Assessment Task BSBRSK501

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Report on risks

edition version& 2 edition version& 2

'age 1 o( 2) 'age 1 o( 2)

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Su*mission details

Student+s Student+s name name Studen Studen t no, t no, Assessor+s Assessor+s name name Assessment Assessment site site Assessment Assessment date#s date#s The assess

The assessment task is ment task is due on the due on the date specifed date specifed by your asby your assessorsessor. . AnyAny changes to this arrangement must be approved by your assessor in changes to this arrangement must be approved by your assessor in writing.

writing.

Submit this document with

Submit this document with any requirany required evidence attached. Seeed evidence attached. See specifcations below or details.

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'er(orman!e o*-e!tive

For this task you are required to decide the dangers/risks associated with opening up a new business branch within the eisting business

organi!ation. They will be required to look at all the internal and eternal reasons/ risks and discuss will all the important people to put together a list o all dangers and risks.

edition version& 2

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Assessment Task 1

"isk review report# email to stakeholders and meeting with $%&

Assessment Task 2

"isk analysis report# action plan and risk treatment

Assessment Task .

(onitoring report

Assessment des!ription

For the (ac)ille *ty +td simulated business scenario provided# you are required to assume/take on the role o ,risbane store Assistant (anager# Ash# who has -ust been promoted to be (anager o a new store. Ash has been tasked with conducting a risk management analysis o this new venture.

There are three stages to this pro-ect 01 review# 21 analyse and plan# and 31 monitor. This pro-ect is divided into three assessment tasks as ollows

For this assessment task# you will need to review the simulated/pretend business4s risk management processes and decide the scope/range and ob-ectives/aims# taking into account stakeholders0_{/interested people and} both internal and eternal environmental/your world actors/causes

a5ecting the organisation. &nce you have gathered this inormation# you are to identiy risks and write a drat/eample report to the $%&. 6ou will meet with the $%& to discuss your report# seek support or your

fndings/what you have ound# and approval to communicate risk

management processes to relevant stakeholders/ interested people or their eedback/comments and participation/being part o.

0

Stake/older 7 a person or group with a direct interest# involvement# or investment in something

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'ro!edure

6ou will assume/take on the role o Ash# Assistant (anager o the ,risbane (ac)ille ca8# who has -ust been promoted to (anager o the new

Toowoomba store. 9n preparation or the new venture# Ash has been tasked with conducting a risk management analysis o this pro-ect

!erpt o( email (rom 3 'aula Kinski From $%& : *. ;inski

To Assistant (anager : <ueen Street store "e =ew Toowoomba store

$ongratulations on your new appointment. *rior to taking up your position as (anager o our new Toowoomba store# located in "uthven Street# the ,oard o >irectors has asked that the risks in this pro-ect be appropriately/correctly managed.

9 want you to undertake/start this task as it will give you

signifcant/important insight into the store4s operations# it will ensure a smooth transition/move or ?urley4s $a8 sta5 into the (ac)ille amily and will encourage you to give ongoingcontinuous support or our risk management initiatives.

9 would like you to approach/tackle this task in three stages and meet with me at the end o each phase to review your work and discuss your plans or the subsequent/net phases. The three stages in this risk management task will include

0. "eview.

2. Analyse and plan. 3. (onitor.

@

&nce 9 have received your risk review report# we will need to discuss the steps that you will take in the risk management process.

"egards *. ;inski

$%& (ac)ille $a8s <ld1

edition version& 2

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0. "eview the provided (ac)ille simulated business scenario pretend business setting1 inormation and documentation provided in the Appendices o this task.

