Risk Management in KFC

Risk Management

RISK MANAGEMENT 1
Executive Summary
The main aim of this report is to understand the concept of risk management. In this report,
KFC has been taken into consideration to analyse the internal and external risk. It has been
seen that the company has high risk due to arising conflicts between stakeholders. Human,
physical and technological factor also raise the risk of losing customer and shareholders.
External risk is also analysed by including the economic, natural and political factors of the
organisation. It is observed that the company has to adopt the controlling methods and
techniques such as safety hazards, incentive scheme and many others.

RISK MANAGEMENT 2
Contents
Introduction................................................................................................................................3
Overview of organisation...........................................................................................................3
Discussion..................................................................................................................................4
Key Stakeholders risk.............................................................................................................4
SWOT Analysis......................................................................................................................5
Internal Risk...........................................................................................................................8
External Risk..........................................................................................................................9
Suggestion Table......................................................................................................................10
Conclusion................................................................................................................................13
References................................................................................................................................15

RISK MANAGEMENT 3
Introduction
Risk Management is the identification, evaluation, and prioritization of risk which is
followed by coordinated of resources to minimize, monitor, and control the probability or
impact of unfortunate events. An organisation can achieve the considerable gains but the
chance of risk is increases with the gains in the future. It is necessary for the organisation to
analyse the risk in order to balance the potential gains against the potential losses by avoiding
the expensive mistakes. An organisation achieves the success in the market when it performs
well and facing less risk. It is essential for the organisation to analyse the risk in order to
reduce the future risk to sustain the growth and profitability (Aven, 2016). The main aim of
this report is to analyse the risk of hospitality industry. KFC has been taken into
consideration to analyse the risk of the organisation.
At the beginning of the report, the discussion is made on the internal and external risk
factors which affect the growth of organisation. The SWOT Analysis will used to analyse the
internal and external risk. After that, the table will be formed as per the analysis of factors.
Overview of organisation
KFC is an American fast food restaurant chain that specialise in fried chicken. It is the
world largest restaurant chain with 26,621 locations globally in 136 countries. It also has the
subsidiaries company of Yum! Brands, and a restaurant company that also owns the Pizza
Hut, Taco Bell and Wing Street chains. It is the first fast food company of America who
expand the business at the international level. It is continuously increasing with the rapid rate
and earned revenue with amount of US $23 billion. KFC expand its menu to offer other
chicken products such as chicken fillet sandwiches and wraps as well as salads (KFC, 2019).