Risk Management Report: UniSamColes Limited's Australian Risks

This report focuses on the risk management strategies for M/s UniSamColes Limited in Australia, particularly during its initial years and subsequent expansion. It identifies potential risks stemming from the company's collaborations with Unilever Australasia, Samsung Electronics Australia Pty Limited, and Coles Supermarkets Australia Pty Limited, considering the impact of these partners' risks on UniSamColes Limited. The report examines various risk categories, including political, economic, social, technological, environmental, and legal factors, along with their triggers and potential consequences. It includes a detailed risk register outlining specific risks, their triggers, potential impacts, and proposed mitigation or avoidance strategies. The analysis considers both internal and external factors that could affect the company's operations and decision-making processes. The report also delves into the organizational context of the three collaborating companies, highlighting the risks they face and how these could affect UniSamColes Limited. Overall, the report provides a comprehensive overview of risk management, aiming to minimize or eliminate the impact of identified risks on UniSamColes Limited's performance and success in the Australian market.

Running head: RISK MANAGEMENT

1
RISK MANAGEMENT
Purpose:
The purpose of the report would be identification of the risks which M/s
UniSamColes Limited would face in Australia in its initial years and in the host markets post
expansion. The risk report would also identify the factors which can trigger the risks and
strategies which the company would adopt in order to mitigate or at least minimise the
impacts on the risk identified. The product umbrella of M/s UniSamColes Limited would be
largely based on its collaborating companies namely, Unilever Australasia, Samsung
Electronics Australia Pty Limited and Coles Supermarkets Australia Pty Limited. Thus, it is
clear that the firm would directly come under the risks which these companies would face. It
can also be pointed out that since the management board of UniSamColes Limited would be
appointed by the three collaborating companies, any risk impacting these any of these three
companies would impact the decision making of the management of UniSamColes Limited.
It can also be pointed out that the namely of the company clearly bear the names of the three
collaborating giant companies. UniSamColes Limited would be able to attract both customers
and investors by using the market goodwill of the three collaborators. On the other hand, any
negative incidence occurring to these three companies would impact the capital and revenue
generation of UniSamColes Limited. Thus, it is clear that the report would also aim to study
the risks facing these three collaborating companies.
Organizational Context:
The organisational context would delve into the organisational contexts of the three
collaborating companies namely, Unilever Australasia, Samsung Electronics Australia Pty
Limited and Coles Supermarkets Australia Pty Limited. The discussion would then go on to
uncover the risks which the companies face in their respective organisational contexts which
would be tabulated in the succeeding section.

2
RISK MANAGEMENT
Unilever Australasia:
Unilever Australasia is the Australian subsidiary of the global fast moving consumer
goods giant Unilever Plc which is based on London. The company owns, manufactures and
markets some of the top consumer goods brands in the world namely, Dove and Axe. The
company operates in more than a 100 nations. Thus, it is evident that Unilever Plc. and
Unilever Australasia come under influences of hostile changes in the macroeconomic
environmental factors which attract risks towards the company.
Samsung Electronics Australia Pty Limited:
Samsung Electronics Australia Pty Limited is the Australian arm of the global
electronic company namely, Samsung Electronics Limited based in South Korea. The
company markets
Risk Diagram
Risk Identification –
- Trigger
- Description of Risk
- Impact of Risk
Analysis and Evaluation – Likelihood / Seriousness of Risk and the Consequences of the
Risk

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RISK MANAGEMENT
Risk Control –
- Avoidance
- Transfer
- Mitigation
- Acceptance
Roles and Responsibilities
Risk Register
Table 1. Risk faced by Unilever Australia Limited:
Risks faced by Unilever Australasia Limited
Ri
sk
no
s
Risk
types Risks
Risk
trigger
(s)
Descri
ption
Impac
t on
Unilev
er
Austr
alasia
Impact
on
UniSam
Coles
Limited
Mitigating/
avoidance
strategies
which
UniSamCol
es can take
Accept
anace
Trans
fer
1 Politic
al
Change
s in
laws in
the UK
(home
country
of
Unilev
er Plc.)
and
Netherl
and
(home
country
of
Unilev
er
N.V.)
Govern
ment
actions,
econo
mic
emerge
ncies,
terroris
t
attacks
etc
Change
s in
laws
like
formati
on of
new
corpora
te laws
in the
UK
and/or
Netherl
ands
would
require
the
Unileve
r form
new
policies
Unilev
er
Austra
lasia
has to
adapt
to the
laws.
UniSam
Coles
Limited
would be
affected
since the
represent
of
Unilever
in the
manage
ment
would
take
decisions
as per
the
direction
s of
Unilever.
Comply
with the
laws and
adapt
strategies
accordingly
Manag
ement
Conce
rned
deprat
ments

