Page 18 - MCS August Day 2 Tasks

CIMA AUGUST 2018 – MANAGEMENT CASE STUDY

TASK 3 – RISK MANAGEMENT

Trigger

To: Finance Director
From: Yumi Si
Date: Today
Subject: Risk Management

I am concerned at the approach that the company is currently adopting to risk management.

Whilst it is pleasing to note that Montel has identified some major risks, for example the threat
from mobile phones which is well publicised and has been a factor for some time, it seems that
there is no formal process for risk mitigation. Based on my previous airline experience this has the
potential to result in significant problems. We need to have a robust system in place to be sure
that we are aware of all potential risks.

For example, the recent launch of Kira’s latest DSLR seems to have gone unnoticed. We are now
re‐forced to contest again the debate as to whether Montel or Kira are considered to be the
better camera manufacturer – a circumstance for which we seem to be totally unprepared. This is
just one example of course and my concerns are that we have a sound system in place for the
management of all risks.

I intend to raise these issues at the next board meeting and would like your assistance in ensuring
that the board are aware of best practice in the context of risk management. This is likely to entail
changes to processes…we need to be sure that any necessary change will be managed carefully
and fully understood. Failure to do so could have a major effect on the reputation and brand of
Montel.

Yumi

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