Are the risks to the business mostly external, internal, or both?
Does the business operate in a naturally hazardous or heavily regulated industry?
Does the location of the business make it vulnerable?
Do aspects of the business’s operations make it susceptible to people risks?
Does the business operate in a way that leaves it open to technology risks?
Step 2: Create a Risk Profile
The risk profile should identify five risks in priority order. Make a list and number it 1-5.
Next to each number add a title for each risk. For example, if the company has risk associated with a long sales cycles and the problems it creates with cash flow, your title might be: “1. Risk: Long Sales Cycles.” Make sure your risks are numbered in priority order.
Add bullet points beneath each risk that describes the category of the risk, and whether it is internal or external, controllable or not.
Add a last bullet to describes a realistic way of managing the risk.
Submit your risk profile outline with five risks and plans to mitigate them. Refer to the rubric below for more information on how you will be graded.
about city gear
City Gear is an American company that operates over 130 stores in the central region of the US. City Gear was founded in 1978 under the name Shelmar Retail Partners LLC. It was created in and still operates out of Memphis, Tennessee. City Gear is owned by Hibbett Sports and its current CEO is Mike Longo.
Risk Profile:
1. Risk: Competition from online retailers
- Category: External risk
- Controllable: Not fully controllable, as it depends on consumer preferences
- Mitigation plan: Enhance online presence and customer experience, offer unique products/services, and provide personalized customer service.
2. Risk: Economic downturn
- Category: External risk
- Controllable: Not controllable, as it depends on overall economic conditions
- Mitigation plan: Diversify product offerings, focus on cost-effective operations, and maintain a strong relationship with suppliers.
3. Risk: Employee turnover
- Category: Internal risk
- Controllable: Partially controllable through employee satisfaction initiatives
- Mitigation plan: Implement an employee retention program, offer competitive salaries and benefits, provide growth opportunities, and maintain open communication channels.
4. Risk: Regulatory changes
- Category: External risk
- Controllable: Not fully controllable, as regulations are dictated by authorities
- Mitigation plan: Stay updated with industry regulations, maintain compliance through regular audits, and establish effective relationships with regulatory bodies.
5. Risk: Cybersecurity threats
- Category: Internal risk
- Controllable: Partially controllable through preventive measures
- Mitigation plan: Implement robust cybersecurity protocols, conduct regular security audits, educate employees on cybersecurity best practices, and have contingency plans in case of a breach.
Note: These risks are prioritized based on their potential impact on the business and their likelihood of occurrence. It is important for the company to regularly review and reassess its risk profile to ensure effective risk management.