Comprehensive Risk Management Report: Adidas Business Analysis

This report provides a comprehensive analysis of Adidas's risk management practices. It begins by outlining the company's adherence to risk management standards, including AS/NZS ISO 31000:2009 and its key principles. The report then delves into Adidas's approach to identifying, assessing, and mitigating risks, covering areas such as worker wages, trade unions, and consumer complaints. It examines the company's risk management policies, procedures, and reporting mechanisms, including the use of various reports and templates. The report also details Adidas's action plans, stakeholder involvement, and communication strategies, including internal memos and letters to stakeholders. Finally, the report emphasizes the importance of employee involvement and continuous improvement in maintaining effective risk management.

Running head: MANAGING RISK
Managing Risk
Name of the Student:
Name of the University:
Author note:

1MANAGING RISK
Table of Contents
Assessment 1:.............................................................................................................2
Answer 1)................................................................................................................ 2
Answer 2)................................................................................................................ 2
Answer 3)................................................................................................................ 2
Answer 4)................................................................................................................ 3
Answer 5)................................................................................................................ 3
Answer 6)................................................................................................................ 4
Answer 7)................................................................................................................ 4
Answer 8)................................................................................................................ 4
Answer 9)................................................................................................................ 5
Answer 10).............................................................................................................. 5
Answer 11................................................................................................................6
Answer 12:...............................................................................................................6
Assessment 2:.............................................................................................................6
Part A:......................................................................................................................6
Part B:......................................................................................................................7
Part C:..................................................................................................................... 9
Part D:..................................................................................................................... 9

2MANAGING RISK

3MANAGING RISK
Assessment 1:
Answer 1)
In the year 2009, the previous risk management standard of Australian and
New Zealand was replaced by AS/NZO ISO 31000:2009. One primary purpose of
the risk management standard is to create and protect the value of the organizations
which helps in the achievement of their goals and strategies. It is done through the
continuous reviewing of the organizational systems and processes.
Answer 2)
Eleven key principles of the current risk management standards in Australia;
 Protects and creates values.
 Be an important part of the processes in an organization.
 Be a part of the organizational decision making strategies.
 Explicitly addressing uncertainty.
 Be structured, timely and systematic.
 Based on best information available.
 Taking into account cultural and human factors.
 Be tailored.
 Be inclusive and transparent.
 Be iterative, responsive as well as adaptive to changes and dynamic.
 Facilitate continual organizational improvement.
Answer 3)
The legislative and regulatory areas Adidas should take into account are;
better wages for the workers, the workers should have the right to form or organize

4MANAGING RISK
trade unions, a complaint structure which should be confidential as many workers
suffer from sexual harassments or violation, short term contracts must be banned
and lastly, there should be lucrative incentives for the workers, in order to motivate
them for the company’s betterment.
Answer 4)
Adidas defines risk and opportunity by;
 Establishing the context of the risk.
 Communicating the plans to the Business managers and Head of the
Department.
 Identification of the risk.
 Risk analysis.
 Selection, implementation and evaluation of the risk management procedures.
 Prioritizing the risks.
 Assessment of the risky consequences.
Answer 5)
Adidas summarizes all these important risk assessment strategies in the
following reports;
 Adidas yearly Report.
 Adidas Policies and Standards.
 Adidas Group Code of Conduct.
 Adidas Risk Management Pan Template.
 Adidas Risk and Opportunity Report.
 Adidas Record Management Policy and Procedure.

5MANAGING RISK
Answer 6)
The three main categories, Adidas uses to manage its risks are;
 Establishing the context of the risk, which involves the procedures and
policies of the company, risk assessment processes, critical factors,
stakeholders and other factors.
 Identification of the risk, analyzing it and then communicating the plan to the
Business manager and Head of the Department. Holding meetings in order to
get some valuable feedback from them.
 Amendment of the plans, after getting the feedbacks and implementing those
in order to manage the risk situations.
Answer 7)
Primary purpose of the company’s organizational policies, procedures and
risk management processes;
 Improving their workplace health policies for the employees.
 Employee assistance and support policy.
 Management policies of the worker’s performance.
 Monitoring the employees’ performances.
 Amendment of plans for the risk management.
 Providing a better working environment with better wages.
Answer 8)
The business system of Adidas’s risk and opportunity management;

6MANAGING RISK
 Establishing the context of the risk, which involves the procedures and
policies of the company, risk assessment processes, critical factors,
stakeholders and other factors.
 Identification of the risk, analyzing it and then communicating the plan to the
Business manager and Head of the Department. Holding meetings in order to
get some valuable feedback from them.
 Amendment of the plans, after getting the feedbacks and implementing those
in order to manage the risk situations.
Answer 9)
Key objective of this system is to;
 Raise the Workplace Standards through the company’s supplier code of
conduct.
 Outlining proper labor and human rights.
 Providing proper right and freedom to the labors and treating them ethically.
 Outlining their Environmental Policies for sound and safe environmental
management.
 Commitment to continuous improvement of the workplace policies and
procedures.
Answer 10)
Adidas management for managing Group Risk Policies;
 Generating a list full of risk factors which applies to the group.
 Assessing the risks in groups.
 Assessing the consequences of the risks.
 Evaluating the risks and prioritizing them after group discussion.

