BBK3253 | Risk ManagementPrepared by Dr Khairul Anuar

L3 – Case Study- Risk Management in Unilever

Case study

• Please refer to the Unilever’s Outlook

and Risks 2013 handout for discussion.

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About Unilever

• Company touches so many people’s lives in so many different ways - with more than 400 brands focused on health and wellbeing.

• 14 of its brands generate sales in excess of €1 billion a year (54% of the business)

• Its portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. Its produces world-leading brands including Lipton, Knorr, Dove, Axe, Hellmann’s and Omo, alongside trusted local names such as Blue Band, Pureit and Suave

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About Unilever

• Unilever is one of the world’s leading fast-moving consumer goods companies with products sold in over 190 countries.

• More than 2 billion consumers worldwide use a Unilever product on any given day.

• its turnover was €49.8 billion in 2013• Emerging markets now account for 57% of its business• More than 174,000 people work for Unilever• It is the number one fast-moving consumer goods

employer of choice among students in 26 countries

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About Unilever

• 42% of our managers are women• 31% of our portfolio by volume met the highest nutrition

standards in 2013• It has reduced its waste impact by around 11% since

2010• Around 48% of its agricultural raw materials were

sourced sustainably by the end of 2013

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Risk Appetite and Approach to RM –pg 41

• RM integral to Unilever’s strategy

• RM aligned to vision to double business size while reducing

environmental footprint and increasing positive social impact

• Approach to RM designed to provide reasonable but not

absolute assurance that assets are safeguarded

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RM Organisation – pg 41

• Board assume overall accountability for RM

• Distribution of accountabilities & responsibilities ensures every

country has resources and processes for risk review and risk

mitigation

• The Board regularly reviews these risk areas, and retain

responsibility for determining the nature and extent of the

significant risks that Unilever is prepared to take to achieve its

strategic objectives.

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Description of Risk

• Consumer preference

• Competition

• Portfolio management

• Sustainability

• Customer relationships

• People

• Supply chain

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Description of Risk

• Systems and information

• Business transformation

• External economic and political risks, and natural disasters

• Financial

• Ethical

• Legal, Regulatory and other

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Assignment I – 30%

Assignment Instruction (1) Refer to Danone’s Risks document (commencing page 17, Section 2.7 of the document). You can download the document from here: ww.lecturenotes638.wordpress.com

(2) Structure of Assignment

i.Introduction of the company and its business (10%ii.Risk Management Structure (15%)iii.Principal risks and mitigation (75%)

Length: 2,500 to 3,000 words Total marks: 30 marks Submission date: 10th October 2014

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