For each risk, indicate with bulleted text whether you will attempt to avoid, reduce, transfer, or accept the risk.
Describe exactly how this strategy could work to manage the risk. for an clothing brand
1. Supply chain disruption:
- Attempt to reduce the risk by diversifying suppliers and establishing strong relationships with multiple suppliers. This can help ensure that if one supplier experiences a disruption, the clothing brand can still receive necessary materials from other sources.
2. Brand reputation damage:
- Attempt to avoid the risk by closely monitoring social media and customer feedback, and promptly addressing any issues or negative comments. By proactively managing the brand's reputation, the clothing brand can reduce the likelihood of significant damage.
3. Cybersecurity breach:
- Attempt to reduce the risk by implementing strong cybersecurity measures, such as encrypting customer data and regularly updating security protocols. By taking these proactive steps, the clothing brand can make it more difficult for hackers to access sensitive information.
4. Economic downturn:
- Attempt to transfer the risk by diversifying product offerings and target markets to appeal to a broader range of customers. By expanding the brand's reach, the clothing brand can potentially offset any negative impacts of an economic downturn in a specific region or industry.
5. Intellectual property theft:
- Attempt to avoid the risk by regularly monitoring trademarks, copyrights, and patents to ensure that the clothing brand's designs and intellectual property are protected. By taking proactive steps to secure intellectual property rights, the brand can reduce the likelihood of theft or infringement.