University RCM301: Risk and Crisis Management Report on KFC

This report provides a detailed analysis of risk and crisis management strategies for KFC, focusing on key areas such as supply chain failures, loss of key staff, and cyber attacks. It begins with an introduction to KFC and its market position, followed by a discussion of various risk categories and their potential impact on the business. The report includes a risk analysis table outlining the likelihood, consequences, and control methods for each identified risk. Specific risks, including supply chain disruptions, employee turnover, and cyber security threats, are examined in detail. For each risk, the report identifies the type of risk, its impact on the business, and proposes strategies and methods of control. The report also includes the timeframe for implementing strategies, stakeholders responsible, resource requirements, and future actions for risk monitoring and updating. Action plans are developed to mitigate the impact of each risk on the business. The report concludes by summarizing the findings and emphasizing the importance of proactive risk management for KFC's long-term sustainability and growth in a competitive environment.

Running head: RISK AND CRISIS MANAGEMENT
RISK AND CRISIS MANAGEMENT
Name of the Student
Name of the University
Author Note:

1RISK AND CRISIS MANAGEMENT
Table of Contents
Introduction..........................................................................................................................
Discussion............................................................................................................................
Risk Analysis Table.........................................................................................................
Identification of Risk.......................................................................................................
Supply chain failure.........................................................................................................
Type of Risk and Impact on Business.........................................................................
Strategy and method of control business.....................................................................
Timeframe of Strategy.................................................................................................
Stakeholder responsible for each part..........................................................................
Resource required for mitigating the risk....................................................................
Future action for checking and updating risk..............................................................
Action plan...................................................................................................................
Impact on business.......................................................................................................
Loss of key staff...............................................................................................................
Type of Risk and Impact on Business.........................................................................
Strategy and method of control business.....................................................................
Timeframe of Strategy.................................................................................................
Stakeholder responsible for each part..........................................................................
Resource required for mitigating the risk....................................................................
Future action for checking and updating risk..............................................................
Action plan...................................................................................................................
Impact on business.......................................................................................................
Cyber Attack..................................................................................................................
Type of Risk and Impact on Business.......................................................................
Strategy and method of control business...................................................................
Timeframe of Strategy...............................................................................................
Stakeholder responsible for each part........................................................................
Resource required for mitigating the risk..................................................................
Future action for checking and updating risk............................................................
Action plan.................................................................................................................
Impact on business.....................................................................................................
Conclusion.........................................................................................................................
References..........................................................................................................................

2RISK AND CRISIS MANAGEMENT
Introduction
KFC is considered to be considered as one of world-famous chain of fast food
restaurant. In the year 1952, it was founded by Colonel Harland Sanders (Richards &
Aldgate, 2018). KFC stands for Kentucky Fried Chicken. The head quarter of this
organization is located in Kentucky United States. This particular store aims to sell salad,
chicken pieces and wraps but their food is considered to be fried chicken.
In the coming pages of the report, an idea has been provided regarding the various
type of risk in KFC has been discussed in details. After that the risk type and its level has
been discussed in details.
Discussion
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)
External economical Internal
stakeholders
A- high 4-higher administration
External political Internal and C-medium 3-medium administration

3RISK AND CRISIS MANAGEMENT
external
stakeholders
External natural Internal and
external
stakeholders
E-low 5-
catastrophic
engineering
Identification of Risk
The three biggest risk which can be encountered in KFC are Supply chain failure,
Loss of key Staff and lastly cyber-attack.
Supply chain failure
Type of Risk and Impact on Business
Type of
Risk
Likelihoo
d
Impact on Business
Failure of
Supply
Chain
High Unreliable inputs: Effective supply chain mainly ensure the fact
that the raw materials arrive on time (Smith, 2016). A poorly
managed supply chain can easily bring halt to production.
Without any kind of proper delivery inputs, the assembly line of
the organization can easily dormant. In this scenario, the
employee does not any kind of work for performing which can
easily leave the organization to satisfy the time-sensitive orders.