2. rite a report or the $%& your assessor1 that addresses the ollowing

a. The e5ectiveness o the (ac)ille "isk (anagement Framework in supporting the principles and processes values B systems1 o risk management# set out in the risk management standard

AS/NZS ISO 31000:2009. &utline the purpose and key

elements/points o the standard in your discussion. b. 9dentiy and describe the scoperange o work1 o risk

management required in your role.

c. 9dentiy and describe the critical /serious important1 success actors/reasons# goals or ob-ectives or areas included in the scope.

d. 9dentiy relevant related1 internal and eternal stakeholders interested parties1# their role in the risk management process# and any issues or concerns they have raised. $omplete the Table o Stakeholders Template provided in Appendi 3 o this task1 and attach to your report.

e. $omplete a 'ST 2 _{analysis and a S43T} ._{analysis to look at} the associated risks. &utline the relevant legislation# regulations and standards including those at a local level# i.e. Toowoomba $ouncil1. i.e government and industrial rules and regulations1 . >escribe the methods o research that you used to complete

your *%ST and S&T analysis. For eample# how you

approached the simulated business inormationC legislation# regulations# etc.C and any other inormation or research on risk that applies to the scope o your report.

g. $omplete the review o risk or the situation by

summarising/short brie the scenario and identiying a list o risks to the pro-ect.

ote& %nsure your report is written in a style appropriate/correctly or your stakeholders# or eample# using appropriate language and

including appropriate illustrative/pictures material such as checklists# diagrams or Dow charts1 and attachments to support your summary. 2

'ST 7 A *%ST analysis is a business measurement tool. *%ST is an

acronym or *olitical# %conomic# Social and Technological actors# which are used to assess the market or a business or organi!ational unit

3

S43T 6 a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats

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3. Submit your report as per the specifcations / terms on the net page. ,e sure to keep a copy or your records.

E. Ater you have developed/written your report# write an email that is intended or the interested people identifed in Step 21. 6our email should clearly ask interested people / stakeholders or input/their comments# include a list o risks you have identifed and invite them to assist in identiying any additional risks.

. Send the email to the $%& your assessor1 or review and request a meeting to discuss identifed risks and urther risk management processes.

G. (eet with the $%& to

a. discuss your fndings/results# particularly your understanding o the critical success actors and goals

b. eplain the (ac)ille risk management process

c. discuss how you can communicate with stakeholders about the risk management processes in this scenario/situation and invite them to participate in discussions to urther identiy risks

associated with the scenario

d. obtain the $%&4s support or ongoing risk management activities e. ask the $%& or input on additional risks.

H. 9n dot7point bulleted1 orm# summarise/brieDy your discussion with the $%&. This should include any recommendations/suggestions they made to you.

I. Submit the required documents or assessment as per the specifcations below. ,e sure to keep a copy or your records.

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Spe!i$!ations

6ou must provide

J a risk review report# including a completed table o stakeholders

J email communication to stakeholders

J summary notes rom your meeting with the $%&. 6our assessor will be looking or evidence o

J reading skills to gather# review# interpret/understand and

analyse/review tet7based business inormation rom a range/number o sources

J written and oral/speech communication skills to organise and deliver inormation to e5ectively communicate risk management processes to a range o stakeholders/interested people.

J =umeracy/numbers7 mathematical skills to interpret/understand mathematical data when reviewing and analysing scenario/setting7 situation business inormation

J ability to work independently/reely as well as

collaboratively/together to make decisions about risk management

J ability to interact/cooperate with others using appropriate conventions/systems when communicating to# and

consulting/discussing with# stakeholders/interested parties

J ability/skill to sequence/in order and schedule/plan activities and manage communication

J ability to analyse relevant/appropriate inormation to identiy scope/range o work# goals and ob-ectives and to evaluate/review options/other choices

J ability to use amiliar/known digital technology to access/get to inormation# document fndings/resutls and communicate them to stakeholders.

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Appendi 1& Ma!:ille 'ty "td simulated

*usiness

Ba!kground

As part o their overall strategy in the Australian beverage market#

(ac)ille *ty +td have developed a chain o ca8s in the $entral ,usiness >istrict $,>1 o ,risbane# <ueensland and the $,> o Sydney# =S. The ,oard o >irectors has made the decision to epand their operations in <ueensland with the purchase and re7branding o the eisting ?urley4s $a8 in Toowoomba# 03K km west o ,risbane.

Ash is currently the Assistant (anager o (ac)ille4s Dagship ca8 in <ueen Street# ,risbane# and has been given the opportunity to manage the new store in Toowoomba. Ash is also a member o the Finance# Audit and "isk (anagement FA"(1 $ommittee described in the (ac)ille "isk

(anagement *olicy.

