Integrated risk management and main business risks

///Integrated risk management and main business risks
Integrated risk management and main business risks 2017-06-13T11:52:40+00:00

INTEGRATED RISK MANAGEMENT AND MAIN BUSINESS RISKS GRI 102-11 GRI 102-15

Risk Assessment

The consolidation of the integrated risk management maturity model continued in 2016 through its alignment with integrated management systems, connecting the strategic, tactical and operational levels under the same approach and carrying out more than 12.600 risk assessments.

The analysis was developed in the eight business units, the cross-sectional companies, the international operations and the main operating centers in Colombia, considering the current 21 corporate risks and identifying some emerging risks.

70
risk management, crisis and business continuity workshops.
Participation of approximately
800
employees.
15.700
hours invested in training.
MAIN RISKS
MITIGATION STRATEGY
Volatility in prices of raw materials and exchange rates.
  • Coverage policies with clearly defined risk levels, aligned with market changes and managed by a specialized committee.
  • A highly trained team dedicated to monitoring and negotiating supplies.
  • Permanent search for new opportunities and models for an efficient and competitive raw materials sourcing at a worldwide scale.
  • Raw materials diversification.
Business disruption due to a highly competitive environment.
  • Brands and Networks Management Model based on the deep and integrated understanding of the market: consumers, buyers and customers.
  • Leading brands which are well recognized and appreciated.
  • Wide distribution network with differentiated and specialized value propositions for each customer segment.
  • Attractive propositions with an excellent price-value ratio.
  • High-value innovation and portfolio differentiation.
  • Profitable market development.
  • Identification of opportunities based on cultural changes.
Regulation in nutrition and health matters in the countries where Grupo Nutresa is present.
  • Monitoring the Organization’s environment to study the nutrition and health situation of the strategic region. Anticipating the needs of the communities to offer improvement alternatives for malnutrition situations. Learning about the regulatory processes and participating in their definition.
  • Compliance with applicable standards and preparation for those that are being developed.
  • Application of the nutrition policy defined by Grupo Nutresa.
  • Development of health and nutrition research to improve the quality of life of the population through innovative food proposals.
  • Support to and participation in programs that promote healthy lifestyles.
  • Vidarium: center for research on nutrition.

Corporate Risks

STRATEGIC:
linked with the strategic formulation of the Organization and its relationship with the environment.
1
Involvement of business due to a highly competitive environment.
2
Impacts on the Organization due to changes in public policies (economic, social and environmental).
3
Regulatory changes with regard to nutrition, health and obesity.
4
Lack of availability of human talent.
5
Impact on the commercial management due to changes in the structure and composition of the distribution channels.
6
Dissatisfaction among customers or consumers discontent due to the noncompliance with product specifications, service or value proposition.Dissatisfaction among customers or consumers discontent due to the noncompliance with product specifications, service or value proposition.
7
Lack of opportunity to respond to changes in consumer preferences.
OPERATIONAL:
related to failures in internal processes or management or technological systems, or by people.
1
Involvement of the integrity or safety of the employees in the execution of their jobs.
2
Negative impact on the environment.
3
Interruption of the supply chain.
4
Consumer involvement due to product contamination.
5
Internal or external violations of Human Rights.
6
Negative impact on third parties due to the execution of the operations or on customers and visitors at restaurants and points of sale.
7
Collapse of information and communication systems and technologies.
8
Loss of the Company’s key information.
9
Ethical offenses or inappropriate behavior of employees or third parties.
10
Regulatory noncompliance.
FINANCIAL:
associated with the fluctuation of financial variables such as price, exchange rates and interest rates, and factors such as the liquidity and position of counterparties.
1
Volatility in raw material prices and exchange rates.
2
Counterparty risks.
3
Indebtedness and liquidity risks.
CLIMATE AND NATURE RELATED:
caused by climate, hydrological, geophysical, biological and epidemiological conditions.
1
Negative impact caused by climate and natural phenomena.
EMERGING:
new risks currently developing or changing.
1
Changes in the preferences of buyers and consumers.
1
Water-related risks (availability, quality and accessibility).