What is risk all business organisations strive

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Reference no: EM131209855 , Length: word count:1350

Legal and regulatory risk management plan

Executive summary

Table of content Introduction

1.1 What is risk All business organisations strive to achieve specific goals, within the process businesses all take risks to determine outcomes. Actual risk can be measured as the possibility of internal and external impact that affects an organisation opportunities negatively or positively to achieve its objectives (Turner & Keetelaar, 2005, pg 9).

There are three aspects of risk which management are obligated to understand, opportunity based risk, uncertainty based risk and hazard based risk. Opportunity based risk is just like taking a gamble with chance, evaluating the associated risk in taking and not taking the opportunity to maximise gains (Turner & Keetelaar, 2005, pg 10).

With risk there is always uncertainty, uncertainty based risk are unpredictable occurrence within a business. Physical damages and loss by nature disasters, floods which are not in your control though implementing contingency plans will minise and prepare for uncertainty (Turner & Keetelaar, 2005, pg 10).

Occupational Health and Safety (OH&S) risk management is a necessity to any business organisation to eliminate hazard based risks identified as physical, chemical, biological, ergonomic and psychological hazards (Turner & Keetelaar, 2005, pg 11); factors which cause potential harm to employees, by managing the risks it will reduce the chances of near misses and accidents.

The risks that are associated with every business is dependant on the risk tolerance to organisation value, the higher the risk the more exposure and outcome gain desired.

1.2 Legal and regulatory risk In the production of hospitality businesses we experience legal and regulatory risks which requires specific processes to ensure compliance to legislations, regulations, codes of practices (Turner & Keetelaar, 2005, pg 16) created by Federal and state laws implemented by local councils.

Legal and regulatory compliance ensures that business operations meets expected responsibilities and duties to ensure the safety of employers, employees, contractors and the public amenity. Business overview What type of risks our business is exposed to? (ANNIE) Our business is exposed to the following risks: Public Liability Risk In the food service industry risks such as, injuries and property damage caused by customers falling, tripping or slipping are common.

It could lead to significant risk especially in cafes. This risk includes injuries from slips on spilt food or drink, falling down from stairs and tripping on fixtures and furniture. If this risk is not managed properly it could lead to legal costs, damages, medical expenses and other compensation made by café owner against any destroyed and damaged customer property and damages caused as a result of business action and negligence to third-party property under owner's care. Licensing The café must be licensed by the controlling jurisdiction.

The licensing requires inspection of the facilities to ensure you meet safety standards to make sure that the safety standards are met. Food safety (Mia) Risk analysis is a process that business use for define and analyzing potential risk to business Food businesses are required by State and Territory food laws to ensure that the food they prepare and sell is safe to eat. ‘Safe to eat' means that food will not cause illness when someone eats it. The foods are needed to be kept cold or very hot.

Food businesses are legally obliged to control the temperature of these foods to prevent food poisoning. Preventing food-poisoning bacteria from contaminating food is just as important as keeping food cold or very hot. If a customer suffers food poisoning from a meal cafe has provided, it could be legally liable to provide compensation for the injuries they suffer.

If a customer - or worse, multiple customers - sues your business after contracting a bout of food poisoning, owner have to pay them damages for pain and suffering, medical expenses, lost income from being absent at work, and legal fees. Also, failure to comply with a requirement of the Food Safety Standards is an offence under the State or Territory food or health laws.(ref) According to an article- Leader Community News written on 29/7/2015 , Raramen Restaurant located on Kingsway Glen Waverley had the first inspect on March for routine inspection due to food safety under the Food Act 1984 and Food Standard Code. The inspector found live and dead cockroaches, drain flies, poor food storage, dirty benches, oil dripping in fridge.

The company and its owner pleaded guilty up to 17 charges under law that cost of fined up to $19,000 for company and $5,000 for the owner. " Monash has the well - deserved reputation as a destination for a great food and we expect our business to respect that reputation by maintaining high standards when it come to safety and cleanliness" Monash Mayor Paul Klisaris said.

