RCM 301 : risk and crisis management

Running head: RISK AND CRISIS MANAGEMENT
RISK AND CRISIS MANAGEMENT
Name of the student:
Name of the University:
Author's Note:

RISK AND CRISIS MANAGEMENT1
Introduction:
The aim of this essay is to discuss the risk management process of KFC after it faced issues
with the case of salmonella poisoning in Australia. The reports have stated that a girl has
suffered from severe brain damage due to salmonella poisoning after eating the chicken twister at
KFC. This report has made this company to be the victim of disturbing as well as unsettling
practices at the fast food giant. The case was taken to court as Monika Samaan, the seven years
old victim faced salmonella septicaemia and salmonella encephalopathy brain damage. This is
the reason why the family had claimed that this condition of their girl was the result of their visit
to the Villawood KFC on October 24, 2005 (Kontominas, 2018). Monika is now confined in her
wheelchair hence her family kept on suing the company for their damage. This critique will
discuss risk type and level of risk to the business, how the company handled the risk, how it
could have handled the situation better, action plan and business impact assessment on the
situation.
Discussion:
1. Describe the risk type and level of risk to the business
Risk Analysis Table
Risk
category
Risk type
(Human,
physical,
environmental,
financial etc.)
Stakeholders
affected
Likelihood
rating
(A,B,C,D,E)
Consequences
rating
(1,2,3,4,5)
Risk control
methods
(elimination,
substitution,
engineering,
administration,
process/
equipment)
Externa
l
economical Internal
stakeholders
A- high 4-higher administration
Externa political Internal and C-medium 3-medium administration

RISK AND CRISIS MANAGEMENT2
l external
stakeholders
Externa
l
natural Internal and
external
stakeholders
E-low 5- catastrophic engineering
2. Identify how the company handled the risk
The company initially did not accept this accusation by the family of Monika Samaan rather
refuted this when the news of food poisoning spread in the news. The family of the victim
suffering from salmonella encephalopathy due to the food poisoning of chicken twister wrap by
KFC had filed the case for their damage. After the judgment by Justice Rothman was passed that
ordered KFC, the fast-food giant to pay the family $8 million in compensation plus cost, the
company paid this to save their reputation or further defaming enquiry (Bibby, 2018).
3. Suggest where the company could have handled the situation better
In this case, KFC could handle this situation better rather than refuting their responsibilities
initially (France-Presse, 2018). This could have addressed the issue initially, through media like
internal and national print and digital media, bring in a face to the brand, by choosing their words
carefully, it could have regained the lost trust of their huge customer base, suppliers and other
stakeholders both globally and regionally.
4. Briefly outline an action plan for future similar risks
Actions Details Resources Time
Identify  Identification of the risks to
cluster them according to the
category and impact area.
 Reservoir
 Technical
 Cost
 schedule
Within
three days
of the
incident
Evaluate  Evaluating the risk level either  Risk register Within