4
RISK MANAGEMENT
.
2 Politic
al
Change
s in
bilatera
l
relation
ships
betwee
n the
UK and
Austral
ia
Decisio
ns
taken
by the
UK
Govern
ment
goes
against
the
interest
s of
Govern
ment of
Austral
ia and
vice
versa
Hostile
bilatera
l
relation
ships
betwee
n the
UK and
Austral
ia
would
result
in
Unileve
r
Austral
asia to
either
contrac
t
busines
s or
exit
from
the
market
altoget
her
Reduct
ion of
busine
ss
operati
ons or
total
loss of
market
and
resulta
nt
revenu
e
genera
ted
from
Austra
lia
1. Would
result in
exit of
Unilever
from the
collabora
tion, thus
weakeni
ng the
company
2.
Removal
of
Unilever
products
from
product
umbrella
, thus
losing
revenue(
revenue
risk)
Change the
constitution
of the
collaboratio
n by
removing
Unilever
Manag
ement
Conce
rned
deprat
ments
3 Politic
al
Entry
of
foreign
compa
nies,
loss of
revenu
e,
market
share
Strong
bilatera
l
relation
ship
betwee
n
Govern
ment of
Austral
ia and
other
nations
Entry
of
foreign
firms
and
formin
g
similar
collabo
rations
with
compet
itiors of
Coles
like
Woolw
orths
would
result
in loss
of
custom
ers,
supply
chain
Loss
of
revenu
e, loss
of
market
share
Loss of
revenue,
loss of
market
share
Form strong
marketing
strategies to
establish
itself more
strongly
compared to
competitors
Manag
ement
Conce
rned
deprat
ments

5
RISK MANAGEMENT
4 Econo
mic
Fall in
value
of GBP
and
AUD
compar
ed to
other
internat
ional
currenc
ies
Change
s in the
internat
ional
currenc
y
market
s
Weake
ning of
AUD
and
GBP
would
result
in
increas
e of
costs of
importi
ng raw
materia
ls,
machin
ery,
technol
ogy,
employ
ees etc.
from
foreign
markets
to
operate
in
Austral
ia
Need
to
incur
more
import
expens
es,
earnin
g
lower
net
profits
Would
be
required
to
procure
Unilever
products
at higher
costs
1. Using its
ecommerce
portal to sell
more goods.
The
company
would earn
higher
revenue and
diversify the
high
procurement
costs.
2. Market its
goods more
aggressively
in the
Australian
market to
attract more
customers.
3. Adopt
product
bundling
strategy to
reduce cost
of product
per unit.
4.
Recommend
Unilever to
reduce its
product
offering
available at
competitor
retail
outlets.
Manag
ement
Conce
rned
deprat
ments
5 Econo
mic
Loss of
supply
chains
Trade
wars(R
2) and
souring
of
bilatera
l
relation
shios
Trade
wars
(like
the US-
China)
may
result
in loss
of
custom
er base
and
supply
chains
Need
to
incur
more
import
expens
es,
earnin
g
lower
net
profits
Would
be
required
to
procure
Unilever
products
at higher
costs
1. Using its
ecommerce
portal to sell
more goods.
The
company
would earn
higher
revenue and
diversify the
high
procurement
costs.
2. Market its
goods more
aggressively
in the
Manag
ement
Conce
rned
deprat
ments

6
RISK MANAGEMENT
Australian
market to
attract more
customers.
3. Adopt
product
bundling
strategy to
reduce cost
of product
per unit.
4.
Recommend
Unilever to
reduce its
product
offering
available at
competitor
retail
outlets.
6 Econo
mic
Econo
mic
breakd
own
Inflatio
n,
failure
in key
sectors
like
housin
g sector
Inflatio
n
would
result
in fall
in
demand
for
goods
and
revenue
generat
ion.
The
costs
would
increas
e
Inflati
on
would
result
in fall
in
deman
d for
goods
and
revenu
e
genera
tion.
The
costs
would
increas
e
Inflation
would
result in
fall in
demand
for
goods
and
revenue
generatio
n. The
costs
would
increase
1. Using its
ecommerce
portal to sell
more goods.
The
company
would earn
higher
revenue and
diversify the
high
procurement
costs.
2. Market its
goods more
aggressively
in the
Australian
market to
attract more
customers.
3. Adopt
product
bundling
strategy to
reduce cost
of product
per unit.
4.
Recommend
Unilever to
reduce its
product
offering
Manag
ement
Conce
rned
deprat
ments

