Risk Management

HBC has adopted Coca -cola comprehensive enterprise

risk management framework to manage risk and
leverage opportunities across the group. Risk
management for export differs from domestic risks due
to the multiplication of possible cause of outstanding
invoices. The forecasting and evaluation of financial risk
together with the identification of procedures to avoid or
minimize their impact. With export the field of
outstanding cases is much wider and they don’t
necessarily linked to the credit worthless of buyer which
can also be much more difficult to assess due to the lack
financial information.
Country Factors:

Every country is characterized by diverse political and

legal systems that pose significant challenges and
performance, as manager must adhere to business laws
and regulations such as
 Corruption and other unethical affairs
 Unfavorable laws and firms
 Red tape and bureaucracy
  Harmful and unstable political system

Our company is present in different countries and

regions consequently we are continuously exposed to
an environment that is full of challenges and risk. Our
ability to manage the risk that may arise in the global
environment where we operate is vital our business
value creation. Accordingly our strategy includes a
comprehensive. Risk management process through
which we are able to identify, measure, register, asses,
prevent and mitigate risk.
Political Risk
If we consider the status of occurrence of political unrest then we can
see that it’s a external and uncontrollable factors which influence the
companies decision making performance and it’s strategy. Political
disturbance has a potential impact on the actions of the organization.
The political environment of India is influenced by various factors like
government policies interest of political parties .India started liberation
with which coka cola got easy entry in India. But because of corruption
and pressure from various political parties the company facedown run
and then again it entered India by fulfilling all the political factors. India
has also launched its own satellites which proves to be a profitable
ground for entry of Coka-cola .
Currency Risk:

If we consider the status of occurrence of the change in exchange rates

and we can see that it is potential. Change in exchange rate put some
significant impact on their actions. The company faces translation
exposure exchange rate risk because the consolidates earnings will be kn
increased or decreased due to the strength of the subsidiaries local
currency. Exchange rates would play a major role. In addition to
derivative instrument the company also uses certain economic hedging
currency fluctuation risk
Market Risk:

Market risk is the possibility of an investor experiencing losses due to

factors that effect the overall performance of the financial market in
which he or she involved. Entry into o competitive market where the
same types of soft drinks are already available. Coka-cola has facing
market problems such as health effect competitors and environment
impact. Too many brands to compete against and to survive in the
market .To attract more consumer by gave them free gifts on products.
Commercial Risk:
Commercial Risk can be defined as Financial Risk taken by a seller while extending credit
without securing any collateral or recourse. It generally includes all risks other than the political
risk.
 Unreliable trading partners,
 Trading partners unwilling to pay
 The trading partner is not willing to act as per the conditions stated in the agreement.