Risk Assessment
Key:VH = Very High
H = High
M = Medium
L = Low
In the context of BCM, the objectives of Risk Assessment (RA) are to study and investigate the likelihood and impact of a variety of risks that could cause business interruptions, as well as prioritize various risk reduction activities. RA will only take place after BIA has been completed. It focuses on critical activities and supporting resources identified in BIA stage. Action options for each risk will be developed. The action options can be categorised into four types, including treating, tolerating, transferring and terminating. The keys of the RA are shown below.
Page 1 of 8386COM – Business Continuity and Compliance
No. / What are the hazards? / Who might be harmed and how? / Likelihood / Impact / Priority / What have you been doing already? / Do you need to do anything else to control this risk? / Action by Whom? / Action by When? / Done /
1 / Slips and Trips / Staff and customers may be injured if they trip over objects or slip on spillages. / M / VH / VH / General good housekeeping is carried out.
All areas well lit, including stairs.
No trailing leads or cables.
Staffs keep work areas clear, e.g. no boxes left in walkways, deliveries stored immediately. / Better housekeeping in kitchen needed (E.g. spills).
Arrange for loose carpet tile on second floor to be repaired or replaced. / All staff, supervisor to monitor
Manager / From now on / N/A
(∵Regular Actions)
2 / Burglary / The company will suffer a big loss in money. / M / H / H / Ensure adequate insurance cover in place including business interruption and general property including theft. / Install alarm and video surveillance camera. / Manager / From now on / N/A
(∵Regular Actions)
3 / Fire / Staff and customers may be injured if it happens during opening hours; Company assets may be damaged; Company will suffer a big loss in money. / M / VH / VH / Ensure adequate insurance cover in place including business interruption and general property including fire hazard. / Install fire alarms.
Install fire extinguishers.
Arrange regular examination by fire services department. / Supervisors
Store Manager / From now on / N/A
(∵Regular Actions)
4 / Loss of Staff / Company may be understaffed; Company trade secret may be compromised. / H / M / M / Draw up reasonable contract that protect the interest of both company and employee. / Provide more benefits for staff (E.g. Dental benefits).
Provide a more positive working environment.
Get regular opinions from employees. / Human Resources Department (Robin Jackson) / From now on / N/A
(∵Regular Actions for Every Staff Employment)
5 / Staff Theft & Fraud / Company may suffer money loss, reputation damaged and trade secret compromised. / M / H / H / Use security systems.
Implement Internal Controls: Control access control.
Have a written contract on terms and conditions. / Establish a zero tolerance policy.
Create positive work environment.
Employ good and honest people.
Create an Anonymous Reporting System.
Perform Regular (and Irregular) Audits. / All Staff
Store Manager
Supervisors
Regional Manager / From now on / N/A
(∵Regular Actions)
6 / Terrorist Attack / Staffs and customers inside the restaurant which is attacked by terrorists. / L / VH / M / Use security systems. / Regular cooperation with local forces. / All staff
Supervisor
Manager / From now on / N/A (∵Regular Actions)
7 / Water Outage/Shortage / Food service’s efficiency and quality may suffer. Food services may need to be stopped. Restaurant revenue will be reduced. / M / VH / H / Have a reserved water supply available during a water shortage. / Have a backup water supply tank.
Creating an “emergency menu” of food that can be served with minimal preparation and minimal ingredients. / Store Manager
Main Chef / From now on / N/A
(∵Regular Actions)
8 / Power Outage/Shortage / Food service’s efficiency and quality may suffer. Food services may need to be stopped. Restaurant environment and atmosphere will be affected. Restaurant revenue will be reduced. / M / VH / H / Have an electrical generator available during a power outage. / Have potential sources for a refrigerated truck to be used during a power outage.
Creating an “emergency menu” of foods that can be served with minimal preparation and without additional cooking. / Store Manager
Main Chef / From now on / N/A
(∵Regular Actions)
9 / Gas Outage/Shortage / Food services efficiency and quality may suffer and be stopped. Restaurant revenue will be reduced. / M / VH / H / Install induction cookers. / Creating an “emergency menu” of foods that can be served with minimal preparation and without additional cooking.
Stocking LPG cylinders in case there are not enough gas provided for cooking. / Store Manager
Main Chef / From now on / N/A
(∵Regular Actions)
10 / Natural Disasters (E.g. Flooding, Tornado, Earthquakes, etc.) / The safety of staff and customers will be endangered. Restaurant assets and property may be damaged. / L / VH / M / Ensure adequate insurance cover in place including business interruption and general property including natural disasters.
Researching on failure over environments and vendors that support disaster recovery efforts has been done. / Connect with public officials to develop a disaster - preparedness plan.
Create and distribute practical toolkits for the staff in order to raise their ability to deal with the impacts after the disaster. / Store Manager
Supervisor
Regional manager / From now on / N/A
(∵Regular Actions)
11 / Food Poisoning / Customers who ate the poisoning food. / H / VH / H / Food safety precautions are taken place.
All kitchen staff must wear uniform and hair nets.
Regular checking for food’s best before date.
Ensure adequate insurance cover in place including business interruption and general property including food poisoning. / Introducing food scanning to ensure that arrived ingredients are free of pathogens, toxins and etc. / Restaurant Operations (Genevieve Boswell) / Started from next restocking process / N/A
(∵Regular Actions)
12 / IT System Failure / Customers who are paying for the dinner by credit cards or gift cards. / L / M / L / Backup every three days.
Regular hard copy records of sales. / Conduct regular system maintenance every 2 weeks.
Consistently update system in order to keep it fully functional. / IT department
Store manager / From now on / N/A
(∵Regular Actions)
13 / Gift Card/ Credit Card Fraud / Frauds using fake gift cards or credit cards to pay. Restaurant revenue will suffer. / M / M / M / Verify authorization of card. / Renew the design of the card every year.
Introduce security features to the card in order to reduce the chance of the card to be fraud. / Operation manager / From now on and when gift card services started / N/A
(∵Regular Actions)
14 / Food Resources Shortage / Food resources may be low. Food services and menu may be affected. / L / H / VH / Regular checking for food stock. / Develop an information system that store up-to-date stock records. / Store manager
Buyer
IT department / From now on / N/A
(∵Regular Actions)
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