7
RISK MANAGEMENT
available at
competitor
retail
outlets.
7 Social
Change
in
custom
er
prefere
nces
R3
Change
in
custom
er
prefere
nces
would
result
in fall
in
revenue
Chang
e in
custom
er
prefere
nces
would
result
in fall
in
revenu
e
Change
in
customer
preferen
ces
would
result in
fall in
revenue
1. Using its
ecommerce
portal to sell
more goods.
The
company
would earn
higher
revenue and
diversify the
high
procurement
costs.
2. Market its
goods more
aggressively
in the
Australian
market to
attract more
customers.
3. Adopt
product
bundling
strategy to
reduce cost
of product
per unit.
4.
Recommend
Unilever to
reduce its
product
offering
available at
competitor
retail
outlets.
Manag
ement
Conce
rned
deprat
ments
8 Social Resent
ment
against
foreign
goods
among
custom
ers
Hostilit
y
betwee
n the
UK and
Austral
ia
Change
in
custom
er
prefere
nces
would
result
in fall
in
revenue
Chang
e in
custom
er
prefere
nces
would
result
in fall
in
revenu
e
Change
in
customer
preferen
ces
would
result in
fall in
revenue
1. Using its
ecommerce
portal to sell
more goods.
The
company
would earn
higher
revenue and
diversify the
high
procurement
costs.
Manag
ement
Conce
rned
deprat
ments

8
RISK MANAGEMENT
2. Market its
goods more
aggressively
in the
Australian
market to
attract more
customers.
3. Adopt
product
bundling
strategy to
reduce cost
of product
per unit.
4.
Recommend
Unilever to
reduce its
product
offering
available at
competitor
retail
outlets.
9 Techn
ology
Advanc
ement
of
technol
ogy
leaves
older
version
s of
technol
ogy
redund
ant
Advanc
ement
in
technol
ogy
Increas
e in
expens
es in
technol
ogy,
decreas
e in
revenue
Increas
e in
expens
es in
techno
logy,
decrea
se in
revenu
e
Increase
in
expenses
in
technolo
gy,
decrease
in
revenue
1.
Continuous
advancemen
t of
technologica
l aspects
like website
and mobile
apps.
Manag
ement
Conce
rned
deprat
ments
10 Data
theft
Hackin
g, data
theft,
loss of
critical
busines
s data
Growin
g
hackers
ranging
from
individ
uals to
money
launder
ing
groups
Data
theft,
loss of
busines
s data
includi
ng
financi
al and
custom
er data
1. Loss
of
custom
ers
2. Loss
of
investo
rs
3. Loss
of
market
goodw
ill
4. Loss
of key
busine
ss
Loss of
customer
s
Loss of
investors
Loss of
market
goodwill
Loss of
key
business
strategie
s to
competit
ors
1.
Tightening
of security.
2.
Allocating
new email
ids and
passwords
to each
employees.
3.
Mandating
subordinates
to obtain
approval of
superiors to
accede to
Manag
ement
Conce
rned
deprat
ments

9
RISK MANAGEMENT
strateg
ies to
compe
titors
specific
information.
4. Making it
compulsory
for all
employees
to exchange
official
information
exclusively
on the
formally
laid path of
information
sharing.
5.
Employees
holding
assistant
managers
and beyond
should lock
their
systems
using a four
layer
password
security.
11 Enviro
nment
Natural
disaster
s risks
Natural
disaster
s
Natural
disaster
s lead
to loss
of
resourc
es,
invento
ry and
assets
Depen
ds on
the
serious
ness
and
intensi
ty of
the
calami
ties
Depends
on the
seriousn
ess and
intensity
of the
calamitie
s
Evacuation
or any other
necessary
steps
Manag
ement
Conce
rned
deprat
ments
12 Legal WHS
risks
Fall,
injury,
fire etc
Minor
WHS
risks
can
cause
minor
injury
to
employ
ees.
Major
WHS
risks
like fire
can
cause
1.
Minor
WHS
hardly
affects
the
operati
ons.
2.
Major
WHS
can
stall
produc
tion
periodi
1. Minor
WHS
hardly
affects
the
operatio
ns.
2. Major
WHS
can stall
producti
on
periodica
lly or
even
totally.
1. Adoption
of WHS
legislations
2.
Formation
of WHS risk
management
policies
3. Risk
training of
employees
4.
Incorporatio
n of risk
management
in core
Manag
ement
Conce
rned
deprat
ments

10
RISK MANAGEMENT
loss of
manpo
wer,
resourc
es etc.
cally
or
even
totally.
3.
Action
s form
govern
ments
4.
Massiv
e
revenu
e loss
5. Loss
of
custom
ers
6. Loss
of
investo
rs
7. Loss
of
market
goodw
ill
3.
Actions
form
governm
ents
4.
Massive
revenue
loss
5. Loss
of
customer
s
6. Loss
of
investors
7. Loss
of
market
goodwill
business
strategies