Scenario

You have just started your business, and you supply food materials to Asian restaurants.

Currently, you have approx. 20 restaurants to supply and have employees as follows:

1 Delivery driver

1 Administrator

1 Warehouse manager

2 Warehouse assistants

Your business has generated good revenues by supplying food materials to 20 Asian restaurants; however, as you have operated this business for only 3 months, you want to identify risks in your business operations. Currently, your business is operating as follows:

All food materials are delivered in normal delivery vans and you do not have any refrigerated delivery vans.

All ordering, invoicing and receipts are manually issued on the designed forms.

At least one of the warehouse assistants comes with the delivery driver, and sometimes the assistant drives the van.

Due to the nature of small restaurants, sometimes they give cash payments for the supplies to the delivery driver.

The administrator does all administrative work, including accounting, HR, etc.

The current terms for accounts receivable and payable are both for 2 weeks.

Your business receives goods from only one main distributor in Australia.

Currently, the deliveries are scheduled for 7 days a week.

Question 2: From the scenario, identify the risks the business may encounter. NOTE: You must identify at least 3 risks in the business operations.