Brainstorming

Question 1

Brainstorming
Risks:
5 buckets (2 external; 3 internal)

Answer 1

Market;
Legal/Compliance;

Financial;
Operational;
Strategic;

Question 2

Brainstorming: 5 Market Risks

Answer 2

Customer Demand Shifts (substitutes)
Competitive Dynamics (new entrants)
Regulatory Changes
Economic Conditions
Market Saturation

1. Customer Demand Shifts: Changes in consumer preferences or behavior that can reduce demand for products or services.
2. Competitive Dynamics: New entrants, increased competition, or aggressive moves by existing competitors.
3. Regulatory Changes: New laws or regulations that can affect market operations or increase compliance costs.
4. Economic Conditions: Macroeconomic factors like recessions, currency fluctuations, or inflation.
5. Market Saturation: Limited growth opportunities in a highly competitive or mature market.

Question 3

Brainstorming risks:
5 financial risks

Answer 3

1. Revenue Volatility
2. Cost Overruns
3. Liquidity Issues
4. Credit Risks
5. Investment Risks

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```6. Revenue Volatility: Fluctuations in sales due to seasonal demand or external factors affecting revenue streams.
7. Cost Overruns: Unexpected increases in operational costs, supply chain expenses, or production costs.
8. Liquidity Issues: Challenges in maintaining sufficient cash flow to meet short-term obligations.
9. Credit Risks: Risks associated with default from customers or financial partners, impacting cash flow.
10. Investment Risks: Uncertainty in returns from investments or capital expenditures, impacting profitability.

Question 4

5 Operational Risks

Answer 4

Supply Chain Disruptions
Process Inefficiencies
Technology Failures
Talent Management
Compliance and Safety

Supply Chain Disruptions: Interruptions in the supply chain, leading to delays or increased costs.
Process Inefficiencies: Internal inefficiencies that can lead to higher costs or slower operations.
Technology Failures: Breakdowns in critical systems, cybersecurity breaches, or technological obsolescence.
Talent Management: Challenges in recruiting, retaining, or managing skilled employees.
Compliance and Safety: Risks related to regulatory non-compliance, safety issues, or operational accidents.

Question 5

5 Strategic Risks

Answer 5

Misaligned Strategy
Innovation Risks
Mergers and Acquisitions
Brand Reputation
Strategic Missteps

Misaligned Strategy: Pursuing initiatives that do not align with the company’s long-term goals or market position.
Innovation Risks: Failure to innovate or adapt to technological changes can lead to loss of competitiveness.
Mergers and Acquisitions: Risks associated with integration challenges, cultural clashes, or overpaying for acquisitions.
Brand Reputation: Risks that can harm the brand’s image, such as negative publicity or product recalls.
Strategic Missteps: Poor decision-making in areas like market entry, product launches, or pricing strategies.