Increase Efficiency for Manage Risk

Question: Discuss about the Increase Efficiency for Manage Risk. Answer: Introduction An investigation was recently conducted at the at the Toowoomba MacVille cafe, in order to Find out numerous things involved with opening a new store such as: new goals that can be achieved the stake holders involved the social, economic, politcal and technological features the strengths and weaknesses opportunities and risks research analysis The reason of this investigation was conducted was to gauge what was both good and bad about the new cafe opening, what needs to be changed in order to increase efficiency at work and any legislative laws involved. The conduction of the investigation was done in a way to view the aspects of staff members, the community, management and the government. This investigation has been conducted in a way which sees the aspect of management, staff members, governments, and the community. The main purpose of this report is to evaluate potential risks of Mac Villes Toowoomba branch. The risks to be identified are divided into three main parts: physical risk, bank risks, and by law-compliance risks. This report will analyze each of these risks in more details and suggest appropriate options of addressing those risks in order to reduce the probability of their occurrence. To start analyzing how an individual can manage risk, it is firstly important to define what risk is. It can be defined as an inability to accomplish the goals that have been set by the company. It is the probability of failure of any particular outcome, and what impact this failure would have on the company, or how the company will be affected if it fails to achieve its objectives. However it is not necessary that risk would result in a loss only, risk would be either that the company may or may not be able to achieve the targets that have been set. A business risk is interdependent on certain factors for instance the time sensitivity or other external environmental factors that could be the state of the economy. Risk management moreover is a process of evaluating the risk associated with a project or any business, for which it is crucial to plan and assess risk related issues. The process starts with first planning a strategy that would assist in identifying risk issues, once the r isk has been highlighted risk assessment can be done, to evaluate the cause and effects of the risk related to the business, this risk then needs to be handled by implementing strategies and taking corrective measures once this issue of risk has been resolved it should be monitored on a continuous basis to identify further risk that could arise due to a change in internal or external factors. Therefore as the Mac Ville Pty Ltd that has been operating chain of cafes have made the decision to rebrand Hurley's caf in Toowoomba, however the decision could not be implemented immediately as risk assessment needs to be conducted to ensure that both external and internal factor would result in making the business successful one. As external environment for instance the location or internal factors such as human resource management would have an impact on the overall performance of the business. Risk management has become crucial and contributes tremendously to the success of any business. It offers an essential role in improving the performance of the business, the significance of risk management for a company has to be understood at the upper levels of the organization. To accomplish the goals set out by the company it is important to ensure that these objectives are achievable by the resources that have been deployed by the company, that is the capability of human resource, the time constraint, the capital required and other internal and external factors that are to be utilized for making the operations of business possible. Organizations need to have the ability to cope up with the unexpected and there should not be a delay in responding to the problem it must be responded instantaneously as it arises. Awareness of the importance of risk management needs to be created amongst the senior level executive, humans do not generally to like to talk about the potentialrisk. The information used in this report will be based on the observations, meetings with various stakeholders, and analysis of different situations in order to reduce the chances of risk occurrence. Approaches and decisions made in this case will be based on suggestions and recommendations made in meetings with the management team. The three main criteria that are considered a major concern as per the meeting conducted with the management team include the course of acquisition of the new Caf in Toowoomba by ranking its risks from the most severe to the moderate one. As per the meeting, the most severe risk is managers travel risk while by-law compliance risk and banking risk follow in that order. Managers travel risk This risk occurs due to the geographical nature of Toowoomba locality. This has raised concerns among travelers in terms of safety, especially when driving during dusk, a time with poor light conditions. Mac Ville Ltd considers this road as extreme in that accidents are likely to occur. This calls for necessary measures to mitigate the risks involved. The danger lurking in this case is to the manager who has to travel from the headquarters in Brisbane to Toowoomba branch for routine weekly meeting, which normally end late in the evening. To mitigate managers travel risk, the following measures must be implemented: Invest in teleconferencing facilities Hold all meetings in the morning session Excuse managers who attend meetings to leave early before 2pm Due to the recent changes in the local councils legislation with regard to water usage, compliance with this law presents a risk for Mac Ville. This risk threatens the continuity of Mac Villes business in the sense that the company has to pay more if it exceeds water usage, as per the law. Mac Ville also risks paying huge fines imposed by the council for non-compliance with the new legislation. The extra costs incurred by the company while complying with the councils law will increase the cost of operations. In addition, the company risks reputation damage in case it fails to comply with new legislation. To mitigate the by-law compliance risk, the following measures must be implemented: Rainwater harvesting in order to reduce overreliance on councils water Come up with new water usage regulations in order to curb wastage Install an efficient flush system in the offices and restroom to save on costs The current financial monitoring and controlling procedures used by Mac Ville do not guard against fraud and financial misappropriation. The company lacks adequate controls with regard to making bank deposits as well as record keeping of sales, cash payments, and bank withdrawals. This exposes it to a chance of losing money through employees. Lack of proper rules that govern bank deposits could leave the company vulnerable to robberies. Lack of effective financial system in the company could lead losses, as the company cannot comply with legislative obligations. To mitigate the banking risk, the following measures should be applied: Insure liquid cash Set up new regulations to guide banking of daily cash sales at specified timelines Open bank account in the nearest bank in order to reduce travelling distance and risks involved in transporting cash Employ the best record keeping practices to enable effective financial monitoring. Conclusion Mac Valle should implement the above recommendations in order to reduce the occurrence of various risks that may affect Toowoomba branch. This will help the company to address the various concerns that have been raised at various levels by the management team and the board of directors. More importantly, the approach used in addressing these risks should be based on the severity of individual risks. Since the managers travel risk is the most severe, strict measures should be undertaken to address this risk.