BBK3253 | Risk Management
Prepared 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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