The $%& or (ac)ille4s ca8s in <ueensland# *aula ;inski# has

assigned/given Ash the task/-ob o managing the risks involved with the operational aspects o this takeover/purchase. A copy o her email is provided below.

mail (rom 3 'aula Kinski

From $%& : *. ;inski

To Assistant (anager : <ueen Street "e =ew Toowoomba store

$ongratulations on your new appointment. *rior to taking up your position as (anager o our new Toowoomba store# located in "uthven Street# the ,oard o >irectors has asked that the risks in this pro-ect be appropriately/properly managed.

9 want you to undertake/to take on this task as it will give you

signifcant/important insight/awareness into the store4s operations# it will ensure a smooth transition/change or ?urley4s $a8 sta5 into the

(ac)ille amily and will encourage you to give ongoing support or our risk management initiatives/e5orts.

9 would like you to approach/address this task in three stages. Ater the frst stage# we will meet to review your work and discuss your plans or the subsequent/ollowing phases/steps. The three stages in this risk management task will include

0. "eview.

2. Analyse and plan. 3. (onitor.

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6our primary risk management ocus/e5orts is directed to the ongoing/continuous operations o the Toowoomba ca8. The

strategic/plan and investment/outlay o money risks o this pro-ect are being managed by the ,oard or this you are to consider any risks that could impact/e5ect on human resources management i.e work orce# sta5 etc1# fnancial operations# ?S# our supply chain supplier1 and the local governance/authority and overall compliance meeting the

standards1 issues.

(ac)ille has agreed to employ all eisting sta5 at ?urley4s $a8 on three months4 probation/trial . The current supervisor o ?urley4s# Lames

(ansfeld# has been o5ered the position o 2nd 9n $harge and he has accepted.

hile settlement on the purchase o the business is not or another ew weeks# the seller has agreed to grant/give us ull access/admission to the store4s operational processes and store inormation. 6ou should

liaise/communicate weekly with the Finance# Audit and "isk (anagement FA"(1 $ommittee here at head oMce concerning the marketing# fnance and store management unctions that you are investigating/looking ater 7 into. 9 will set up a regular meeting or you.

?ead oMce has a report on a similar/same epansion/growth conducted by the =S team that may help you in your research. 6ou may need to review other statistical/numbers inormation and engage/take on

specialists to help you with your investigation/study. The legal frm

Noldsmith *artners are advising (ac)ille on the ?urley4s $a8 acquisition and would be available to help you with legal or any compliance issues. The landlord/owner o the shop in Toowoomba# "on +angord# is also a

local councillor and has o5ered his assistance in getting established in Toowoomba. ?e has o5ered his availability or email address or

correspondence communication# messages1

hen you have fnished your report# please name it according to our document naming conventions/standards and send it through. &nce 9 have received and discussed your risk review report# we can move onto the net stage o the risk management process.

"egards *. ;inski

$%& (ac)ille $a8s <ld1

Ma!:ille do!ument naming !onvention

Files should be saved using the document name# the date and the document version. For eample# a meeting agenda or a meeting on 0 (arch 2K0E would be saved as O(eeting Agenda K0K32K0E v04.

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Site visit ; e< Too<oom*a store =t/e eisting

>urley+s a(?@

6ou received permission rom *aula to travel to the Toowoomba store to start your research. *aula had cleared it with Lames (ansfeld# the current senior supervisor# who will spend most o the day with you helping answer your queries/inquiries. She also arranged or you to spend time with "on +angord# the store4s landlord.

Meeting <it/ %ames Mans$eld

6ou arrived at the ca8 and noted the two hours o drive time that it took to get there rom the $,> o ,risbane. 6ou met with Lames# who took you through a complete overview/update o the store and the surrounding area. ?e was &; with the idea that you needed to take notes in

preparation or a report.

Ater lunch# you went over your notes to revise/review and edit

key/important concerns and signifcant/important events that you had written down earlier

otes (rom meeting <it/ %ames Mans$eld

J The location o the store on the corner o the two main streets o the city makes or easy access or local customers and high

visibility or tourists.

