Scenario
Prepare a risk management report for senior stakeholders – select one of the following business’ to base your report on. Your task will be to identify, analyse, treat and evaluate the risks related to this business. Your risks may be based on a specific project related to one of the below business or the overall business itself.
• Restaurant located at Docklands
• Cafe located in food court at Chadstone Shopping Centre
• Gym located in the CBD
• Property Investment Company in Melbourne
• Account firm located in Melbourne
• Five star hotel located on the ‘The Great Ocean Road’
• Theme park located on the Gold Coast
• Or choose your own business approved by your assessor
For example, if you decided to choose the restaurant in Docklands, your risk report could be on a project such as setting up the restaurant business. What would the major risks be prior to opening the doors for business?
1. THE SCOPE OF THE RISK REPORT
1.1 Background Information (Explain your chosen business and what it will do) [1-3 paragraphs]
1.2Purpose of the Risk Management Plan
(Explain what area of risk you will be looking at. For example, are you looking at the overall risks for a new business starting up or are you looking at the risks for a project for an existing business?)[1-3 paragraphs]
1.3 Stakeholders (Who are the stakeholders that you will be creating this risk management report for? Which stakeholders will be involved in the risk identification/analysis process?
2.IDENTIFY THE RISKS
Use this space to list the ten (10)main risks you have identified. This work should be carried out in consultation with key stakeholders including staff at all levels of the organisation.
[Enter summary information on the main risks you have identified for your organisation. Change the risks headings if necessary]
Operational, for example:
– Stress
– Injury Legislation and Political, for example:
:
Human Resources
Competition
Technology
Reputation
Financial
Natural Disasters
3.ASSESSING POTENTIAL RISK
Use the following Risk Matrix to analyse your risks.
Rating for Likelihood and Seriousness for each risk
L Rated as Low E Rated as Extreme (Used for Seriousness only)
M Rated as Medium NA Not Assessed
H Rated as High
Grade: Combined effect of Likelihood/Seriousness
Seriousness
Likelihood low medium high EXTREME
low N D C A
medium D C B A
high C B A A
Recommended actions for grades of risk
Grade Risk mitigation actions
A Mitigation actions, to reduce the likelihood and seriousness, to be identified and implemented as soon as the project commences as a priority.
B Mitigation actions, to reduce the likelihood and seriousness, to be identified and appropriate actions implemented during project execution.
C Mitigation actions, to reduce the likelihood and seriousness, to be identified and costed for possible action if funds permit.
D To be noted – no action is needed unless grading increases over time.
N To be noted – no action is needed unless grading increases over time.
Change to Grade since last assessment
NEW New risk Grading decreased
— No change to Grade Grading increased
Table 4: Risk Register
Category Risk
What and how can it happen
Seriousness Likelihood Rating Seriousness Rating Risk Grade Risk Ranking (1 is most serious)
Health/ Injury/ Disease
(EXAMPLE ONLY) Marquee Collapse • Event Evacuation (Economic Loss)
• Local Paper Coverage (Loss of Reputation)
• Legal action instigated (Financial loss)
• Injury to staff or patron (Economic loss) Low Extreme A 1
–
QUESTIONS 4, 5, 6 EVALUATING AND TREATING POTENTIAL RISKS
Table 5: Risk Treatment Schedule and Plan
Risk Possible Treatment Options Preferred Options Risk Rating
BEFORE
Treatment Risk Rating
AFTER
Treatment Person Responsible for Implementation Time-table How will it be monitored?
1 Marquee Collapse
(EXAMPLE ONLY) • Not install Marquees
• Have installer complete a checklist/inspection of the Marquee once erected.
• Ensure First Aid qualified personnel are employed at the event.
• Obtain from the Installers a wind speed that once reached, the marquee must be taken down. 1. Have installer complete a checklist/Inspection of the Marquee once erected.
2. Obtain from the Installers a wind speed that once reached, the marquee must be taken down. Low + Extreme = A Low + High = C Event Organiser – Name:_______ Immediate and on going as required. • Event Organiser to advise Installers of requirement for checklist to be completed prior to event.
• Checklist to be retained once completed by the event organiser.
• Procedure for dismantling of marquee to be developed based on wind speed prior to event.
RISK ACTION PLAN
For those risks that are High, Extreme or deemed to be unacceptable, you need to create at least 2 action plans.
Table 6: Risk Action Plan Table
(Example of Risk Action Plan relating to “Marquee Collapse”)
RISK ACTION PLAN
Item 1
Risk Marquee Collapse
Summary (RECOMMENDED RESPONSE AND IMPACT)
1) Proposed Actions
2) Resource Requirements
•
3) Responsibilities
4) Timing
5) Reporting/Monitoring
RISK ACTION PLAN
Item
Risk
Summary (RECOMMENDED RESPONSE AND IMPACT)
6) Proposed Actions
7) Resource Requirements
8) Responsibilities
9) Timing
10) Reporting/Monitoring
7. REVIEW THE RISK MANAGEMENT PLAN
How often risks will be reported to the board – monthly, quarterly etc?
Which risks will be reported on? – i.e. just the top 3 or all identified risks?
Who is responsible for reviewing risks?
References
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