Evaluating Risk and Decisions for Sainsbury: Impact of Governance, Technology and Resilience

EVALUATING RISK
AND DECISIONS

Introduction
 The report of “evaluating risk and decision” will comprehensively illustrate the
enterprises risk management.
 Further the impact and role of technology, governance and resilience will be brought to
the light.
 The establishment chosen for this purpose is Sainsbury plc, founded in 1869, it is the
second largest supermarket chain in united kingdom.
 Sainsbury has brands like Habitat, Argos, Tu, Nectar and baking (Aleхseev,
Matyushkov and Pisarchik 2022).

CRITICAL REFELECTION BASED ON
ENTERPRISE RISK MANAGEMENT
 It is the continues process of planning, directing, organizing and controlling the
functions and activities of the business at Sainsbury's to control or minimize the
negative effects of risk on the profitability and capital.
 There are three global standards to consider for ERM in the organization, first is
IRM standards which focus on 4 main areas such as strategic, financial,
operation and hazard risk.

Continued
 Next is IS0 31000 frame work which highlights principles and process. Last one is
COSMO ERM cube.
 Cosmo ERM cube is a picture or diagram which establishes the relationship among
different parts of internal control system (Crowther and Seifi, 2018).
 This also shows how principal should be adapted by the sainsbury to meet the
objectives of internal control system.

Internal environment
 At Sainsbury's, control environment is a bunch of processes, standards and structures
which forms internal control.
 Internal business factors have a direct impact on the daily business activities.
 Sainsbury continuously takes into consideration the elements like customers, suppliers,
shareholders, competitors.

Objective setting
 : objectives should be set in advance which must be achievable and the threats and
risks attached with the objectives should be identified.
 ERM makes sure that such objectives set by the management following a process in
place.
 Such goals and objectives should be aligned with the risk appetite of the organization
(Ganda, 2019)(Hoang, 2018).