1. L3 – Case Study- Risk Management in Unilever
BBK3253 | Risk Management
Prepared by Dr Khairul Anuar
L3 – Case Study- Risk Management in Unilever

2. Case study
Please refer to the Unilever’s Outlook and Risks 2013 handout for discussion.

3. About Unilever
Company touches so many people’s lives in so many different ways - with more than 400 brands focused on health and wellbeing.
14 of its brands generate sales in excess of €1 billion a year (54% of the business)
Its portfolio ranges from nutritionally balanced foods to indulgent ice creams, affordable soaps, luxurious shampoos and everyday household care products. Its produces world-leading brands including Lipton, Knorr, Dove, Axe, Hellmann’s and Omo, alongside trusted local names such as Blue Band, Pureit and Suave

4. About Unilever
Unilever is one of the world’s leading fast-moving consumer goods companies with products sold in over 190 countries.
More than 2 billion consumers worldwide use a Unilever product on any given day.
its turnover was €49.8 billion in 2013
Emerging markets now account for 57% of its business
More than 174,000 people work for Unilever
It is the number one fast-moving consumer goods employer of choice among students in 26 countries

5. About Unilever 42% of our managers are women
31% of our portfolio by volume met the highest nutrition standards in 2013
It has reduced its waste impact by around 11% since 2010
Around 48% of its agricultural raw materials were sourced sustainably by the end of 2013

6. Risk Appetite and Approach to RM –pg 41
RM integral to Unilever’s strategy
RM aligned to vision to double business size while reducing environmental footprint and increasing positive social impact
Approach to RM designed to provide reasonable but not absolute assurance that assets are safeguarded

7. RM Organisation – pg 41 Board assume overall accountability for RM
Distribution of accountabilities & responsibilities ensures every country has resources and processes for risk review and risk mitigation
The Board regularly reviews these risk areas, and retain responsibility for determining the nature and extent of the significant risks that Unilever is prepared to take to achieve its strategic objectives.

8. Description of Risk Consumer preference Competition
Portfolio management
Sustainability
Customer relationships
People
Supply chain

9. Description of Risk Systems and information Business transformation
External economic and political risks, and natural disasters
Financial
Ethical
Legal, Regulatory and other

10. Assignment I – 30% Assignment Instruction
(1) Refer to Danone’s Risks document (commencing page 17, Section 2.7 of the document). You can download the document from here: ww.lecturenotes638.wordpress.com
(2) Structure of Assignment
Introduction of the company and its business (10%
Risk Management Structure (15%)
Principal risks and mitigation (75%)
Length: 2,500 to 3,000 words
Total marks: 30 marks
Submission date: 10th October 2014