BSBRSK501 Manage

Risk
Manage Risk
PROJECT TEMPLATE
Course Complete all the details below

Trainer Name

Student Full Name

Student ID
To achieve competency in this unit a student must demonstrate their ability to:

Elements and Performance Criteria

ELEMENT PERFORMANCE CRITERIA

Elements Performance criteria describe the performance needed to demonstrate achievement of the
describe the element.
essential
outcomes.

1. Establish risk 1.1 Review organisational processes, procedures and requirements for undertaking risk
context management in accordance with current risk management standards

1.2 Determine scope for risk management process

1.3 Identify internal and external stakeholders and their issues

1.4 Review political, economic, social, legal, technological and policy context

1.5 Review strengths and weaknesses of existing arrangements

1.6 Document critical success factors, goals or objectives for area included in scope

1.7 Obtain support for risk management activities

1.8 Communicate with relevant parties about the risk management process and invite
participation

2. Identify risks 2.1 Invite relevant parties to assist in the identification of risks

2.2 Research risks that may apply to scope

2.3 Use tools and techniques to generate a list of risks that apply to the scope, in
consultation with relevant parties

3. Analyse risks 3.1 Assess likelihood of risks occurring

3.2 Assess impact or consequence if risks occur

3.3 Evaluate and prioritise risks for treatment

4. Select and 4.1 Determine and select most appropriate options for treating risks
implement
4.2 Develop an action plan for implementing risk treatment

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treatments 4.3 Communicate risk management processes to relevant parties

4.4 Ensure all documentation is in order and appropriately stored

4.5 Implement and monitor action plan

4.6 Evaluate risk management process

Assessments: There are two assessment tasks to be completed. The assessment tasks required
for completion of this unit are listed as follows:
Description
Assessment Method of assessment

Assessment 1 Project

Assessment 2 Activity

Assessment Requirements
Please read this section carefully before commencing the assessment tasks. You must carefully
answer every question of every task and achieve a ‘satisfactory’ grade for all assessment activities
to be found Competent for the unit.

Assessment Outcomes
There are two (2) outcomes of assessments:

 S = Satisfactory
 NS = Not Satisfactory (required to be re-submitted).
Students will be awarded C = Competent on completion of the unit when the student has provided
the appropriate evidence required to meet all criteria. If the student fails to meet this requirement
they will receive the result NC = Not Competent and will be eligible to be re-assessed.

How to name your file attachment: Unit Code_(A2 or A1)_Student Name

Reference you work as you progress through the assessment.

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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 in a busy waterside location

 Cafe located in food court at a Shopping Centre
 Gym located in the CBD
 Where you work
 Lonsdale Institute

Or choose your own with consultation with your trainer

For example, if you decided to choose the restaurant, 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 including its operation, and
who the customer base is. (Minimum 50 words)

I have chosen to evaluate the risk of opening my own restaurant located in a busy waterside
location. Restaurant is a 60 seat fine-dining restaurant with a 20seat lounge. We focus on our
New American menu with a touch of Asian influence. The lounge and restaurant will be
open seven days a week. We will offer special theme nights to attract new customers. Warm
colors, fresh flowers, soft music, candles and amazing artwork from some of the areas most
notable new artists. This will contribute to a sense of community and give new artists a chance
to show their work for a diverse clientele. During the busy summer months, you can also sit
outside on our patio and we will offer a special summer menu, featuring lighter fare, exotic
drinks, as well as non-alcoholic offerings. The patio and garden setting will be a fun and casual
atmosphere for the summer crowd. The service will be relaxed, very friendly and correct. We
will hire the best people available, training, motivating and encourage them, and thereby
retaining the friendliest most efficient staff possible. Our management team is comprised of
individuals whose backgrounds consist of 10 years’ experience in food, restaurant and hotel,
catering, management, finance, marketing, art and motion pictures.

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1.2 Purpose 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?) (Minimum 50
words)

Creating a profitable food business is a juggling act and we are looking at the overall risks for a
new business. We need to purchase fresh ingredients, create appetizing menu options, and
know how to effectively market the business. But even if you have all the raw ingredients for
success, you could potentially be only one accident away from being forced to close your doors
for good.
A key component of running a successful food business is preparing for the worst – from
kitchen fires and food spoilage to allergic reactions and liquor liability lawsuits. That's why it's
important for food business owners to conduct a restaurant risk analysis before even opening
for business. A comprehensive risk management plan can reduce the likelihood that your food
business experiences a serious accident or a liability lawsuit.
In this restaurant risk management checklist, we'll offer seven strategies for reducing the
chances of an incident occurring, including effective food risk management and providing
training to keep employees safe.

