ACCT5919 Business Risk Management
Syndicate Report

HEBLON PLC CASE STUDY

Semester 2, 2013
Wenjia Wu 3489021
Wing Kin Lam 5011203
Xuan Zhang 5024642
Xin Su 3468927

1. Introduction
This report will examine the key risk management issues in Heblon PLC (Heblon), with emphasis on the risk identification process. Established in 1950s in the UK, Heblon provides high quality wooden furniture in traditional manufacturing industry. After several decades of development, it currently has 250 employees, and relies on individual craftsmanship and labour intensive production processes. Heblon achieved sales revenues of £10 million in the previous year and occupied small market share of the furniture industry. However, the development of Heblon has been affected by some internal and external risks which were neither identified adequately nor responded well. This report will start with a discussion of a series of risks Heblon are exposed to, based on the classification of risks and the potential impact of these risks. It will then examine the response of the management of Heblon, analyse the deficiencies that need to be addressed in the future, and further provide recommendations on structuring an effective risk management process as well as several useful specific strategies.
Risk identification
Risk identification is “the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives” (MITRE, 2007). A clear outline of risk identification process would assist company owners to manage the risks. Crucial as it is, risk identification is the most difficult step in th entire risk management process. It drives whole risk management cycle and builds the connection between environment changes and organisational actions. Also, efficient identification is essentially the