Sector Supervisory for CFC

21 Feb 2022
 Risk Map
Negative social media coverage
Failure to motivate current pool of talent
(New)
New laws and regulations (Etc: Pandemic)
Fraud by employees (Internal Control)
LIKELIHOOD
Food safety incident
Increased competition in F&B Sector
Hazards (fire, flood, earthquake, pandemics
etc) and failure of workplace safety measures.
Business Recovery for CFC

3 High Political and Social Instability (New)

Increase in exchange rate / Monitor
competitor's price (Cont)
Margin Pressure from price increase from
supplier vs SB Brand positioning value for
money (New)
Profitability eroded by Rest Grp (New)
Increased labor Network Failure Supply Chain Disruption due to Machine
organisation Failure to plan for succession (Revised)

2 Medium Increased Cost (HR, Operation)

Breach of internal codes Compliance with laws and regulations

and policies
1 Low

1-Low 2-Medium 3-High

IMPACT
 Impact: High, High
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Increase in Due to the increased in the CFC Procurement 1) Finance team CFC Procurement
exchange rate / recent currency exchange rate, CFC R&D weekly Seasons have done 3
Monitor CFC have identified the risk on CFC Marketing monitoring time of price increase
competitor's CFC Admin exchange rate - 16th June
price (Update) 1) Increased in raw material CFC Finance 2) Procurement - 18th Aug
cost both local and overseas update twice per - 15th Nov
month on all Due to all raw material
2) Continuation of delayed in costing to and packaging increased
shipment arrival determine any Milestone
potential price New local supplier
3) Fewer Options available in change for both UKYU 1.51 ks (1 gm)
the local market BK and Rest Grp Wilmar 1.36 ks (1 gm)
3) R&D will only use
4) Will need to monitor on whatever is Fun Hwa 3300 ks/2L
competitors pricing to stay available in the Double Cow 3000 ks/2L
relevant to the situation. local market for
future creation Swee Yin Ma
4) Start sourcing Cof powder(12gm/Pot)
across boarders Golden Brown
as a short term Cof powder (6gm/Pot)
solutions QA already inspected all
supplier
 Impact: High, High
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Food safety Food safety or hygiene issues Food Safety Team in - QA Audit have extended CFC QA,
incident could cause direct financial place. to both BK and Rest Grp Production,
impact or damage ÇFC’s (1st Oct) Admin, MT, HR
reputation HACCP certification in
May - HACCCP meeting Milestone:
In Ygn conducted on monthly SB Ops will start
basis officially scoring
HACCP certification in in March from QA
Mandalay (WIP) - Conduct monthly HACCP Standards
product recall exercise
Monthly meeting on recall exercise by DC
Food Safety in place
Increased Increase in activity or new entry To increase R&D - Planning on our new CFC R&D,
Competition in of competitors to CFC’s markets To increase Marketing packaging roll out plan Marketing
F&B could adversely affect CFC’s effort (WIP)
sales and profitability. - Planning for 2022 Milestone
To initiate Partnership Marketing plan 1) Delayed from
with other food vendors - Marketing is monitoring Grab and FP
all competitor’s promo on Dark
The Pandemic that has caused E-Commerce for and pricing weekly basis Kitchen to Q3
Business significant sales loss for Seasons Seasons - Negotiating with 2) Hired New
Recovery for Product Innovations Grabfood Group R&D
CFC Marketing Effort (Dark Kitchen) Chef in Jan
 Impact: High, High
Mitigation Actions

