Risk Management

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INTRODUCTION

Risk management is the process of thinking systematically about all possible risk, problems risks, problems or disaster before they happen and setting up procedures that will avoid the risk, or minimize the impact. It is basically set up process where you can identify risks and set the strategy to control. My project is to manage risks in an Italian restaurant named “Pedro Pizza Parlour” that located near Wynyard Station. This restaurant provides a delivery services by contactor cars or bicycle, and also catering to office workers in the area. The restaurant runs 5 days a week.

DISCUSSION

Scope of the Risk Report
* Commercial relationship
* Competitor activity
* Human behaviour
* Legislation
* Occupational Health and Safety
* Natural event

Identification of Risk within the scope
* The methods of research: lessons learned from other projects or activities, and review of literature and other resources material. * For identification of risk within scope I use Fishbone Diagram | Fishbone Diagram|

commercial relationship
the scope of risk
Human behaviour
Occupational Health and Safety
Competitor activity
Natural event
- new food trends
- accident

- accident
- traffic jam
- competitor has a innovative product/service
- price wars with competitor
- the new restaurant opened that offer similar menu and go to close to restaurant - losing customer
Legislation
- new legislation of pricing
- strike
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* Explanation of the fishbone diagram
* Commercial relationship
Risk: losing customer because of the bad/unfriendly service
* Competitor activity
Risk: - the new restaurant opened that offer similar menu and go to close to restaurant (losing customer) * price wars with competitor (losing customer & thinning profit) * competitor has a innovative product/service (losing customer) * Human behaviour

Risk: new food trends (restaurant to be quiet because the customers find a new food trend) * Legislation
* Risk: new legislation of pricing (thinning profit)
* Natural event
Risk: - traffic jam (can not deliver food on time & customer angry) * Accident (can not deliver food on time & customer angry) * Strike (can not deliver food on time & customer angry) * OHS

Risk: accident (slip because of the dirty restaurant)

Analysis risks including qualitative measurement of the consequences

Assess Likelihood
Likelihood rank| Frequency description| Could consider as a%| rare| cannot believe this would happen | 0-5% likely to happen| | | |
unlikely| do not expect it to happen but it is possible| 6-20% likely to happen| | | |
possible| might occur occasionally| 21-40% likely to happen| | | |
likely| will probably occur again| 41-80% likely to happen| | | |
very likely| would expect to occur regularly| over 80% likely to happen| | | |

| Risk| Likelihood rank| impact|
Commercial relationship| losing customer because of the bad/unfriendly service| likely| high| Competitor activity| the new restaurant opened that offer similar menu and go to close to restaurant (losing customer)| possible| high| | price wars with competitor (losing customer & thinning profit)| possible| high| | competitor has a innovative product/service (losing customer)| possible| high| Human behaviour| new food trends (restaurant to be quiet because the customers find a new food trend)| possible| high| Legislation| new legislation of pricing (thinning profit)| unlikely| medium| Occupational Health and Safety|...
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