7MANAGING RISK
Answer 11
The key purpose of the Group Risk management policy is to involve all the
employees together and managing the risk after seeking each and everyone’s views
and opinions. Discussing in group helps in managing the risks effectively and more
efficiently. Effective participation of the employees encourages and motivates them,
which in turn is responsible for the company’s success.
Answer 12:
The key feature of Adidas’s system policies is establishing the context of the
risk, which involves the procedures and policies of the company, risk assessment
processes, critical factors, stakeholders and other factors. Identification of the risk,
analyzing it and then communicating the plan to the Business manager and Head of
the Department as well as holding meetings in order to get some valuable feedback
from them.
Assessment 2:
Part A:
The risk management of the company can be done through; identifying the
risks and involving the employees as well as the stakeholders. The stakeholders of
the company are its PR manager, marketing manager, sale manager, shareholders
committee and others. The company should not conceal any facts from its
stakeholders and communicate the risk management plans to them as well, through
holding meetings. Effective participation of the employees encourages and motivates
them, which in turn is responsible for the company’s success.

8MANAGING RISK
Part B:
a) ACTION PLAN
RISK
IDENTIFICATION
MITIGATION TIME
PERIOD
STAKEHOLDERS’
INVOLVEMENT
APPROPRIATE
ACTIONS
Workers’ wages Increasing their
wages,
introducing
lucrative
incentives
2 months Yes Involving the
Business manager,
finance manager,
Departmental head
and stakeholders.
Trade unions Signing the
new Freedom
of Association
Protocol
1 month No Involving the
Business manager
and Departmental
head.
Consumer
complaints
Suggestion and
feedback
boxes
One month No Involving the
employees and
Public Relations
manager.
Harassments Strict
workplace laws
and policies.
One week Yes Involving the
Business manager,
Departmental head
and higher
authorities.

9MANAGING RISK
TIME PERIOD
MONTH 1 MONTH 2 MONTH 3 MONTH 4
ANALYSING
THE RISKS
MITIGATION
HIGHER
AUTHORITY’S
INVOLVEMENT
ACTION
UNDERTAKEN
b) MAIL
To the Public Relations Manager,
Subject: Mitigation of the risks.
Respected Sir/Ma’am,
The decision I undertook is for the betterment of the company. Analyzing the
risks in the first place is very important so that the company can survive on the long
run. In my opinion, the company should not conceal any facts from its stakeholders
and communicate the risk management plans to them as well, through holding
meetings. Effective participation of the employees encourages and motivates them,
which in turn is responsible for the company’s success.
Thank you,
XYZ (Adidas)

10MANAGING RISK
Part C:
a) MAIL
To the Advertising Department,
Subject: Designing a new advertisement.
Respected Sir/Ma’am,
It is to inform you that our company needs a new advertisement based on its
new action plans and procedures. The advertisement should be attractive with color
variation. It should mention in detail the action plans undertaken by the company,
and the areas of improvement.
Thank you,
XYZ (Adidas)
b) Requirements while giving the advertisement;
 Briefing.
 Knowing the objective.
 Research.
 Setting the budget.
 Target Audience Selection.
 Time and Date of the advertisement.
Part D:
a) MAIL

11MANAGING RISK
To the Manager of Adidas,
Subject: Action Plan and Risk Management Process till date.
Respected Sir/Ma’am,
It is to inform you regarding the risk management process till date. The action
plan includes increasing of the employees’ wages and introducing lucrative benefits
and incentives. Steps are to be undertaken for providing the workers with workplace
safety and safety. Consumers should have the opportunity to provide feedback to the
suggestion boxes, which will be available in the stores.
Thank you,
XYZ (Adidas)
b) LETTER
To the Stakeholder team of Adidas,
Subject: Action Plan and Risk Management Process till date.
Respected Sir/Ma’am,
It is to inform you that the key feature of Adidas’s system policies is
establishing the context of the risk, which involves the procedures and policies of the
company, risk assessment processes, critical factors and others. Identification of the
risk and analyzing it would be beneficial. We are planning to hold meetings and
involve all the stakeholders in order to get some valuable feedback. Your
cooperation is necessary and expected.
Thank you,
XYZ (Adidas)