In: Finance
Find out key businesses and inherent risks for the listed companies which is Coles group limited in how they operate in their financial report 2019 and also for ANZ 2019 financial report?
Coles operates in a rapidly changing environment that is becoming a reality.Increased competitiveness. The following describes the material risks to Coles, including strategic , operational, compliance and financial risks, and how we intend to manage them. performance may also be affected by risks that are generally applicable to Australian businesses and the retail sector, as well as by the emergence of new material risks not reported below.
Major subsidiaries
Coles supermarket
Liquorbrand
Coles express
Coles online
Major risks management
1 Strategic risk
Key programmes to manage these risks are part of the
implementation of our Inspiring Strategy.
Customers, Smarter's selling and winning together. Programs include
the use of advanced analytics to support wide-ranging decisions,
forecasts, promotions and price reductions; changes to store
formats, products and pricing to better meet customer needs;
testing of new technologies and in-store initiatives to keep pace
with emerging trends; and developing strategic technology
partnerships such as those recently established with SAP.
Operational Risks
Proactive measures to manage these risks, including
Appropriate business bargaining and employee relations strategies;
maintain and develop strong working relationships with trade unions
and industry organisations; and engage constructively with our team
members, third party suppliers, transport and service logistic
providers.
Financial Risks
Treasury policies approved by the Board that govern the management of our financial risks, including liquidity, interest rates, foreign currency, commodity risks and the use of other derivatives. To manage these risks, we have a Treasury function that is responsible for managing our cash finance positions and supports the management of these financial, interest rate and foreign currency risks.
The risk analysis diagram shows
The company is operating sustainability with in the high probability zone.
Market cap and debt profiles are also high
However there is inherent risk in moderate to low growth position of coles group.