Manager risk

For the provided case study, assume the role of the risk manager/assessor. 1. Review the provided MacVille Risk Management Policy and Risk Management Strategy and complete a written report for your manager (assessor) that addresses the following steps. a. Scope – Identify the scope of risk management required in your identified role. b. Goals – Identify and describe the critical success factors, goals or objectives for areas included in scope. c. Stakeholders – Identify internal and external stakeholders, their role in the process, and any issues or concerns they have. Present this using the template provided on page 10. d. Analysis – Complete a PEST analysis and a SWOT analysis for risks associated with the scenario. Include relevant legislations. e. Research – Review and summarise the research information provided in the case study, as well as any literature available that is relevant to this scenario. f. Describe - Complete the analysis of risk for the scenario by summarising the scenario and identifying a list of risks to the project 2. As part of your discussions you also need to discuss how you can communicate with stakeholders about the risk management processes in this scenario and invite them to participate in discussions to further identify risks associated with the scenario. a. Your email should clearly ask stakeholders for input, include a list of risks you have identified and invite them to assist in identifying any additional risks for this scenario. Case Study: Scenario As part of their overall strategy in the Australian beverage market, MacVille Pty Ltd have developed a chain of cafes in the Central Business District (CBD) of Brisbane, Queensland and the CBD of Sydney, NSW. The board of directors have made the decision to expand their operations in Queensland with the purchase and re-branding of the existing Hurley’s cafe in Toowoomba, 130km west of Brisbane. You are currently the assistant manager of their flagship store in Queen Street, Brisbane, and have been given the opportunity to manage the new store in Toowoomba. The CEO for MacVille’s cafes in Queensland is Paula Kinski. You are a member of the Finance, Audit and Risk Management (FARM) Committee described in the MacVille Risk Management Policy. Paula has assigned you the task of managing the risks involved with the operational aspects of this take-over. A copy of her email is attached. Email from CEO – Paula Kinski From: CEO – P.Kinski To: Assistant Manager – Queen Street Re: New Toowoomba store Congratulations on your new appointment. Prior to taking up your position as manager of our Toowoomba store located in Ruthven Street, the board has asked that the risks in this project be appropriately managed. I want you to undertake this task as it will give you significant insight into the store’s operations, it will ensure a smooth transition to the MacVille systems and will encourage you to give ongoing support for our risk management initiatives. I would like you to approach this task in three stages and meet with me at the end of each phase to review your work and discuss your plans for the subsequent phases. The three stages in this risk management task will include: 1. Review. 2. Analyse and plan. 3. Monitor. Your primary risk management focus is directed to the ongoing operations of the Toowoomba cafe. The strategic and investment risks of this project are being managed by the board. To this end, you are to consider any risks that could impact on human resources management, financial operations, WHS, our supply chain and the local governance and overall compliance issues. By way of background, MacVille has agreed to employ all existing staff on three months probation. The current supervisor James Mansfield, has been offered the position of 2nd in charge and he has accepted. While settlement on the purchase of the business is not for another few weeks, the seller has agreed to grant us full access to the store’s operational processes and store information. You should liaise weekly with the Finance, Audit and Risk Management (FARM) Committee here at head office concerning the marketing, finance and store management functions that you are investigating. I will set up a regular meeting for you. Head office has a report on a similar expansion conducted by the NSW team that may help you in your research. You may need to review other statistical information and engage specialists to help you with your investigation. The legal firm Goldsmith Partners are advising MacVille on the Hurley cafe acquisition and would be available to help you with legal or any compliance issues. The landlord of the shop in Toowoomba, Ron Langford, is also a local councillor and has offered his assistance in getting established in Toowoomba. He has offered his email address for correspondence ([email protected]). Once I have received and discussed your risk review report, we can move onto the next stage of the risk management process. Regards P.Kinski CEO MacVille Cafes (Qld) Site visit – Toowoomba You received permission from Paula to travel to the Toowoomba store to start your research. Paula had cleared it with James Mansfield the current senior supervisor who will spent most of the day with you helping answer your queries. You arrived at the cafe and noted the two hours of drive time that it took to get to the cafe from the CBD of Brisbane. You met with James who took you through a complete overview of the store and the surrounding area. He was OK with the idea that you needed to take notes in preparation for a report. Paula had also arranged for you to meet with Ron Langford in his office later that afternoon. Hurley’s Cafe After lunch, you went over your notes to revise and edit key concerns and significant events that you had written down earlier. ● The location of the store on the corner of the two main streets of the city makes easy access for local customers and highly visible for tourists. ● The long drive from Toowoomba to Brisbane would make attending the weekly managers meeting difficult considering many meetings did not finish until into the evening after refreshments. There is also manager training sessions that need to complete over the next 6 months in conjunction with a few other assistant managers. Navigating the steep narrow climb up the range with trucks blocking the way is quite difficult even in daylight hours. Being a competent driver you feel that it would be unlikely that you would be involved in an accident, but it still concerns you considerably. ● The two hour delivery would