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The Risks – More Than Just Food Issues ? David I Brown Managing Director Food Quality Compliance Solutions Ltd 09/04/20151.

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Presentation on theme: "The Risks – More Than Just Food Issues ? David I Brown Managing Director Food Quality Compliance Solutions Ltd 09/04/20151."— Presentation transcript:

1 The Risks – More Than Just Food Issues ? David I Brown Managing Director Food Quality Compliance Solutions Ltd 09/04/20151

2 “ What we anticipated seldom occurs. What we least expected generally happens “ Benjamin Disraeli 09/04/20152

3 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 objective Prioritisation so that the focus is on management of risks that are unacceptably high Development of plans to mitigate these risks Identification of areas outside of management control that would provide a large upside return Development of plans to exploit these opportunities should they arise. 09/04/20153

4 4 SETTLER Knows that there are risks out there. Doesn’t want to chance anything PIONEER Understands the risks. Takes chances but stays in control GOPHER Doesn’t know what’s out there and doesn’t care. Stays underground where its safe COWBOY Does 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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10 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 16 th century: “All things are poison and nothing is without poison, only the dose permits something not to be poisonous” 09/04/201510

11 09/04/201511 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

12 09/04/201512 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

13 09/04/201513 Distillery fire Merseyside BP fire – Bay of Mexico

14 09/04/201514 Carry Out a RISK ASSESSMENT List the top 10 to 15 Risks Determine Major Ones using this matrix

15 09/04/201515 F A C T S The way of working using the FACTS process The TOOLS - Crisis Manuals + crisis team CRISIS SIMULATIONS AND ISSUE RESOLUTION

16 09/04/201516 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

17 09/04/201517 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 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

18 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 09/04/201518 The TOOLS and the Crisis Manual

19 09/04/201519 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

20 Processes that are effective, implemented and well managed Trained responsible staff clear procedures and instructions that are audited to determine compliance and allow improvement 09/04/201520

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