1.3 Stakeholders –
a) Who are the stakeholders that you will be creating this risk management report for?
The stakeholders who are involved in that business are: business partner Akis, head chef Nikos
and myself. I will make the risk management report.
b) Which stakeholders will be involved in the risk identification/analysis process?
All of us will be involved in the risk identification and analysis process during the creation of
restaurant business plans

2. IDENTIFY THE RISKS WITHIN THE SCOPE

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List a minimum of 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.
Hint: (Identify the risks that face the company. Research these risks and provide any necessary
background/detail. Be sure to reference this)

Change the risks HEADING if you have some other you would like to include

Operational Risk - refers to an Legislation and Political Risk

unexpected failure in your company’s day- Food service license
to-day operations. Liquor license

Preparing food
Delivering food
Serving
Workplace accident

Supply Chain Risk Man-made disasters Risk

Marquee (food tent) Collapse due to not
being installed correctly
Suppliers should bring all supplies on time

Human Resources Risk Competition Risk

Not being able to succeed in a competitive

Unprofessional chef market
Excessive hiring of worker
High turnover rate

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 Technology Risk Reputation (market) Risk
unhygienic food
POS system breaks down
Enterprise system for orders breaks down

Financial Risk Natural Disasters Risk

Flooding

Bad manage of cash flow

No good profiting from business analyst

3. ASSESSING POTENTIAL RISK

Analysis of these risks including qualitative measurement of the consequences.
Assess both likelihood and potential consequences of the risks.
Use the following Risk Matrix to analyse your risks.

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 4: Risk Register (minimum 10 from above)
Evaluation and Prioritisation the risks
Hint: (Evaluate and prioritise risks for treatment)

Risk Likelihood Seriousness Risk Grade

Rating
HEADING (From above) Seriousness Rating

(From above – What and how can it

minimum 10) happen

Man-Made Marquee (food tent)  Event Evacuation Unlikely Major Medium

(Economic Loss)
Disaster (DELETE Collapse due to not
 Local Paper Coverage
EXAMPLE) being installed correctly (Loss of Reputation)
 Legal action instigated
(Financial loss)
 Injury to staff or patron
(Economic loss)
Operational Workplace accident Likely Major Very High

 Employees - Serious cuts and

injuries burn (economic
loss)

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Legislation and Liquor licence Fine (economic loss) rare Major Low
political
Closed restaurant
(economic loss) (reputation
loss)

Supply Chain Suppliers should Run out of food supplies Likely Major Very High
Risk bring all supplies (economic loss)
on time
Don’t have enough food
supplies for orders
(reputation loss)

Human Unprofessional Bad taste of food Likely Major Very High

Resources Risk chef (economic loss) (reputation
loss)

Human High turnover rate Difficulty in hiring Likely Major Very High
Resources Risk competent staff (economic
loss)

Low performance, low

quality of service

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 (economic loss),
(reputation loss)

Not being able to Harmful comments on Likely Major Very High

Competition risk
succeed in a social media (economic
competitive market loss), (reputation loss)

Technology Unhappy customers, Likely Major Very High

Risk
POS system frustrated staff (economic
breaks down loss), (reputation loss)

Reputation unhygienic food Unhappy customers Possibly moderate High

(market) Risk
(economic loss),
(reputation loss)

Financial Risk Not getting the Run out of money, can’t Rare Major Low
monthly profit afford the expenses
target
(economic loss)

Flooding Economic and reputation Rare Major Low

Natural
Disasters Risk
 Closed for
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several loss
business days

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 QUESTIONS 4, 5, 6 EVALUATING AND TREATING POTENTIAL RISKS

5: Risk Treatment Schedule and Plan (minimum 6)

Treatment of the risks including contingencies
Hint: (Determine the most appropriate action for treating the risks that you have identified. Develop a contingency plan)

Risk Possible Preferred Risk Risk Person Timing – when How will it be
Treatment Options/Actions Grade Grade Responsible will it be carried reported/monitored
(From above – Options (From for out – the ?
minimum 10) above) AFTER Implementatio timetable/schedul
n e
BEFORE Treatmen
t
Treatmen
t

1 Marquee  Not install 1. Have installer Unlikely + Rare + Event Immediate and on  Event Organiser
Marquees to advise
Collapse (food complete a Major = Moderate Organiser – going as required.
 Have installer Installers of
tent) complete a checklist/Inspe Medium = Low Name: requirement for
checklist/insp checklist to be
ction of the _______
(EXAMPLE ONLY) ection of the completed prior to
Marquee once Marquee once event.
erected. erected.  Checklist to be
 Ensure First retained once
Aid qualified 2. Obtain from the completed by the
personnel are Installers a event organiser.
employed at  Procedure for
the event. wind speed that dismantling of
 Obtain from once reached, marquee to be

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 the Installers the marquee developed based
a wind speed on wind speed
must be taken
that once prior to event.
reached, the down.
marquee must
be taken
down.

