Risk Management of MacVille in Papua New Guinea

The risk can destroy the reputation of the company. In addition to that, the situation can bring legal issues which may bring losses to the company.

The risk is very likely to occur because of the introduction of new production methods in the village.

extreme

Working in collaboration with the legal team of the company and the authorities in the village to ensure that the legislation is followed.

2.Losses as a result of lack of adequate supply

The company may lose up to 1-2 million dollars. The loss may, in turn, paralyze the operations of the company.

Since the producers in the village are not well knowledgeable about the new production methods. The farmers may be unable to meet the level of inputs needed by MacVille.

High

Working closely with the farmers in the village. The strategy will help in ensuring that the production is constant.

3.Leaking of the technological expertise of MacVille

Increased competition from rivals because of leaking vital information regarding the production techniques of the company.

Very likely to occur because of the sharing of the information to the new farmers.

High

Ensuring that the field team of MacVille company is put in charge of all the production services in Papua New Guinea to reduce leaking of information.

Review and maintenance requirements:

All the employees and management of MacVille must be involved in the process. The team should closely work with the coffee producers in Papua New Guinea to ensure that the project is successful.

Appendix 3: MacVille risk treatment action plan template

Risk treatment activity

Resources required

Person responsible

Timelines

1.Research and legal advise

A team of researchers

A legal team

Legal Department Manager

3-5 months

2.Introduction of new production technologies

Income to purchase new machinery

Additional skilled laborers 

Human Resource Manager

2 months

3. Using the companies professional to monitor the production process

MacVille’s field experts

Field manager

1 year

Review and maintenance requirements:

The collaboration of all the shareholders is important for the successful operation of the new strategic approach by MacVille.