Appropriate Risk Responses

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Flowers, Inc. will need to develop an appropriate risk response to each of these risks, in order to reduce the possibility of damage to the company.
Risk 1: Damages to east cost call centers
If a natural disaster hit any of the call centers which caused damage, it could have major impacts on the company. Unfortunately, natural disasters take place often, and there is no way to prevent them. This is why Flowers, Inc. must have a plan to mitigate the damage it can do to the company. There are two areas that this risk can impact: physical assets and human assets.
Physical assets, such as the call center building or equipment contained therein, can be damaged or destroyed by a hurricane. In order to lower damage costs for the company, they should have an inspector come out regularly to make sure that building codes and safety are up to par. This will lessen the chance of the building being damaged, because it will allow for any structural instability to be found and fixed before a hurricane hits. Additionally, the company should have insurance on all building and equipment, to help lessen the costs if it is damaged or destroyed.
Human assets are the employees of the call centers. The company will have to help protect the employees who are on duty when the hurricane hits. Employees should regularly practice hurricane drills, so that they know where to go within the call center when it hits. Ideally, the call center will have a “safe room” towards the center of the building with no windows. In addition to hurricane drills, all employees should be given a way to contact the company after the hurricane. This will allow off-duty employees to call in and assure that they are safe.
Risk #2: Loss of Florist
There is a chance tha...

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... company to remain in business in the event of a shortage.
Additionally, the company should consider boosting their social responsibility and begin a water conservation campaign. This would especially be useful for the New Mexico call center, where they are governed by water conservation laws. Bringing awareness to water issues will help conserve some of the water that is needed to grow flowers.

Works Cited
Christy, J. (n.d.). Understanding and managing political risk. Retrieved from http://internationalinvest.about.com/od/globalmarkets101/a/countryresearch.htm
Hilton, R. (2011). Managerial accounting: Creating value in a dynamic business environment (9th ed.). McGraw-Hill
Nuclear power plant incidents. (2007, March). Retrieved from http://www.redcross.org/images/pdfs/code/nuclear_power_plant.pdf
OPIC overview. (n.d.). Retrieved from http://www.opic.gov/insurance

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