Risk management is about choices and decision-making. Choices and decision the company makes are totally dependent on its risk profile. Its risk profile can be risk averse, risk neutral or risk seeking, it depends on the company strategy in terms of risk management. Risk management consists in handle risks to manage them. Risk management is used to identify risks in order to develop an accurate risks portfolio to optimize all risks putting in place a strategy focusing on critical risks.
The main aim of the risk management is to avoid haphazard risk quantification monitoring them. Of course, risk management is able to support the business and to optimize outcomes. Four mains steps compose the risk management process: risk identification, risk assessment, risk monitoring and finally risk control.
There are different kinds of risks as business risks, market risk, credit risk or operational risk. In this study, different business risks are analyzed for several reasons explained . The main objective of this study is to define what direction to go and what changes could be implemented in Danone risk management in order to boost its share price.
[...] The company can be faced to not developed or weak Currency risk legal environment. Weakness, According to its position of an instability, uncertainty could international company, currency impact business growth. risk could affect Danone's result. In fact, Danone has to import certain goods (raw material or finished goods) that are bought with a foreign currency. In addition of its operating activities, currency fluctuation could affect Danone financing activities. Then, to elaborate financial statement, the company has to translation all the transaction in Euros. [...]
[...] Part Advise the CEO What direction to go, and what changes in risk management strategy you propose in terms of business risk In this second part, we are going to see what direction Danone has to follow and what changes in risk management strategy we can propose in terms of business risks. The core question is: should Danone remain risk averse or should the company rather become risk seeking? I think that focusing on business risks enable Danone to improve its performance and its results because business risks are affected by sales (volume or value), costs, competition, regulation, economic situation etc So, according to our previous analysis the company gives a lot of important to the quality of its product and in the customer satisfaction. [...]
[...] In terms of strategy, Danone maintains an active risk management policy enables to protect and develop its assets and its reputation. Currently, the risk profile of Danone is “risk averse” oriented. Indeed, the company wants to protect the interests of all its stakeholders that is to say, its shareholders, employees, consumers, customers, suppliers. Introduction In order to introduce this paper, we are going to build Danone's balanced scorecard. The initial objective in the balanced scorecard was to combine financial and non-financial performance measurements to express a corporate strategy. [...]
[...] It is represent a big risk because Danone provides a lot of fresh dairy products subjects to strict regulation in terms of health. So, it is necessary for the company to invest a lot in the quality process in order to reinforce quality and anticipate quality problems. For example, in of crises and incidents identified were related to product Quality and Food safety. It is urgent for the firm to implement measures and reinforce existed processes to reduce this percentage. [...]
[...] Consequently, just a The risk could arise mainly if few number of Danone products bonds, bank debt, liabilities related to this risk. arrive at maturity. Danone has to Consequences of restructuring plans diversify its financing Change management implemented by contribution, in order to reduce the company in order to improve its risk. For example, borrowing from efficiency and performance and diversified financing sources. anticipate changes in the market, Distribution and customer default could to have negative effects on The distribution market tends to the Group's activities, in terms of become highly concentrated. [...]
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