The review of the action plan will be based on three risks. The risks are banking risk, manager’s travel risk, and by-law compliance risk. Banking risk involves theft of cash left in the premises while the manager’s travel risk involves physical injury to the manager when travelling or driving to the new store in Toowoomba. Finally, by-law compliance risk is the damage of the MacVille’s reputation, brand loss, and fines as a result of by-law violations.
The risk management plan was implemented to manage the banking risk using the following strategies: making deposits to a bank that was near the business premises; insuring overnight cash holdings; making deposits on daily basis so as to avoid leaving cash that is not deposited overnight. On the other hand, the implementation of the plan in regards to the manager’s travel risk was to be through: allowing managers to leave the workplace before 3 P.M so as to avoid any risk on his way back; installation of teleconferencing system for virtual meetings; concluding management meetings at 3 P.M. Lastly, the implementation of the plan in regard to the by-law compliance risk included: installing water usage graph in staff room; introducing new process for using and conserving water; giving Goldsmith Partners time.
Implementation
The financial controller has bought an insurance cover for cash held overnight as planned.
The company opened its bank account after four weeks of operation.
The weekly meetings that involve the management are closing before 3 PM.
Training sessions for the assistant managers have been shifted to the morning hours.
Policy for abiding by Toowoomba by-laws have been established by the CEO and the board.
Plants have been changed to natives to conserve water.
The WELS dishwater has been installed.
Daily banking trainings have been accomplished.
One internal audit in the stores once every two months.
Water tank has been built but there is no plumbing.
Outcomes
Banking risks reduced because internal controls regarding handling of cash were established. The internal audit of stores also reduced the banking risks through monitoring and recording. On the other hand, the insurance cover for the overnight cash reduced the banking risk as well. The other risk that reduced is that of manager’s travel. The risk reduced because managers could leave before 3 PM, thus there was low chances of being involved in an accident on their way from Toowoomba. Meetings were also concluded before 3 PM, and also managers could leave before 1 PM as a result of trainings being shifted to the morning hours. The final risk that was reduced is that of by-law compliance. This law is reduced because the CEO and the board have established policies, and also water conservation measures have been established.
Evaluation
It can be concluded that the risk management plan is very effective. Though not all the activities in the risk management plan have been accomplished, MacVille has already managed to reduce the identified risks in the Toowoomba store by a very high proportion. This indicates that if all the inclusions of the risk management plan can be implemented, then the likelihood of risk might get to the unlikely stage (Hopkin 17-21).
Work Cited
Hopkin, Paul. Fundamentals of Risk Management: Understanding Evaluating and Implementing Effective Risk Management. London: Kogan Page, 2012. Print.