However, although restaurant reopened with fully compliance with the food Act and sent business apologies to customers but customer turnover keep decreasing and led to shut down.

Aacrossding case study about food safety of Raramen Restaurant, Food safety is prospective risk could impact on our business Brainstorming with staff to identified food safety risk within our organisation Potential food safety risk: - food storeage temperature, take away container unsafe for high temperature, customer are food poisoned

Step 1: establish the context Time frame: once a day ( check daily food storage temperature ) Roles and responsibilities: Manager and head chef, staff External audit: local council Record keeping: temperature daily checklist

Step 2: identify risk This is Prospective risk Employment ( Visa) The hospitality industry growth over past 5 years led high demand of recruit a huge number of employees each year in Australia. Causes of the severe shortage of human resources so not only indigenous people but also foreigner employees, who came to Australia for different purposes, full of skills and abilities could be satisfy employers.

They could be: Oversea student or Temporary work that visa hold differ rights and condition. Employer's responsibility is managing and make sure visa holder compliance with their condition.

Also, employers will be fined heavily if the government was accused of using illegal workers. So employer's obligation is compliance and takes seriously consequences of using person who not allowed working in Australia. Mandatory insurance https://www.border.gov.au/Trav/Work/Work/workplace-rights

Introduce that the business has decided to conduct an audit process of its areas of risk. Introduce the category that your business will review Theory of 5 step risk management process Establish the context What is risk?

What is an audit? (theory) Audit can defined as an inspection or examination of business to ensure their compliance to requirements

https://asq.org/learn-about-quality/auditing/ Internal /external audits(theory)

Who is going to do the audit? How much time and resources are allocated? Roles and responsibilities?

Objectives and goals? Quantified and/or qualified?(theory) Prospective/ retrospective?(theory)

Legal and Regulatory - Prospective risks Identified risk Staying compliance with licensing Staying compliance with local council Covering basic insurance Following visa regulations Risk analysis What is risk analysis? (theory)

Here you identify the 5 risks based on your research (case studies / statistics/ industry publications/ etc). they need to be relevant to your business.

They need to be relevant to your business (your identifiers in business overview should link into these) Consequences and likelihood descriptors. Based on your research above. Likelihood descriptors rating description Likelihood of occurrence 1 rare Highly Unlikely, but it may occur in exceptional circumstances.

It could happen, but probably never will 2 unlikely Not expected, but there's a slight possibility it may occur at some stage. 3 possible The event might occur at some time as there is a history of casual occurrence. 4 likely There is a strong possibility the event will occur as there is a history of frequent occurrence. 5 Almost certain Very likely.

The event is expected to occur in most circumstances as there is a history of regular occurrence. likelihood consequences licensing 5 3 Food safety 3 4 M Insurance (internal) 4 5 Public liability ( external) 5 4 Employment (visa) 2 4 Evaluation What is risk evaluation? (theory)

Introduce and discuss the ‘Risk evaluation matrix' (theory)

Discuss each of your 5 risks and where they fall on the matrix. (Provide supporting arguments for the decisions you have made.

This must be linked back to your research) Introduce the next step of ‘ treating the risk' Risk Rating Matrix

CONSEQUENCE LIKELIHOOD

Catastrophic Matro Moderate Minor Insignificant Almost Certain 20 15 Likely 20 8 Possible 12 Unlikely 8 Rare Rating description

Financial impact Customer and staff health and safety Business interruption

Customer reputation and image 1 rare $175 2 unlikely 3 possible 4 likely 5

Catastrophic Treating the risk Define this area (theory)

Risk treatment plan (mentions items from the context section - Who is going to do the audit? How much time and resources are allocated?

Roles and responsibilities? Objectives and goals? Conclusion Summarise the introduction Mention - 5 step plan, analysis, treatment Referencing Alphabetical order Separate page

1350 words

6 refernces

Reference no: EM131209855

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