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Assignment - You can choose a venue you are familiar with and have relatively easy access to. The venue MUST be in Australia, in the city in which you live.

Part 1: Case History - Write a brief case history of your chosen venue, and this should be considered as a prelude to Assessment 2. The case history should include: A description of the venue, its location, size and purpose. A history of the site including any refurbishments or improvements. Providing values for these will add context and value. Current operating condition and maintenance schedule of the venue. A floor plan for the relevant Venue Condition Assessment.

Part 2: Create a blank Venue Condition Assessment form using the Microsoft Excel spreadsheet provided. A VCA form is a record that allows the assessed condition of a venue to be measured. Its format is open to interpretation, however, a standard format may include: A table or spreadsheet in landscape format. A vertical menu on the left hand side that covers critical components of the venue. Section headings may include, for example, structure, fixtures and fittings, equipment, services. Details of each section should then be listed. A horizontal menu across the top will list how the venue will be assessed/evaluated and must include at least one theoretical framework.

Answer - Risk and Venue Risk Assessment: Stanford Plaza's Kitchen

The Notion of Risk

Definition

Risk is defined as the process of occurrence of consequences as a result of actions taken. The actions taken may impact the work and projects in positive way by providing an opportunity or in negative way resulting in as a threat for the company (Kleim, 2019).

Design Theory in Hospitality

Design theory deals with concepts of art that is expression of attraction. This theory deals with the theoretical approaches to understand the concepts of designs, their use is specific areas, the process of application of designs, principles related to designing, patterns of designing, designing knowledge and practice of designing. The hospitality design theory relates to the interior infrastructure of the hotels, which attracts the customers and create their impact on customers (Eidson, 1986).

Risk factor

The risk factor associated with design theory is the impact created by the interiors of restaurants on the customers. The interiors of restaurants are set according to the societal choices, environment and culture of that place. If the interior designed is attractive and has a pleasant impact on customers then it becomes an opportunity for the hotel industry but if the interior design is not according to the culture and society likings then it is risk factor for hotels.

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Process of Accessing and Evaluating Risk

Burnaby (2009) has defined the 5 steps of risk management process that can be described in as:

1. Risk identification

2. Risk analysis

3. Risk evaluation

4. Risk solution

5. Risk measurement and final review

1) Risk Identification

In the first step, the organization identifies that what kind of actions are and will be creating risk for the organization. What kind of risks will take place with the specific kind of actions? If the actions are gone wrong what negative risks can occur and in case of positive result of actions what kind of opportunities can occur through risks taken.

2) Risk Analysis

In risk analysis, the organization analyzes that what kind of certain actions are taken, they are positive or negative and in what directions the actions are taken and through these actions dimensions the organizations perceive the type of risk that are associated with the specific types of actions. They will identify what sort of risks can be occurred major risks or the minor risks. And what part of actions can create more risks.

3) Risk Evaluation

After analyzing the type of risk, the organization ranks the risks according to their risk factors involved and priority basis of risks. The ranking is done in such a manner to see which kind of risks can create large effects and need to be solved first and then the risks that create small impact of actions and can be solved at end.

4) Risk Solution

According to the type of actions taken, the organization plan solutions for them including the planning of budgets needed to solve, the technical and functional resources needed for risk control and solution.

5) Risk measurement and final review

After defining the solution, the organization then measure the effects created by implementing the solution and then give final judgments regarding the solution provided. The organization checks the benefits and drawbacks associated with the specific risks solutions implemented.

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Categories of Risks

Risks can be divided into 2 categories (Lane & Sacheverrel, 2019)

1) Primary Risks or Residual Risks

2) Secondary Risks

1) Primary Risks

Primary risks arise after taking out the secondary risks form the actions taken. These are the primary source of issues that cannot be ignored. They sometimes show the direction to solve the secondary issues. These risks are also called residual risks.

2) Secondary Risks

Secondary risks are those that require main attention and consist of major issues that need to be solved as soon as possible. These risks arise while we identify the primary risks.

Why do we need to pay attention to both primary and secondary risks?

The attention is required on both primary as well as secondary risks because secondary risks can only be solved by seeing the primary risks issues related to the secondary issues. When we can identify the primary issues related with secondary issues then we can solve the main secondary issue.

Classification of Risks

Financial Risk

These are the risks that are associated with the actions taken. Financial risks if considered positive then it became an opportunity to boost the economy of organization and if they are negative then they may lead to economic crisis in the organization. Financial risks can be controlled if there is higher financial exposure and if there is no financial exposure then it will be difficult to deal with financial losses (Olah, 2019).

Human Risks

Human workforce risks in an organization in effect of their actions can be shortage of workforce required to do work and their resistance towards obeying the rules and non-cooperative behavior for completing task. Human resistance is the cause of actions that they consider a threat to their rights and in against to these threats they show resistance and become a risk factor for organization (Aiso, 2018).

