Risk Management Assessment and Planning at Coffeeville - Case Study Example

Running Head: Risk Management Risk Management Assessment and Planning Report Name Course Date Table of Contents Table of Contents 2 1.0.Introduction 3 1.0. Risk evaluation process 4 2.0. SWOT analysis 6 3.0.Confidential information 6 4.0. Worksheet on the communication strategy 7 5.0.Plan for the continuity of business 7 6.0. Post evaluation 8 7.0.Emergency rehearsals 8 8.0.References 10 Xx1. Appendices 11 The risk assessment checklist 13 1.0. Introduction Management risk is the process that aims at the identification of the potential hazards to a business and determining the possible ways through which they can best be eliminated. Management risk involves the quantifying and assessing of the possible business risks and being able to adopt measures that are aimed at controlling them. Risk management is able to minimize the barriers that hinder the firm to attain their formulated objectives. This is a compliance function in as much as it would be part of the specific business units. This paper will purpose to re view the firm’s processes and procedures and requirements for the management of risks in addition to determining its risk management scope. Secondly, the paper will aim at identifying the possible issues that the stakeholders will have regarding the risk management and reviewing the processes that Coffeeville applies in the identification of the possible threats. In doing this, the paper will perform a SWOT analysis to determine the gaps and positive strengths the firm has in addressing an eventuality of an emergency (Dickinson, 2001). 1.0. Risk evaluation process Coffeeville will employ 5 steps into the risk management evaluation process. This will include the identification, analyzing, planning, tracking and the identification of the control measures to employ in the elimination of the identified risks. The scanning of the environment to identify the potential risks is part of Coffeeville’s mode of preparation in the wake of handling any type of business crisis that might occur. There are other issues that might occur without warning that have been identified and ranked them in to broad categories in order for the company to respond to them promptly. The company aims at mitigating the crisis in view of preventing it from spreading and thus reducing any damage and accelerating recovery. The risk assessment classifies the risks in to two classes which include: the likelihood that the risk may occur and the risk might cause negligible consequences in case it occurs (Walker, 2003). To the business are viewed as threats as they place barriers that make it impossible to attain the formulated goals. The identified risks were placed into five groups which include: opportunities: These were defined by the firm as the events that will present themselves as a combination of favorable circumstances that always give chances to the eventuality of a business activity. Killer risks: These were defined as the events that present themselves as unfavorable and result into denting and hazardous effects or major losses for the business. Cross functional risks: these are the risks that will eventually lead to the potential deformation of the business’ reputation. Unique risks to business processes: these are the risks that occur within specific operational processes. These include risks such as the withdrawal of certain products from the market based on quality reasons. Other perils: these are events that present a combination of circumstances that are unfavorable for the disruption of the business operations. Coffeeville is to make frantic efforts to capitalize on the risk that pose to the business as opportunities. This will reduce the chances of the increase in the number of competitors who will want to take advantage of the untapped opportunities. The pursuance of the opportunity risks creates an opportunity firm to adopt measures that are aimed at managing the particular risks that are involved in the business. The identified risks were grouped into six groups that appear in the table below. External environment Business policies &strategies Business execution process competitors Innovativeness and strategy planning regulatory and legal challenges Capital process design catastrophic losses Product portfolio continuity of technology Medical costs organizational structure customer satisfaction Consumer expectations organizational policies compliance with regulations People Analysis & reporting Technology and data leadership management performance infrastructure skills financial planning technology reliability readiness to change accounting motivation external reporting accountability pricing fraud abuse The risk management assessment utilized the scaling of the risk factors to assign the likelihood and scores of the impacts for each risk. The risk assessed was then calculated to ascertain the overall risk. An effective score was indicated and an overall risk for the firm was then calculated as per each potential area of risk. The management assessment team determined the most vulnerable risk potentials in each area and measured the progress through documentation of the controls that were implemented minimize and/or prevent the risk from occurring. The ratings levels are indicated in Appendix 1. 