In the business planning process, it is crucial for management to incorporate concepts of risk management.
This is necessary in the attempt to minimize organizational risks that may influence the performance of an organization negatively.
Many factors affect the value of the outcome in environmental decision making.
Regulations, social, and economic considerations can change a risk manager’s decision accordingly.
In the normal operational environment of any business, several risks are evident.
Organizations have to address them to ensure their future presence.In the second volatile situation, shareholders are the main subjects while the event is the probability of occurrence of a fraudulent or misconduct within Pepsi company.A subtle factor leading to this event is reluctance of fraud and misconducts of monitoring and control systems.Finally, under the health and safety volatile situation, the employees of Pepsi Company are the key subjects.The event is failure of a production or packaging machinery contributed by factors such as negligence of conducting preventive maintenance of the machineries.Recommendations to solutions for mitigation of the risks are then considered.Many Asian countries have many operational beverage-manufacturing companies following the ease of the capacity of such companies to penetrate the market.As many incidents have occurred previously, this era introduced a variety of toxicants in overwhelming concentrations that induced significant adverse health effects among human populations.The rapid increase of industrial markets using substances in production and manufacturing did not come without consequences; waste was a by-product of industrial innovations.Even though, it is crucial for organizations to concentrate on reducing financial risks, risk management has an important function towards aiding in protecting customers, public, and employees from negative impacts including fires and terrorism amongst others.It also entangles the protection of organizational physical assets, records, data, and other physical facilities.