This document is planed to provide an overview of risks that are involved with star bucks Coffee shop and the management plan to mitigate these risks before happening or minimizing the damaging effects of risks if they occur at all.
It will start by defining risk and then identify, analyze and evaluate risks.
It will grade risks based on its seriousness and likelihood of happening in the business.
Then, plans to mitigate these risks will be created and implemented to minimize risks at any given stage of functioning of the business.
The risk management plan will include the tasks and the allocated responsibilities to various staff involved in the business.
Supply chain risk
Definition: any changes in the information, …show more content…
3) Risk Assessment a) Identification of risk
Financial risk: opening of any small coffee shop in the Melbourne city would require at least a sum of $80,000. And given the competitiveness of the food industry, if the business is not successful there is a danger of loosing the money. Also, the general inflation rate is at 2% per year and the foreign exchange is tight at the instant. Therefore, there is a significant financial risk involved in setting up a business.
Location risk: Star bucks coffee shop is located on the banks of Yarra River creating a relaxing and pleasant atmosphere for its customers looking to have a good time. However, due to its locale to a river there is a certain level of a possibility that the coffee shop can be damaged in the event of river flooding. This would mean a loss of 1 million dollars as the property value and another $30,000 for the inventory. Thus, this risk seems very serious and damaging. Also, given the assumptions of climate experts the likelihood of river flooding is possible with the changing climate change in the recent years. However, the shops around the bank of this river located at a certain heights that can afford security to these businesses. But, it is still not possible to gauge the amount of protection these raised floor levels can give to these lands against flooding.
Assess the likelihood of occurrence and the impact of the assigned hazard to where you live. Tell us your assigned hazard, the vulnerability of your area to that hazard, then the likelihood that the hazard will occur. Rate the risk assessment on a scale of 1 to 10, with 1 being low risk and low vulnerability and 10 being high risk and high
Managing risks - ensuring that the business will gain benefits, more so that being affected by costs. This can involve developing control procedures that management and staff can follow to ensure practices are being completed appropriately and are going towards the organisation’s goals. Control procedures can include:
The risk management part of the policy is written to ensure that there is a correct procedure on how to maintain a risk assessment and when to.
Assess the risk in terms of likelihood and impact (be sure to explain your assessments). High risk assessments should be given a weighting of 5, medium a weighting of 3
You must identify potential risks to a specific project planed develop a risk plan to monitor and control risks effectively, identifying preventative and contingent actions to prevent the risk from occurring or reduce its impact, to increase the chances of achieving project success.
Our project will use The Risk Management Plan to summarize the proposed risk management approach for the project which includes the following steps:
The role of the risk manager is to maintain a proactive risk management program in compliance with the provisions of federal, state, and local statutes, applicable scope of practice and regulations. The organization may participate with voluntary accrediting organizations. The risk manager is responsible for creating, implementing, and evaluating the outcome of the risk management plan. These
Along with the concerns and information below, Shania must employ due diligence in the pursuit of her coffeehouse. There are many considerations when starting a business and those topics must be researched and understood to mitigate any startup risk. Ferrier (2013) reported that “Colorado startup companies fail within the first five
Determining the level of risk should be broken down into 4 categories: low, medium, high or very high. A consequences scale should also be created. Different levels of risk bring on different level of consequences.
The specialty coffee business is growing at a robust pace. During the last two decades, specialty coffee sales have grown every year despite economic obstacles such as war and recession. No coffeehouse chains have failed during this time, although the list of fatalities in other businesses is
Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.
Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)
The Risk Management Plan has been created in the Planning Phase of the project and is monitored and updated till completion. Monthly Reports should cover what effects any risks have caused to the project and what can be done on a daily bases to keep the impact of effects at its lowest at all times.