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Physical Risks

Organizations sometimes may take actions that can be dangerous for the societal environment as well as they is also a risk for the company. Suppose in a restaurant, if the contaminated food is that is dumped and burnt, may produce some chemicals and gases that harm the environment. And if such food is given to customers it may become a risk to their life and for the restaurant also. In case of any health harm to customer, he can sue to the restaurant (Steg, 2000).

Non-Physical Risks

Non-physical risks are those risks that are harm to the reputation, name of the company. They may be measured through the losses occurred to the company. The complaints of clients for specific actions taken by the company can be harmful to the image build by the company. They are the risks hat effect core values of the company. The ultimate end of all risks is the non-physical risks which do not have any appearance but are considered harmful to sustainability of the company (Steg, 2000).

Importance of Risk in Tourism and Hospitality

Importance in Tourism

Tourism sector consists of a great amount of risk. Traveling consists of so many risks and avoiding risks while traveling to strange or unknown locations is a bad option. Risk analysis in tourism industry is important because whenever we are traveling to new pace we should know the type of safety and security arrangements of that place. In fact, we should also know the type of roads, ratio of accidents per year, ratio of natural disasters occurred and chances of occurrence, crime rate and chances of terrorist attacks in that specific area. Information of these all aspects are necessary for decision making and doing precautions before traveling; while ignoring all these important information is a risk to your life in traveling (Korstanje, 2011).

Importance in Hospitality

In hospitality industry, the risk is related to services provided to customers which includes the safety risks related to the food products, consumer perceptions regarding your hospitality, the environment provided to the consumer, delays related to the orders of customers, risk of perception of customer satisfaction and most important risk is quality of food services provided to the customers. These all risks if controlled can be converted into a big opportunity and if they are ignored can be dangerous also (Sanjeev, 2012).

Venue Risk Analysis

The venue for 'Risk Analysis' is Stanford Plaza's Kitchen and following methodology is adopted for the purpose. The 'Risk Ranking System' is devised in Excel Sheet.

Risk Management Process

Risk management is a whole process through which we are able to manage the risk before it happens and before its consequences. It is a complete process which includes identification of risk, analyzing the risk, evaluating or ranking the risk, controlling the risk and at the end reviewing the risk control system (Aven, 2106).

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Managing Risk

Every organization has its own methods to manage the risk; management of the risk is done by following the format given below:

Risk and Venue Risk Assignment.png

The format of how the risk is managed is given above. Moreover, the general process of risk management is as following;

Risk and Venue Risk Assignment1.png

The diagram shows the general process of risk management, all seven steps are mentioned on how we can identify the causes of risks and how we can avoid the causes to prevent the risks.

Now, following is the Likelihood of risks;

Likelihood


5

ALMOST CERTAIN: will probably occur, could occur several times per year

4

LIKELY: high probability, likely to arise once per year

3

POSSIBLE: reasonable likelihood that it may arise over a five-year period

2

UNLIKELY: plausible, could occur over a five to ten year period

1

RARE: very unlikely but not impossible, unlikely over a ten year period

It shows the chances of occurrence of the risks. The likelihood is from 1 to 5. 1 shows the rare chances of occurrence of risks and 5 shows the extreme chances of occurrence of risks.

The impact of the risks is given as follows;

Potential impact

5

CATASTROPHIC:  company most objectives may not be achieved, or several severely affected

4

MAJOR:  most objectives threatened, or one severely affected

3

MODERATE:  some objectives affected, considerable effort to rectify

2

MINOR:  easily remedied, with some effort the objectives can be achieved

1

NEGLIGIBLE:  very small impact, rectified by normal processes

The table above is showing the impact of the risks on the business.

A rating table is used to rate the risks on the basis of its likelihood and severity. It is as follows;

Risk and Venue Risk Assignment2.png

The diagram above is showing the severity level of risk and its likelihood.

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How we can undertake risk management process?

First, the risks should be prioritize on the basis of their nature of impact on the business. Then the solutions to manage these risks are to be found. Which risk can be managed and how it can be managed? The solutions should be both short term and long term. Short term solutions are for the daily risk management. And long term solutions are a sort of backup plan. For this, the financial budget should have the budget of risk management. There should be an amount which can be used to control, accept or transfer the risk. Because there can be uncertain situations, and the business should have some backup plan to tackle with these issues.

Risk Assessment

Risk assessment or analysis is the process in which we describe the overall procedure of how to we are going to assess the risk and identifying those risks which have the potential to harm, analyzing the degree of harm the risk can provide, making record of what we found during the analysis and then reviewing the risk assessment process (Gerba, 2019).

