risk management report

Topics: Hygiene, Risk management, Risk Pages: 5 (1155 words) Published: October 31, 2013


Risk management report

Case study
--A small dine-in restaurant located at Chinatown

Introduction
Our restaurant is located in Chinatown, it is owned by a Chinese family. It now hires 1 full-time and 4 casual waiters, the restaurant normally has 2-3 waiters during week days and 4 during weekends. It also has 1 kitchen hand and two cook. The stakeholder of this particular business would be Chinatown council (community), employees, customers, suppliers, government, owner etc. The purpose of this risk management plan is to allow the restaurant to be aware of the potential risks and prevent it from happening in the first place. The owner feels responsible to all stakeholders and in this way he could use the resources reasonably. With methods of brainstorming, observation, surveys, communication, the risks can be identified, analyzed, evaluated, and then it can be treated properly. After the plan is made, it is the manager’s job to monitor and review the implementation.

Risk factors identification
Internal
External
1.Restaurant Kitchen Fire safety
Lack of fire protection/extinguishing equipment
In-regular cleaning and maintenance equipment
Deep-fried oil change infrequently
5. Financial management
Cost of material increased
Food supplier discontinued due to weather change etc.
Change of menu

2. Customer access and exits
Entrance
Stairs and ramps
Emergency exits
Floor maintenance
Customer access( not allowed thru kitcken and food prepared areas) Cleaning spill
6. Property damage
Poorly securing on valuables
Poor environment design that is not able to prevent crime
Lack of electronic security system

3. Furniture maintenance and inspection
Inspection
Location(tables not too close to kitchen)
External seating
BYO/licensed restaurant
7. Cash handling process
4. Product safety
Food safety
Cookware hygiene
Equipment hygiene

8. Natural disasters
Flood, hail storms etc
Lacks a business continuity plan
9. Human Resources
Succession planning
Poor staff supervision and performance appraisal
Staff turnover/ headhunted by competitor
Excessive work load and poor staff morale / staff burn-out
Difficulties in recruiting suitable staff

Risk assessment Matrix

Risk matrix Key

Evaluation on the priority risks

2-3 Spills are not cleaned up immediately and floors are left wet 3-3 Lack of understanding of RSA obligations, including those for BYO 4-1 Lack of Compliance and understanding of all food safety requirements 9-2 Excessive work load and poor staff morale / staff burn-out These priority risks happens mostly because employees are lack of training and manager level does not give much concerns about the safety issues and the potential risks of their neglecting supervising behaviour. The restaurant wait stuffs’ lack of knowledge on alcohol license law could lead to a great danger like serve under-age customers with alcohol etc. The same evaluation applies with food safety issue. If the manager level or the suppliers are fail to make sure the safety of food and equipment, it could lead to great damage to the reputation of business, financial lost, and threatening customer even stakeholder’s health. Due to the Chinese culture background, employers turn to over work their employees and very little compensation would be giving out for hard working employees, this would lead to the employee’s lack of motivation.

Risk Treatments focused on the highly potential risks

Operational risks:
Slip and falls (customers / employees)
We will require employees to wear non-slip shoes. Also, we will set out a cleaning timetable, and allocate employees to clean and check the floor frequently, including kitchen, dining area and toilet. We will tell our employees to place warning signs when the floor is wet, and clean up as soon as possible. Alcohol services associated with laws

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