Professional Documents
Culture Documents
Cuối Kì Rủi
Cuối Kì Rủi
I. THEORETICAL BASIS
1.1 Risk concept
According to the traditional view: Risk is an unexpected, adverse event that causes loss to
people.
From the present view: Risk is understood as the possibility of a deviation between what
happens on the one hand and what is foreseen on the other.
The characteristic of the risk is expressed in 2 factors:
Risk frequency: is the number of occurrences of risk over a period or in the total number
of observations of the event.
Risk margin: Shows the nature of danger, the degree of damage affecting the subject.
Business risks are adverse and unexpected events, causing difficulties for subjects in the
process of realizing business goals, destroying existing achievements, forcing subjects to
spend more in terms of human resources, material resources and time in their
development process.
1.2 Compliance risk concept
Compliance risk is the risk of damaging the business model, reputation and financial
position of the enterprise arising from: non-compliance with regulatory laws, internal
standards and policies as well as the expectations of stakeholders (customers, workers,
society,...).
Risk status
In 2021, Acecook Vietnam's Hao Hao noodles exported to European countries were
warned and recalled due to the use of Ethylene oxide in product production.
Specifically, the Irish Food Safety Authority (FSAI) announced on August 20, 2021 that
some batches of Hao Hao brand instant noodles are being recalled due to containing
ethylene oxide. Ethylene oxide is not allowed to be used in food sold in the European
Union (EU) market of which Ireland is a member. The 3 product lines on FSAI's recall
list include Hao Hao noodles with spicy and sour shrimp (type 77 g, expiry date until
24/9/2022), Good vermicelli with pork rib flavor (type 56 g, expiry date until
10/11/2022), Yato noodles with seafood flavor (type 120g, expiry date until 30/11/2022);
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Acecook has checked and committed in the process of not using EO and fully complying
with the laws of Vietnam
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II. ENTERPRISE INTRODUCTION
2.1 Business Name
Acecook is a long-standing enterprise, Acecook Vietnam has created for its products a
name and a solid position in the market, instant noodle products have become familiar to
Vietnamese consumers. Originating from Vifon-Acecook Company – a joint venture
between the famous Vietnamese Instant Noodle Manufacturing Company - Vifon and
Acecook Japan Company, until 2008 appeared with the independent name Acecook
Vietnam with 100% investment capital and Japanese production line with the
independent name Acecook Vietnam with 100% investment capital and Japanese
production line at the same time named in the list of 500 largest enterprises in Vietnam.
The head office is located at Lot II-3, Street 11, Tan Binh Industrial Park, Tay Thanh
Ward, Tan Phu District, Ho Chi Minh City. Acecook Vietnam currently owns 06 factories
after 20 years of establishment, 700 agents spread across the country, accounting for 60%
market share of instant noodles in the country.
In 2004, the company has completely built and obtained certificates of quality
management system according to ISO 9001, ISO 14001 environmental management
system, HACCP food hygiene and safety control system and especially Acecook Vietnam
is the first instant noodle company in Vietnam to achieve international food standards for
restaurants European retail (IFS).
It is a global product present in more than 40 countries around the world.
The slogan "Symbol of quality" is the principle of implementing a consistent and
thorough military policy to increasingly improve product quality, environmental
protection, and food safety that the company aims to, with the motto "Learn, improve and
develop continuously to become the leading brand in Vietnam and the world".
In the period of 2016 - 2019, net revenue of Acecook Vietnam grew continuously, from
VND 8,413 billion (2016) to VND 8,878 billion (2017) then VND 9,828 billion (2018)
and reached VND 10,647 billion (2019). This revenue is much higher than other famous
brands such as Asian Food (Red Bear noodles), Uniben (Ba Mien hat). Colusa-Miliket or
Vifon.
In 2020: Acecook Vietnam is also ranked 58th in the TOP 500 most profitable enterprises
in Vietnam, and ranked 02nd in the TOP 10 prestigious enterprises of the packaged food,
spice, cooking oil industry, according to the ranking of Vietnam Report 2020.