4RISK AND CRISIS MANAGEMENT
Strategy and method of control business
A large number of method can be used for tackling supply chain failure like stockpile
Inventory, diversify of supply base, develop of back failure and management of product
demand.
Stockpile Inventory: The main goal of inventory is all about proper management of
any kind of disruption which is considered to be simple one (Hussain, 2014). The main factor
of inventory level is of various critical components. It comes up with various kind of finished
products.
Diversification of supply base: Dividing the sourcing activities between the given
supplier which serves in protecting the business of KFC (Farrell, 2015). It can work by
proper ramping from various source due to unaffected supplier.
Back of Supplier: Backing up of supplier is considered to be a well-known strategy
for protecting supply chain.
Managing the demand of product: Two main strategy can be used for managing
product demand that are switching and rationing (Liu et al., 2016). By using switching
strategy, an organization like KFC can easily take certain number of step for encouraging
customers. By using rationing strategy, an organization like KFC make use of certain number
of step for distributing limited supply.
Strengthening supply chain: All the above stated strategies are good for
understanding the disrupt. But there can be some other step can be easily taken for
improving the supply chain.

5RISK AND CRISIS MANAGEMENT
Timeframe of Strategy
The time of the strategy would be around 3 to 6 months (Shoyemi, 2014). As the
strategy comprises of five steps that are stockpile inventory, strengthening supply chain,
managing demand of product, diversification of supply base so that huge time is needed.
Stakeholder responsible for each part
There are two stakeholders which are associated with supply management team like
operation and sustainability
Operation team: This particular team is responsible for understanding the decision
process on the given services and technologies (Harris, Ali & Ryu, 2018). It can easily track,
store and remove any kind of products which is needed for facility.
Sustainability: Sustainability is considered to be best kind of internal champions and
cheerleaders for the program. It can easily benefit the various stakeholders like reduction of
cost and enhancing employee engagement.
Resource required for mitigating the risk
A large number of resources are required for overcoming the various risk in supply
chain management like
Insurance of Purchase Cargo: A certain amount of money will be invested in
insurance which is taken to be an important factor for various stages of the growing
organization like KFC.
Partners for risk planning: Team members should work with various suppliers,
carrier transport, center for data management and customers. It mainly helps in ensuring
recovery at the time of disaster.

6RISK AND CRISIS MANAGEMENT
Future action for checking and updating risk
Review of risk: The identified risk of supply chain in KFC should be identified on
regular basis. All the changes in the supply chain should be identified on regular basis (Cole,
2015). Preparation can be taken to be as one of the best method for understanding any kind of
disruption in supply chain.
Action plan
If the discussed methods do not work, then KFC can easily choose some other
methods of mitigating risk with supply chain like
Priority to probability and impact: All the scenario of risk cannot be covered so the
potential risk should be prioritizing by analyzing the likelihood of risk (Rejeki, 2015). A
proper plan should be developed for understanding the contingency starting with high-impact
of risk scenario.
Ensuring the quality of supplier: Supplier can easily effect the reputation of any
organization. For ensuring the quality of suppliers, the mode or way of treating employees
should be good.
Impact on business
If there is failure of supply chain management in KFC, then it can easily effect its
business.
Uneven distribution of cost: Lowering of distribution cost is considered to be as one
of the major functions of supply chain management (Gruner et al., 2018). Without a cost
efficient chain, various organization like KFC can failure to reduce the overall cost.

7RISK AND CRISIS MANAGEMENT
Unreliable inputs: Proper and effective supply chain is considered to be effective
that ensures that the raw materials at proper time for production. While a poorly managed
supply chain management can easily lead to halt in production.
Loss of key staff
Type of Risk and Impact on Business
Type of Risk Likelihood Impact
Loss of key staff High Loss of key staff with KFC
can easily result in
devastating effect on both
morale and productivity
(Zhang et al., 2015). The
potential loss can easily hit
the overall economy of the
organization.
Strategy and method of control business
The loss of important employees with organization can easily bring huge amount of
loss to KFC. A large number of steps can be taken for overcoming the problem like:
Planning of elements: Contingency plan can easily have huge amount of impact on
the business (Omer, 2018). The first or beginning step is all about setting up of goal so that it
the current employee can be easily be replaced.

