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Choose any organization. Identify areas of possible risks (as in tables 14.1, 14.2 and 14.3).

. consider strategic, managerial and operational levels. In each situation make a recommendation to management to what their risk response should be
Aditya Verma Nishant Bhatia

Worlds 4th largest Brewery Started 1847 J.C Jacobsen Started in Copenhagen, 64 breweries all over the world Carlsberg engages in Asia, Eastern Europe, and Northern & Western Europe

Strategic Risks:

Water Shortage Market / Competition Energy emission/ Carbon Footprint Political/ Economic Social/Media

Strategic Risk assessment


Launch a series of initiatives aimed at reducing water use or improving water quality Carlsberg can engage in the American market Entry barriers and competition is high, but new business models and innovative thinking could secure the American market. Commodities, Pricing & Supplier Cost: Manage the risk associated with commodity prices with accurate price estimates, forecasts and analysis. Economic and Financial: Monitor, forecast and manage risk with insurance cover and energy market intelligence services. Use of ERM Social and media : Drink responsible drives, sponsorships.

Operational Risks:

Raw Materials & Packaging risks IT risks Supply Chain risks Health and safety risks at bottling plants

Operational Risk Assessment Utilize a global system of record to maintain accountability and responsibility with Environmental, Health & Safety. Find international engineering and technical standards, specifications. Eg. Royal Society for Prevention of Accidents Supply Chain: Manage bottom line risk, brand reputation and stock value with Supplier risk management solutions, minimize product design and counterfeits.

Managerial Risks Managerial weaknesses Policy Implementation Mergers and Acquisition/Partnerships Shortage of skilled and experienced staff

Audit committee at Carlsberg In December 2010, the Supervisory Board decided to establish a Remuneration Committee and a Nomination Committee The Supervisory Board and the Executive Board have overall responsibility for the Groups control environment. The Audit Committee appointed by the Supervisory Board is responsible for monitoring the internal control system Introduce whistle blower system and ethics training.

Organizational issues to consider: Align interests Pick the right people Establish risk-taking incentives Understand the decision situations Integrate with strategy process Monitor and respond

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