The first task in the Risk Management Process is risk identification, which must be accomplished to determine what if any risk levels exist and the controls needed to mitigate potential damages (Fraser & Simkins, 2010). Risk Identification can be achieved using several tools or application checklists to identify and describe exposures, which are: Risk Analysis Questionnaire, Financial Statement Method, Flowchart Method, On-site Inspections, and Environmental Scanning (Bethel, 2016). Additionally, there are measurement tools, such as Key Risk Indicators, which indicates whether the risk exists or is emerging (Fraser & Simkins, 2010).
So, why is risk analysis important? Ultimately, the risk analysis process helps identify and manage potential …show more content…
Ultimately, Kroger focuses on four key areas, which are energy, water, waste, and logistics (Dillon, 2015). Realistically, growing a business comes with positive and negative effects. Thus, as Kroger’s footprint continues to grow, they incur growth in energy and emissions into the environment. Therefore, Kroger is aggressive in their approach to consuming energy, reducing emissions, and identifying alternative sources of energy, such as wind energy turbines and solar energy (Dillon, 2015). Next, water consumption is imperative, not only to the company, but to the communities they operate in whether it be stores or manufacturing plants. In 2014, they reduced water consumption by 43 million gallons in manufacturing, which is the equivalent of water usage in 1,025 homes (Dillon, …show more content…
Legal proceedings, including matters involving personnel and employment issues, personal injury, antitrust claims and other proceedings, can be costly and unduly burdensome to business operations, which at times can result in a substantial loss to Kroger (Kroger, 2015). Kroger uses a combination of insurance and self-insurance to provide for potential liability associated with workers’ compensation, automobile and general liability, property, director and officers’ liability, and employee healthcare benefits (Kroger, 2015). Currently, Kroger has the burden of investment risk of one of the larger multi-employer pension plans. Therefore, poor performance of investments can result in Kroger being responsible for the shortfall (Kroger,
So, why is risk analysis important? Ultimately, the risk analysis process helps identify and manage potential …show more content…
Ultimately, Kroger focuses on four key areas, which are energy, water, waste, and logistics (Dillon, 2015). Realistically, growing a business comes with positive and negative effects. Thus, as Kroger’s footprint continues to grow, they incur growth in energy and emissions into the environment. Therefore, Kroger is aggressive in their approach to consuming energy, reducing emissions, and identifying alternative sources of energy, such as wind energy turbines and solar energy (Dillon, 2015). Next, water consumption is imperative, not only to the company, but to the communities they operate in whether it be stores or manufacturing plants. In 2014, they reduced water consumption by 43 million gallons in manufacturing, which is the equivalent of water usage in 1,025 homes (Dillon, …show more content…
Legal proceedings, including matters involving personnel and employment issues, personal injury, antitrust claims and other proceedings, can be costly and unduly burdensome to business operations, which at times can result in a substantial loss to Kroger (Kroger, 2015). Kroger uses a combination of insurance and self-insurance to provide for potential liability associated with workers’ compensation, automobile and general liability, property, director and officers’ liability, and employee healthcare benefits (Kroger, 2015). Currently, Kroger has the burden of investment risk of one of the larger multi-employer pension plans. Therefore, poor performance of investments can result in Kroger being responsible for the shortfall (Kroger,