 Case 1 Pizza Inc.

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A.Identify and list the key processes used by Pizza Inc. at their
individual site locations.
1. Order Receiving
2. Pizza Making
3. Pizza Delivery
4. Collecting Payment
5. Employee Payment

B.Determine 10 business risks for the typical site location and assess
the impact and likelihood of these risks.
1. Take Wrong Order: The impact is medium and the likelihood is high
2. Calculation mistakes: The impact is high and the likelihood is low
3. Inconsistent Quantity of Ingredients: The impact is medium and the likelihood is
high
4. Over Baking: The impact is high and the likelihood is low
5. Delivery late due traffic: The impact is medium and the likelihood is medium
6. Insufficient funds from customers: The impact is high the likelihood is low
7. Cancellation of Order: The impact is low and the likelihood is medium
8. Shortage of Ingredients: The impact is high the likelihood is medium
9. Not driver is availiable: The impact is high and the likelihood is low
10. Car problem: The impact is high and the likelihood is low

C.Link the business processes to the business risks. Determine which

are key versus secondary links.
K-Key Link
Risk Risk Risk Risk Risk Risk Risk Risk Risk Risk
S- Secondary Link 1 2 3 4 5 6 7 8 9 10
Order Receiving K K K
Pizza Making K K K
Pizza Delivery S K S K K
Collecting Payment K K K K
Employee Payment S S
D.Select a key process (one you consider critical to the success of an
individual site location) and create a detailed level process map of the
activities.
The pizza Delivery

No
Contact Driver

E.Identify the specific

Is diver
Delivery process available? risks associated with the
activities of the key process (that
is, the
Assign correct Identify the
process you selected for Yes
pizza to the customer’s
driver address
process mapping).
The Pizza Delivery
No
Contact the
customer

Is the
customer’s
location
correct?

Return payment to
Collect the Deliver the
the company
payment pizza Yes

Activity Risk Potential Impact Likelihood Risk Technique

statement Impact rating rating Response for assessing
effectiveness
Assign 1.No driver 1.Pizza 1.High 1.Low 1.Hire part- 1.Cross
Pizza to is availiable doesn’t get time driver training
Driver delivery employees
Driver 2. Cannot 2.Delivery 2.Medium 2. Low 2.Contact 2. Look up the
identifies find the late or can’t customers address before
the address delivery 3.Medium 3.Low ending the
address through Pizza 3. Contact conversation
map 3. Delivery employees to with
3. Cannot late or can’t check the customers
identify the delivery location map 3. Install GPS
Pizza
 route to the
address
Driver 4. Traffic 4. Delivery 4.High 4.High 4. Look for an 4. GPS with
drive to 5. Car late alternative traffic updates
identified malfunction 5. Delivery 5. High 5. Low route
address 6. Accident late 5.Contact the 5.regular car
6. Delivery 6.Medium 6. Low store to send check ups
late another driver
6. Contact the 6. None
store to send
another driver
Arrived 7. Be late 7.Unsatified 7.High 7.Medium 7. give 7.None
and 8. Improper customers complementary
record arrival time 8.Improper 8.Medium 8. Medium coupon 8.Check GPS
arrival recorded payment 8.None time log
time 9. Failed to 9. Improper 9.Low 9.Low 9.None 9. Check GPS
record time payment time log
Collect 10. 10.Cannot 10. High 10. Low 10. Go back to 10.None
payment Insufficient collect store
funds from payment
customers

F.Map the identified risks according to their inherent impact and

likelihood of occurrence.
1,5,
7 4
10

High

2,6 8
Impact
3
 9
Low

Low Likelihood High

Risk Significance

Critical Moderate Low

G.Based on the case facts provided above, identify controls (actions

management currently takes) to mitigate the identified risks and put
them on the risk/control matrix.
See Above Table E

H.Determine techniques for assessing the effectiveness of the existing

controls. (Complete the last column in the risk/control matrix_exhibit
5-14)
See Above Table E

I.Based on your observations and opinions of the potential

effectiveness of the current risk response activities to address risks in
the critical process you selected, create recommendations to mitigate
the existing risks and improve performance.
The Pizza Delivery
1. Driver cannot find the address through the map.
Problem it could cause:
a. Failed tor delivery pizza
b. Delivery pizza late
 Various problems could be caused further. Since the pizza would not be arrived on time,
customers will be very unsatified. It is also harmful for Pizza Inc.’s reputation. As a
conserquence, there will be a loss of customers.

Any recommendation to avoid or solve this risk will be designed based on how to
delivery pizza on time. Here are some recommendations:
a. Look up and confirm the address before ending the conversation with customers. This
would required the employees to record the address correctly and quickly. Customers
could be unhappy if they are asked many times during the ordering. Therefore,
employees need to make sure they record the address correctly and quickly.
b. Install the GPS with the updated map.

2. Driver may occur traffic on its route towards the customer.

Problem it could occur:
a. Deliver pizza late

Traffic is a problem that has high likelihood and high impact. Since it can occur often, it may
cause the driver to be late and not have a consistent delivery schedule. This can cause
customer satisfaction to decrease and lower our company’s image. A recommendation to
solve this issue is to purchase standard GPSs for the company that an employee making a
delivery can use. The GPS we purchase will have updated traffic and will recommend
alternate routes to ensure the fastest arrival. Also with traffic updates if there is multiple
delays to the customer, we can call to notify them ahead of time that the employee will be
late.