Application of multi-criteria analysis methodology (MCDM) in evaluating and ranking FMCG companies regarding their risk management approach, as presented in their annual reports. The opinion of Greek experts.

The research aims to examine how companies in the fast-moving consumer goods sector (FMCG) approach the organization of the risk operation.
More specifically, the aim was to investigate the following:
- how well-known companies in the field based in Greece, Europe, and the United States, present in their annual reports how they approach the organization of the operation, the evaluation, the presentation, the management, and the monitoring of the risks they value.
- the adequacy of the Greek legislative framework concerning the companies' practices,
- experts’ opinions regarding the implementation of the risk operation,
- the maturity level in terms of organization of the risk operation to what is stated in the annual reports.
The approach was based primarily on the good practices as adopted by widely recognized risk standards such as COSO ERM and ISO 31000 and further on by the Greek legislative and regulatory framework, which is based on European directives and regulations.
The study of the annual reports of the 52 companies in the sample, led to the formulation of eight factors/criteria with specific characteristics. Their evaluation by reputable professionals in the field was requested based on their knowledge and experience, regardless of the current legislative framework.
Using a multi-criteria decision analysis model, the companies in the sample were ranked, while the results were compared before and after the weights' application.
Among others, two notable conclusions of the research may be:
- experts' opinions converge in the view that presenting only financial risks by Greek companies is insufficient, as these are not the only risks an organization can face, and therefore applying the legislative provisions in such cases could also be insufficient.
- a corporate risk operation requires in general resource devotion, however, the study showed that apart from resources, eventually, the most important parameter may be the commitment of the companies' management, "the tone at the top".