J The long drive rom Toowoomba to ,risbane would make attending the weekly managers meeting diMcult considering many meetings did not fnish until into the evening ater rereshments. There are also manager training sessions that need to be completed over the net si months in with a ew other assistant managers.

=avigating/going through the steep narrow climb up the range with trucks blocking the way is quite diMcult even in daylight hours. ,eing a competent/good driver you eel that it would be unlikely that you would be involved in an accident# but it still

concerns/worries you considerably/quite a bit.

J The two7hour delivery time would make resh pastry deliveries rom the company4s central bakery plant impractical/unrealistic. The pastries would arrive ater the morning rush. These are a key part o the (ac)ille product assortment/variety.

J There is also a concern about getting the company7branded supplies through as quickly as a $,> ,risbane store could.

J ?urley4s $a8 was a amily7run store and some amily members were employed on the sta5. Lames was engaged/working by the amily to supervise/manage the operations o the store and (r ?urley as manager would authorise wages but anyone can authorise deliveries.

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J hen asked about written policy and procedures manual# Lames said that (r ?urley set the policy and procedures verbally/in words and on the ew days each week he was in the store he would show the sta5 how to do things the way he wanted them done.

J ater use : ater wastage presentC the dishwasher is oten run when only hal ullC ruit and vegetables are washed under a ast7 running tapC toilets all use the single Dush systemC Lames eplained that (r ?urley instructed the sta5 to keep the non7native/not grown locally in the country Dowering plants in the courtyard ully

watered.

P The dishwasher was always set to the ull wash setting and has a ater %Mciency +abelling and Standards Scheme %+S1 rating o 3. The more water eMcient :G star dishwashers cost about QG#KKK and above.

P ual6us/ system _{would cost about QH#KK to upgrade.} The store currently uses E0#KK litres a week.

J Lames spoke about the ca8 attracting a large percentage o

retirees because o the easy access to buses and the store4s central location.

J The same sta5 member that completed the cash register balancing also completed the bank deposit orm and did the banking as well. The banking was not done every day and oten QE#KKK was kept on

the premises overnight in the cash register. There was no sae. There is a bank two shops away but the ?urley amily bank is a

couple o blocks away and there was not always time to do the banking.

J Lames replied to your question about the possibility o break7ins# saying that there was a KR chance o it happening in a year and the consequence/importance was moderate/reasonable.

J =ot all takings rom the cash register by amily sta5 members were recorded.

C The ft7out looked old and unattractive in parts# with some chairs unstable and broken and some parts o the worn carpet were simply taped over with gaDer 5_tape,

J &ne o the sta5 was a qualifed che who had developed/setup an innovative/new and popular range o rice wraps that were tasty#

E

ual Elus/ System 7 A dual7Dush toilet is a variation o the Dush toilet that uses two buttons or handles to Dush di5erent levels o water



FaDer tape 7 strong cloth-backed waterproof adhesive tape

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gourmet very high quality7desirable1 and healthy. =one o the other ca8s in the area o5ered these.

J =o established/well known process or dealing with in-uries that happened at work.

J Lames gave a brochure about an innovative/new ro!en par6*ake 7 cooking system that was under the limit set by council or an

ehaust system# yet it cooked resh bakery items in 3K minutes rom ro!en par7baked pastries.

J The computer with all the store4s employee details# and fnancial records was not password protected and anyone could access the inormation.

J Lames4s response to your question about the lack o sales

promotion techniques was that he could not get the sta5 interested in the activity so he stopped trying to make it happen.

J The employee detail orm requested inormation about the employee4s entire past health issues.

J The wage and superannuation records seemed to be incomplete# with many calculations being worked out by the number o hours worked multiplied by a set Oin the hand4 amount.

J Lames also provided a brochure about a company that could come and set up iFi in the ca8 so that customers could use their

computer notebooks and connect to the internet while they were dining in the ca8.

