RISK MANAGEMENT PRACTICES AT MOGLE BOTTELED WATER MANUFACTURING SEBETA, ETHIOPIA

Abstract

In order to examine how risk and risk management process is perceived in the manufacturing sector, a case study of a Bottled Water Manufacturing company called Mogle bottled water manufacturing factory is chosen. All analyses were based on a theoretical background regarding risk and risk management process in the manufacturing sector. The purpose of this study was to investigate the current risk management practices and the risk management system that is adopted by the chosen company. The study used both primary and secondary data. The primary data were collected through questionnaires and interviews and secondary data were compiled from documents, reports, company website, and so on. The result revealed that the company has a risk management structure in place and it has developed written policies and procedures for risk management. The study also revealed a number of weaknesses in risk management like lack of capacity in understanding risk management policies and procedures at all levels. The current tools that are used to identify, measure, monitor, and control risks are not satisfactory to properly manage their risks and tools are not reviewed periodically. The difficulties the company is facing in managing its risks are: weak management information system, lack of competent and experienced staffs, and lack of exposures to risk circumstances.