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The Risks – More Than Just Food Issues ? David I Brown Managing Director Food Quality Compliance...
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Transcript of The Risks – More Than Just Food Issues ? David I Brown Managing Director Food Quality Compliance...
The Risks – More Than Just Food Issues ?
David I BrownManaging Director
Food Quality Compliance Solutions Ltd
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“ What we anticipated seldom occurs. What we least expected
generally happens “
Benjamin Disraeli
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Risk Assessment Objective
Enhance the ability of the business to deliver an objective by ensuring that the level of risk involved is appropriate
Achieved by :-Identification of the risks that threaten the delivery of an objectivePrioritisation so that the focus is on management of risks that are unacceptably highDevelopment of plans to mitigate these risksIdentification of areas outside of management control that would provide a large upside returnDevelopment of plans to exploit these opportunities should they arise.
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SETTLERKnows that there are risks out there. Doesn’t want to chance anything
PIONEERUnderstands the risks. Takes chances but stays in control
GOPHERDoesn’t know what’s out there and doesn’t care. Stays underground where its safe
COWBOYDoes what he/she feels like. Doesn’t think (or care) about the risk
RISK AWARE
RISK OBLIVIOUS
RISK TAKING
RISK AVERSE
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Everything is a risk !
Even substances that we think are harmless, such as water, can be harmful if drunk in large quantities
Paracelsus, often called the “Father of Toxicology” wrote in the 16th century: “All things are poison and nothing is without poison, only the dose permits something not to be poisonous”
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A few thoughts about risk
Risk means different things to different people
We juggle risk inconsistently – through ignorance or a willingness to accept the odds – even when they are against us
What might appear to be the obvious greatest risk can be over shadowed by a series of minor ones
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There are risks with everything but risk assessment is not pointless
Risk assessments must lead to a conclusion about what matters and would do most damage to your business
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Distillery fire Merseyside
BP fire – Bay of Mexico
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LIKELIHOOD1) remote
(< 10%)2) possible
(10 - 50%)3) likely(> 50%)
IMP
AC
T
3) critical
2) major
1) manageable
(A) low
(B) low
(C) low
(D) medium
(E) medium
(F) medium
(G) high (I)
(H) high
Business Risk Profile
Carry Out a RISK ASSESSMENTList the top 10 to 15 RisksDetermine Major Ones using this matrix
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LIKELIHOOD1) remote
(< 10%)2) possible
(10 - 50%)3) likely(> 50%)
IMP
AC
T
3) critical
2) major
1) manageable
(A) low
(B) low
(C) low
(D) medium
(E) medium
(F) medium
(G) high (I)
(H) high
Business Risk Profile
F
A C T
S
The way of working using the FACTS process
The TOOLS - Crisis Manuals + crisis team
CRISIS SIMULATIONS AND ISSUE RESOLUTION
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THE FACTS PROCESS
F – Establish the Facts – take the hearsay out
A – Assess the Risks and Identify Actions ( use risk assessment)
C – Communicate the Plans and determine the Costs and Insurance. Develop the communications plan
T – Establish the Time Pressures
S – Prepare Summary for Due Diligence
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Escalation Process
Determine whether Class I, Class II or Class III Class I is High Risk , Class III is Low risk, by determining :-The type of hazardThe level of disruptionWhether it can be resolved internally or more global issueIs there media interest, National issue or globalHow much damage to the brand equityWho should be involved and at what level throughout the business
Follow the FACTS process
There is a clear Crisis Team structure which has specific roles and
responsibilities, contact methods and crisis room requirements
Each person has a role that needs to be understood in a crisis situation
Understand the FACTS process and Escalation process and feel capable of
using it in a crisis
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The TOOLS and the Crisis Manual
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Business Environment Risks : Economic or industrial conditions, political environment, social trends, natural catastrophes
Operational Risks: Brands, product availability, quality and safety, intellectual property, retention of core equity, legislation / regulation, litigation, procurement, production, logistics management, distribution, product tampering / counterfeit, NPD, environmental, health & safety, sales optimisation, human resources utilisation, management information and decision making, third party and JVs, business interruption.
Strategic Risk : Strategic direction, organisational structure, strategic alignment of the operational plans, innovation, strategic execution
Financial Risk : Financial markets, commodity costs, credit, funds management, intellectual property, fraud and illegal acts, tax management
Compliance Risk : Legislation and regulations, supply chain, demand, tax legislation, litigation,
Risk and Opportunities Categories
Processes that are effective , implemented and well managed
Trained responsible staffclear procedures and instructions that are audited to determine compliance
and allow improvement
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