Vrindavan Mithai Wala Ltd, a listed company, has long been a popular name in the retail stores and restaurants. With an expansive footprint of retail stores and restaurants across the country, the brand became synonymous

Vrindavan Mithai Wala Ltd, a listed company, has long been a popular name in the retail stores and restaurants. With an expansive footprint of retail stores and restaurants across the country, the brand became synonymous with quality and consumer trust. Building on this established brand equity, the Board of Directors approved a capital-intensive diversification strategy transitioning from sweets and restaurants into the full-scale hospitality sector. This culminated in the launch of a premium hotel wing under the group's popular flagship brand. The transition from high-volume food retail to complex hotel management presented immediate structural challenges. While the initial phase of hotel operations appeared to stabilize, the Company's internal control oversight failed to keep pace with the specialized regulatory requirements of the hospitality industry. Following a surprise survey conducted by Government authorities, several critical deficiencies were identified in the Company's management practices, like non-compliances with FSSAI regulations, waste management, child labour, labour laws, PF & ESI Acts. The Company was levied substantial regulatory fines that directly impacted its profitability. News of the environmental and other non-compliances were reported by the media, causing a sharp decline in share price and brand goodwill. Plans for further expansion into the hospitality sector were immediately suspended as the management shifted its focus toward damage control and risk mitigation. In the wake of these losses, the executive management embarked on a comprehensive study of corporate risks and review of internal control system by internal audit function. It also considered a detailed risk analysis to address the existing issues and recommend further course of action. The internal audit department was entrusted with assessment of operational non-compliances and to recommend remediations thereof. The internal audit manager prepared a detailed programme in light of the main risks identified by the Company. Based on the above answer the following questions: 'Identification of current and potential hazards is the first stage in risk analysis. These might originate from a wide range of sources.' Discuss.