LogicManager
Case Studies
Risk Management in IoT: A Case Study of Chipotle
Overview
Risk Management in IoT: A Case Study of ChipotleLogicManager |
Functional Applications - Enterprise Resource Planning Systems (ERP) | |
Food & Beverage Healthcare & Hospitals | |
Product Research & Development Sales & Marketing | |
Inventory Management Regulatory Compliance Monitoring | |
Operational Impact
The case study suggests that the implementation of an enterprise risk management (ERM) solution could have significantly altered the outcomes for Chipotle. With a robust ERM system in place, the company could have identified and mitigated the risks associated with its supply chain, potentially preventing the salmonella outbreaks. Even if the outbreaks had still occurred, ERM reporting capabilities could have provided evidence of Chipotle's risk program, avoiding regulatory penalties and guiding risk disclosure. This would have helped maintain the company's reputation for safe, sustainably grown food and could have prevented the significant financial losses experienced. | |
Quantitative Benefit
35% reduction in share prices could have been avoided | |
30% drop in December sales in some locations could have been prevented | |
Potential avoidance of regulatory penalties and associated financial costs | |