How risk is analysed

1. 1.Risk context:
Name of Organization: COCO’s restaurant pty ltd
Type of risk Context
Political A government might issue some policy orders that
require restaurant to follow certain procedure and
conducts. There is risk that restaurant might fail to
fulfil those obligations and divert away from local
priorities as well as concerns.
There is also risk in changes in skills required to be
chef. The change in curriculum might be another
risk to be considered. The short lead times will
challenge the person also to fulfil such
requirements.
Self-managing and financing requirements
Economic The important funding decisions by government
might affect funding elements of restaurant.
Local industry might close due to affected fund
plans. It will also reduce the ability of parents to
gather funds for children’s extra activities.
Staff-Teaching and support is also a risk factor.
There might come the situation that the money
spent on training of staff is not fully materialized.
There is risk of lack of resources to spend on basic
ingredients like kitchen equipment, technology,
laptops and other important equipment. There will
also be issue of interest rate on loans to fund these
equipment.
Shortage of materials on national/international
markets. This is also a big risk which can create
situations in which customers get irritated for not
getting what they expected.
Competition from neighboring restaurants due to
populated place and number of restaurants
Good staff leaving the restaurant and joining other
restaurants due to better offers
Social Decline in population due to low birth rate, national
trends of decrease in population hence decreasing
potential in markets
Changes in local population
Demographic changes may alter people’s roles or
the nature of people’s needs e.g people with
different languages. Language barrier is one of the
most difficult problems to be solved. There are
places where knowing local language is not an
option. The only way one can maximize the profit

2. and interact with customers well is through
knowing local language well.
Closure of local firms; it makes it difficult for
restaurants to find staff due to lack of employment
from firms in the area
Social-networking- blogs, Facebook, twitter,
Changes in qualification which is required for
certain level of integration
Changes in forecasted local integration with
community. Problem might come with fulfilling
customer’s expectations according to geography
The risk of efficient and desirable staff moving to
other restaurants or establishments newly
established
Information availability- information is available to
staff everywhere now through Web services
Lack of appropriate training for staff to change
their habits according to required trend and needs.
Legal New law might create compliance issues and
regulation problems. It can also create the risk of
administrative burden.
Changes in laws related to restaurant protection
legislation
Changes might occur in laws related to restaurant’s
opening hours
Charity or funding related changes in legislation
Technical and technological Alternation in required equipment used in the
services
Using inappropriate and outdated technology when
the time demands advancement in technology
domain
Cyber attacks may affect restaurant operations.
Restricted content on internet might inflict damage
to security measures
Using traditional paper-based books instead of e-
book reservation. Computer hardware can also be
outdated.
Time to manage IT systems and upgrade necessary
components to avoid any risk and potential threats
2. Current risk processes and arrangements
Restaurant providers are required to identify risks through risk assessment and document them. Additionally, they
should determine the affected parties, evaluate and design risk treatment plans. The risk treatment plan should be
implemented and reviewed periodically to accommodate new risks. The risk management process is a method for
the strategies to influence execution and other areas of planning. Managing risk involve ensuring five major steps;

3. -Identify major risks to plan ahead
-Analyze risks properly to examine the root causes
-Prioritize the risks that are more prevalent and dangerous
-Implement the solutions
-Monitor the risk after implementation step.Manual systems also involve paper work and documentation. These
mentioned steps are also called risk management process.
3. Scope
The cleanliness of the shop,especially in the bathroomarea, must. Ensure that along the way to the toilets are clean
and safe, which cannot cause accidents to customers. The scopes ofthe risk assessment plan are mentioned below;
1.Preparation of the goals and objectives
2.Preparation of the list of responsibilities and identifications of the individuals
3.Identification of the areas to be included and to be excluded;
4.preparation of RA on the basis of time and location;
5.Preparation of the methodologies for assessing the risk.
4.Analyze Risks
The restaurants cleanliness,including floors, equipment, furniture, must be clean. The safety of customers while
using all these services should be ensured. Any problem with cleanliness might give wrong impression to
customers. Mostly,customers don’t forget such encounters.They also give bad reviews to otherpotential customers
who are their friends and relatives. If customer is satisfied, they also send other customers and give positive
feedback. Mostly,people ask for recommendations from others.A good recommendation saves themfrom
experiencing a bad taste and wasting money.
The floor must be ensured that it not slippery, not wet. The customers should not slip or fall while walking over th e
floor of restaurant. It is therefore necessary that the business like restaurant should invest good amount of resources
on cleanliness. The water floors should be kept water free to avoid slips and falls.
There also come the problem of using right kind of lights. The customers should be able to see the hallways clearly
due to the right kinds of bright lights used inside the restaurant. Many people are color conscious due to their certain
disorders. Sharp lights can cause many problems for them. It is necessary for restaurants to understand these
problems from experts and go for right kinds of lights to avoid such risks to the health of customers.
Cleanliness of equipment and furniture is also essentialto ensure that the tables or spoons are clean for the hygiene
of the customer. There is also problem of food poisoning.If equipment is not clean then the bacteria can spoil the
food. Many people are food conscious.Customers should not find any mark of irresponsibility.
The toilet is an important part of the cleanliness of restaurants and food.Toilets should be properly managed in-
store, such as having someone check the bathroom and corridors every 30 seconds orevery hour to make sure that
the toilet is not dirty and the walkway is not slippery or tissues don’t run out.
5. Develop CSF
Identifying CSFs is vital because it allows companies to focus their efforts on improving their skills to meet the
critical success factors,or even determine whether they have the capability to construct the needs required to satisfy
the critical success factors.
The first step is to establish a democratic organizational structure that encourages employees to contribute to and
participate in decision-making.
Additionally, encouraging team members to take on duties and take initiative by cultivating creativity in them
through brainstorming sessions.
Training, communication, commitment, and support from top management are important CSFs for effective risk
management. Other factors include awareness of the risk management process,teamwork, clear objectives and rules
for risk management, and management styles.
References

4. Chapman, R.J., 2011. Simple Tools and Techniques for Enterprise Risk Management, Hoboken: John Wiley &
Sons, Incorporated.
Gtnetwork.com.au. 2021. [online] Available at
https://www.gtnetwork.com.au/DocumentDownload.ashx?item=t5JqImwxUUOGapzvPEDCA
Institute,P.M., 2019. The Standard for Risk Management in Portfolios, Programs, and Projects, Newtown Square,
PA: Project Management Institute.
Jung, S.Y. et al., 2019. Internationalization and accounting-based risk in the restaurant industry.Journal of
hospitality and tourism management, 41, pp.148–155.
Yaraghi, N. & Langhe, R.G., 2011. Critical success factors for risk management systems.Journal of risk research,
14(5), pp.551–581.