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2.2 Main Fields Of Operation And Products
Acecook Vietnam operates in the field of manufacturing and trading food products,
mainly instant noodles, and other ready-to-eat products. The company is one of the
leading manufacturers of instant noodles and ready-to-eat products in Vietnam and has
been in the market for many years. The main products of Acecook Vietnam include:
1. Instant noodles: Instant noodles come in a variety of flavors and forms, including
ramen, noodles, udon noodles, spaghetti, and many more. This is a popular and popular
product in the daily menu of many consumers in Vietnam. (for more images)
2. Ready-to-eat products: In addition to instant noodles, Acecook Vietnam also
manufactures and markets other ready-to-eat products such as noodles, pho, vermicelli,
and products related to Vietnamese cuisine (Hao Hao instant salt) and internationally. (for
more images)
The company has built a strong reputation in the food industry and their menus offer
convenience and diverse flavor choices to consumers. This is an important part of
Acecook Vietnam's business.
2.3 Objectives And Operational Strategy Of Acecook
2.3.1 Business Objectives
From 7-2015, towards global development, Acecook Vietnam has changed its brand
identity system and launched a new brand statement – "Cook happiness" with three goals:
happy consumers, happy employees, and happy society:
Bring satisfaction, joy, and peace of mind to consumers through convenient products,
delicious quality, food safety based on "Japanese technology, Vietnamese taste".
Focus on building sustainable human resources by creating a favorable working
environment and good welfare for employees to feel secure to work and contribute for a
long time.
Commit to complying with the law, ensuring food safety standards and environmental
friendliness.
Actively improve the quality of life, bring more joy, and smile to people and contribute to
social development. Stemming from the desire to develop society through the culinary
path as well as understanding the conditions and development rules of the market, right
from the first years of entering the market, Acecook – the leading instant noodle
manufacturer in Vietnam today, has been defining the "symbol of quality" is a guideline
and orientation in all production and business activities, always serious in investments
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towards quality commitment to consumers. Since then, Acecook has built its own identity
for its brand, creating a deep impression in the hearts of consumers associated with the
two words "quality".
With the goal of becoming a leading food corporation not only in Vietnam but also
reaching out to the world, Acecook Vietnam commits in the future to continue
researching and bringing to the market diversified products with higher quality, tastier,
creating a rich culinary culture to meet the increasing culinary needs of customers and
contribute food industry development in Vietnam.
2.3.2 Business Strategy
Product sales strategy
Price trading strategy
Business strategy through distribution system
Hybrid Promotion Business Strategy
Differentiated product strategy.
2.4 Organizational Structure
Board of Directors: The Board of Directors is the highest management body of the
company and is responsible for making long-term strategic decisions and the
overall management of the company.
Administration: This department manages the internal management activities of
the company, including finance, human resources, administration, and facility
support.
Sales and Marketing Department: This department is responsible for product
marketing, distribution network management, and customer interaction.
Research and Development (R&D): R&D focuses on research and development of
new products or improvement of existing products.
Risk Management: This structure manages and assesses the company's risk. Their
main task is to identify potential risks and develop strategies to mitigate or manage
them. The management department can be part of the finance or administrative
department.
Finance Department: The finance department manages the company's finances,
including accounting, capital management, and detailed finance.
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Production Department: The production department manages the production and
manufacturing process of the company's products.
Human Resources (HR): HR manages human resources, including recruitment,
training, development, and performance management.
Quality Management: This department ensures that products meet quality and
safety standards.
Supply Chain Management: The supply chain management department manages
the supply, warehouse, and transportation processes.
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III. ANALYSING
3.1 Identify Risk
3.1.1 External Factors
3.1.1.1 Opportunity
The instant noodle market in Vietnam is growing strongly with an expanding scale.
Growth opportunities and distribution network of instant noodle products outside the
world are expanding.
With an instant product such as shrimp noodles, there is a lot of controversy about food
safety and consumer health. However, the message of protecting consumers' health has
not been promoted by Acecook.
Having to regularly use and pay large costs for new media and forms of advertising to
gain market share such as discounts or promotions... risks of Acecook Vietnam.
