Risk Management at Sainsbury Academic Essay – Write My School Essay


Organizations are often exposed to various circumstances that threaten to topple it. These are referred to as risks. The risk is something that has a chance of happening and not happening, all at the same time. Risks are always present in any business. For this reason, risk management techniques were developed to help in the prioritization process of these risks. Risk management assesses, monitors, and coordinates the commercial application of vital resources to ensure that the maximum utilization of available opportunities. Risk can originate from various sources within the environmental surroundings of the organization. For example, the uncertainty of financial markets and threats from project failures, are factors that cause risks within an organization. Sainsbury’s is an organization that is one of the largest grocery retailers in the United Kingdom. Like any other company, Sainsbury’s also faces its share of risks that threaten to topple operations within the company.

Risk management

Sainsbury’s has employed various risk management techniques that help to maximize their existing potential opportunities. The company has employed various measures that have resulted in the rise of the company, regarding revenue collection and reduction of operational costs. For example, the Heaton outlet store was the beneficiary of a program that was implemented to ensure the reduction of risks to the company. The program was started when the company ventured into the grocery transportation business. In the world of transport, new risks began to emerge for the company. With the introduction of this new service, the company implemented a program that would support, train, and monitor its drivers. However, it is important to note that cost of running this program has a direct impact on the profitability of the company in the end. The drivers complete a full day in the training session (Jorion 2010, pp. 78).

The training sessions are tailored to the needs of the company. The drivers are trained on the challenges they shall encounter while working for the company as drivers. The training courses are focused on the extraordinary maneuvering. This is because a majority of the damage to the goods is done when the vehicle is moving at low speeds and confined areas. This is as a result of the job’s nature. After the training sessions are completed, a driver technician is assigned to every store. They will serve the purpose of providing any additional training that may be required after the drivers have already started their work.

This program had proven to be highly successful and allowed the company to increase its revenue collection by minimizing the cost of operations. Through the program, the company was able t manage the risk of having damaged goods while they are being transported. Such acts force the company to incur the cost of replacing them, which amounts to losses made (Gârleanu & Pedersen 2007, pp. 109). In the business that Sainsbury is conducting, various other risks involved. For example, the company deals in the sale of fresh food products. These items are high perishable and have a short shelf life. For this reason, the company has employed various risk management strategies that work to minimize the chances of these risks occurring.

Disaster and recovery

There is the possibility that the fresh produce handled by the company can go bad or become in a consumable. This requires proper action to be taken to ensure that the shelf-life of these products is increased as much as possible. In a bid to avert such a scenario, the company has adopted ‘Just-In-Time’ tactics in its supply chain process. JIT gives a company the opportunity to re-stock what it need, at precisely the right time it is needed. Therefore, the company does not have to store excess farm product in its stores. This reduces the chances that the products will go bad and result in revenue loss. JIT management systems have been adopted n various companies in the world. It has proven to work in different companies (Ritchie & Brindley 2007, pp. 92). However, it requires critical coordination and planning activities that ensure the system works efficiently.

In addition to this supply system, the vehicles and stores they have are fitted with refrigeration equipment. This lengthens the lifespan of the products they are dealing with. Having this credibility increases the chances that more customers will be satisfied with their products. As a result, they will be in a position to trust the products sold by the company to be of high quality. For this reason, the company will experience increased revenue collection from the sales. Quality goods and services are paramount for the business and its customers. Therefore, the services they have included in their product line help in increasing service delivery and product quality. This has been the key towards improving the company performance and progress. Quality preservation is something that helps in the elimination of the risk that the goods produced by the corporation may perish and be rendered useless. Such a move will be costly the organization by hurting their revenue streams.

Data involving the company has been stored in computer systems and servers. These servers make the work more efficient for the enterprise. Information can be retrieved within shorts periods, whenever needed. However, this technological advancement is prone to sabotage and to hack through malicious intent. For this reason, the company has invested in secure firewall systems that help in maintaining security for their network systems. These firewalls prevent any unauthorized access to the business systems (Bandaly et al 2012, pp. 98). Therefore, it helps in ensuring that the company data is secure. Also, the company has employed the use of multiple server systems. This means that all information stored by the company is stored in multiple copies in different locations. If one server is hacked, the company will not have lost all its data. Instead, the backup storage facilities will come in handy while they are used to restore any data that may have been lost.


The manner in which a company manages risk determines the preparedness of that company to manage any risks that may occur. Risk management helps a company to minimize or eliminate any risks that may be available within the business environment. Risk management has various benefits to business. It increases the credibility of the company, and the trust customers have in the enterprise. Sainsbury has made an effort to manage the risk factors within its business environment. The move has seen the company become a successful company in the enterprise climate is operating in. By preventing the occurrence of these threats, the company has been able to make a better business decision that ensures the continued existence and operations of the enterprise. It is crucial for companies to understand that risks are inevitable, but they can be managed.




Bandaly, D., Satir, A., Kahyaoglu, Y., & Shanker, L 2012, Supply chain risk management — I: Conceptualization, framework and planning process. Risk Management, 14(4), 249–271. Palgrave Macmillan Journals Press.

Gârleanu, N., & Pedersen, L. H 2007, Liquidity and Risk Management. The American Economic Review, 97(2), 193–197. American Economic Association Press.

Jorion, P 2010, Risk Management. Annual Review of Financial Economics, 2, 347–365. Annual Reviews Press.

Ritchie, B. & Brindley, C 2007, An Emergent Framework for Supply Chain Risk Management and Performance Measurement. The Journal of the Operational Research Society, 58(11), 1398–1411. Palgrave Macmillan Journals Press

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