Comprehensive Risk Management Analysis: Adidas Case Study & Standards

This report provides a comprehensive analysis of Adidas' risk management strategies, referencing the AS/NZS ISO 31000:2009 risk management standard in Australia. The report examines the key principles of risk management, as defined by both the standard and the Adidas case study. It explores Adidas' definition of risk and opportunity, the legislative and regulatory areas it must consider, and the categories under which Adidas assesses risk. The report details Adidas' organizational policies, procedures, and processes for risk management, including the purpose of these policies, the business systems used, and the key objectives of these systems. Furthermore, it analyzes how Adidas communicates its Group Risk Management Policy to employees, the policy's key purpose, and specific features of system policies, such as responsibility and risk/opportunity identification, as presented in the Adidas Risk and Opportunity Report 2017. The analysis provides insights into Adidas' approach to risk management and its alignment with Australian standards.

Q1. By referring to page IV of the introduction to the document: 31000-2009 Risk
Standards Australia Guidelines, outline 1 primary purpose of current risk
management standard in Australia: AS/NZS ISO 31000:2009 Risk Management
Standard.
Ans. The motivation behind this standard is to give rules, basic systems, and the way
toward overseeing hazard in the business. This structure has given the organizations to
oversee 11 hazard administration standards in working environment adequately
associating with the administration framework. The standard has the reason to
underscore on distinguishing the hazard as for vulnerability in the targets. Further, the
target of this standard is to oversee hazard for upgrading accomplishing the goals
alongside perceiving the dangers to the business. This standard additionally empowers
the administration to improve security and wellbeing execution in the working
environment. Additionally, the administrator turns out to be more worried about the
ecological causes because of operational exercises alongside decreasing the
misfortune (finance.gov.au, 2017).
Q2. By referring to the document: Art_RiskAnalysis_ISO31000, List 11 key
principles of the current risk management standards in Australia.
Ans. 11 key principles of risk management standards are as follows:
1. Value Creation and security
2. Incorporated hazard administration with the authoritative arranging process
3. Associating hazard administration with the basic leadership
4. Recognizing the potential dangers
5. Overseeing hazard needs steady and deliberate process
6. Coordinating both outer and inner data arrangement of the business with
hazard administration
7. Hazard profile of the firm should be made
8. Components like human and social angles ought to be tended to in hazard
administration design
9. Connecting with every one of the partners in chance administration process

10. Adaptable to change the hazard administration process because of progress
in business condition
11. Assistance of persistent change of hazard administration process
(finance.gov.au, 2017)
Answer questions 3 – 12 with reference to the Adidas Case Study – by using the
support material provided.
Q3. What key legislative and regulatory areas must Adidas management take into
account when developing and implementing their Group Risk Management
Policy?
Ans. The contextual investigation of Adidas reflects different issues must be tended to
while creating and actualizing the gathering hazard administration arrangement. The
director must enrol least wages arrangement for the works at the manufacturing plant
level with the contractual workers. In addition, meet open door strategy likewise goes
under the administrative issue where female representatives are attacked or sexually
bugged by the supervisors. Further, viciousness against the works and other human
rights infringement are sorts of dangers related with the enactment and directions of the
business. Further, the supervisor must address the prohibition on here and now work
contract of the specialists for maintainable work of the works.
Q4. How does Adidas define Risk and opportunity?
Ans. The management of Adidas has defined risk in following manner:
The loss of income alongside the piece of the overall industry in Australia
Production of negative picture of the brand
Exploitative brand value of Adidas shoes
In the other hand, the administration has characterized hazard as the occasions, which
can affect the monetary or business destinations. Also, the administration watches open
door as he converse effect of the hazard in business (adidas-group.com, 2017)
Q5. In what Report does Adidas summarise the most important of these risks and
opportunities?

