Page 18 - CIMA MCS Workbook November 2018 - Day 2 Tasks

CIMA NOVEMBER 2018 – MANAGEMENT CASE STUDY

TASK 2 – RISK

Trigger

To: Finance Director
From: Production Director
Date: Today
Subject: Risk

I have read the recent press article in the Zedland Herald with dismay.

I fully understand the effect of these social changes and pressure from “health lobbyists” in the
context of new products to match the need for sugar‐free drinks but the fact that none of the
CEOS of the drinks companies (including our own) have been interviewed is very worrying.

Having said that, it does provide an opportunity for us to differentiate ourselves even further
from the main players. Our strategy and mission are centred on the development of new products
and to provide a “unique soft drink experience” but we need to demonstrate this…we must be
absolutely sure of consistency and completeness in our approach to all risks.

Additionally, given the environmental and ethical pressures (which are only likely to become more
intense) we will consider the use of new technology such as automation or “horseshoe
manufacturing” and we have to be sure that all potential risks from these developments are
recognised.

I am concerned that we must have a robust risk management system and appropriate mitigation
policies in place. Failure to do so will have a major effect on the reputation and brand of Grapple.

In advance of the next board meeting, where we can we discuss this in more detail; can I have
your views in terms of best practice in risk management? Similarly if we are found wanting in this
key area please can you provide some idea how any new systems or processes could be
introduced?

Matthew

38 KAPLAN PUBLISHING