Function
Risk Define Risk Mitigation Projects Status
Responsible
Hazards (fire, Hazards and safety incidents Need to engage with a) Developed Crisis CFC HR,
flood, can cause personal injury and below parties to do a Management SOP for Production,
earthquake, property damage which can full assessment of the Covid and Coup for Finance, MT,
pandemics etc) directly affect the CFC assets or current situation production Admin, Operation,
and failure of ability to operate (Completed in Sept) Marketing
workplace CMHL HSE
safety CFC Admin - Production BCP due to Milestones:
measures CFC Production Covid if production shut 1) Mass Covid
CFC Maintenance down Testing done
in Feb for
- Production BCP due to Omicron
Coup shut down
2) HSE Executive
Crisis Management due starting in
to Coup / Covid Wave 4 1st March
 Impact: High, High
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Margin Margin have shown sign of Verified on calculated Will verified on all current CFC Costing,
Pressure from declining due to the increase Gross Margin vs GM calculation with procurement
price increase price from supplier and Season Financial actual Margin costing
from supplier cannot be priced too high with Milestone:
SB Brand its value proposition approach Review on Delivery Will review on the financial
positioning FoodPanda impact on delivery partner
value for commission impact to
money (New) the margin R&D focus on high Gross
Margin Products to launch
Develop more high
margin product like Review current product
beverage mix ratio to sell high
margin product by Ops
Profitability Due to Rest Grp monthly loss, Put more effort into Will review all Rest Grp Rest Grp Ops, R&D,
eroded by Rest Seasons profit have been Rest Grp Marketing current marketing plan Marketing, Costing,
Grp (New) eroded since full Rest Grp Campaign and put emphasis on Procurement
assemble (Oct 2021) promoting special
Conduct Sales / Profit campaign Milestone:
Although overall Rest Grp sales feasibility study on all
is avg 200% up but still cant rest grp business Review all loss business
reach BEP. with finance and
Review Marketing determine to open / close
Calendar
 Impact: High, Medium
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Negative social Negative social media Marketing have taken Marketing Dept have CFC Marketing
media coverage, and perceived failure over all social media been handling all
coverage to respond, can adversely affect Management and feedback since 1st Feb Milestone:
the Group’s reputation communication. without using agency Feedback response
time have improved to
For food related, QA will Follow General 99% from 98% since Nov
be involved and always Direction from Hub
give feedbacks Corporate Comm on Follow HUB direction on
current situation no communication on
1st Feb silent Strike

Failure to Current pool of staff is not Customized incentive Will review the CFC HR / Ops / Prod
attract current motivated to work in CFC due program that is more current incentive
pool of talent to more stability of the relevant to current program with HR on Milestone
(New) economy market practice that is
applicable to HQ, Ops 1) Ops
and Production 2) Production
3) HQ
Impact: High, Medium
Mitigation Actions

Function
Risk Define Risk Mitigation Projects Status
Responsible
New laws and New laws and regulations could To be in close contact of Working closely with CFC CEO
regulations prevent the CFC from operating Hub Corp Comm and Hub legal on a
parts of its business or increase Legal Team to regular basis to Milestone:
the cost of operating understand the ensure full 1) PSL, Karzo Contract
regulation and work on compliance with the
the compliance regulation. 2) LS renewal contract
Ongoing contact for existing and new
with legal team. All tenants
contracts are
reviewed by Legal
team.
 Impact: Medium, High
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Supply Chain Any disruption due to Review current Have already CFC MT
Disruption due machine can have adverse Maintenance Calendar increase all
to Machine impact on the operation of for all CFC Business servicing level base
(Revised) CFC in sales on M&R frequent Millstones
1) Season Retail repair repot No more down stocks
2) Season Prod situation since meeting
3) Restaurant Group Sept onwards till now
4) Central Kitchen

Increased Cost Increase operation and HR cost CFC Finance 2022 budget, further CFC HR
(HR, Operation) can affect the profitability of CFC HR reduction of Seasons Production / Ops
Seasons’ CFC Operation Retail HC of 83
CFC Production Milestones
2021 – 616 HC 1) YGN FTY (-20 HC)
2022 – 533 HC 2) MDY FTY (-9 HC)
3) YGN CK (-8 HC)
1) Next is to review on 4) SB Ops (-17 HC)
Production HC 5) Rest Ops (-14 HC)
2) Re-introduce 6) HQ (-7 HC)
productivity at the
retail side
 Impact: Medium, High
Mitigation Actions
Function
Risk Define Risk Mitigation Projects Status
Responsible
Intellectual Any leakage or disclosure of CFC Procurement Currently, only R&D CFC HR
property on Seasons Recipe will cost the CFC Production and Procurement Milestones:
recipes (new) company loss in sales. CFC R&D have the access to
the full recipe. All NDA have been
signed off by all staff
Applicable to both since July
BK and Rest Grp for
NDA and Recipe All new hired staff will
(Only Exe Chef will need to sign off on first
have the full cost) day of work
Internal Audit Weak internal Seasons in cash CFC MGT To establish also as Milestones
and inventory shrinkage for part of the CFC
CFC. Compliance New Team (All HODs)
assessment a risk compliance team have
register to list down been formed and
all the various risks. attached monthly
meeting minutes
Refresh audit check updates
in cash handling /
Asset Check (Locker/
CCTV Check)
Thank you