Premier Foods has a robust risk management process in place to identify and mitigate the key risks facing the business on an ongoing basis. By Kevin Holmes, Head of Procurement - Corporate Services at Premier Foods Plc
We aim to minimise exposure to reputational, financial and operational risk wherever possible, without compromising our ability to effectively exploit commercial opportunities.
Our reputation is very important to our commercial performance and we put a priority on protecting it. Through our detailed risk management programme, we have minimised the potential for disruptions in our supply chain and to ensure we can fulfil our obligations to customers.
We have similarly invested heavily in our quality assurance programme to reduce the potential incidence of producing faulty, defective or contaminated products.
Across our operations we have implemented an ongoing food quality and safety compliance programme, which audits all factory sites and major suppliers. We have also built state-of-the-art internal testing facilities.
We have a sophisticated insurance programme to transfer risks we do not want to hold on our balance sheet, supported by ancillary crisis management and disaster recovery solutions.
We appointed JLT Speciality three years ago, shortly after completing a business unit restructure in 2014. JLT Speciality invested a significant amount of time in a short period to understand the ways in which we manage our risk and the impact of the restructure on our insurable risk profile.
By successfully communicating these issues to the market ahead of renewal, JLT Speciality reduced our insurance costs by over 40%. This represents a sustainable reduction in premium spend. Indeed as our risk management efforts continue to improve our risk profile, JLT have been able to secure further sustainable reductions.
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For further information, please contact Simon Lusher, Head of Food & Agri on +44 (0)20 7459 555