2.0. SWOT analysis An in SWOT analysis was conducted and the results are indicated in the Appendix 2. 3.0. Confidential information In the process of working for the organization, the employees will come across intellectual property and information that belongs to the proprietor. In this case the use of the information or any other intellectual property shall only be permitted to the purposes of the performance of the employers duties. The partners are expected to maintain high confidentiality while using the information. The information should not be disclosed to other persons who are not the employees or partners of the firm. Items that are considered confidential include the Coffeeville and logo, information of the suppliers, the Coffeeville technologies, meal formulas, the coffee blends, Coffeeville marketing plans and the business. All the company’s property is to be returned upon the termination of employment (Walker, 2003). 4.0. Worksheet on the communication strategy Coffeeville maintains the need to maintaining strategic and professional communication in the cases of an emergence of a crisis. The firm has purposed to train all partners to act on behalf of Coffeeville in the response to emergencies and the right communication channels to be followed. In addition, the firm has developed a check list that is able to act as a guide to the crisis management team and the partners in the appropriate communication strategies that are aimed at upholding the firm’s corporate values, commitments and visions. This in turn are to enable the firm retain its status and protect its reputation as well as protect its corporate interests by upholding good standards as a best service provider (Walker, 2003). 5.0. Plan for the continuity of business The firm has identified a plan that is aimed at providing a guide to the partners and the organization in the way to respond to a crisis. The plan gives a detailed plan that is aimed at making of adjustments in case of the worst crisis. This includes the transfer and the use of the available resources to enable the business to pick up and still remain stable and maintain its competitive advantage. The firm has set up a control center to at all the partner organizations and established clear communicative channels that are to be utilized in cases of a crisis. The channels include the reporting of the crisis management channel to the overall management team in the Coffeeville head quarters. To ensure effective communication the following measures have been put in to effect: Regular review and updating of the contact information contacts Regular review of the recovery strategies and priorities Implementation and assigning of tasks aimed at ensuring competent response to crisis Regular review of shareholder information (Sereda, 2005) 6.0. Post evaluation Coffeeville has developed a post crisis evaluation form that collects all the information that is gathered during the crisis period. The information is utilized to evaluate the effectiveness of the crisis response plan in order to identify the gaps that existed for the firm to act efficiently and swiftly incase such an event reoccurs. The partners and shareholders that were involved in the rescue process are to fill in the review evaluation form that is to act as a guide I the completing of the post emergency valuation form (Miccolis, 2002). 7.0. Emergency rehearsals Coffeeville is to carry out periodic emergency rehearsals that are aimed at identifying gaps that might affect the efficiency of responding to an emergency. All the partners and shareholders are to fill in the rehearsal forms that will be utilized in the evaluation of the existing emergency response in the view of building the staff capacity to be able to accurately and effectively deal with the emergency in case it occurs. The rehearsals are to be conducted on a quarterly, semiannual and annual basis (Dickinson, 2001). In the cases of an emergency, the team is to assess the situation in order to determine the appropriate methodology that will be utilized in the response to the emergency. The first priority in the response of an emergency is through identification of the response services that will aim at the protection of the life, safety and health of the individuals who are affected. This will be able to save the firm’s reputation and uphold its status as the best service provider. The assessment of the crisis or emergency provides an avenue for the firm to identify the needs required to repulse the situation. The information should first be given to the Crisis Management Team. Secondly, the emergency team is to select the appropriate actions that are needed be it medical, and contact the relevant local authorities. The team or partners are to be flexible as they might need to review their plans in case the prior plans malfunction. The CMT are to be approached for guidelines on the appropriate steps that are to be initiated. To avert property damage and loss of valuables, Coffeeville will embark on securing valuables including cash by securing the m in the most appropriate manner. The firm will purchase a safe into which the valuables are to be kept. The safe will only be accessible to the manager and the assistant (Miccolis, 2002). The