Risk Management Case Study: Millercoors

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MillerCoors ISO 31000 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, risk management practices help minimize the effects of risk uncertainty, through establishing control and creating policies with regard to risk. Risk’s most apparent category is in reference to accidental loss and is known as hazard risk. Operational risk, on the other hand, stems from controls, systems, people and processes. Both, hazard and operational risks are classified…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 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…
The hazard risks of machinery failure and product recalls, would cause financial and production loss. However, these risks can be treated through organizational performance measures and implementation of policies and procedures to enforce frequent inspections and personnel trainings. Moreover, the operation risk of employee turnover, would impact daily procedure completion and performance. However, through exit interviews and employee retention practices, Miller Coors will effectively reduce turnover, improving organizational performance. Furthermore, commodity price risk increases cash flow uncertainty, which can be treated through proactive hedging. Therefore, through the execution of the ISO 31000 risk management process, MillerCoors can establish a foundation to facilitate continual improvement of the
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