3.1.2 Internal Factor
3.1.2.1 Strength
• Strong brand: Acecook has built a strong and reputable brand in the field of convenient
food production such as instant noodles and soup powder.
• Diverse products: They have a diverse product portfolio, including many types of
noodles and soup powders with diverse flavors, helping them attract a wide range of
customers.
• Continuous research and development: Acecook invests heavily in research and
development of new products, helping them maintain innovation and continue to provide
new and improved products.
• High quality management: The quality management and product inspection team at
Acecook helps ensure that their products comply with high quality and food safety
standards.
• Extensive distribution network: Acecook has an extensive distribution network, helping
them reach many markets and customers around the world.
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3.1.2.2 Weakness
• Depends on many raw materials: Acecook relies heavily on a large number of key
ingredients, such as flour and spices, which can create risks if supply is interrupted.
• Ability to cope with material price changes: Material price changes can affect Acecook's
profits, and they need to carefully manage production costs.
• Strong competition: The convenience food market is a highly competitive field with the
participation of many competitors, which poses challenges in terms of price and quality.
• Challenges related to food safety and regulations: Food scandals or changes in food-
related regulations could create risks to Acecook's reputation and business operations.
• Funding and relationships in political circles: The company may face challenges related
to funding and relationships with political officials, especially when it comes to
regulation and politics.
• To prosper and succeed, Acecook needs to take advantage of their strengths, while
mastering and minimizing weaknesses to ensure sustainability in their production and
business activities.
3.1.2.3 Human Resources
Human resources are essential to a business's growth and success. Acecook Vietnam Joint
Stock Company has a strong team of both unskilled and knowledge workers, with
attractive leadership and compensation. The company was honored as one of the top 10
businesses with happy human resources in 2020 and ranked 12th among the top 100 best
places to work in Vietnam (a 12-place increase from 2019). Additionally, they were
ranked 8th in the top 10 best places to work in the FMCG consumer industry by Anphabe
Vietnam company.
3.1.2.4 Finance
Acecook has a capital of 4,000,000 USD and regularly plans capital sources. It checks
assets, development investments, debt situation and compliance with regulations. The
company has well implemented accounting and financial regimes and fulfilled financial
obligations according to State regulations.
The business has implemented direct marketing strategies by organizing customer visits
to factories producing instant products. This approach has created trust and peace of mind
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for consumers about the quality and safety of the company's products. It has also
provided consumers with real-life experiences and opportunities to interact with the
business, enhancing their knowledge and recording their feedback.
3.1.2.6 Production
Acecook Vietnam's factory has an instant noodle production process with million-dollar
equipment and a closed, clean factory system, ensuring food safety and hygiene at the
highest level. On average, each factory has an investment cost of more than 50
million USD, with an automation rate of more than 80% and an average production
capacity of 600 packages and 420 cups of noodles per minute on one line. Own the
transferred technology entirely from the parent company in Japan and a team of
Japanese quality management experts. In addition, the company also has a laboratory
built and installed with modern equipment to ensure testing results of raw materials and
finished products quickly, accurately, honestly, and objectively. All are aimed at ensuring
each instant noodle products delivered to consumers are the highest quality, most
delicious and safe products.
Acecook has 10 factories across Vietnam but always ensures quality and stability.
To do this, technology is transferred directly from Acecook Japan, and everything is
equipped synchronously for all factories. Employees of factories and branches are always
trained periodically and when there are new points, they are updated and applied in
production and management, thereby applying synchronously to all locations.
“Producing and trading the safest food products for consumer needs” is the core
value of the business that Acecook Viet Nam has been, is and will be building throughout
its operation.
With its development and contributions to Vietnam's economy, Acecook has been
honored to receive many prestigious awards in Vietnam such as the First Class Labor
Medal awarded by the State; 15 consecutive years receiving the award "High quality
Vietnamese goods; many years in a row winning awards: Typical Saigon Enterprise,
Golden Dragon, Vietnam Golden Star; V1000 award – Top 1,000 tax paying
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businesses largest enterprise in Vietnam, VNR500 - Top 500 largest enterprises in
Vietnam
3.1.3 Mission
"Providing high quality products/services to bring HEALTH - SAFETY - PEACE
OF MIND to customers" Based on this mission, Acecook Vietnam always gives top
priority to product quality, while while supporting the communication of correct and
scientific information about instant noodle products to create safety and peace of mind
for customers. In recent years, Acecook Vietnam has focused on health products, both to
meet new consumer needs and to increase the value of instant noodle products.
