Risks Involved in Caf Business - Example

Risk Assessment Report Risk assessment is the process of determining the magnitude of risk or threat involved in a particular situation. It deals with the analysis of the situation that can develop and the problems that may be caused and then deduces methodologies to prevent these situations or development of ways to deal with such problems as and when they may arise (Alexander, Carol and Sheedy, Elizabeth 2005). The management of risk is very important in hospitality business – not only for the safety of the management and staff but also for the dining and resident guests as the responsibility for their security also falls on the managerial section of the hospitality business. In a venue for hospitality like a café or a hotel, the major criterion is that it, that is the risk management procedure, should be convenient for all practical purposes and aesthetically appealing to attract customers. The staff should be knowledgeable enough to prevent such hazards and protective of the customers if such situations occur. There thus has to be ensured that the staff is trained into dealing with such situations, if they were to occur through training classes and through work shops. The situation should be so managed that no personnel or property is harmed nor business affected, and it has to be ensured that personnel safety comes foremost even if there would be experienced damages, but the system that has to be developed has to ensure that this damage can be, in such cases, be restrained to a bare minimal. It sounds simple, but the development of such a scheme or procedure is not. The inherent risks are many and varied in different areas; some are evident while others are more veiled. Theft prevention and access control are some essential areas where risk analysis is important in ensuring safety and security in hotels. Risks Involved In Café Business Running a café or restaurant involves many complicated tasks; there is a need for steady management and risks that require constant attention (Flyvbjerg, Bent August 2006). These risks can be varied in nature and scope and there is required a deeper analysis to ensure that suitable measures have been developed to deal with theses situations. The following is a detailed study of the various risks that may emerge. Environmental Risks Environmental risks are those risks that are posed by the natural forces, and which are beyond the control of man. These are caused due to turbulences in the natural discourse and in the environment. Any threat that can damage the building or property due to changes in the environment or atmosphere is difficult to bring under control or prevent. These risks can be either natural or deliberately created. A building which is hidden by trees and other structures risks being attacked by third parties. There are also geographical risks which are related to the natural resources such as wind, water, draughts, etc. Earthquakes, landslides and floods are examples of some of the environmental risks that any hospitable business is open to. The division of a plan of action against such risks is necessary, but also difficult to devise as these risks are based on the environmental factors and these are beyond the control of human beings. Risk for the Public & Customers The most important segment that needs to be taken care of while devising the risk management procedure is the one that deals with the safety measures pertaining to the safety of the customers, the public and the personnel and staff of the business. Any lapse here can be detrimental to a number of customers and there may be a negative impact or repercussion of this on the reputation of the establishment. Most importantly all aspects concerning to the guests have to be attended to. If the entrance or the dining area is not lighted properly, the probability of harm to the guests is high (RMI). This applies also if the staircase is too steep or without handrails. Thus, there has to be laid special emphasis on the lighting of the areas that are open to the customers and that are frequented by them. Devoid of anti-strip mattresses, the floors can be slippery. Torn or damaged carpets and broken tiles should be mended immediately, as they run the risk of tripping customers or of tangling them or their luggage. (Committee Draft of ISO 31000 Risk management) Wash-basins and toilets have to be hygienically maintained at all times, as hygiene is one of the most important factor that affects the reputation of any hospitable undertaking. The emergency exit should not be locked or blocked from access. The access to this exit should be well light for customers to use in an emergency. Damages to furniture and cutlery have to be attended to as soon as they are discovered. Kitchen & Catering Risks It has been observed over the years that one of the main areas that are prone to accident is the kitchen, and this thus emerges as an important area which is also quite risk prone. Any mistake in cooking can affect the food, causing harm not only to the customers and but also to the reputation of the establishment, and this can cause serious repercussions in the profitability of the enterprise. Hygiene in the kitchens and toilets shall be scrupulously maintained to prevent the breeding and spreading of germs (Gorrod 2006). If drinks are served in the restaurant, it is another area that requires close attention, as there