GUIDE TO THE ASSESSMENTS TASKS Assessment Task 1: Risk review
Outcomes
Submit a completed written report? Submit notes of meeting (including feedback) with manager/supervisor (assessor)? Submit a draft communication to be used with stakeholders? Submit report and accompanying documents in agreed timeframe?
Performance indicators Scope – covering at least the following. a. Project – MacVille to expand their operations in Queensland and purchase and re-brand an existing cafe in Toowoomba. b. Business unit – MacVille Cafes Queensland. c. Risk in relation to functions – human resources management, financial operations, OHS, supply chain, local governance and compliance issues. Goals – should include some of the following. a. To appropriately manage the risks involved with the operation of the Toowoomba store. b. To give the new manager significant insights into the store’s operations. c. To ensure there is a smooth transition to the MacVille systems. d. To encourage the new manager to give ongoing support for risk management. See stakeholder feedback table in Appendix. Analysis. a. PEST analysis should include at least the following. i. Political – federal legislation concerning efficient water usage, by-law allowing cafes to expand their footpath dinning. ii. Economic – gross regional product growth of 8.9%, number of visitors down 18%. iii. Social – place for retirees, population growing. iv. Technology - WIFI in cafe, an innovative frozen par-bake cooking system, Federal Government’s National Broadband Network. b. SWOT analysis should include at least the following. i. Strengths – store on the corner of the two main streets of the city, innovative and popular range of rice wraps. ii. Weaknesses – the lack of sales promotion techniques, fit-out in parts looked old and unattractive.
iii.
Opportunities – opportunities for opening more cafes in the surrounding shopping centres, by-law allowing cafes to expand their footpath dinning. CBD, legislation concerning efficient water usage.
iv. Threats – international chain of coffee shops opening a store in the Toowoomba
Research information should include the source, primary/secondary data, key information gathered. a. Site visit with James Mansfield – primary data – store operations (fit-out, cash handling, promotions, employment, water usage). b. Interview with Ron Langford – primary data – external environment (by-laws, government legislation, economic, expansion options, competition, technology plans). c. Extract from Toowoomba regional council – secondary data - economic indicators (tourist numbers, unemployment, population growth, regional growth). d. Extract from MacVille NSW – secondary data – key problems (problems with acquiring and re-branding existing stores). Checklists, flowcharts and diagrams should include the following. a. Human resources management risk. i. No written policy and procedures manual and limited staff training – could lead to errors and inappropriate actions. ii. Authorisation system not clearly defined – could lead to fraud. iii. Lack of sales promotion techniques – impacts of the stores financial viability. b. Financial operations risk. i. No separation of duties – could lead to fraud. ii. The banking was not done every day and was kept on the premises overnight without a safe – assets not protected could lead to thief. iii. 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. c. OHS risk. i. Manager two hour drive to and from weekly manager’s meeting – could lead to physical injury. ii. Unstable and broken chairs – customers injured – compliance breach and customer suing, reputation loss. iii. Carpet that was worn through was simply taped over with gaffer tape - compliance
breach and customer suing, reputation loss. iv. 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. d. Supply chain risk. i. Impractical to deliver fresh pastry from the company’s central bakery plant in timely manner – brand loss, quality service loss. ii. Supply of company branded supplies – brand loss.
e. Local governance and compliance risk over. i. ii. iii.
Water use – company could be fined – reputation/brand loss. Incomplete employment records – unions could sue – government penalties – reputation/brand loss, $50,000 fine. Confidentially of records not guaranteed – privacy law breach.
Notes should: a. be a summary of all discussions with manager (assessor)
b. be in dot-point form c. should include recommendation made by the manager to the candidate, especially
recommendation for methods of communication with stakeholders. Draft communication should: a. be in the format suggested by the manager
b. be a working draft of the communication c. ask for input from stakeholders.
Appendix – Stakeholder feedback table
Stakeholder The board
Internal/external Internal
Role in process Responsible for the overall risk management. Chief Executive Officer. Management team to assist in the transition and ongoing management. Councillor and landlord. Hurley’s store supervisor. Employees. Legal and compliance advice.
Issue/concerns Potential asset loss both tangible and intangible. Potential loss of reputation and promotion prospects. Potential loss of reputation and promotion prospects.
Paula Kinski
Internal
Queensland management team
Internal
Ron Langford James Mansfield Hurley’s staff Goldsmith Partners
External Internal Internal External
Potential loss of a tenant. Potential loss of promotion. Potential loss of employment. Potential loss of a client & potential for being sued for advice given.
Assessment Task 2: Risk analysis Report
Outcomes
Submit a completed written report?
