In recent times, however, it has become obvious that smaller organizations are also exposed to significant HR risks. In response to this realization, most small organizations now produce a staff handbook that sets out the terms and conditions of employment, including arrangements for sickness absence, maternity leave and annual leave, appraisals, behaviour at work, and roles and responsibilities. Organizations need to set down arrangements that will ensure full compliance with the relevant employment legislation, including diversity arrangements, to ensure that there is no discrimination on the basis of ethnic origins or physical ability. When building on these basic legal requirements, organizations should look at the oppor-tunities that will arise from having supportive, clear and beneficial recruitment, retention and employment practices. Control of reputational risks Brand protection One of the most valuable assets of any organization is its brand name, and it is important to avoid damage to the organization or any of its brands. Damage to brand can occur for a number of reasons, including: changes in government policy; changes in the marketplace; new entrants into the marketplace; price and specification competition; counterfeiting and fake goods; inappropriate franchisee behaviour; failure of sponsor or joint-venture partner. A trend in recent times has been the use of established brands to sell goods or services that have no obvious link to the brand itself. For example, supermarkets now sell insurance and other financial products, as well as selling petrol from fore-court garages. Extending or stretching the brand in this way represents a huge opportunity for many organizations, but the brand extensions have to be appro priate and credible as well as successful. Most organizations recognize the value of their brands and have procedures in place to identify opportunities for brand extension. However, ownership of the brand within many large organizations is sometimes not well defined. Successful
Risk strategy use of the brand to extend into new product areas and new business sectors should only be undertaken where there is clear responsibility within the organization for managing the brand. As well as brand extensions, there has been a trend in recent times towards allow-ing branded concessions to be established within other organizations. It is now commonplace to see high-profile catering brands running the restaurant and cafe facilities in large department stores. This trend has developed at the same time as the increase in high- profile sponsorship deals. For example, many sports clubs have a new stadium that is actually called by the name of their main sponsor. Many organizations operate on a franchise basis, whereby the brand is franchised to an individual or other business. These developments in branding enable maximum benefit to be gained from a high-profile brand. However, there are significant risks attached to these
You've reached the end of your free preview.
Want to read all 47 pages?
- Summer '19
- Bu nesti Hapshari
- The Land, risk manager