BACKGROUND

Six months ago, Albert was named director of his family's company; a factory dedicated to the production of parts for automobiles. When the company was founded, it was a resounding success because it was one of the first factories devoted to this production. However, over time, good competitors have been born, and the factory has had to deal with a series of serious problems that still entails and that Albert has proposed to face to recover stability and bonanza of previous years.

Some of the problems that Albert needs to solve are:

• Recover old customers who have gone to the competition and attract new audiences.
• Break with old customs and adapt to a changing market.
• The current production system has become outdated. Each department works independently, causing that tasks must often be repeated.
• There is no system for reviewing the processes so that failures are not detected until the product has been manufactured.
• Over time the facilities have been deteriorating, as well as the machinery, which has become old and outdated.
• Competitors are gaining ground quickly, offering a personalised service, adapted to the customer and at lower prices.

However, and despite these problems, it is essential to highlight some elements that the company has in favour, and that must be used to solve its problems:

• Workers involved with the company and who have many years of experience.
• A long history in the production of parts for automobiles, a fact that gives them extensive experience in the sector.
• It is a very dear company and valued in its city of birth.
• Although it has lost customers, it works with some of the most prestigious companies in the automotive sector.
• It has a large factory owned, as well as adjacent lands that are suitable for building.
• Despite the losses, the company has no debts.

FORMULATE

1. Carry out an analysis of the current situation of the company, naming the aspects, both positive and negative, that affect it internally and externally.
2. We will focus on risk management so we will have to carry out a risk management process that will encompass the following activities:
   • Explain what a risk management process and its phases is.
   • Detects the risks that can affect the company, both internally and externally.
   • It establishes how to respond to the detected risks. Here we must name the solution proposal, as well as the resources (human and material) necessary to face the risk.
   • Explain how you would carry out the process of risk monitoring and control, to verify that actions to deal with risks give the expected results.