Reference no: EM133047762

BSBRSK501 MANAGE RISKS

A Project that requires the preparation of a risk management plan for a real or fictitious department or company to show evidence that the context of the organization can be understood and risks can be identified, analyzed and treated effectively.

The table below present the risk management plan for 10 identified risks:

Risk Category	Risks	Cause of the risks	Consequences	Controls in place
Ranking	Losing the second best global brand rank	Services of the self-service kiosks are not up to expectations	Loss in revenue	Aggressive marketing
Natural Calamity	Disease affecting chickens	Diseases in African regions	Shortage of chickens	Selection of chicken suppliers who have the highest standards of stock hygiene
	Loss of warehouses	Natural calamities such as flood	Shortage of chickens	Chicken suppliers should have warehouses in areas not prone to floods
	Closure due to national lockdown	Covid-19 pandemic	Decrease in sales	Proposed home deliveries
Health and Safety	Trucks carrying chicken grounded	Non-compliance to health and safety requirements	Lateness in stock receipts	Regular inspections to chicken suppliers by KFC health and safety officers
Environment	Interruptions in electricity supply	Inability of power producers to meet demands	Power outages in self-service kiosks	Purchase of UPS to be used in self-service kiosks
Health	Loss of interest for KFC foods	Non healthy ingredients used during preparation	Decrease in sales	Healthy foods placed on KFC menu
Personnel	Non-adherence to health and safety regulations	Lack of attention from employees	Removal of operating license by local authorities	Regular inspections by KFC International officers to KFC Africa outlets
	Shortage of skilled labor	Labor employed in other business due to non-attractive pay at KFC	Existing staffs overburdened with tasks and activities	Offering more attractive salary and other work conditions
Technology	Malfunctioning of outlets' equipment	Overuse of equipment	Delay in services	Equipment bought and kept as spares

1.3 Analysing Risks 

Refer to the criteria for analysing risks. Then proceed as follows:

1. Define a rating by impact criteria (3 ratings or 5 ratings....  You choose)  + describe
2. Define a rating by likelihood criteria ( x ratings) + describe the ratings
3. Decide about a matrix to combine the two criteria and end up with different levels of risks e.g  4x3 matrix; 5x5 matrix......... - for 3 or 4 or 5 levels of risk ( You choose)
4. Decide about the risk tolerance for the organization and show this in your matrix.
5. Construct an impact-likelihood table 

1.4 Treatment 

• For each risk identified, decide on the treatment option (accept, share, mitigate, avoid) and mention different possible countermeasures (as per the treatment option) to address the identified risks
• Select the preferred option(s) and justify on the basis of costs and benefits.
• Allocate responsibilities & assign a "due date" where appropriate.
• You can now present an enhanced version of the table you presented in the previous section so that you end up having a risk register.

1.5 Monitoring/Reviewing 

• Devise some appropriate performance standards to assess the effectiveness of the treatments (performance standards can be task-oriented or results-oriented)

Decide about a monitoring frequency - weekly/monthly/quarterly /yearly basis (justify).