Meeting <it/ Ron "ang(ord

6ou met with "on +angord in his oMce to discuss the ca8# council by7laws and aspects/sides concerning the surrounding district. 6ou took notes that included the ollowing signifcant/important inormation.

otes (rom meeting <it/ Ron "ang(ord

J "on eplained that there were opportunities or opening more ca8s in the surrounding shopping centres like ilsonton# $li5ord Nardens and ;7(art *la!a.

J "on handed you an etract rom a government report# O%conomic ,rie4.

J "on eplained that the ederal government was now introducing G

'ar6*aking 7 is a cooking technique in which a bread or dough product is partially baked and then rapidly ro!en or storage. The raw dough is baked normally# but halted at about IKR o the normal cooking time# when it is rapidly cooled and ro!en

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legislation government rules1 that backs up the local *y6la< 8 concerning eMcient water usage# particularly by industries. The current by7law has fnes o up to QK#KKK or ecessive water breaches/breaks7 penalties. "on did eplain that the council was allowing some time to Omake good4 under certain circumstances on a case7by7case basis. "on also agreed with the idea o installing a water tank in the courtyard or the ca8 to use and would help get it built.

J "on eplained that Toowoomba was obviously a place or retirees and the population was growing.

J "on spoke about the ederal government4s =ational ,roadband =etwork being rolled out in Toowoomba# which would allow eMcient and e5ective video streaming and teleconerencing.

J "on spoke about a current by7law that is due or implementation/ putting into place 7 on the frst o net month# which will allow ca8s to epand their ootpath dining and so put more tables and chairs outside their premises.

J "on also spoke o the act that representatives/agents o a large international chain o co5ee shops had been making enquiries around town about opening a store in the Toowoomba $,>.

H

By6"a<s  a regulation made by a local authority or corporation

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Meetings <it/ Senior Management Team and

Einan!eG Audit and Risk Management =EARM@

ommittee

Soon ater you returned rom your research trip to the Toowoomba store# you attended two teleconerences.

Eirst tele!on(eren!e

First# you met with the senior management team. At this teleconerence# you discussed issues raised by Lames (ansfeld and "on +angord and the report on previous =S epansion# which head oMce had given you

Report into the acquisition and re-brandin o! the NS" e#pansion store.

*aula said that there may be some things to learn rom the =S eperience.

;ey problems identifed in the report were as ollows

0. 9=T%"=A+ S6ST%(S +ack o internal controls# particularly over cash handling# monitoring and recording.

2. $&(*+9A=$% Failure to meet compliance standards in ?S# privacy and industrial relations law.

3. *&+9$6 +ack o written policy and procedures to guide sta5 in carrying out their duties.

E. ,S9=%SS $+T"% +ack o a pro(essional *usiness !ulture9 _in the amily run business.

. Failure o the business to monitor the eternal environment/outside a5airs and fnd opportunities and threats to the business.

The team agreed that similar issues would pose a risk to the Toowoomba epansion.

Se!ond tele!on(eren!e

6ou then held a teleconerence with the FA"( $ommittee. At the

teleconerence# you relayed the concerns o the senior management team. The FA"( $ommittee decided to allow you time to complete your review

and then would include discussion o your review in the monthly ,oard o >irectors meeting.

I

Business ulture : the way a business or proessional organisaiton operates with a sense o business ormalities.

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Appendi 2& Ma!:ille 'ty "td ; Business

plan =e!erpt@

Ma!:ille 'ty "td

Business 'lan

Mission

(ac)ille $a8s serve competitively priced# high quality co5ee and gourmet ood in a sae and comortable ca87style environment. &ur riendly# well7trained sta5 provide superior customer service.

:ision

(ac)ille aims to deliver our valued customers the very best ca87going eperience. 9n three years# the business will have established a

presence across the <ueensland and =S# with the opening o additional ca8s.

:alues

J customer7ocus J saety J teamwork J perormance ecellence.

Strategi! dire!tions

The strategic contet in which (ac)ille will achieve its mission and vision is through

J engaging/dealing with customers and customer research

J developing and improving products and quality

J epansion o operations across <ueensland and =S

J creating a high7perorming/doing well organisation.