has to be management of the drinks that are served, and special attention is required for the empty bottles. Staff serving drinks shall be adequately trained. In the kitchen fire proofing is also important and there has to be laid special emphasis of management in case of a fire, and there have to be set up an advanced fire security system and fire alarms in the kitchen area. Finance Handling of money mandates great care, and financial planning is important for the economic and efficient management of the available resources. Staff dealing with cash shall be carefully screened, and it has to be ensured that the credibility of the financial team is strong. No one should be kept on in the finance department for long periods and there should be shuffling and reshuffling in the ranks. The continual employment of an employee may lead to embezzlements and other felony. Similarly, handling of cash in public shall be discouraged as much as possible, as this may lead to theft or manhandling (Alberts, Christopher; Audrey Dorofee, Lisa Marino 2008). Where the cash is stored is also important. This shall be in a secure area away from the eyes of the public and other staff, and access should be granted to few members only. Failure of Equipments A café has many types of equipment, right from cash machines to dishwashers. It is important to ensure that they are all in good functioning condition so that there is uninterrupted continuation of the working of the functions of the hospitability mechanism. This is essential and imperative to ensure the safety of the people as well as the unobstructed running of the business. The electronic equipments in the reception and dining areas like TVs, computers and mobile phone chargers must be protected from sudden electric shocks and blasts. The equipment in the kitchen also requires close attention to prevent contamination or pollution of food (Douglas 2009). If the insulated power cables have torn insulation papers or if the XLPE cables are overloaded, the risk for electric shocks runs higher. Similarly, if customers or the staff handles any of these equipments without proper knowledge, the risk probability again jumps. Employee Risk One of the most important resources in the hospitable business is the staff, as it is through them that contact with the customers is maintained. Loss of experienced staff, sudden leave, unhygienic practices or inhospitable behavior of the employees, substandard cooking are all risks faced by café owners (Disaster Recovery Journal.). There are also chances of in-house special recipes sent to rival restaurants. Any amount of effort in this area may not be enough sometimes, since human behavior is unpredictable. This thus calls upon the employment of motivational managerial technique so as to ensure that there is efficient management of the human resources. Risk Rate The rating for risk is given by providing a numeric value to the different aspects in a café based on the magnitude of the risk they are subjected to. The rating is by first identifying the risk and then assessing it by measuring its intensity. Risks in a hotel or a cafe can be rated as very poor, poor, average, good and excellent. These standards have been developed over the years and although they are case specific and there does not exist any hard and fast standards of judgment, these are the most widely and universally acceptable norms. In the case of a kitchen, if the food is prepared in a polluted or contaminated area, it could be rated as poor since the risk to the health of the customers and the employees is high (Crockford, Neil 1986). Again, if the materials used for preparing the food is old or of substandard quality, again the rating will be very poor or poor. Food that is rated as excellent is that which meets the standards, is outstanding and of perfect quality. For furniture, if 50% requires repairs or replacement, it is rated as poor or very poor. Good or excellent rating is given to furniture that meets the safety standards and requires least or no repairs. This applies to other aspects of the café also. Cafes that have proper lighting, well-lit floors and safe stairs get high rating. For buildings, high rating is given to strong ones that can withstand a few, if not all, natural hazards like flood or fire. In the matter of staff, high rating is awarded to customer service of superior quality. This is judged on the basis on the quality of work, the customer satisfaction, and the efficiency with which the work load is handled. In short, the customer should be assured good returns for the money he spends. There thus has to be ensured that there are maintained high levels of customer satisfaction and that the needs and the requirements of the customers are looked into. Recommendations to Resolve the Risk Once that the impeding risks have been identified in a café, the next logical step that is to be undertaken is to devise methodologies and steps to overcome or resolve the existing problem. Each aspect has to be studied carefully and measures have to be taken (RMA). The focus shall be on the safety of the customers. Compare what is done now to what ought to be done. Consider these questions carefully: 1. Can we remove the risk completely or partially? 