
• government report ‘Economic Brief.’
• National Broadband Network
• By-law: cafes to expand their footpath dinning and so put more tables and chairs outside their premises.
• international chain of coffee shops had been making enquiries around town about opening a store
• by-law concerning efficient water usage
  1. Extract from Toowoomba regional council – secondary data: economic indicators
• tourist numbers -15,656 (2010/11), 10,700 (2009/2010)
• unemployment – 3,446 (2011), 2,991 (2006)
• population growth - obviously a place for retirees
• Regional growth - Throughout the second half of the nineteenth century, Toowoomba would prosper, being proclaimed a municipality in 1860, a township in 1892, and a city in 1904.
  1. Extract from MacVille NSW
• Lack of internal controls, particularly over cash handling, monitoring and recording.
• Failure to meet compliance standards in WHS, Privacy and industrial relations law.
• Lack of written policy and procedures to guide staff in carrying out their duties.
• Lack of a professional business culture in the family run business.
• Failure of the business to monitor the external environment and find opportunities and threats to the business.

5. Checklists, flowcharts and diagrams should include the following.

1. Human resources management risk.
   1. No written policy and procedures manual and limited staff training – could lead to errors and inappropriate actions.

Coffee shop strives to maintain an environment free from discrimination and harassment, where employees treat each other with respect, dignity and courtesy.

1. Authorisation system not clearly defined – could lead to fraud.

Coffee shop must follow proper procedures and exercise internal controls when handling the collection and deposit of cash and checks. A system of internal controls is designed to provide reasonable assurance that errors will be detected and corrected in the normal course of activities

• Lack of sales promotion techniques – impacts of the stores financial viability.

Be sure to offer free Wi-Fi in your shop, for example, and to install electrical outlets at each table for laptops. Book live entertainment in your shop on a regular basis, host poetry readings and other events with a community feel. If consumers have more than one coffee shop option in your area, make sure your shop offers something the others do not, so that patrons want to bring their friends to see the difference.

1. Financial operations risk.
   1. No separation of duties – could lead to fraud.
   2. The banking was not done every day and was kept on the premises overnight without a safe – assets not protected could lead to thief.

• Not all takings from the cash register by family staff members were recorded – unacceptable behaviour in a company store and could lead to misappropriation of funds.

1. WHS risk.
   1. Manager two hour drive to and from weekly manager’s meeting – could lead to physical injury.
   2. Unstable and broken chairs – customers injured; compliance breach and customer suing, reputation loss.

• Carpet that was worn through was simply taped over with gaffer tape – compliance breach and customer suing, reputation loss.

1. No established process for dealing with injuries happening at work – staff need a quick and organised response to injuries; staff work loss, unions suing, reputation loss.

1. Supply chain risk.
   1. Impractical to deliver fresh pastry from the company’s central bakery plant in timely manner – brand loss, quality service loss.
   2. Supply of company branded supplies – brand loss.
2. Local governance and compliance risk over.
   1. Water use – company could be fined – reputation/brand loss.
   2. Incomplete employment records – unions could sue – government penalties – reputation/brand loss, $50,000 fine.

• Confidentially of records not guaranteed – privacy law breach.

6. Notes should:

1. be a summary of all discussions with manager (assessor)
2. be in dot-point form
3. should include recommendation made by the manager to the candidate, especially recommendation for methods of communication with stakeholders.

• Lack of internal controls, particularly over cash handling, monitoring and recording.
• Failure to meet compliance standards in WHS, Privacy and industrial relations law.
• Lack of written policy and procedures to guide staff in carrying out their duties.
• Lack of a professional business culture in the family run business.
• Failure of the business to monitor the external environment and find opportunities and threats to the business.

7. Draft communication should:

Decisions to rectify problems are made at regular meetings of the senior management team. Comprehensive reporting at board and sub-committee meetings is designed to monitor key risks and their controls.