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Eleven risks for consumer products companies - EY - Global

Eleven risks for consumer products companies

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Global consumer products risk radar 2010

No one risk exists in isolation. Changes in one area often have a rapid impact across the spectrum of risk.

Our report, Eleven risks for global consumer products companies in 2011, presents our ranking of the 11 biggest risks facing the consumer products industry today.

Most risks are ongoing but supply chain agility and resilience, managing commodity price spikes and emerging market strategy and execution are new to the list and rising in importance.

  1. Consumer dynamics and demographic shifts
  2. Pricing pressures and pricing strategy
  3. Speed and success of innovation
  4. Brand and marketing effectiveness
  5. Supply chain agility and resilience
  6. Managing commodity price spikes
  7. Retailer power and private label growth
  8. Emerging market strategy and execution
  9. Competitive intensity
  10. Sustainability
  11. Failure of M&A

The 11 risks we highlight were chosen based on how frequently our selected sector executives, specialist academics and analysts identified them in research carried out by Oxford Analytica.1

Risks at the center of the radar were mentioned more often, and therefore deemed more critical, than those closer to the perimeter. In formulating our views on these risks some—such as commodity risk—have come more strongly to the forefront in the months that followed the initial research in 2010.

Global consumer products
risk radar 2010

No one risk exists in isolation. Changes in one area often have a rapid impact across the spectrum of risk.

In the current climate, we believe it is imperative that you form a strategic view of key risks and their interactions to map the changing risk landscape and consider how best to respond to the challenges these risks generate for your business.

Addressing and communicating risk

You need to address risk management at the board level.

You also need to communicate to investors and other interested parties, including regulators, about the nature of the risks your company faces and what it is doing to manage them.

Managing the risks of global business

Let us help you manage risks.

The EY Centers of Excellence have dedicated risk professionals who understand the strategic, operational, financial and compliance risks you face when doing business in new markets.

1Qualitative research carried out by EY with Oxford Analytica in Q4 2010.

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