A Framework for Strategic Risk Taking and Risk Management in Consumer Product Companies

Annicka Pries, BA

Master's thesis

Abstract:

This diploma thesis aims to develop a framework for strategic risk taking and risk management within fast moving consumer goods companies (FMCG). Main objective is to identify key strategic risks FMCG companies have to face. Potential uncertainties, barriers and best practice approaches will be analyzed to develop a integrated risk management approach for FMCG companies.The theoretical part of the thesis represents the fundamental understanding of risk, risk management and strategic risk management. The thesis further deals with the strategic planning tool Scenario Matrix which is used as main tool to develop the strategic risk management framework as outcome of the thesis. The practical part contains primary and secondary data for the ongoing research. The primary data is collected through three expert interviews to determine the best practices to managing strategic risks. The secondary data is taken from three different market studies of Deloitte, PricewaterhouseCoopers and McKinsey from the years 2015/16 to classify future trends and challenges of FMCG companies. The collected data is overall analyzed and used to determine four potential future scenarios within a Scenario Matrix including main strategic risks of FMCG companies. Further, the gained data is used to develop a five-steps strategic risk management approach for FMCG companies.

Keywords

Strategic Risks, Risk Management, Consumer Product Companies, Scenario Planning, Risk Framework, Trends

Language used: English

Date on which the thesis was submitted / produced: 27. 3. 2017

Thesis defence

• Supervisor: prof. Éamon Lenihan

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management