Ans. The report of the hazard administration design has furnished with the
correspondence design. The hazard administration report has exhibited the assessment
of the outer and inside business condition of Adidas. The report is produced for the
partners of the organization. Adidas has tended to all these data in hazard and
opportunity report. Further, the future hazard administration process is examined in the
arrangements and norms took after by the organization.
Q6. In what three main categories does Adidas management consider risk?
Ans. The three main categories under which Adidas should consider itself to be facing a
major risk include the part of being a part of the decision-making body, the lack of
transparency in the organization and the lack of system and structure in the
organization.
Q7. What is the primary purpose of the Adidas organisational policies,
procedures and processes for risk management?
Ans. The basic role of polices of Adidas keeps up the moral set of principles
(reasonable play) for the representatives. Further, the arrangements have guaranteed
to keep up the work rights by indicating those guidelines in the work contract. The work
sanction has exhibited the organization's dedication towards the worker enrolment,
improvement, level with circumstances. Remuneration and advantages. Further, Adidas
has likewise made implicit rules for providers' working environment principles keeping
up the wellbeing and security, work rights and ecological assurance. The procedure to
keep up these strategies are controlled through corporate administration rehearse that
has a system for keeping up all the above expressed models of approaches. The
hazard administration of the organization has built up a free group SEA, which is
mindful to screen usage of such approaches in business.
Q8. The policies and procedures designed by Adidas to facilitate effective risk
and opportunity management is held in what business system?
Ans. The administration has kept up a coordinated hazard and opportunity
administration framework for helping the powerful hazard administration practically

speaking. The execution has seen to building up a COSO board for keeping up the
incorporated system of hazard administration and inner controls (adidas-group.com,
2017). This framework is centered around dealing with the hazard related with the
matter of Adidas in a methodical approach of ID, assessment, controlling, checking and
detailing
Q9. What is the key objective of this system?
Ans. The fundamental target of this framework is to drive the business by tolerating the
open doors alongside the making mindfulness about the hazard for basic leadership.
The strategy of the hazard administration executed by Adidas has sketched out the
highlights like standards, forms, apparatuses, chance territories, fundamental
obligations, assets of the announcing and due date of correspondence.
Q10. How does Adidas management make available to employees the Group Risk
Management Policy?
Ans. The administration of Adidas has displayed the hazard administration approach to
the workers through fitting level of corporate administration practice and like measures,
all things considered. The administration system has tended to the privileges of
investors, duties of both official supervisory leading body of the organization. Further,
the organization has made a different capacity, which is known as Social and Welfare
Affairs (SEA) for framing a necessary piece of hazard administration (adidas-
group.com, 2017). This capacity has guaranteed the familiarity with strict administration
practice to the representatives.
Q11. What is the key purpose of the Group Risk Management Policy?
Ans. Adidas has made a gathering hazard administration strategy, which is appropriate
for the organization to moderate dangers related to the business in future. In such way,
the organization has additionally guaranteed to proceed with reasonable play standard
by and by for the contracted organizations. Furthermore, the organization takes supplies
from different organizations in everywhere throughout the world. Thus, the moral set of
accepted rules of the organization has made to watch out for the work environment

principles of the organization. Additionally, the issue of the negative brand picture is
likewise a concerned issue here as the organization needs to guarantee to keep up a
standard working environment in the providers' production lines. Subsequently, the
organization needs to set up the gathering arrangements for overseeing hazard
Q12. By referring to the Adidas Risk and Opportunity Report 2017, identify 1 key
feature of system policies as they refer to:
• Responsibility and Risk and opportunity identification.
Ans. The danger and opportunity report has presented that cash related uncovering
technique is one of the key features of the system executed by Adidas. The cover the
cash related parts of the association has arranged in such a course thusly, to the point
that present routine with respect to corporate organization may ensure the unfaltering
nature of external budgetary report. Further, the organization internal routine with
respect to setting up the cash related report has ensured to consent to all the overall
accounting benchmarks for meeting the inward measures. Further, the organization has
considered to select commitments of the planned system of inside control and danger
organization close by various sub-frames in the zones of accounting, controlling,
charges, masterminding, uncovering and legitimate. Such disengagement of
commitments has ensured to manage the risks authentically. Furthermore, the inside
control plan of the association has kept up to recognize the vulnerabilities close by
controlling the same through joined cash related uncovering system (adidas-group.com,
2017).