Food Safety Net Services ( Fsns )

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A. As Merna explains, risk is the likelihood of undesirable occurrences happening in allotted time period (Merna, 2008). Managing risk is a two stage step that involves first, the identification of the risk and the second, taking care of the risk in a way that is best for the company and it goals (Investopedia, 2012). Food Safety Net Services (FSNS), is a well-known company in the private sector that started out in 1994. The company started off, when the owner discovered there was a need for food testing and the importance it posed for the public. This especially posed an interest when Jack in the Box faced legal trouble with selling undercooked meat to a customer that caused the person to become hospitalized. Not only did the government…show more content…
Quality risks normally occur, when there are problems with staffing needs, which increase workload and don’t leave enough time for doing things necessary to maintain quality standards set by ISO 17025. Quality standards include logs maintaining temperature throughout the lab, such as in incubators and fridges used for sample testing and supply storage, culture maintenance, and more. Macroeconomic risks happen when there are economic downturns that occur suddenly, like in areas where the company has a strong market foot hold, affecting sales growth. Client demand risk for FSNS happens when the client needs the results for a particular result and they do not obtain it in a timely manner causing them to not only lose precise time their product is sitting waiting to be shipped out to consumers, but also losing money in the process, resulting in possible loss of a client to competition and revenue loss. Industry consolidation risks cause FSNS to have less bargaining power and price war. Not only that, it could also lead to inflated mark down on the prices for particular sample tests. The reason for this risk is consolidation of the market and strategic alliance. Operation risks occur when a facility isn’t operated to set standard that fit into ISO 17025 guidelines. This occurs by a lack of communication by management with techs and lack of organizing the lab in

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