Risk Assessment Report

[Name of the Instructor]

[Date of Submission]

Abstract

An important position is occupied by McDonald's in the world of fast food chains. This research paper is written with an objective to analyze the risks associated with the McDonald's Corporation, by providing explanation and likeliness of these risks and the mitigation strategies employed by corporation so as to deal with the issues.

Table of Contents

Introduction1

Risks associated with McDonald's1

Health Risks1

Accounting and Governance risks2

Financial Risks2

Workplace Risks3

Rising food price Risk3

Risk management strategies used by McDonald's on overall scale so as to mitigate the risks4

Conclusion4

References5

Risk Assessment Report

Introduction

Among the global food-service retailers, world's leading position is hold by McDonald's operating in more than 120 countries with nearly 29,0000 restaurants. The first foreign franchise of McDonalds's was opened in the year 1967 in Canada. In the present scenario, as more and more McDonalds's outlets are opened outside United States, the company is earning 65% of its total revenue from international operations (Moore, 2009). This internationalization process had presented McDonalds's corporation with number of risks, this research paper is in the form of risk assessment report on the risks associated with McDonalds's and also proposes the way in which these risks can be mitigated.

Risks associated with McDonald's

Risk is a part of every business and McDonalds's despite holding world's leading fast food chain position is not free from such risks. These risks pose threats that require on proactive attention of the concerned authorities. Some of the primary risks associated with McDonalds' Corporation are listed below:

Health Risks

Although McDonald's meet the hunger needs of the community by providing them with an entertainment and food at affordable price, the long-term impact of eating such food creates hurdles in the life of people in the form of obesity and overweight. They continue to offer value at an affordable price and remain under partnerships with the stakeholders to serve a balanced quality food array to the customers. The corporation cannot ignore the obesity rates and related risks posed to wellbeing of human beings by eating such fast food in great quantities. It remains difficult for the company to address this issue alone, but they remain a part of process to come up with an effective solution. In order to mitigate this risk, the company is having an international team of independent experts with the name of Global Advisory Council (GAC) that provide guidelines to the company in the context of nutritional requirements of the people ...