Question

In: Finance

Find out key businesses and inherent risks for the listed companies which is Coles group limited...

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?

Solutions

Expert Solution

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.


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