Workplace Ensure a safe Come up with a Likely + Rare + Kitchen and Immediate and Checklist every day
accident work place for training check list Major= Moderate Service ongoing as that everything is
FOH and BOH. for all new Very High = Low manager required maintained, and
Make sure that employees and equipment is safe
equipment is up to also manager
date, safe and have to make a
installed correctly. check list for all
Employees equipment.
receive proper
training

Liquor licence Obtain all correct Create a business Rare + Legal council Immediate and Before opening
permits and plan before Major = ongoing as lawyer should take
Rare +
licences by opening the Low required through care all the legal
Major =
seeking legal restaurant Low renewal issues (liquor
advice and doing licence)
proper search

Hire a chef that Before hire a chef Unlikely + Rare + Kitchen Immediate and During the interview
Unprofession
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al chef has experience. we need also an Major = Major = manager ongoing as process the owner
Also ask for experienced Medium Low required should have a
references from person who knows checklist with job
previous jobs and understands description
the needs of a requirements
restaurant. Also
we need to see a
lot of chefs before
hire the right one

Always POS We should have Unlikely + Rare + Shift manager Immediate and Shift manager who is
POS system
breaks down system should be always a working Major = Major = ongoing as responsible for the
updated with POS system with Medium Low required POS system should
internet internet make a daily
connection and connection and checklist before shift
works fine upgraded he knows that the
otherwise issues system works fine
with customers
will come up

Re evaluate food Minimalize waste Unlikely + Rare + Accountant Immediate and Accountant should
Not getting
the monthly cost and create a and balance cost Major = Major = ongoing provide all a forecast
profit target waste log for and quality Medium Low for profit and
everything that is expenses every
being thrown week

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 away

Not being able to Come up with a Provide excellent Unlikely + Rare + Owner and Immediate and Every month owner

succeed in a new menu, use customer service Major = Major = business ongoing and his partner must

competitive only high-quality and great taste of Medium Low partner organize meetings
products and food so that we with staff and follow
market
improve staff are going to have up the sales.
training a high return rate Furthermore, they
of customers have to develop new
business plans in
order to increase
sales

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6. RISK ACTION PLAN

For those risks (above) that are High, Extreme or deemed to be unacceptable, you need
to create at least 2 action plans.
Monitoring the risk - Hint: (How you will monitor the treatment of the risks, to ensure that it meets the
identified goals and does not create new risks)

Table 6: Risk Action Plan Table

RISK ACTION PLAN – Action Plan 1

Risk Work place accident

Summary – what is the goal of the action plan (RECOMMENDED RESPONSE AND
IMPACT)

To ensure that employees works in a safe work environment. Every

employee will have proper training from BOH and FOH managers.

Proposed Actions

 All equipment must be updated and safe for use

 Develop a training pamphlet for all employees
 Ensure that business have adequate insurance
in case anything happen

Resource
Requirements

 Shift and kitchen manager

 Access to a computer
 Copy of training manual to all stakeholders
BSBRSK501 Manage Risk
Student Name:
Student ID:

Person Responsible
for Implementation
Responsibilities of FOH and BOH manager is to train
properly their staff to prevent injuries or any other
incidents

Timing – when will it

 Training must be completed in two weeks if
be carried out – the
someone is not trained well must trained again
timetable/schedule
in order to work with customers

How will it be Checklist every day that everything is maintained, and

reported/monitored? equipment is safe

RISK ACTION PLAN – Action Plan 2

Risk
POS system breaks down

Summary – what is the goal of the action plan? (RECOMMENDED RESPONSE AND
IMPACT)

It’s very important that every electronic system works fine. POS is a system
that need to work fine because most of the customers want to pay with
credit card. So every day FOH manager should check if the system is
updated works fine and is online

Proposed Actions Every morning FOH manager check POS systems

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BSBRSK501 Manage Risk
Student Name:
Student ID:

Resource  Internet connection

Requirements  Access to a computer

Person Responsible
for Implementation
FOH manager

Timing – when will it If POS doesn’t work FOH manager should take
be carried out – the immediately a phone call to the bank and solve the
timetable/schedule problem

How will it be Shift manager who is responsible for the POS system
reported/monitored? should make a daily checklist before shift he knows that
the system works fine

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BSBRSK501 Manage Risk
Student Name:
Student ID:
7. REVIEW THE RISK MANAGEMENT PLAN - EVALUATION OF THE BUSINESS RISK MANAGEMENT
PRACTICES

a) Explain how you would evaluate the processes that you have used to manage the
risks?

The degree of success depends upon risk analysis, management policies, planning
and activities. A well-defined management plan can be successful only if risks are
properly accessed. And if not, the main objective of risk management plan itself is
defeated. Critical evaluation of a risk management plan at every stage is very
necessary especially at an early stage. It will allow companies to discover the flaws
before it gets into the action. Once you’re through the process, you can address the
issues and then introduce it.

b) Which risks will be reported on?

All risks should be reported and follow up of the risks is very important in order to lower
the risk

c) How often will risks be reported to management (or the board of directors) - explain
your answer?
(Hint: consider different reporting schedules depending on the level of the risk).

All risks should be reported every week however the major risks that need immediate
attention should be reported at the begging of the problem so the manager can lower
the risk.

d) Who is responsible for reviewing risks?

Shift manager will be responsible for the FOH risks and kitchen manager will be
responsible for BOH risks. Also, the owners should be very close with managers so all
of them can communicate in order to lower or avoid risks

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BSBRSK501 Manage Risk
Student Name:
Student ID:

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