Venue

The venue is the Kitchen of Stamford Plaza, for this, a venue condition analysis is done in which the whole analysis about the present condition of the kitchen is described in detail. The kitchen analysis is done to identify the present condition of kitchen, listing the things that need renewal or repairing, cost analysis and developing a plan.

Typical risks in the kitchen and how they are managed?

The typical risks which are found in the kitchen are as follows;

  • Poor storage system
  • Poor refrigeration system
  • Cleanliness issue
  • Dirty utensils
  • Dirty ovens and stoves
  • Wet floors
  • A lot of electrical circuits
  • Fire extinguisher shortage
  • Sharp knives
  • Spills and falls

These risks are common for every kitchen, and these can be managed if the proactive approach to identify and manage the risk is used here. The risks can be avoid and the risks can be prevented.

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Risk Ranking System

Risk ranking is a system in which the risks are ranked according to the degree of their harm they can provide, the risks are evaluated on the basis of;

  • Likelihood
  • Impact
  • Consequences
  • Risk category
  • Risk rank
  • Hierarchy of control
  • How risks can be eliminated, substitute or isolate
  • Risk treatment

Hierarchy of control

The hierarchy of control is a system which is widely used by all the multinational businesses and local businesses to control the hazards and risks that can occur. This system is promoted globally and the managers are trained to apply this process in the business.

The hierarchy of control consists of different stages;

  • Elimination of risk:Removing the cause of risk
  • Substitution:Replacing the high risk with low risk
  • Isolation:Separating the risk from workplace
  • Redesign:Redesigning the machine by adding safety measures
  • Training:Giving training to employees to how to manage risk
  • PPE:Use of Personal Protective Equipment

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Risk assessment form

A form is filled with the possible risks and their impact on the business; here the possible risks that can occur in the kitchen are as follows;

Risks identified:

1. Floor carpeting contamination

2. Improper storage area

3. Food safety hazards

4. Dangerous equipment

5. Safety hazards

6. Poor refrigeration system

7. Messy Utensils

8. Leakage from ceiling

9. Ovens are dirty

10. Hygiene issue

11. Electrical hazards

12. Workplace is crowded

Findings

The floor is carpeted but the carpet gets wet because of the leakage from the ceiling. The oil and other greasy things fall on the carpet which discolors the carpet and needs to be cleaned. The storage area is not proper and the things can fell onto the employees. The equipment is dangerous, such as the computers and laptops are damaged. There is no proper safety system in the kitchen. The refrigeration system is poor. The fryers and the utensils are messy and not clean. The ovens are not clean and there can be fungus layer in the oven. The area of workplace is not as needed for the number of workers.

These risks are listed on the risk assessment form and the consequences of these risks are also listed. Moreover, the risk category, likelihood, impact, risk rank and risk treatment are also listed in the risk assessment form. Basically there are four types of risks; Financial, Human, Physical and Non-physical risks. The risks such as floor contamination, improper storage, and crowded workplace are all related to humans.

On the other hand, poor refrigeration, leakage from ceiling and dangerous equipment are related to financial risks. The oven's cleanliness and cleaning of fryers are related to physical risks. The food safety and hygiene issue are related to non-physical risks.

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Mitigating risk

The mitigation of risk is to avoid, accept, reduce or transfer the risk. In this case, the risk can be treated by different methods. The procedure followed here is to reduce or avoid the risk, to accept the risk and to manage the risk. In managing the risk, the risk is transferred to the other department and in the prevention of risk; the internal controls are followed to prevent any type of risk.

Recommendations

Risks can be identified earlier, so the risks can be treated in a better way before they provide any harm to the venue. There should be a system by which risks are analyzed and suggestions are taken from the workforce as they work here and know better things to suggest. The manager should follow the risk assessment process and present a solution for the upcoming risks. If there is no proper storage of things than the manager should hire a store keeper to manage all the things. The ovens should be cleaned regularly as dirty ovens can be the cause of fire. The damaged laptops and computers are also become the cause of electrical hazards, so the equipment should be repaired on time. The assets such as the broken chairs or damaged tables should be repaired or replaced so that there will be more work space for the workers because the crowded workplace can be the cause of accidents or injuries. The messy fryers should be cleaned as they lead to food safety problems. This safety problem can cause harm to our customer leading to customer dissatisfaction. Moreover, it is considered fraud if the marketing says that the food is of good quality but in the kitchen the safety measures are not followed properly.

Conclusions

In this risk assessment process, we are able to learn about the risk and its different types, how they are affecting the business and how the risk is ranked and treated. This study enabled us to follow the risk management process while doing any business. The risk management process allows us to identify the risk and then we are able to reduce or eliminate the risk. We also got to know about the kitchen hazards and kitchen safety measures.

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