Risks of Business

Brandon Anderson


  1. The restaurant accepts cash, checks, and credit cards as forms of payment. At present, the restaurant has no means of identifying invalid or stolen credit cards or bad checks. However, employees are instructed to check licenses on all checks.
  2. The hiring process is very informal. In addition, there is a high turnover among employees in the diner since they are mostly teenagers and college students. As a result, Lisa and Phil do not always know their employees as well as they would like.
  3. The current alarm system is about 15 years old. It came with the building when Lisa and Phil bought the building ten years ago. Other than the alarm system and door locks, there are no other security features installed in the building.
  4. . Lisa and Phil often find it hard to find employees willing to work later in the evening. Therefore, the restaurant is not usually well staffed after 9 p.m.

  5. You noticed during your inspection that the floor in the kitchen often becomes wet and slippery while employees are working.

  6. Lisa and Phil have a property insurance policy to protect the restaurant and its contents. In addition, they pay into the state’s workers’ compensation fund monthly. Beyond this, they have no other insurance coverage.

Why It's A Risk

  1. If credit cards aren't well identified, people/ criminals can be using stolen cards and get away with it, and the restaurant would be contributing to it.
  2. A business won't run smoothly without good employees, and if you don't get to know them
  3. Its and outdated alarm system and may be faulty
  4. It could be booming at those hours and if its not well staffed it wont be well performed.
  5. This could prove hazardous, it may cause an injury.
  6. If everything isnt covered, you put your business at risk.


  1. They must come up with a system to ensure identity and that the currency isnt stolen, by using computer systems and/or look up system.
  2. Carefully and thoroughly train and evaluate your employees, ensure they fully understand their duties.
  3. Get a new up to date alarm system throughout the restaurant.
  4. Hire older people/ young adults, people who are willing to work those hours.
  5. Every once in awhile through out the day, dry the floors, or provide non slip shoes.
  6. Get insurance for every risk possible for your business.