For the MacVille Pty Ltd simulated business scenario provided, you are required to assume the role of Brisbane store Assistant Manager, Ash, who has just been promoted to be Manager of a new store. Ash has been tasked with conducting a risk management analysis of this new venture.

There are three stages to this project: (1) review, (2) analyse and plan, and (3) monitor. This project is divided into three assessment tasks as follows:

For this task, you are to use the information you gathered in Assessment Task 1, along with the simulated business information provided, to examine the likelihood and consequence of identified risks, prioritise the risks and determine options for treatment of each risk. Using this information you are required to develop a risk management action plan for implementing risk treatment, document the plan as required, and communicate the risk management plan to relevant parties.

Procedure                                                                                              

Part A

1. Review the MacVille simulated business scenario information and documentation provided in the Appendices of this task and in Assessment Task
2. Develop a report for the CEO (your assessor) that includes the following:
   1. For each risk (i.e. the four identified in the scenario for this task), assess the likelihood of the risk
   2. For each risk, assess the consequence of the risk
   3. Develop a risk matrix to assist in prioritising the treatment of the identified risks, including numerical values (e.g. risk matrix in the Student Workbook).
   4. Once you have prioritised the risks, for each, outline at least two suitable options for
   5. Include an explanation of the process you used to identify risks and assess likelihood, consequence and Also include an explanation of why the options you have suggested for treating the risks are:
      1. likely to be effective
      2. feasible for the organisation.

Note: Ensure your report is written in a style appropriate to your stakeholder audience, for example, using appropriate language and including appropriate illustrative material (such as checklists, diagrams or flow charts) and attachments to support your findings and process.

3. Develop an action plan (you may use the Risk Management Action Plan template provided in Appendix 3 of this task) for implementing risk treatment and attach it to your
4. Communicate your analysis to the Board of Directors by submitting your risk analysis report, along with your risk management plan, to the CEO (your assessor) for internal

Part B

1. Implement your risk management treatment of one key risk, such as decreased brand recognition, in accordance with the requirements provided to you by the CEO (your assessor). You will need to discuss and agree with your assessor how to provide evidence of your
2. Submit the required documents for assessment as per the specifications Be sure to keep a copy for your records.

Specifications                                                                                      

You must:

• submit a risk analysis report, including a risk matrix
• submit a completed risk management action plan
• implement one risk treatment and submit evidence as agreed with your

Your assessor will be looking for evidence of:

• reading skills to gather, review, interpret and analyse text-based business information from a range of sources in order to evaluate risk
• written skills to organise and deliver information to effectively communicate risk management analysis and plan to a range of stakeholders
• numeracy skills to interpret mathematical data when reviewing and analysing scenario business information and evaluating risks and treatment options
• ability to work independently to evaluate risks and make decisions about treatment options
• ability to interact with others using appropriate conventions when communicating to, and consulting with, stakeholders
• ability to sequence and schedule activities and manage communication
• ability to analyse relevant information to identify and evaluate treatment options
• ability to use familiar digital technology to access information, document findings and communicate them to stakeholders.

Appendix 1: Scenario – MacVille Pty Ltd simulated  business

Background

The MacVille Board has reviewed the previous report you developed, and has requested further information for four of the identified risks, including options for reducing the risk levels. These risks are as follows:

• Banking risk – theft of cash left on
• Manager’s travel risk – physical
• By-law compliance risk – reputation/brand loss and fines
• Loss of brand recognition risk – brand non-compliance of staff not wearing the MacVille uniform, or altering MacVille processes and service

Timelines to consider are based on risk priority levels and include the following:

• Pre-settlement – date of legal transfer of the business.
• Opening week – first week of company operations.
• Within three months – after the opening
• Within six months – after the opening

Responsibilities for actions include the following.

• Financial, insurance and banking issues – Financial
• Legal issues – Goldsmith
• Expenditure >$5,000 – MacVille Board of
• New policy – CEO with MacVille Board of
• On-site management, training – Store
• Changes to MacVille Café Queensland operations –
• External audits – CEO with MacVille Board of

Develop a report for the Board of Directors that examines these risks and describes ways that each can be treated, and forward a copy of your report to the CEO to table at the next Board meeting.

Appendix 2: Revised notes from previous meetings

Site visit – New Toowoomba store (the existing Hurley’s Café)

Meeting with James Mansfield

You revise your notes from the meeting with James Mansfield and identify the following points.

Meeting with Ron Langford

You revise your notes from the meeting with Ron Langford and identify the following points.

Senior management team meeting

You go back over your notes compiled with the senior management team and note the following.

Brainstorming ideas

Looking at the hierarchy of control, the senior management team were able to give you some good brainstorming ideas to pursue. These include the following.

• Installing native plants to cut down water use.
• Making it a company policy to bank every day and eliminate the need to carry
• Install a teleconferencing
• Install a water tank and reduce dependence on council
• Change banks to the nearer one to avoid the long
• Install dual-flush toilets.
• Insure overnight cash
• Finish management meetings at 00 pm.
• Introduce new processes on water use and
• Change assistant manager training times to the morning.
• Write new policy and procedures for water use in
• Install a water-usage graph in the staff
• Give the manager an excusal letter allowing them to leave any meeting at no later than 00 pm every day.
• Replace the dishwasher with one that has a 5–6 star (WELS)
• Have Goldsmith Partners apply for time to ‘make good’.