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Ma!:ille 'ty "td& Risk management

poli!y

Introdu!tion

(ac)ille recognises that risk management is an essential/needed component o good management practice and is committed to

ensuring/making sure the implementation/setting up o risk management processes that ocus/e5orts on the proactive/positive management o risks across the organisation.

This risk management policy orms part o (ac)ille4s internal controls systems in the company1 and !orporate governan!e) _{how the}

company is managed and run1 arrangements. The risk management policy is designed to

J identiy# evaluate# control and manage risks

J ensure potential/possible threats/ears and opportunities are identifed and managed

J inorm directors# senior management and sta5 members about their roles# responsibilities and reporting procedures with regards to risk management i.e what the responsibilities senior management have when issues o risk management happen1

J ensure risk management is an integral/essential part o planning at all levels o the organisation.

'oli!y

(ac)ille is committed to achieving its vision# business ob-ectives and quality ob-ectives by the proactive/positive management o risk at all levels o the organisation.

(ac)ille will identiy# evaluate# control and manage risk throughout the organisation in accordance with the O(ac)ille "isk (anagement

Framework4. See risk management strategy or ramework details.

Responsi*ility and Aut/ority

>irectors# management and employees o (ac)ille have responsibility or implementing aspects/angles o this policy.



orporate governan!e 7 broadly reers to the mechanisms# processes and relations by which corporations are controlled and directed.

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Role o( t/e ire!tors

The >irectors have a governance/authority responsibility in the management o risk. This includes

J determining which types o risk are acceptable and which are not

J setting the standards and epectations o sta5 with respect to conduct/behaviour

J approving ma-or decisions a5ecting (ac)ille4s risk profle/outline or eposure/dangers7 i.e fnancial or business ha!ards

J monitoring the management o signifcant/important risks to reduce the likelihood/possibility o potential organisational risks and threats or ailure

J being satisfed that risks are being actively/keenly : positively

managed# with the appropriate/correct controls in place and working e5ectively

J annual review o (ac)ille4s approach to risk management and approval o changes or improvements to key/important

elements/eatures7 items o its processes and procedures.

Role o( t/e Senior Management Team and Store Managers

;ey roles o the senior management team are to

J implement/put together policies on risk management and internal control where this is deemed/seems appropriate

J identiy and evaluate areas o signifcant/important risks

potentially/possibly aced by (ac)ille or consideration by the >irectors

J identiy areas where risk management is not adequately/properly addressed/looked at and advise the >irectors accordingly

J review and update the "isk (anagement Strategy

J undertake an annual review o the e5ectiveness o systems o internal control and provide an annual report to the >irectors# including a summary review and respective recommendations i.e update the >irectors on how well the internal systems are working or not1.

Role o( a(? mployees

;ey roles o employees are to

J amiliarise/make aware themselves with the content/details o the "isk (anagement *olicy and clariy/make clear any aspects/angles necessary with a senior team member

J consider any risks they eel could impact on them meeting their ob-ectives/aims and either manage the risk i it is in their control to do so# or inorm a management team member o their concerns

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J advise senior management# in the frst instance# or the ,oard o >irectors# i concerned about any raud/scam or unethical/bad behaviour.

Ma!:ille Risk Management Erame<ork

This ramework encompasses/covers a number o elements/items that together acilitate/make easy7 provide an e5ective and eMcient operation# enabling (ac)ille to respond to a variety/many o operational# fnancial# commercial and strategic/planning risks. These elements/items include

J policies and procedures

J monthly reporting

J business planning and budgeting

J risk management review

J eternal audit.

'oli!ies and pro!edures

A series/number o policies underpin/support the internal control process. These policies are endorsed/supported by the directors and are

implemented/put together and communicated by the senior management team to all sta5. These policies include

J ?uman "esources *olicies P Sta5 Travel *olicy P ?arassment *olicy P ?S *olicy

P "eturn to ork *olicy P ork:+ie ,alance *olicy

P %quity/>iscrimination/>iversity *olicy P *arental +eave *olicy

P &rganisational $ulture *olicy 7 how the company operates proessionally

J Financial *olicies P ,ad >ebt *olicy

P $ash "eserving *olicy

P "evenue/%penditure "ecognition *olicy

P Finance# Audit and "isk (anagement FA"(1 $ommittee Terms o "eerence# including delegations

J $orporate Novernance *olicies P ,oard *rotocol /practices

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P Sitting Eees10_*olicy

P >irectors "emuneration/salary *olicy.

