For each risk, write individual bullets to indicate whether the risk is speculative or pure, controllable or uncontrollable, and insurable or uninsurable.
Use bulleted text to describe how likely the risk is to occur and indicate the size of the impact it could have on your business if it were to occur. for an clothing business
Risk 1: Economic downturn
- Speculative, uncontrollable, uninsurable
- Likelihood: Medium
- Impact: High - decrease in consumer spending on non-essential items like clothing
Risk 2: Supply chain disruption
- Speculative, partially controllable (through monitoring and diversification), potentially insurable
- Likelihood: Low to medium
- Impact: Medium to high - delays in receiving inventory could result in lost sales
Risk 3: Cyber attack
- Speculative, partially controllable (through cybersecurity measures), potentially insurable
- Likelihood: Medium
- Impact: High - data breaches could result in loss of customer trust and financial losses
Risk 4: Changes in fashion trends
- Speculative, partially controllable (through monitoring and adaptability), uninsurable
- Likelihood: High
- Impact: Medium - failure to keep up with trends could lead to declining sales
Risk 5: Natural disasters (e.g. hurricanes, floods)
- Speculative, uncontrollable, potentially insurable
- Likelihood: Low
- Impact: High - damage to inventory and store locations could result in significant financial losses