1. a.) In general, what are the fundamental steps that need to be considered for the risk management process? b.) Specu late on one Molson Coors-specific aspect in this regard that the Company should pay extra attention to in managing integrated financial and operational risk.
a. The fundamental steps that need to be considered for the risk management process.
First step: The first and most important step is identifying risk as quickly and as efficiently as possible. The earlier one identifies the risk, one can minimize or eliminate the impact of the risk. For, if you don’t identify the risk at its premature state the outcomes can be disastrous to one’s company.
Second step: Once the risk is identified, the information must be analyzed and its nature. Then you must analyze possible plans to eliminate the risk or make changes in the strategy of how the company conducts its business to avoid the risk. One must also analyze the …show more content…
The risk derives from the uncertainty of the global market and prices of those materials fluctuating. For example, the article talked about the global boom in the commodity prices in 2008 when everything from coal to barely was fueled by the heated demand from the likes of china and India. Which elevated prices of set materials and when the bubble popped then prices dropped. Even though, many companies benefited from the decline in downstream demand this just shows you how incredibly unpredictable the global market it. One thing that Molson Coors can do to offset the risk factor of the unpredictable market is to opt to share the risk with the suppliers. Creating a long-term agreement with the supplier fixing the purchase price of cans for a certain period of time. With the help of the of the contract agreement it would counter the risk of
a. The fundamental steps that need to be considered for the risk management process.
First step: The first and most important step is identifying risk as quickly and as efficiently as possible. The earlier one identifies the risk, one can minimize or eliminate the impact of the risk. For, if you don’t identify the risk at its premature state the outcomes can be disastrous to one’s company.
Second step: Once the risk is identified, the information must be analyzed and its nature. Then you must analyze possible plans to eliminate the risk or make changes in the strategy of how the company conducts its business to avoid the risk. One must also analyze the …show more content…
The risk derives from the uncertainty of the global market and prices of those materials fluctuating. For example, the article talked about the global boom in the commodity prices in 2008 when everything from coal to barely was fueled by the heated demand from the likes of china and India. Which elevated prices of set materials and when the bubble popped then prices dropped. Even though, many companies benefited from the decline in downstream demand this just shows you how incredibly unpredictable the global market it. One thing that Molson Coors can do to offset the risk factor of the unpredictable market is to opt to share the risk with the suppliers. Creating a long-term agreement with the supplier fixing the purchase price of cans for a certain period of time. With the help of the of the contract agreement it would counter the risk of