Mont/ly reporting

>ecisions to rectiy/f problems are made at regular meetings o the senior management team. $omprehensive/complete reporting at ,oard and Sub7committee meetings is designed to monitor key/important risks and their controls.

Business planning and *udgeting

The business planning and budgeting/fnancial planning process is used to set ob-ectives/aims# agree on action plans# and allocate resources.

*rogress towards meeting business plan ob-ectives is monitored regularly by the senior management team and by >irectors at ,oard meetings.

Risk management revie<

The Finance# Audit and "isk (anagement FA"(1 $ommittee is required to report at ,oard meetings on internal controls. The FA"( $ommittee pays particular attention to risk management. 9t is the $%&4s responsibility to brie the >irectors periodically and as appropriate on the development o policies and procedures to ensure e5ective and eMcient operations# risk management strategies and implementation. 9n addition# the FA"(

$ommittee oversees internal audit# eternal audit and management as required in its review o internal controls. The committee is thereore well placed to provide advice to the ,oard on the e5ectiveness o the internal control system# including (ac)ille4s strategy or the management o risk.

ternal audit

The fnal audit o fnancial statements is controlled by an eternal

!/artered a!!ountant11 _{who provides eedback to the ,oard through the} FA"( $ommittee.

0K

Sitting Fees - is a fee paid for being part of a meeting and contributing to the meeting without having any company ownership – it’s a fee payable on a periodic basis throughout each year. The sitting fees covers all formal meetings, regardless of their duration, of the prescribed authority, including any preparation time and travel associated with the meetings

00

/artered A!!ountant 7 The title is an internationally recognised proessional designation. $hartered accountants work in all felds o business and fnance# including audit# taation# fnancial and general management.

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'ro!edure& evelopment o( a Risk Management

'ro$le

The ollowing outlines the process or developing a risk management profle.

1, sta*lis/ t/e !ontet&

J >efne and identiy the environment/location# characteristics/eatures and stakeholders interested parties# people# workers etc1# their goals and ob-ectives# and the scope/area o the specifc risk management process.

J >evelop criteria/conditions against which risks are

evaluated/reviewed and identiy the structure/arrangement or risk management.

2, Identi(y and des!ri*e risks&

J "isks are best identifed through a collaborative/working together approach involving a !ross6se!tion12 _{o stakeholders.}

J All conceivable/possible risks must be considered. %nsure any

certainties/confrmations are identifed as problems and addressed in the risk management profle.

., ondu!t !urrent risk analysis&

J An analysis o the risks is conducted to determine their causes# and estimate their probability/chance and consequences/results. This analysis provides the basis or working on the Oright4 risks.

, ondu!t risk evaluation&

J "isks are considered and prioritised/importance according to their potential/possibility impact/e5ect and each risk is assessed/evaluated to determine its level o acceptability.

5, evelop and implement proposed risk treatments&

J "isk treatments are developed to cost7e5ectively reduce# contain and control risk.

J Formal risk management reporting mechanisms are defned and documented.

J $ategorise the risk likelihood.

02

ross6se!tion& a typical or representative/portion sample o a larger group.

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7, MonitorG reportG update and manage risks&

J As risks change constantly# the risk profle is continuously monitored# reviewed and updated by management. =ew risks may be identifed as more inormation becomes available and eisting risks may be eliminated through the e5ectiveness o the risk treatments/actions.

J 9dentifed risks# and monitoring and management activities should be recorded and stored as ollows

P risks identifed through regular audit should be recorded on the "isk Audit +og

P risk management activities should be recorded on the "isk (anagement "egister.

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Ma!:ille+s Risk Areas

The ollowing are our broad areas where potential or risk to (ac)ille has been identifed. nder each area# eamples o possible risks are detailed.

3perational#organisational&

J legal and regulatory compliance

J technology

J insurance

J resources human# physical

C logisti!s 1.

