Abstract
From 2016 through 2020, this study will look at how JD Sports Fashion Plc manages risk, the risk
governance approach and management systems it uses, risk reduction measures, and the
Footasylum Plc purchase. In order to get a judgment on the effectiveness of the company's risk
management system, I collected information from bulletin sections and published news as well as
quantitative and qualitative techniques. Because both primary and secondary data were utilised, I
drew the conclusion that the substance of the data was not subject to any kind of regulation. In
addition, nothing is known about how the data collection process was organised and carried out.
Chapter 01: Introduction
The inquiry against JD Sports Fashion Plc will be discussed in this report. Over the span of five
years, JD Fashion will assess its risk management processes, risk governance approach and
management systems, risk reduction strategies as well as its acquisition of Footasylum Plc.
1.1 Background of JD Sports Fashion
Sporting goods retail giant JD Sports Fashion Plc, based in Greater Manchester's Bury district,
also goes by the names JD Sports and JD. As an index member of the London Stock Exchange, it
is traded on the FTSE. Percentage-wise, the Pentland Firm holds 55% of the company (JD Sports
Fashion PLC, 2021).
1.2 Industry Analysis
Sportswear, often known as activewear, is worn for sporting events and physical activity. Jogger
trousers, yoga pants, tank shirts, hoodies, and sports bras are among them. In 2020, the global
market for sportswear was estimated to be worth $533.5 billion. By 2025, the estimate expects a
rise to USD 479.63 billion (www.marketresearch.com, n.d.).
The UK sportswear market is expected to grow by 20.9% to £6.7 billion over the next five years.
Up to 2023, the athletic clothing industry is expected to surpass all other main retail sectors. In
addition to fresh and inventive lines, shoppers will continue to wear athletics as casualwear until
2023, which will help the industry grow. Fashionable designer trainers are expected to become a
regular part of consumers' wardrobes over the forecast period (GlobalData Report Store, 2022).
Chapter 02: Risk Management Processes
2.1 Introduction to Risk Management Process
Risk management methods have not changed much from 2016 to 2020, although they have been
refined and enhanced (JD Sports Fashion PLC, 2021). More and more information and specific
procedures have been taken throughout time to demonstrate the company's risk management
understanding and responsibility to the public. The company is actively analysing and mitigating
the risks it confronts, rather than just monitoring them, rather than simply monitoring them.
2.2 Business Strategy & Modeling
As far as sportswear and footwear are concerned, JD Sports has long been the undisputed leader
in the United Kingdom and the Republic of Ireland. JD has invested substantially in its physical
store portfolio, online platforms, and innovative marketing to guarantee that the JD retail façade
stays contemporary and enticing to its customers. JD Fashion makes use of its digital platforms to
broaden its client base both locally and globally, making it possible for customers to purchase
across all networks without experiencing any difficulties.
2.3 Identification of Risk
The operational business divisions in each division of JD Fashion acknowledge risk since risk
management is essential to the firm. There is a 'Risk Universe,' in which all of the probable threats
to the company's environment are documented.
2.4 Assessment of Risk
JD Fashion uses a risk matrix to classify the dangers detected into effect and possible categories
in order to prepare for management. In other words, JD Fashion seems to be always on the lookout
for potential issues and mitigating measures in order to prevent such issues from occurring.
2.5 Handling & Recording of Risk
Using the risk management strategy, the threats are then addressed. Thus, risk owners will look
for methods to control risks, lessen them before they have far-reaching repercussions, transfer
them if feasible, and eventually accept the risk. As a result, JD Fashion's Fashion Assurance
Committee is then notified of the stated findings (JD Sports Fashion PLC, 2021)
2.6 Risk Management Criticism
It's impossible to anticipate all possible risk using risk management tools, though. In other cases,
a danger may only be discovered after the damage has already been done, and these risks may be
similar to those that previously occurred. The lack of capacity to regulate risks in the sportswear
industry is a significant problem.