Risk Management for Samsung Galaxy Note 7: Lessons Learned and Recommendations

Running head: Risk Management
Risk Management
Samsung Galaxy Note 7

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Risk Management
Executive Summary
In the year 2016, the Korean Company Samsung was very feeling very happy in releasing their
new product Galaxy Note 7 with some of the additional accessories in accommodating in the
phone. This whole news had a buzz that it was a very advanced Samsung phone which was
released till then due to its security functions, smart pen for writing and taking notes and water
resistance. Soon after the release of the phone, 35 incidents related to the issue of the phone
battery were reported all over via Samsung newsroom in September 2016. The sale of the phones
was stopped and also replacement of the sold phones was announced for their customers. This
report shares the risk management issues which this company had to go through when it
launched Samsung Galaxy Note 7.

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Risk Management
Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Case Study...................................................................................................................................................3
Risk Management Issues and Analysis....................................................................................................4
Reputation Risk...................................................................................................................................4
Recommendations and Conclusion.............................................................................................................6
Lessons Learnt.........................................................................................................................................6
Risk Treatment systems...........................................................................................................................7
Recommendations...................................................................................................................................8
References.................................................................................................................................................10

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Risk Management
Introduction
The case of Samsung Galaxy note 7 is definitely worth to analyze because the firm had a very
good image and good reputation in the market. Also, the firm had occupied the large amount of
market share and it is important to learn some lessons from this firm of rebuilding its brand via
risk management processes used for Note 7 crisis. The major aim of the analysis is that Samsung
faced the crisis due to its new product named Galaxy Note 7 (Madani et al., 2014). Hence, this
report is to analyze the risk management issues faced by Samsung due to its product and to learn
the lessons by studying and discussing about the case study. The report also aims to study about
assisting the establishment of the risk aware culture in the writer’s entity. Few approaches that
have been used for this case study data collection are as follows:
1. Searching for the new issues that Samsung Galaxy Note 7 created for knowing about the
complete issue of the case study.
2. Collected material from the magazines and news paper articles.
3. Browsed through the company report 2017 as well for the exact data information.
4. There are some journals too from which the data is shared in this case study report.
5. Searched for the best possible issues that were faced due to this whole incident and what
possibly the lessons could be which are to be learnt from a big firm actions like Samsung.
Case Study
Since the Samsung case came into picture, the major focus of the media and other people went
towards this case as to what actually happened. In the quarter 3 of 2016, Samsung launched a
new phone named Samsung Galaxy Note 7 (Jung, 2014). This was considered to be a unique
phone in terms of the technology and the accessories provided by this. Till that time, Samsung
was the biggest manufacturer in terms of the smart phones as it had good performance in the
market. Since the phone started selling, just after a few weeks, it again came in highlights and
this time the news caught fire about the battery of this Smartphone saga. Irrespective of being