Kfc Risk Management

Executive Summary

Risk is the impact of uncertainty in the objectives which could either be positive or negative. A risk may be a result of two or more causes which can result to one or more impacts. For instance, a cause maybe negligently cooking chicken which results to food poisoning, and needed for more  process evaluation and training of staff. All these impacts would cost the company time and money in addition to a bad image that might have been released to the public.

To avoid such unwanted and dangerous events, risk management is needed to be included in the goals and strategy of the company. Risk management is the coordinated activities to direct and control an organization considering the risks that might be involved. This should be a process that includes identification, analysis, monitoring and control of risks. It is a never ending process that needs to be updated and reviewed often as new risks can arose at any given time and situation.

The objective of risk management is to help the company reduce or mitigate risks that has negative impact/s that can result to unfavourable events. However, it also helps the company detect opportunities brought upon by this risks that can be of benefit to the company.

The identification of risk normally starts before the start of a project or business operations, and then as the business goes on new risks will be identified. After identifying the risks, an assessment of it will follow which will study the certain probability of it occurring, the level of impact on schedule, cost, objective, scope and the overall operation of the company. The probability of occurrence would categorise in to a certain level – high, medium, low, identifying the hierarchy of risks and which should be prioritized. All these known risks would create a risk profile and will be entered into a risk register.

There are two reasons why a company needs to identify and assess the risks and these are: to create a risk treatment plan and second, to develop a contingency plan both of these plans will help ensure that the company has a guide or steps to follow to lessen the probability of the risk occurring and what activities can be done prior to or when the event occurs to reduce or manage the risk as efficiently as possible.

Identification and documentation of risks is important but the continuous review, communication and consultation of the risk management team, committee and the Board is very important for the success of the implementation of the risk management plan.

Purpose

Scope

The scope of this Risk Management Plan covers KFC’s management and day to day operations.

Objectives

Risk can bring positive or negative impact on KFC’s objectives. It is measured in terms of likelihood and consequences. Risks are exploited if positive. On the other hand, if it can bring negative results actions are taken in order to treat, reduce or mitigate the probability of the risk occurring. Hence, the importance of risk management which objectives are as follows:

• Manage risks properly
• Ensure an efficient and effective approach to risk management
• Minimise the probability of negative risks occurring and utilize the oppurtunities
• Provides the company a guide to manage risks – creating risk criteria, risk assessment and risk treatment plans
• Improves documentation, reporting and accountability of the risk management process
• Creates a risk management framework applicable for the said organization
• Supports a working environment which is risk-controlled, safe and stable for the shareholders, management, employees, contractors, subcontractors, and specially internal and external stakeholders.

Risk Management Policy