How can you foster risk-based innovation in food and beverage service?

In my experience, effective risk identification and assessment are crucial for innovation in the food and beverage sector. For instance, while working on a project introducing a new line of health drinks, we encountered unforeseen supply chain risks due to seasonal ingredient availability. By employing a comprehensive SWOT analysis, we identified alternative local suppliers in advance, ensuring a steady ingredient supply and mitigating potential disruptions. This early identification and assessment of risks not only saved costs but also maintained our project timeline. Example: Introduction of a new health drink line and handling supply chain disruptions.

These days, food and beverage company should blend taste as well as nutrition in any of the product offerings. Major market would be snacks which one can eat on the go which has taste as well as nutrition. It should go well with tea/coffee. From risk stand point, all the ingredients should be tested well from possible contamination and nutritionist should vet the product formulation. Post testing the taste and nutrition, disclosure should be given on package if it has any possible alergy or interaction with any food items. Any harmful preservatives should be avoided. Post this, it is good to go. Also, there is a huge market for ready to eat items like poha, upma or other food items which people can carry in other countries

Before starting the identification process u need to understand the following: 1- The business and the overall strategy/values. 2- The culture/ the Market / and Regulations where you operate. 3- How this innovation will be produced, distributed (In which markets/countries) and what is the strategy of the production, supply chain and distribution, and marketing process for this innovation. 4- What is the overall risk appetite and risk acceptance levels by the top management. 5- Vendors and materials providers (availability / capacity) and where do you stand. 6- How its going to be financed. And what is the financial strategy. Considering the above + having stakeholders inputs, will improve the risk identification process.

To bring in new and cool ideas in food and beverage service, encourage a culture where trying new stuff is seen as a good thing. Make sure everyone feels free to share their ideas, even if they might not all work out. Have regular sessions where the team can brainstorm and come up with fresh menu ideas or better ways to serve customers. Give shoutouts to those who take smart risks and make things better. Use technology to make things easier and try out new things. By keeping things open and supportive, you help your team feel confident to try new stuff and keep making the food and beverage service better.

A starting point is to understand that a business will always face multiple risk. This should not deter you from starting. The journey to succeed is to look what risks impact your free cashflows. Go granular in understanding the business model inputs and your raw materials needed and nature of products and the market price points. For remaining competitive is key. Once you know what impacts your free cashflow then look at what tools are available to protect you from shocks and how they can be used.

I recall a project where we launched a new beverage and post-launch feedback indicated unexpected health concerns among a small segment of consumers. We immediately implemented a revised risk mitigation strategy, altering the beverage formulation and intensifying our health impact monitoring. This proactive approach not only resolved the issue but also reinforced our commitment to consumer safety, enhancing our brand reputation. Example: Launching a new beverage and addressing unforeseen health concerns.

Instead of risk mitigation our approach should be ‘Risk Treatment”. This approach provides a unique possibility to retain or increase the risk to pursue opportunity. This approach has been specifically seen during COVID times. One of the other key contributing approach is transfer of risk to 3rd parties for systematic management of risk by engaging competent entity.

Risk mitigation is very key in showing that due diligence has been conducted. Risk mitigation does not totally eliminate the risk in its self but positions the project in a state the not only minimizes the impact but also manages the aftermath of a potential negative effects.

When you're dealing with potential problems, start by figuring out what they are and how bad they might be. It's like looking ahead to avoid trouble. After that, find ways to lower the chances of these problems happening or make them less bad that's called mitigation. It involves making plans or taking actions to stay safe. Then, keep checking things regularly to make sure your plans are working and to catch any new problems that's monitoring. It's like keeping an eye out to make sure everything goes well and nothing surprising happens. By doing these things, you're better prepared to handle challenges and keep your business running smoothly.

Fostering risk-based innovation in the food and beverage service industry involves creating an environment that encourages experimentation and learning. Establishments can implement pilot programs for new menu items or service approaches to assess their viability before full-scale implementation. To mitigate risks, it's crucial to conduct thorough risk assessments covering aspects such as food safety, compliance, and market trends. Implementing robust monitoring systems, such as regular performance evaluations and customer feedback mechanisms, enables real-time identification of issues. Additionally, staying abreast of industry developments and regulatory changes helps anticipate potential challenges. Training staff on risk awareness.

A key learning moment in my career was during a marketing campaign for a seasonal menu that did not resonate with our target market. This perceived failure was transformed into a learning opportunity, providing deep insights into our customers' preferences. The subsequent campaigns were restructured based on these learnings, resulting in significantly better engagement and sales. Example: Learning from a failed marketing campaign to improve future strategies.

Efectivamente, se debe aprender y mejorar de los riesgos, y, por qué no decirlo, desaprender para aprender: hoy, los avances de la tecnología, incluida evidentemente la inteligencia artificial, hacen que los riesgos hayan evolucionado y mutado por lo que es muy probable que el sistema de control interno que hayamos dise?ado ya no sea suficiente en términos de efectividad en la gestión de los riesgos actuales.

When things don't go as planned, it's like a chance to learn and get better. Take a good look at why it happened and figure out what can be done differently next time. Encourage your team to share their thoughts and lessons learned it's like everyone helping out to do things better. By seeing problems as opportunities to learn and improve, you make your team and business stronger for whatever comes next.