2. If we cannot, how can we reduce the likelihood of the harm occurring? Find the answers to these questions, and half the identification of risks is done. Given below are some suggestions for risk alleviation in the café business: Food Ensure the cooking area is hygienic, and that there are no hazarderous materials in the area. This applies strictly to the employees also, and it has top be ensured that those who are employed maintain a high level of personal hygiene. It also has to be ensured that the materials used are of high quality. It also has to be ensured that the food that is being served is not hours old. Never give the customers any opportunity to feel the food served is substandard or old. If alcohol is served, fulfill the measures and standards of safety. Building & Property Safety measures for the building and property must be taken even before the café starts functioning. Prevention works better than cure here. It has to be ensured that the building has a strong foundation and can withstand minor earthquakes and fire outbreaks. The building of the structure should be according to the rules set up by the government and should take into account the plans for evacuation in case of emergency (Stoneburner, Gary; Goguen, Alice and Feringa, Alexis July 2002). The furnishings and carpets should be chosen carefully. In case of a flood, these have to replaced or repaired immediately. The floors shall be clean and dirt-free. They should not be dusty or slippery, and certain standards have to be established and maintained. The stairs should not be too steep and should have handrails. The air-conditioners and coolers shall be in proper working condition. Similarly, all other equipments – electronic and non-electronic – should be functioning properly. There also has to be ensured that the emergency escape is clear and accessible. Cash Safety As far as possible, cash handling should be away from the eyes of the public. Employees handling cash should be rotated periodically. Cash shall be stored in an environment fitted with alarms and safety boxes. It is always safer to remove the day’s earnings from the place of business after working hours. Staff The staff shall be presentable and appealing. Their service and behavior shall be monitored. Care should be taken to prevent theft of intellectual property by employees. Conclusion This report is the result of a study of various risks present in running a café or a hotel. Any business will have risks (Borodzicz, Edward 2005). They are resolved successfully when identified and assessed. Once the diagnosis and measurement are done, the resolution is easy to find. Any café or hotel will have its own weak points, no matter how it appears outwardly to customers. A cafe business becomes a true success when the exteriors as well as the interiors blend through well-kept premises, excellent food and outstanding service. Reference: Alberts, Christopher; Audrey Dorofee, Lisa Marino (March 2008): Mission Diagnostic Protocol, Version 1.0: A Risk-Based Approach for Assessing the Potential for Success. Software Engineering Institute, accessed on Thursday, September 3 2009, at http://www.sei.cmu.edu/publications/documents/08.reports/08tr005.html Alexander, Carol and Sheedy, Elizabeth (2005). The Professional Risk Managers' Handbook: A Comprehensive Guide to Current Theory and Best Practices. PRMIA Publications, accessed on Thursday, September 3 2009 at ISBN 0-9766097-0-3.  Borodzicz, Edward (2005): Risk, Crisis and Security Management. New York: Wiley, accessed on Thursday, September 3 2009 at ISBN 0-470-86704-3.  Crockford, Neil (1986): An Introduction to Risk Management (2nd ed.). Woodhead-Faulkner, accessed on Thursday, September 3 2009 at ISBN 0-85941-332-2.  Committee Draft of ISO 31000 Risk management": International Organization for Standardization, accessed on Thursday, September 3 2009 at http://www.nsai.ie/uploads/file/N047_Committee_Draft_of_ISO_31000.pdf.  Disaster Recovery Journal. Douglas Hubbard 2009: "The Failure of Risk Management: Why It's Broken and How to Fix It" pg. 46, John Wiley & Sons, pub 2009. Flyvbjerg, Bent (August 2006): "From Nobel Prize to Project Management: Getting Risks Right" (PDF). Project Management Journal (Project Management Institute) 37 (3): pg. 5–15, accessed on Thursday, September 3 2009 at http://flyvbjerg.plan.aau.dk/Publications2006/Nobel-PMJ2006.pdf. Gorrod, Martin (2004): Risk Management Systems: Technology Trends (Finance and Capital Markets). Basingstoke: Palgrave Macmillan accessed on Thursday, September 3 2009, at ISBN 1-4039-1617-9.  ISO/IEC Guide 73:2002 (2002): Risk management -- Vocabulary -- Guidelines for use in standards. International Organization for Standardization, accessed on Thursday, September 3 2009 at http://www.iso.org/iso/catalogue_detail?csnumber=34998.  ISO/DIS 31000 (2009): Risk management -- Principles and guidelines on implementation. International Organization for Standardization, accessed on Thursday, September 3 2009 at http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=43170 RMA: The Risk Management Association, accessed on Thursday, September 3 2009 at http://www.rmahq.org/RMA/. RMI: How about a new approach, one that’s tested, accessed on Thursday, September 3 2009 at http://www.riskmanagementinsight.com/. Stoneburner, Gary; Goguen, Alice and Feringa, Alexis (July 2002): Risk Management Guide for Information Technology Systems. Gaithersburg, MD: National Institute of Standards and Technology, accessed on Thursday, September 3 2009 at http://csrc.nist.gov/publications/nistpubs/800-30/sp800-30.pdf. .    Read More