Case Study Of Fraser And Neave Holdings

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1.0 Introduction Fraser and (&) Neave Holdings was established in the year 1883 by partners John Fraser and David Chalmers Neave. F&N has evolved into a famous household brand among Malaysians. The F&N Group today is among the oldest, most renowned and most popular businesses in Singapore and Malaysia with their expertise and leadership in the Food & Beverage (F&B) sector (Fraserandneave 2014). The company is located in the Fraser Business Park, Kuala Lumpur. Publicly listed on the Malaysian Bourse (Bursa Malaysia), Fraser & Neave Holdings Bhd is a subsidiary of Fraser and Neave Limited. Fraser & Neave Holdings Bhd operates in Malaysia, Brunei, Thailand and Indochina and employs over 3,000 employees (Fraser & Neave Holdings Bhd 2014). Today,…show more content…
There are two main standards which are available for ERM, which are Committee of Sponsoring Organisations of the Treadway Commission (COSO)’s Enterprise Risk Management and ISO 31000. ERM is not only a procedure to plan, monitor and control strategic, operational, compliance and financial risk but other types of risks as well. ERM is therefore a systematically integrated approach in handling risks within organisations to ensure organisations achieve their primary objectives that are to maximise and create value to their investors. ERM is utilised because of the benefits it brings to the organisation in a whole. One of the benefits is to secure organisation’s assets by its physical, customer, financial and employee,suppliers assets (Protiviti, 2006). This systematic practice exists in planning, organizing, leading and controlling organisations activities in order to minimise firms’ major risks as mentioned (Cassidy, 2005). In addition, via ERM, F&N may gain advantage through the “company-wide philosophy”, resulting in better understanding for everyone to attain company’s the objective…show more content…
An example is the acquisition of an insurance policy, by which a specified risk of loss is handed from the policyholder to the insurer. Risk transfer can be easily done through an insurance policy. This is an arrangement between two parties, the insurance company and the policyholder, where the insurance company undertakes the defined financial risks from the policyholder. For example, if a worker in F&N’s factory is injured, the insurance company pays the medical cost and compensation if required. If the factory building, unfortunately due to accidents during the food production process burns down, the insurance provider will pay to replace or rebuild it. Insurance providers will charge a fee, or an insurance premium, for undertaking this risk. F&N will need to pay a certain amount of insurance premium from time to time in order to get this privilege from the insurance service

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