Product with a fast shelf life innovates with packaging, logistics, and marketing to the consumer. Identifying the need and eliminating the waste as much as possible. A great majority of food ends up being disposed of... Identifying the consumer tastes and trends of the current clients and catering to their wants will make considerable improvements.

The impossible is the word that was not mentioned by the one who innovated, mistakes do not teach us how to do it, we only discover how not to do it, I have to agree, how resistant you will be to the spark of the dream until it becomes reality.

Effective communication and collaboration are pivotal in managing risks. In one project, we faced regulatory challenges while launching a product internationally. By forming a cross-functional team involving marketing, legal, and supply chain departments, we navigated these regulatory waters effectively. This collaborative approach not only mitigated the risk but also fostered a culture of teamwork and transparency. Example: Collaborating across departments to address regulatory risks in an international product launch.

La communication interne dans l’entreprise reste une des priorité en terme de gestion globale de risques et des crises ainsi que la formation régulière des personnels .

Effective risk mitigation is crucial for demonstrating thorough due diligence in project management. While it doesn't entirely eliminate risks, it strategically positions the project to minimize their impact and manage potential negative effects. One key element in risk mitigation is fostering effective communication and collaboration. In a specific project example, we encountered regulatory challenges during the international launch of a product. To address this, we formed a cross-functional team comprising members from marketing, legal, and supply chain departments. This collaborative approach not only navigated the regulatory complexities successfully but also cultivated a culture of teamwork and transparency.

Risks cannot be effectively managed in an environment, where communication and collaboration are under emphasized. To effectively manage risks, there must be impactful communication "top down and down top" stating the company's objectives, the risks identified, responsibilities of each person in the organization in mitigating the risks from the management to all staff. (Top Down). The Management must equally create a platform for feedback from the employees(Down top) for possible reassessment of the risks for better control. Therefore, it is very important that an organization has a collaborative culture in place for effective risk management.

Fostering innovation involves a degree of experimentation, not all ideas nor solutions will succeed. The key is to create and establish a supportive environment that ecourages calculated risks, learning from experiences, and adapts and innovate for continuous improvement. None will be possible through seemless communication and well coordinated collaboration and planning.

Encouraging and recognizing risk-taking is essential for fostering innovation. In our organization, a team once explored a novel food preservation technique. Though the initial trials were not entirely successful, the team's innovative approach led to significant learnings in food safety and shelf-life extension. Recognizing this effort publicly instilled a culture of innovation and encouraged others to experiment and take calculated risks. Example: Encouraging innovative food preservation techniques despite initial setbacks.

Successful risk management endeavours in the past should be referenced in brainstorming sessions, team meetings, management retreats, etc. More so, lessons learnt from unsuccessful endeavors should also not be archived but act as pointers for innovation. Considering that innovation and risk-taking are often attuned, risks worth taking should be exploited. Team members should be encouraged to share ideas and management should drive this speak-up culture. While there might be a functional team responsible for innovation, remember that a ground breaking idea can come from the most obscure department in the organization hence the need to encourage a speak-up culture that is rewarded.

El mundo no cabe en un manual. Siempre que se preserve el sentido común y se protejan los intereses de los clientes y las empresas una asunción de riesgos sensata y cabal es necesaria y a veces constituye el mejor de los aprendizajes.

A assun??o de riscos faz parte do crescimento das organiza??es e de seus stakholders. Para que isso aconte?a e as colabora??es possam ser inovadoras e disruptivas, é fundamental que haja seguran?a e maturidade suficiente no ambiente de governan?a e GRC da Companhia.

Dans le cadre de l’innovation à partir d’études de parcours clients ou de processus (disruption) le rendement ou la vente de la start up est la récompense Il s’agit donc d’une récompense financière qui permettra peur être des innovations futures de plus grande ampleur Dans le cadre d’une ??invention?? la récompense peut être financière mais sera surtout la notoriété la trace dans l’histoire

One of the biggest risks to your product launch is that?your product does not fit the market or solve a real customer pain point. If you launch a product that no one wants, needs, or understands, you will waste time, money, and resources, and damage your reputation.

PART 2: This multifaceted approach not only serves to fortify the risk management infrastructure but also propels the establishment of a risk-driven culture. Such a cultural paradigm shift resonates at every level of an organization, empowering teams across all levels to apply a sharp approach when deciding of a specific course of action. A risk-driven culture implemented through meticulous attention to communication, collaboration, and stakeholder alignment, organizations can cultivate an environment wherein risk considerations are integral to the decision-making processes. This, in turn, produces a proactive and informed approach that aligns with the overarching objectives and values of the organization.

Don't forget to follow the Food & Drug Administration for the countries you operate & export to. Such as the FDA in the US, the CFIA in Canada & so on. Often, these are the non-governmental agencies that you will need to apply for License when you are in the Food & Beverage industry. People seem to forget that this is one of the first steps. Every country monitors their phytosanitary measures to protect their citizens so you must comply in order to mitigate risk & damages to your product.

Practices in third party risk assesments by having a 360 Overview on Customer and vendor Selection and on going agreements, should be part of the culture of the company, not a complex handbook but also smooth to be taken into account by all levels.

Súper importante … no olviden la segregación de funciones … la persona que opera no debe supervisarse y tampoco autorizarse …. Porque se presta a muchas cosas … entre ellas fraudes … saludos