BARRIERS TO EFFECTIVE BRAND RISK MANAGEMENT IN UNILEVER SAUDI ARABIA

Barriers To Effective Brand Risk Management In Unilever Saudi Arabia

Table of Content

CHAPTER ONE4

INTRODUCTION4

Background4

Aims and Objectives9

Methodological Approach10

A large set of studies looks at the determinants of risks in banking, but only a handful of these addresses the impact of the internationalization of banks. Yet, there is a growing awareness that cross-border banking activities could affect the risk and thus the stability of the domestic banking system. A common argument in banking is that cross border (geographic) mergers have the potential to reduce bank (and thus regulators') risk of insolvency. This conventional wisdom is based on the notion that it is better for a bank not to put all its “eggs in one basket” and thus geographic diversification is a naturally risk reducing activity.13

Rationale14

Significance Of Study15

Aims and Objectives15

Hypothesis16

Signposting16

Chapter Five: This section dicusses that Unilever approach to risk management involves a number of fundamental elements. The conclusion section has discussed these fundamentals elements which barclays is using to manage risk.17

FMCGs Risk Management in a Globalising Economy: Case Study of Unilever Outlets Saudi Arabia17

CHAPTER TWO22

LITERATURE REVIEW22

Concepts/Theories/Models/Writings related to the Topic22

Why Do FMCGs Manage These Risks At All ?37

How Are These Risks Managed ?37

(i)Standards and Reports38

(ii) Position Limits and Rules39

(iii) Investment Guidelines and Strategies39

(iv) Incentive Schemes40

Risks In Providing FMCGs Services40

Outlets Risk Management Systems44

Interest Rate Management Procedures46

CHAPTER THREE50

METHODOLOGY50

What are the various methods of research?50

Which methods are you using? And why have chosen and how is it going to be implemented50

Literature Selection Criteria51

Search Technique51

CHAPTER FOUR52

CASE STUDY52

Interviews52

Themes from Interview52

Wholesale credit risk52

Retail credit risk54

Risk tendency55

Country risk56

Market risk56

Liquidity risk56

Operational risk57

Financial crime57

Basel II and capital management58

CHAPTER FIVE59

CONCLUSION59

Unilever approach to risk management59

Organisation and structure60

Material risks and control framework62

Capital adequacy65

Internal targets66

Annual risk appetite setting66

Review of the Group's strategic medium-term plan69

Economic capital management69

Stress testing70

Capital resources72

Model governance73

Chapter One

Introduction

Background

The research will be focusing on the main barriers to effective brand risk management and how an MNC like Unilever Arabia overcome them. Brand risk management can most effectively be conducted when all of a company's risks are identified, measured and managed in an integrated manner in other words, within an enterprise risk management framework. As Green (2009), said “The reason for this is simple: Brand risk is multifaceted”. Financial, hazard, strategic and operational risks most of which tend to be managed discretely in organizational "silos" can all give rise to brand risk. In Brand Risk, David Abrahams (2008), addresses these recent trends by an in-depth view of branding and risks, with the challenge that marketing and risk managers have not fully collaborated. The approach to branding is not just risks of reputation but also more broadly to risk of the introduction of new products, risk of changing marketing environment, and risk of unfavourable investor perspectives. Brand literacy can help marketers to make better decisions and to make their professional case more effectively be it to internal or external stakeholders.

Brands are based on a relationship of trust with consumers. This trust takes a great deal of time and capital to develop. A breach of trust, however, can occur alarmingly ...