The Impact of Risk Management in Food Production Company
Chapter One
Research Objectives
The main objective of the research is to identify the impact of risk management in food production company, the specific objectives are:
- To assess the level of awareness and understanding of risk management practices among employees in food production companies.
- To determine the effectiveness of risk management strategies in reducing the incidence of product recalls and contamination in food production companies.
- To evaluate the impact of risk management on the financial performance of food production companies.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Review
Concept of Risk Management
Risk is defined as an adverse or negative event that has the potential to adversely affect the organization. According to decision making is risk in itself, and it can be measured by examining several factors such as risk, event, and risk. He noted that the main factors were the severity and frequency of the incident (Mazouni, 2008). Risk management is the measure used to identify, analyze and respond to specific risks. Risk management not only reduces the chance of bad events but also ensures that good things happen (KANCHU & KUMAR, 2013).
Every day we make decisions that involve risk. This may be decisions related to financial risks, risks to limbs and life and risks that in other ways affect us. We may not know what the outcome of a decision will be, and there is an element of uncertainty as to whether the outcome will turn out to have a positive or a negative impact on us. Uncertainty about the consequences of an activity must be seen in relation to the severity of its consequences, severity referring to intensity, size, extension and so on, with respect to something humans value (Aven 2008; Wilson & Crouch 2001). The phrase “ no pain, no gain”, used in the everyday speech, indicates that in order to get what you want, something that is of value to you, you have to take a chance and play the game. The risk needs to be measured against the benefits, and some decisions are easier to make than others. Sometimes the consequences of the different solutions to a decision problem are known and one solution stands out as the best choice compared to the others. Other times, when there are uncertainties involved, the consequences are not as clear to us and make the decision making more difficult. This is where risk management becomes important: when dealing with decision making under uncertainty.
Before defining risk management and its characteristics; risk must be clear as a phrase. risk is a case that has been tested in an adversarial environment or where there is a possibility of deviating from the expected or desired outcome (Bessis, 2011). defined risks as being anything that limits the achievement of predetermined goals, This definition is consistent with the Business Dictionary, which defines risk as a possibility or threat of damage, injury, liability, loss or other adverse consequences arising from external or internal vulnerabilities that can be avoided through preventive action (KANCHU & KUMAR, 2013).
Risk management includes making informed decisions about the acceptance or treatment of risks, and the elimination of the consequences of major events or the occurrence of dangerous events, In addition, risk management refers to the policies, procedures, procedures, and tools used to manage and accept risks (Berg, 2010). Risk management can also be defined as management activities designed to predict, measure, and evaluate risks. Manage risk by avoiding risks, reducing negative impacts, reducing impacts to acceptable levels, and developing management strategies that accept all or part of the risk outcome (Dionne, 2013).
Risk management can be described as a systematic process of dealing with uncertainty. This is an important area under the broad theme of management. It can also be used to respond to adverse events. In this sense, it helps you prepare for the worst. Finally, it is a system that supports decision making. It provides multiple options and methods to help administrators choose a method that is less likely to fail (McNamara & Rejda, 2014).
Risk management is vital in securing the business’s capitals and other properties. However, as discussed, risk accompanies with the business’s opportunities to grow. Therefore, it is often emphasized in business strategies that risk management is not to prohibit taking risks entirely, but to understand the levels of risks, and to properly engage risks into development and growth.
On applying into operations, risk management contains a set of continuous actions: awareness, identification, evaluation, and development of risk management methods, decision making of suitable methods, implementation, and post management. While the workload increases, it is not necessary for the outcome to be excelled. The essence of risk management lies in the systematic flow of one step to another. Whilst the risk-taking behavior in corporates is encouraged, mistakenly identifying the manageable level of risks leads to inappropriate method, and finally to the loss in operation.
CHAPTER THREE
RESEARCH METHODOLOY
Research Design
According to Orodho, (2003) descriptive design is effective because it allowed the researchers to collect the necessary information. The study adopted a descriptive survey research design in determining the impact of risk management in food production company. This design is adopted for the study because it aims to accurately and systematically describe a population, situation or phenomenon. It can answer what, where, when and how questions. Also, can use a wide variety of research methods to investigate one or more variables.
Research Population
Population constitutes elements possessing similar traits that are being investigated (Ngechu, 2004). UAC Foods limited staff, the Public, and risk management Experts constituted the research population.
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATIONS
Demographics details of respondents
CHAPTER FIVE
SUMMARY, CONCLUSION, AND RECOMMENDATIONS
Summary
The study titled “The Impact of Risk Management in Food Production Company” aimed to assess the level of awareness and understanding of risk management practices among employees in food production companies, determine the effectiveness of risk management strategies in reducing the incidence of product recalls and contamination, and evaluate the impact of risk management on the financial performance of food production companies. The study employed the questionnaire methodology in gathering needed data, and the data were analyzed in simple table to make the interpretation of result easier. The findings of the study will help to inform food production companies on the importance of risk management practices, and how effective risk management strategies will impact the incidence of product recalls and contamination, as well as the financial performance of the company.
Conclusion
The study aimed to assess the level of awareness and understanding of risk management practices among employees in food production companies, determine the effectiveness of risk management strategies in reducing the incidence of product recalls and contamination, and evaluate the impact of risk management on the financial performance of food production companies.
Through the data analyzed, the study found that employees in food production companies had varying levels of awareness and understanding of risk management practices. While some employees were familiar with risk management practices, others were not aware of the importance of these practices in ensuring the safety and quality of food products.
The study also found that effective risk management strategies can positively impact a company’s financial performance. Companies that implemented risk management strategies experienced a decrease in the number of product recalls and contamination incidents, which in turn led to an improvement in their financial performance.
Additionally, the study revealed that effective communication of risk management strategies to employees at all levels of the organization was crucial for the success of these strategies. Companies that effectively communicated their risk management strategies to employees had higher levels of employee engagement and a better understanding of the importance of these strategies.
The study highlights the importance of risk management practices in ensuring the safety and quality of food products, reducing the incidence of product recalls and contamination, and improving the financial performance of food production companies. The findings of the study can help inform food production companies on the importance of effective risk management strategies and communication of these strategies to employees at all levels of the organization. By implementing effective risk management strategies, companies can improve their financial performance, increase employee engagement, and ultimately ensure the safety and satisfaction of their customers.
Recommendations
Based on the findings of the study, the following recommendations were made:
Increase awareness and understanding of risk management practices among employees: Food production companies should prioritize training and education programs for employees to increase their awareness and understanding of risk management practices. This will help ensure that employees at all levels of the organization understand the importance of risk management in ensuring the safety and quality of food products.
Develop and implement effective risk management strategies: Companies should develop and implement effective risk management strategies that address potential risks such as product recalls and contamination. These strategies should be regularly reviewed and updated to ensure that they are effective and relevant.
Communicate risk management strategies to all employees: Effective communication of risk management strategies to all employees at all levels of the organization is crucial for the success of these strategies. Companies should ensure that all employees are aware of the company’s risk management strategies and understand their roles and responsibilities in implementing these strategies.
Invest in risk management resources: Food production companies should invest in resources such as technology, personnel, and equipment to support the implementation of risk management strategies. This includes regular monitoring and testing of products, as well as proper training for employees on the use of equipment and technology.
Prioritize customer safety and satisfaction: Companies should prioritize customer safety and satisfaction in their risk management strategies. This includes ensuring that products are safe and of high quality, as well as addressing customer concerns and complaints in a timely and effective manner.
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