Submit a risk management table?
Submit report and accompanying table in agreed timeframe?
Performance indicators Likelihood. a. Banking risk. Theft of cash left on premises – moderate. b. Manager’s travel risk. Physical injury – unlikely. c. By-law Compliance risk. Reputation/brand loss and fines – likely. Consequence. a. Banking risk. Theft of cash left on premises – minor. b. Manager’s travel risk. Physical injury – catastrophic. c. By-law Compliance risk. Reputation/brand loss and fines – moderate. Priorities. d. Banking risk. Theft of cash left on premises – moderate #3. e. Manager’s travel risk. Physical injury – extreme #1. f. By-law Compliance risk. Reputation/brand loss and fines – high #2. Options should include at least two of the following. a. Banking risk – theft of cash left on premises. i. Change banks to a closer. ii. Install a safe. iii. Take out insurance for cash on premises. b. Manager’s travel risk – physical injury. i. Allow for overnight stay in Brisbane. ii. Allow manager to fly instead of drive. iii. Finish the managers meeting early. iv. Allow the Toowoomba to use video conferencing. c. By-law compliance risk – reputation/brand loss and fines.
i. Install a water tank for store use and change to native plants. ii. Introduce water saving devices – dual flush toilet, 5-6 star rated (WELS) dishwasher. iii. Change work practices – wash fruit and vegetables in still water, only run dishwasher when full, select economy cycle if only a light wash required. iv. Apply to the council for time to ‘make good’ as the new owners.
Assessment Task 3: Monitoring report
Outcomes
Submit a completed written report? Submit report in agreed timeframe?
Performance indicators Plan should include: a. Banking risk – theft of cash left on premises – initially rated as moderate. i. Insurance on ‘cash on premises’. ii. Open an account with closest bank. iii. Policy and procedure requirement to bank daily. b. Manager’s travel risk – physical injury – initially rated as extreme. i. Management meetings to finish 3:00pm. ii. Install teleconferencing. iii. Management training shift to morning half day sessions. c. By-law Compliance risk – reputation/brand loss and fines – initially rated as high. i. Apply for time to ‘make good’. ii. Policy and procedures to change work practices. iii. Install water saving devices such as native plants, tank, dual flush toilet systems, 5-6 star (WELS) dishwasher. Implementation should include: b. Banking risk – theft of cash left on premises. i. The financial controller had taken out $5,000 the insurance cover on cash held on premises overnight from the opening week as planned. ii. The company bank account was opened about 4 weeks after opening at the bank two shops down the street. iii. The training on daily banking has been successfully completed. c. Manager’s travel risk – physical injury – initially rated as extreme. i. The weekly management meetings are finishing close to 3:00pm. ii. The assistant management training has been shifted to the mornings allowing the manager to leave before 1:00PM. d. By-law Compliance risk – reputation/brand loss and fines – initially rated as high.
i. An external audit was completed and presented to the board 6 months after settlement. ii. The board and CEO included a new policy regarding compliance with the Toowoomba by-law on water conservation. iii. The plants have been changed to natives. iv. The dual flush toilets are ordered and in stock. v. The 5 star rated (WELS) dishwasher was installed. vi. The application to make-good by Goldsmith Partners on behalf of MacVille, was accepted by the Toowoomba City Council. vii. There has been one internal audit arranged by the store. viii. A water tank had been built in to the courtyard. ix. There is a weekly water usage monitor in the staff room Outcomes should include statement of current risk and reasons. a. Banking risk – theft of cash left on premises – initially rated as moderate now low due to insignificant consequence (insurance cover) and ‘unlikely’ likelihood because cash rarely kept on the premises. b. Manager’s travel risk – physical injury – initially rated as extreme still high. Likelihood reduced to rare with the change in time travelled. c. By-law Compliance risk – reputation/brand loss and fines – initially rated as high now moderate due to unlikely likelihood with the installed water saving devices and processes. Evaluation. a. Banking risk – theft of cash left on premises – initially rated as moderate reduced to low. Could be made more effective by 100% compliance with the daily banking directive and removal of expensive insurance on overnight cash on premises. b. Manager’s travel risk – physical injury - initially rated as extreme and reduced to high because of the continued travel. Introduction of tele-conferencing would reduce this risk to nil. CEO should provide an excusal letter to ensure the manager leaves at the appropriate time. c. By-law Compliance risk – reputation/brand loss and fines - initially rated as high and reduced to moderate but could be reduced again to low by having Brisbane plumbers install the tank and the dual – flush toilets in the next 14 days. Monitor should be constantly updated to keep staff motivated and a procedure should be written. More internal audits are required. 