General Risk ManagementRead More about General Risk Management
Strauss Group formulated official and unified policies and procedures in the area of Enterprise Risk Management (ERM), based on the COSO risk management methodology. The policy is based on a relevant benchmark and recognized models as well as on tailor-made adjustments to the organizational and cultural structure of Strauss Group.
The Group’s risk management vision is to encourage taking calculated risks while appropriately managing those risks, and is characterized by the following principles:
- Risk management as a “living” process embedded in ongoing business conduct
- Taking advantage of business opportunities with proper risk decision making support
- Maintaining a proper and strong risk culture, typified by the “tone at the top”.
- A corporate structure that supports executing the work framework.
- Continued development of the leading risk management framework in Israel, while adopting relevant aspects of global industrial practice.
Strauss Group carries out annual and multi-year risk mapping processes, while the risks are divided into the primary groups of: financial, strategic, operations and compliance, as well as secondary risk groups including risk associated with the Group’s activities in the spheres of quality and food safety, consumer trends, production, regulation and more.
Risk management procedures at Strauss Group include measurement detection and risk assessment (carried out in annual and multi-year processes), monitoring control and reduction (carried out on an ongoing basis) and reporting to the management and Board of Directors of the Group at pre-arranged times. In addition, the Group launched a training program on the topic of risk management and set up a monthly risk forum on the HQ and subsidiary levels as part of an overall process to strengthen the risk culture in the Group.
As part of the overall risk management process, the Group defined the probability of every risk and its severity on a scale of 1-5. Risk severity was determined by multiplying the level of impact by the degree of probability, taking into consideration how the risk materializes (velocity). The degree of severity was divided into three management ranges: low (1-2); medium (3); and high (4-5), depending on the company’s risk matrix. A reduction plan is formulated relative to any risk identified as part of the overall risk management process and requires management.
Reports about emerging risks and the actions to mitigate them are provided bi-annually to the Group’s management and to the Group’s Finance Committee, and annually to the Board of Directors.