3.1.4 Vision
with a desire to reach higher and further, Acecook has set its own vision "to become the
leading food manufacturing enterprise in Vietnam with enough management
capacity to adapt to the global process." "To expand its products globally and
affirm its quality and brand.
3.1.5 Target
Since July 2015, to aim for global development, Acecook Vietnam has changed its brand
identity system and launched a new brand manifesto - "Cook Happiness" with three
goals: happy consumption. , happy workers and happy society:
Bringing satisfaction, joy, and peace of mind to consumers through convenient products,
delicious quality, and food safety on the platform "Japanese Technology, Vietnamese
Flavor".
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Vietnam today, has identified the "symbol of quality" as the guideline and orientation in
all production and business activities, always serious in investments towards
Committed to quality with consumers. Since then, Acecook has built its own identity for
its brand, creating a deep impression in the hearts of consumers associated with the word
"quality".
With the goal of becoming a leading food corporation not only in Vietnam but also
reaching out to the world, Acecook Vietnam commits to continue researching and
bringing to market diverse and quality products in the future. taller and slimmer, creating
a rich culinary culture that meets the increasing culinary needs of customers and
contributes to the development of the food industry in Vietnam.
Fierce competition: The food industry is a strongly competitive field with the
participation of many competitors. Other businesses also have strong strategies
and resources, putting pressure on Acecook to maintain and expand market share.
Changes in markets and customer needs: Food markets can change rapidly, and
customer needs can transform. Acecook needs to adapt to these changes to ensure
that their products and strategies remain relevant.
Changes in raw material prices and production costs: Changes in raw material
prices and production costs can affect Acecook's profits and increase financial
pressure.
Challenges related to regulations and compliance: Changes in regulations related
to food and food safety can create risks and require Acecook to strictly comply.
Ability to cope with climate change and natural disasters: Climate change and
natural disasters such as floods, earthquakes, and storms can affect Acecook's
production and supply activities.
Technology transformation and automation: Technology and automation advances
may require Acecook to make large investments and change production processes
and personnel.
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Food scandal or bad reputation: A food scandal or situation affecting reputation
can cause significant losses to Acecook and require them to have a recovery
strategy.
Changes in management and leadership: Changes in management and leadership
can affect the implementation of the company's strategy and mission.
Funding and financing: Challenges related to funding and financing can impact the
ability to invest and execute long-term strategies.
To deal with these hindering factors, Acecook needs to be able to adapt, innovate, and
implement effective risk management. They also need to ensure that their goals and
strategies are flexible and appropriate to the changing environment.
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Compliance with legal regulations
Compliance Risk Related to cultural changes and consumer
trends
Opportunity Risk Regarding financial management
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3.2 Measure Risk
Frequenc Risk
Risk Case Level Respond
y priority
Concentra
te
The processin
g
amount of
resources.
chemicals
in the Eliminate Proceed
Related to Rarely to develop
1 product High Risk
product happens additional
quality exceeds control
the standards
prescribed for
level products
to ensure
safety
Handling
as soon as
possible.
The case
Affirming
of Hao
absolute
Hao complianc
About instant e with
Mitigate
informati noodles is Rarely regulation
2 High Risk
on and suspected happens s (of
communi of Vietnam,
cation containin Europe,
g banned Japan,
substance Australia
s and New
Zealand
…)
14
noodles
brand
Process
step by
step,
according
The trend to guided
of procedure
saturation .
in the Acecook’
s business
instant
strategy
noodle
regrading
market is products
About promoting is not
governanc competiti Accept limited to
e and the on. Always Risk
4 Medium instant
globalizat Creates happens
noodles.
ion great The brand
process challenge also
s and develops
requireme many
nts for other
future instant
products.
product
Packaging
innovatio
is also
n diverse
with bags,
cups, and
bowls
Handle as
soon as
possible.
