The Kroger Co. is selected for the case study.
S&P on Kroger today. Standard & Poor’s changed its rating outlook on Kroger Co. to positive from stable, citing the company’s same-store sales growth and lower debt levels. A positive outlook means S&P is likely to raise Kroger’s credit rating in the next two years. Kroger now holds a “BBB-minus” corporate credit rating, which is the lowest investment grade. However, Kroger has been able to withstand strong pressure from rivals such as Wal-Mart stores, dollar stores, drugstores, and natural-food chains such as Whole Foods Market Inc.
Kroger’s Risk Management Culture. According to the company 10-K, there are risks and uncertainties that can affect their business. Therefore, risk culture is a part of the company corporate governance. Everyone in the Kroger is encouraged to identify risks without fear of consequences. In addition, everyone recognizes that the goal is not to eliminate risk but control it.
The Kroger promotes a centralized and integrated approach to risk assessment that enables employees to score and monitor inherent and residual risks. The ERM in Kroger ensures that…show more content… The Board’s oversight of the material risks faced by Kroger occurs at both the full Board level and at the committee level. The Board’s Audit Committee has oversight for responsibility financial reporting of Kroger’s major financial exposures and the steps management has taken to monitor and control those exposures. The Committee has also oversight the effectiveness of management’s processes that monitor and manage key business risks facing Kroger, as well as the major areas of risk exposure and management’s efforts to monitor and control that exposure. The Audit Committee also discusses with management its policies with respect to risk assessment and risk