The Risks

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The Risks More Than Just Food Issues ?

• David I Brown
• Managing 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 ObjectiveEnhance the ability of
the business to deliver an objective by ensuring
that the level of risk involved is
appropriateAchieved 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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RISK AWARE


SETTLER Knows that there are risks out there.
Doesnt want to chance anything
PIONEER Understands the risks. Takes chances but
stays in control
RISK TAKING
RISK AVERSE
GOPHER Doesnt know whats out there and doesnt
care. Stays underground where its safe
COWBOY Does what he/she feels like. Doesnt
think (or care) about the risk
RISK OBLIVIOUS
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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 quantitiesParacelsus, 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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BP fire Bay of Mexico
Distillery fire Merseyside
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Carry Out a RISK ASSESSMENT List the top 10 to 15
Risks Determine Major Ones using this matrix
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F A C T
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CRISIS SIMULATIONS AND ISSUE RESOLUTION
The way of working using the FACTS process
The TOOLS - Crisis Manuals crisis team
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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
THE FACTS PROCESS
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Determine whether Class I, Class II or Class III
Class I is High Risk , Class III is Low risk, by
determining - The type of hazard The level of
disruption Whether it can be resolved internally
or more global issue Is there media interest,
National issue or global How much damage to the
brand equity Who should be involved and at what
level throughout the business Follow the FACTS
process
Escalation Process
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• 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

The TOOLS and the Crisis Manual
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Risk and Opportunities Categories
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,
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Processes that are effective , implemented and
well managedTrained responsible staffclear
procedures and instructions that are audited to
determine compliance and allow improvement