make fresh pastry deliveries from the company’s central bakery plant impractical. The pastries would arrive after the morning rush. These are a key part of the MacVille assortment. ● There is also a concern about getting the company branded supplies through as quickly as a CBD Brisbane store could. ● Hurley’s cafe was a family run store and some family members were employed on the staff. James was engaged by the family to supervise the operations of the store and Mr. Hurley as manager would authorise wages but anyone can authorise deliveries. ● When asked about written policy and procedures manual, James said that Mr. Hurley set the policy and procedures verbally and on the few days each week he was in the store he would show the staff how to do things the way he wanted them done. ● Water use – Running the dishwasher when only half full. Washing fruit and vegetables under a fast running tap. Toilets all used the single flush system. Dual flush would cost about $7,500 to upgrade. The dishwasher was always set to full wash and had a Water Efficiency Labelling and Standards Scheme (WELS) rating of 3. The more water efficient 5-6 star dishwashers cost about $6,000 and above. James explained that Mr Hurley instructed the staff to keep the non-native flowering plants in the courtyard fully watered. The store currently uses 41,500lt a week. ● James spoke about the cafe attracting a large % of retirees because of the easy access to busses and the stores central location. ● The same staff member that completed the cash register balancing also completed the bank deposit form and did the banking as well. The banking was not done every day and often $4,000 was kept on the premises overnight in the cash register. There was no safe. There is a bank two shops away but the Hurley family bank is a couple of blocks away and there was not always time to do the banking. ● James replied to you question about the possibility of break-ins saying that there was a 50% chance of it happening and the risk was moderate. ● Not all takings from the cash register by family staff members were recorded. ● The fit-out in parts looked old and unattractive, with some chairs unstable and broken and some parts of the worn carpet was simply taped over with gaffer tape. ● One of the staff was a qualified chef who had developed an innovative and popular range of rice wraps that were tasty, gourmet and healthy. None of the other cafes in the area offered these. ● No established process for dealing with injuries that happened at work. ● James gave a brochure about an innovative frozen par-bake cooking system that was under the limit set by council for an exhaust system yet it cooked fresh bakery items in 30 minutes from frozen par-baked pastries. ● The computer with all the stores employee details, and financial records was not password protected and anyone could access the information. ● James’s response to your question about the lack of sales promotion techniques was that he could not get the staff interested in the activity so he stopped trying to make it happen. ● The employee detail form requested information about the employee’s entire past health issues. ● The wage and superannuation records seemed to be incomplete with many calculations being worked out by the number of hours worked multiplied by a set ‘in the hand’ amount. ● James also provided a brochure about a company that could come and set up WIFI in the cafe so that customers could use their computer notebooks and connect to the internet while they were dining in the cafe. Meeting with Ron Langford In the afternoon you met with Ron Langford in his office to discuss the cafe, council by-laws and aspects concerning the surrounding district. You took notes that included the following significant information. ● Ron explained that there were opportunities for opening more cafes in the surrounding shopping centres like Wilsonton, Clifford Gardens and K-Mart Plaza. ● Ron handed you an extract from a government report ‘Economic Brief.’ ● Ron explained that the Federal Government was now introducing legislation that backs up the local by-law concerning efficient water usage, particularly by industries. The current by-law has fines of up to $50,000 for excessive water breaches. Ron did explain that the council was giving some time to ‘make good’ under certain circumstances on a case by case basis. Ron also agreed with the idea of installing a water tank in the court yard for the cafe to use and would help get it built. ● Ron explained that Toowoomba was obviously a place for retirees and the population was growing. ● Ron spoke about the Federal Government’s National Broadband Network being rolled out in Toowoomba that would allow efficient and effective video streaming and teleconferencing. ● Ron spoke about the current by-law that was due for implementation on the 1st of next month allowing cafes to expand their footpath dinning and so put more tables and chairs outside their premises. ● Ron also spoke of the fact that representatives of a large international chain of coffee shops had been making enquiries around town about opening a store in the Toowoomba CBD. Senior Management Team and Finance, Audit and Risk Management (FARM) Committee meetings Soon after you got back from your research trip to the Toowoomba store, you attended two teleconferences. First, you met with the senior management team. At this teleconference, you discussed issues raised by James Mansfield and Ron Langford and the report on previous NSW expansion, which head office had given you: Report into the acquisition and re-branding of the NSW expansion store. Paula said that there may be some things to learn from the NSW experience. Key problems identified in the report were as follows: 1. Lack of internal controls, particularly over cash handling, monitoring and recording. 2. Failure to meet compliance standards in WHS, Privacy and industrial relations law. 3. Lack of written policy and procedures to guide staff in carrying out their duties. 4. Lack of a professional business culture in the family run business. 5. Failure of the business to monitor the external environment and find opportunities and threats to the business. The team agreed that similar issues would pose a risk to the Toowoomba expansion. You then held a teleconference with the FARM Committee. At the teleconference, you relayed the concerns of the senior management team. The FARM committee decided to allow you time to complete your review and then would include discussion of your review in the monthly board meeting.