Hire
Regarding purchasin Acecook
Manage Vietnam
supply g, Always
5 High risk has
chain manufact happen
reviewed
managem uring, the raw
ent suppliers material
supply
chain
15
2- CE Handle as
content is soon as
Regarding lower possible.
complianc than the Eliminate Real
e with Rarely Risk
6 standards High sample
legal happen
of the US, testing by
regulation Canada Eurofins
s Analysis
and some
Center
countries.
Process
step by
step,
according
to the
Absolute guided
Related to
trust with procedure
cultural Minimize
customers Regularly .
7 changes Medium risk
who trust happen Always
and
Acecook check the
consumer
Vietnam's inputs of
trends
products suppliers,
factories,
and
productio
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Handle as
soon as
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Handled Report on
28 the
violations productio
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Regarding Eliminate and
products Regularly
8 financial Medium Risk difference
at this happen
managem s between
company
ent product
with a
batches
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on and
export
16
3.3 Manage Risk
3.3.1 Risk Handling Measures
Measures are applied to minimize identified risks by establishing control procedures;
ensure legal compliance, retrain staff, and evaluate financial performance. Through the
excellent use of banned substances, it shows that the company has done a very good job
on this issue. The company has found the cause and handled it in a transparent manner, to
minimize the level of harm and other risks for company.
3.3.4 Roles And Tasks Of The Parties In Handling Risks And Managing Risk
Information
In risk handling, only one person is responsible and other parties may be involved. The
main responsible person may be risk management or the relevant department. Other
parties may have a supporting role, providing information and participating in the risk
assessment and treatment process. Risk information is managed by internal information
systems, reports, and periodic meetings.
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3.3.6 Risk Management Policy
Risk handling measures need to be updated in Acecook's Risk Management Policy. This
policy defines the regulations and processes related to risk management, including the
treatment of risks and the assessment of the financial effectiveness of the measures taken.
The batches of instant noodles and vermicelli that were recalled by some European
countries since August, according to Acecook Vietnam, have been recovered by the
company and its agents.
Improve supply chain: restore supply chain disrupted by the incident, ensuring minimal
errors throughout the entire supply chain.
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Engagement with regulators and stakeholders: Engagement with regulators, partners,
and customers is important to take the right measures and work with the community to
mitigate risk.
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of the incident on their finances, reputation and created a plan to prevent it from
happening again in the future.
The financial assessment should include an assessment of the costs of recalling the
products, loss of goodwill, legal penalties and other related costs that may arise from
the incident. Performance assessment includes evaluating the performance of current
risk monitoring measures to adjust and improvements if necessary.
Board of
Management
Board of
Directors
Research and
Administrativ Marketing Financial
Development
e Department Department Department
Department
In risk monitoring, different levels of management have important roles and distinct
responsibilities to ensure that operations are carried out effectively and in full compliance
with regulations. Key management levels often have a key role in this process, including:
Senior management including the Board of Management and Board of directors ensure
that the company's overall strategy and policies are geared towards effective risk
management. They need to ensure that all departments and operations comply with
standards and regulations. In addition, product quality management is responsible for
informing all parties, enforcing, and maintaining standards, regulations, and product
quality. Risk monitoring is indispensable for a dedicated risk management department or
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team, responsible for assessing, minimizing, and managing all potential risks in the
production and supply process. Furthermore, they are intermediaries that provide
information about risks and preventive measures to senior management and quality
management levels.
After each risk treatment process: Risk reporting should be done after each risk
treatment process is implemented to evaluate the effectiveness of the treatment
measures and to determine whether it is necessary adjust or optimize those
measures or not.
After each risk monitoring period: Reporting should also be done after each periodic
risk monitoring period to evaluate the effectiveness of the current monitoring system and
to update information on the risk situation as well as as current preventive measures. By
performing reports after each risk treatment process and after each risk monitoring
period, Acecook can maintain a process of periodically evaluating and updating the
risk situation, helping them grasp specific problems and apply preventive measures
in a timely and effective manner.
