Millercoors Case Study

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MillerCoors IS31000 Case Study All organizations and industries experience risk exposure, from both internal and external events. Accordingly, with outcome speculation being uncertain, organizations can experience either negative or positive effects. In general, the IS31000 defines risk as the “effect of uncertainty on objects” (Elliott, 2012 p.1.4). Consequently, the application of risk management practices helps minimize the effects of risk uncertainty on an organization and is accomplished through coordinating an organization’s activities by establishing control and creating policies in regards to risk. Risk’s most evident category is hazard risk which encompasses risk from accidental loss. In addition, operational risk stems from controls,…show more content…
However, with craft breweries gaining approximately 16% of beer sale in 2015, MillerCoors, must establish strong risk management techniques to ensure survival amongst increased competition (Brewers Association, 2016). Accordingly, the importance of continuous product production is more imperative now than ever. Since MillerCoors relies heavily on production machinery to brew, package and distribute its products, the organizations risk management should focus on the hazard risk of machinery failure. Moreover, the hazard risk of product recall could cause consequential loss, both legally and financially for the company. Additionally, operational risk such as increased employee turnover or lack of training would hinder business processes, slowing production and distribution efforts. Furthermore, risk management also needs to minimize commodity price risk to combat financial risks. Overall, to maintain a superior market position, MillerCoors must actively manage potential risk scenarios to decrease uncertainty and increase…show more content…
MillerCoors can establish the context as generalized machinery failure. Through identifying the risk, MillerCoors can identify the source of machinery failure could happen anywhere from production machinery to delivery equipment, with the causation arising from mishandling of machinery, general wear and tear or even sabotage events. Consequently, failures in machinery could not only create operational delays, but would cause financial loss and increased liability. Depending on the age and the extent of personnel training, the likelihood of machinery failure would vary drastically within the organizations and between brewery operations. To properly evaluate machinery failure risk, all eligible assets should be broken down into different levels, based in the type, age and complexity of the machinery. To reduce the risk and loss potential, MillerCoors, should instill performance measure to within policies and procedures to makes sure equipment is regularly inspected. In addition, the organization should focus on provided proper and frequent training to make sure personnel are educated in the use of the organizations machinery. Therefore, through the risk management process MillerCoors can provide treatment to reduce the effects of machinery

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