8RISK AND CRISIS MANAGEMENT
Transferring of Risk: Key personal insurance can easily transfer the risk with your
staffer. This is particular kind of policy can be easily used for death or disability of the key
employees in KFC.
Timeframe of Strategy
Around 4 to 6 months is needed for implementing the given strategy that is planning
and transfer of risk. The strategy cannot be implemented at once; they cannot be implement at
once.
Stakeholder responsible for each part
There are mainly four key stakeholders in an organization like employees,
shareholders, customers and lastly owners.
Shareholders: Shareholders are considered to most attentive for any organization like
stakeholders (WANG & LUO, 2016). Shareholders are considered to be group of investors
which can affect the ownership of the organization like KFC.
Employees: Changing viewpoint of employees is taken to be responsibility of
corporate for social responsibility. As per CSR, employees of KFC are considered to be one
of the major asset.
Resource required for mitigating the risk
A large number of steps can be taken for reducing the risk of employee loss within the
organization like
Job analysis audit with the job interview: A job analysis audit behavior should be
there for understanding the job simulation and behavior assessment. It is considered to be
helpful for understanding the job preview for both candidate and managers.

9RISK AND CRISIS MANAGEMENT
Giving a proper employee orientation: The employees hired by KFC at present can
be greatest resource for tomorrow (Jana & Das, 2017). If the higher authorities of KFC like
manager and other executive take part in new employee retent
Future action for checking and updating risk
Managing employee retention is considered to be an important factor for KFC. It is
mainly inclusive of preserving of organization culture along with lowering of personal cost
(Välikangas, 2016). Various governing organization has claimed the fact that minimum cost
of organization is in recruiting, low production. This problem needs to avoided as it can
easily incur huge amount of cost to KFC.
Action plan
A large number of steps can be easily taken for preventing employee loss like
Feedback: The staff of KFC needs to provide feedback at all the given time on the
various phases like development or any kind of issues related to work (Bhadra, 2017).
Employ can easily make use of open-door policy which can help various employees for
understanding their importance.
Time off: Providing a competitive salary is considered to be a well-known factor for
retention of employees. It is considered to be an important factor for understanding the need
of the staff members of KFC.
Impact on business
There are large number of effects of employee loss of an organization like KFC.
Customer relation: Productivity tends to suffer when the given employees are
responsible for understanding the various function of the organization. The current customer
waste focus on teaching the new employees with large number of product or services.

10RISK AND CRISIS MANAGEMENT
Cost involved in overall turnover: When the best employee of the organization
leaves the organization like KFC, they can easily take more talent into the competition.
Cyber Attack
Type of Risk and Impact on Business
Type of Risk Likelihood Impact
Cyber Attack High A successful cyber attack on
KFC can easily have huge
amount of damage on the
reputation of the
organization. It can easily
affect the bottom-line along
with business standing and
customer trust. The impact
of security breach on
organization can easily be
distinguished into legal,
reputation and lastly
financial.
Strategy and method of control business
A large number of steps can be easily taken for preventing cyber attack on KFC like

11RISK AND CRISIS MANAGEMENT
Secure Software: Depending on the nature of the business, there is requirement of
security software. It is mainly inclusive of various antivirus software like SSL certificates,
POS tools, endpoint security software.
Backup of important data: When the various malware like ransomware can easily
cripple all the system or network or even delete all the data. It is important to have back up of
all-important data.
Timeframe of Strategy
For the implementation of two strategy, there is need of time around 1-2 months’ time
as it requires approval from various department of KFC.
Stakeholder responsible for each part
Employees: Employee are considered to be as one of the fundamental parts of the
organization like KFC.
Customers: IF the customers of KFC are satisfied then they are satisfied then it can
easily result in overall improvement of the organization.
Resource required for mitigating the risk
Password management: Efficient password management is needed for maintaining
the security of website of KFC. The given password needs to enough strong which needs to
be checked on regular basis.
Future action for checking and updating risk
Secure configuration: The corporate policy needs to secured so that a proper and
secure baseline can be easily developed for it. All the disability from the system can be easily
removed and a proper patch should be there against vulnerabilities.