cooking hood channels are to be cleaned once in every six months. The management will inspect to ensure that the oils used in any deep frying machines are regularly changed. This is to avert the eventuality of old oil reigniting and causing fire. This is to be done twice in a week as it will also ensure the meals served to our customers are of quality standards. Coffeeville is also to put an alarm system into effect to detect and give signals in case of an intrusion. All the electric equipment is to be inspected by a suitability qualified persons monthly. This is essential particularly to the coffee, tea, washing and microwave machines as failure of thermostat and other high temperature controls are a main cause of fires in the kitchen industries. In addition, the supply of gases should be isolated from the main building and the head of the kitchen staff should ensure they are turned off by the close of business every day. All the firefighting equipment is to be mounted and their quality assessed every week by a fire fighting technician. The fire extinguishers are to be mounted strategically to allow easy access. A fire suppression system is to be mounted to assist in the detection and fighting of fires in cases of an emergency (Dickinson, 2001). An extensive risk management plan is included in the Appendix 3. Lastly, the entrance and exits to the Coffeeville are to be well lit and specious with provision of anti trip stair and tile surfaces. The floor surfaces are to be kept clean at all times. The management should ensure that worn out tile are replaced immediately. All the broken and worn out equipment in the wash rooms are to be repaired. The remodeling should ensure that the stair cases are fitted with hand rails and two risers. Emergency exits are to be open and accessible at all times. Emergency lighting systems are to be installed and illuminated exit signs are to be installed by a qualified and registered technician to facilitate easy movement in case of an emergency. The kitchen is only to be accessed by the kitchen staff and the access facilities should be kept clear. The area should be without any liquid spills at all times. All spills are to be cleaned immediately and all the flammable materials that are not to be in the kitchen should be cleared at all times. 8.0. References Dickinson, G. (2001). Enterprise risk management: Its origins and conceptual foundation, The Geneva Papers on Risk and Insurance 26:3, 360-366. Gates, S., Nanes, A. (2006). Incorporating strategic risk into enterprise risk management: A survey of current corporate practice, Journal of Applied Corporate Finance 18:4, 81-90. Walker, L., Shenkir, W.G., Barton, T.L. (2003). ERM in practice 60:4, 51-55; Baranoff, E.G. (2004). Risk management: A focus on a more holistic approach three years after September 11, Journal of Insurance Regulation 22:4, 71-81. Sereda, H. Gaudio, D. Tait, E. (2005). RMIS: Taking data management enterprise wide, Risk Management Magazine October,42-52. Miccolis, J. (2002). Insurers and ERM: Working on the how, National Underwriter/Property & Casualty Risk & Benefits Management 107:14, 36-37. Xx1. Appendices Appendix 1 Rating low medium competitors x regulatory and legal challenges x catastrophic losses x Medical costs x Consumer expectations x leadership x skills x readiness to change x motivation x accountability x fraud x abuse x management performance x financial planning x accounting x external reporting x pricing x Innovativeness and strategy x Capital x Product portfolio x organizational structure x organizational policies x planning x process design x continuity of technology x customer satisfaction compliance aith regulations x infrastructure x technology reliability x Appendix 2 Appendix 3 Risk management plan The risk assessment checklist Coffeeville fire safety check list Yes No Cleaning of the filters of the cooking hood in the last two weeks Filter hoods professionally cleaned in the last six months Replacement of oils in the deep fryers every two days Servicing of the electronics every month Isolation of gas supply system Installation of a fire blanket in the kitchen Installation and servicing of chemical fire extinguisher every month Installation and servicing of electrical fire extinguisher every two weeks Regular servicing of all the fire extinguishers in the venue Customer and other public fire safety Yes No Safe and effective exit and fire safety zones Safety of internal amenities and floors No entry of entrance to customers into the kitchen Regular cleaning of all soils establishment of wet floor signs regular servicing and inspection of furniture Evenly and spacious distribution of furniture in the venue compliance with the food safety requirements Procedures of cash handling Yes No Are the cash handling procedures documented Are the cash handling procedures available to relevant staff Are their cash limits to be handled at any given time Is a safe available Are the takings and the floats secured in a safe after working hours Do you bank after every 2 days Electronic and physical security Yes No Are security grill fitted on all concealed exits Is the security alarm system monitored by a licensed company Are the external and internal security detection devices mounted and fictional Read More