J marketing

J product quality

J communications

J inrastructure# plant and equipment

J customer interaction J market needs.

Einan!ial&

J accountability J raud or thet C !apital investment 1 J interest rates

J loss o income# unding/fnance.

Fovernan!e&

J conduct o ,oard o >irectors

C !oni!t o( interest 15_,

03

"ogisti!s 7 the planning and control o the Dow o goods and materials through an organi!ation or manuacturing process

0E

apital Investment 7 unds invested in a firm or enterprise for the purposes of furthering its business ob!ectives

0

oni!t o( interest 7 a conDict between the public and private interests o somebody in an oMcial position

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'ro-e!t management&

J procedures and tools or pro-ect management

J stakeholders : strength o relationships/conDict o interest

J human resources i.e sta5# personnel1

J fnancial resources.

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Ma!:ille 'ty "td& Risk management

strategy

Introdu!tion

(ac)ille recognises that risk management is an essential component/part o good management practice and is committed to the proactive/positive management o risks across the organisation. The strategy is designed to

J identiy# evaluate/review# control and manage risks

J ensure potential threats and opportunities are identifed and managed

J inorm directors# senior management and sta5 members about their roles# responsibilities and reporting procedures with regards to risk management

J ensure risk management is an integral/important part o planning at all levels o the organisation.

Fuiding 'rin!iples

J (ac)ille is committed to achieving its vision# business ob-ectives and quality ob-ectives by the proactive management o risk at all levels o the organisation$ acknowledging that embracing/taking on

innovative/new ideas and practices carries with it risks# but that these are identifable/known and measurable/can be calculated and

thereore capable o being sub-ect to realistic risk mitigation/minimisation processes.

Responsi*ility and Aut/ority

J The ,oard o >irectors have responsibility or ensuring that risk management is in place.

J The Finance# Audit and "isk (anagement FA"(1 $ommittee has the responsibility o reviewing the "isk (anagement Action *lan on a si7 monthly basis.

J The $%& and the senior management team have responsibility or managing risk and advising the ,oard on appropriate controls.

J The $%& and the senior management team support and implement policies approved by the directors.

J Key risk indi!ators 17 _{will be identifed}_$_{closely monitored and} action taken where necessary$ by the sta5 and directors.

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Ma!:ille Risk Management Erame<ork

This ramework encompasses a number o elements that together

acilitate an e5ective and eMcient operation# enabling (ac)ille to respond to a variety o operational# fnancial# commercial and strategic risks. These elements include

J *olicies and procedures A series o policies underpin/strengthen the internal control process.

J "eporting >ecisions to rectiy/f problems are made at regular meetings o the senior management team.

J ,usiness planning and budgeting The business planning and budgeting process is used to set ob-ectives# agree on action plans and allocate resources. *rogress towards meeting business plan ob-ectives is monitored regularly by the senior management team and by directors at ,oard meetings. $ontingency planning is

undertaken as required.

J "isk management review The FA"( $ommittee is required to report at ,oard meetings on internal controls.

J $%& The $%& has responsibility to brie the >irectors periodically ater some time regularly1 and as appropriate on the development o policies and procedures to ensure e5ective and eMcient operations# risk management strategies and implementation.

J %ternal audit The fnal audit o fnancial statements is controlled by an eternal chartered accountant who provides eedback to the ,oard through the FA"( $ommittee.

e$nitions

"isks are identifed on a scale o likelihood/possibility o

occurring/happening in the net 02 months and assigning/handing over an impact/e5ect or consequence/outcome to the risk as high# medium or low. ?igh includes either a signifcant/important shortall/loss o around EKR in achieving budget or a signifcant reduction in ability to unction/work. (edium includes either a shortall o budget o between 0KR and 2KR or some reduction in unction. +ow indicates minor reductions in achieving budget or minimal reduction in perormance.

Key Risk Indi!ator =KRI@ 7 " #ey $isk %ndicator , also known as a #$%, is a measure used in management to indicate how risky an activity is.

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Appendi .& Ta*le o( stake/olders

template

Stake/older Internal#etern al Role in pro!ess Stake in pro!ess

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