Question

Develop a risk management plan for a business that you fictitiously own. In paragraph form provide a discussion of a type of business you would one day like to own. It could be a brick and mortar store or a virtual business. After your discussion, identify key threats to the successful operation of your business (be able to discuss at least six threats: 3 internal and 3 external). Explain how these are threats. Once you have identified threats to the successful operation of your business, what risk controls will you implement to address each of the six identified threats? Provide a specific and thorough discussion of how each these six controls will reduce or eliminate the threat considerably. Are there any threats or risks of you implementing your risk control plan? If so, discuss what they are. If not, discuss why your risk management plan is sound. Finally, discuss how personal insurance for you as the business owner would help to eliminate a risk that you identified as one or your internal or external threats. 1000 word minimum.

Answer 1

We all know that business has become more popular these days in comparison to the traditional salaried class.I have also made my mind to shift to future business plan and that business would be to open a restaurant. But it is not always easy to start a business as it requires a lot of hard work and patience. Now let’s discuss the threats and risks involved while opening a restaurant. There would be many internal as well as external risks associated while opening a restaurant business.

Here we will discuss 3 internal threats and 3 external one by one.

             Internal threats:

1. Food storage and safety : Storing the food to be cooked at a place which is extremely clean and free from any kind of germs . This area should be cautioned with utmost care as once there is a small issue the whole food may get infectious which may lead to financial loss.
2. Staff risks : Staff like cooks , storekeeper etc should be hired very carefully and ensured that they wbide by the rules and regulations of the restaurant.There should always be buffer in major ares of function like cook because in a restaurant cook is the most important person. He is the backbone as the quality and taste depends on him .
3. Fire safety: There should be various fire measures which should be in place in case if any exigencies. This is another important factor to be looked upon.

External threats:

4. Competetion from other business in the area: You have to compete with various other restaurants and other businesses operating in the area. And the thing which differentiates is pricing and quality.
5. Government policy: This is one of the major concern to operate a business what kind of policy comes in force whenever the government change or gives their budgets in a financial year.
6. Suppliers: The bonding with different kind of suppliers providing different facilities like food , utensils etc . Everything should be of quality and provide on time.

Now these threats can be minimised using different strategies like food storage area should be neat and clean and there should be proper and regular inspection of the area thoroughly. The staffs should be very politely and carefully handled. They should feel like satisfied with their jobs and regular mentoring and motivating should be there. Buffer staff should always be there.The fire safety measures should be in place and mock drills should be done at regular pre defined slots so as to make the staff aware. The competition from peers will grow day by day, so there should be proper pricing strategies in place.The quality should always be maintained and regular quality checks being done.Also though we cannot do much about government policies but still we should acquaint ourselves in accordance with the regulations. The suppliers should be carefully chosen and relationship should be very healthy with them to get the issue resolved immdetiately , if any.

Moreover my personal insurance should be upto the maximum extent one can get so the if any thing happens to me the insurance cover should be so that the business should not suffer or stop and it must go on smoothly whether I am there or not.