3.5.2 The Roles Of The Parties In Preparing And Controlling Risk Reports
Acecook Company (responsible for reporting): has clearly understood the warning
content of RASFF, EO standards of EU countries as well as urgently reviewed the
entire production process and sent it to Testing a number of export and domestic
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products at Eurofins Analysis Center. Proactively recall shipments in France,
Ireland, ...
Ministry of Health: The Ministry of Health is also assigned to preside over and
coordinate with the Ministry of Agriculture and Rural Development and the Ministry of
Industry and Trade to review, update and widely inform on requirements and limits of
restricted substances. banned substances... in food products in accordance with the
requirements of importing countries.
Risk measurement report: This is a report on assessing the risk level related to the use
of Ethylene Oxide in the production of Hao Hao Instant Noodles. This report should
provide specific information on the risks and effects of Ethylene Oxide on human health
and related precautions.
Risk control activities report: This report will monitor and evaluate the effectiveness
of applied risk control measures. It provides information on the application of control
measures, the frequency of testing, and the results achieved from implementing these
measures.
European standards compliance report: This is a report that monitors and evaluates a
company's compliance with European Union standards and regulations. This report
should provide detailed information on compliance levels, as well as improvement plans
if necessary.
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By using these types of reports, companies can ensure that they are measuring and
monitoring risks comprehensively and accurately, thereby creating specific preventative
measures to prevent incidents. The same thing happens in the future.
Information on risk reporting can be updated and integrated into the Enterprise Risk
Policy, which addresses risk assessment, monitoring processes, and preventive measures.
specifically, to ensure that the company always fully complies with necessary standards
and regulations.
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Product safety instructions: This is a document that provides specific instructions on
the safe use, storage, and handling of the product. It may include how to recognize and
handle toxic substances such as Ethylene Oxide.
Make sure these documents are designed to be easy to understand and appropriate for
each employee's level of understanding. In addition, training should include practice and
question-answering to ensure that employees clearly understand and can apply the
knowledge effectively in their daily work.
Assess residual risk impact: Measure the impact of remaining risk after implementing
corrective and improving measures.
Determine the level of remaining risk: Assess the level of remaining risk to determine
whether it is significant and whether current measures are effective enough or need to be
adjusted.
Identify opportunities for improvement: Risk residual reporting can help identify
remaining gaps in the risk management process and recommend improvements and
preventive measures to minimize risk levels remaining ro.
The development of risk residual reports needs to be based on the collection of accurate
data and information about the measures taken and their effectiveness. This helps
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companies better understand the current risk situation and develop specific plans to deal
with future risks.
4.1 Advantages
The bright spot here for Acecook is that it complied and actively coordinated with
relevant parties and authorities during the investigation and product testing process and
proactively investigated to reach a conclusion.
In terms of handling Acecook's brand crisis, Acecook Vietnam holds the number one
market share in the Vietnamese instant noodle market and has exported products to the
world market since 1995 until this time. The incident has led to positive moves in
handling the brand crisis.
Up to now, it can be said that Acecook has handled the media crisis and behaved quite
well. Acecook has coordinated with the authorities; organize press conferences and
post information about events taking place; Give clear explanations about products
and take actions to bring about a quick conclusion of the matter with a sincere,
learning attitude. Thereby, it temporarily "calms" public opinion, reassures consumers
while waiting for product testing results, and demonstrates professionalism in the
communication process of a long-standing brand.
4.2 Limitations
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Through analyzing Acecook's risk management model according to the hierarchy of
organization, the business has handled risks effectively, minimized risks and
implemented post-risk handling measures well. However,
Acecook's risk model still has many incomplete points and has not yet built an
organizational model for the risk management department.
The steps in the process of detecting, monitoring, and handling risks are also
not clearly and uniformly specified.
Risk identification activities are still passive, mostly based on previously
available risk information.
Risk management of Acecook businesses needs to be more flexible and proactive
to meet the rapid changes of today's market, thereby creating a safer and more
reliable environment for customers and the community.
From here, this business will be able to develop better and better if it knows how to
apply risk management experience and inherent foundations.
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