Strategic Risk Management in Fast-Moving Consumer Goods (FMCG) Firms

Abstract

The Fast-Moving Consumer Goods (FMCG) industry is one of the most competitive and rapidly changing sectors in India. It is constantly challenged by globalization, technological innovation, consumer preference changes, and economic instability. These factors put FMCG companies at risk of facing several strategic risks, which may affect their growth and sustainability. This research explores the implementation of strategic risk management (SRM) in FMCG companies located in Tirunelveli District, Tamil Nadu. The main objectives are to pinpoint the most significant risks faced by the firms, gain insights into the risk management strategies they implement, and also assess the association between SRM and organizational performance. Structured questionnaires were used to survey a total of 200 respondents from different FMCG firms. The data were subjected to correlation and regression analysis to find out the extent and direction of SRM influence on the performance outcomes. The findings reveal that there is a strong positive correlation (r = 0.78) between risk management and organizational performance. The regression results (R² = 0.61, p < 0.001) also confirm that SRM is a significant predictor of firm success.

Keywords: Strategic Risk Management, FMCG Firms, Tirunelveli District, Correlation, Regression Analysis, Organizational Performanc

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