1.  Identify the internal and external context for risk management

2. A brief overview of two key legislative requirements which relate to risk management and must be factored in the process.

3. One key Australian regulatory requirement which must be managed when managing risk

4. The Australian Standard which applies to risk management and the key guidelines which should be followed within the Standard

The Scenario:

John Readings Pty. Ltd. Re-design Bookstore Caf John Readings is an Australian book publisher, distributer and retail business with stores located throughout Australia and New Zealand and a large online business. At present a total of ten retail outlets located in state capitals contain Cafes. As part of the company's future development plans all retail outlets will soon have Cafes located within them. However, before this can happen, the current Caf design for the ten retail outlets need to be refreshed and upgraded. The upgrade includes a fresh new menu, new furniture and layout design as well as a play area for children. You were successful in your application for the Project Manager role and have just had confirmation from Damian Black CEO that the project steering committee will include the Procurement Director, Marketing Director, the Director of Finance, and the Caf Operations Manager. The project is now ready to commence. An architect has been contracted to design the new look and feel and this has been approved by the steering committee. The architect and building contractor have provided costing estimates on which the project budget is being based. They have advised, in order to minimise business disruption, the order of works will be:

Stage 1 - Two days (no business disruption):

Playground fit out and flooring

Fencing and shade sail installation

Landscaping and new outdoor furniture.

Stage 2 - Two days (caf closure):

Removal of booths

Repainting of caf dining area interior

Laying of floating floor over existing tiled floor caf dining area only

New dining furniture and artwork.

The Procurement Director has identified preferred suppliers for furniture and fit outs including the playgrounds. Damian Black, CEO has advised the following:

It is assumed the marketing staff will contribute to the project, helping with the branding and other promotional items as required. The existing team is able to fully participate in training where required.

It is assumed construction can take place simultaneously with other project deliverables.

Constraints - budget and time are sufficient for the project, all products purchased for the caf and playground will meet with the organisational quality standards and safety standards.

Only approved preferred suppliers will supply equipment and furniture.

The project is dependent on external dependencies, which involves consultation with the architect, building contractor and consultant chef.

Building contractor was chosen based on his assurance that caf shutdown times would be minimised to two days and the trade of the attached bookstore would be able to continue.

Kitchen modifications, equipment and fit out work will not be included in the project and any requirements will need to be drawn from the operational budget for repairs/maintenance/equipment.

A revised budget has been developed in consultation with the Finance Manager of $200,000 for nine stores with the tenth store requiring a budget of $250,000 and an extra two-day shutdown period. The project is scheduled to commence on 10/01/2021 and be completed by 10/05/2021.

Answer rating: 100% (QA)

Internal and External Context for Risk Management Internal Context Internal factors that need to be considered for risk management include the organizations objectives strategies policies processes re... View the full answer