Discuss the role that management would play in resolving potential risks for the Takealot group. Identify two risk factors that they would need to manage while discussing management role.

Answer 1

Management plays a crucial role in identifying, assessing, and mitigating potential risks for the Takealot group. Their role involves developing risk management strategies and implementing measures to minimize the impact of potential risks on the company.

One risk factor that management would need to manage is supply chain disruption. Takealot relies on a complex network of suppliers and logistics providers to deliver products to customers. Any disruption in the supply chain, such as delays in delivery or shortages of inventory, could have a significant impact on the company's operations and reputation. Management would need to work closely with suppliers to ensure continuity of supply, as well as develop contingency plans to mitigate the impact of any disruptions.

Another risk factor that management would need to manage is cybersecurity threats. As an e-commerce platform, Takealot stores sensitive customer information, including payment details and personal data. Cyberattacks, such as data breaches or ransomware attacks, could not only compromise customer information but also damage the company's reputation and financial stability. Management would need to invest in robust cybersecurity measures, such as encryption and firewalls, as well as conduct regular security audits to identify and address potential vulnerabilities.

Overall, management plays a critical role in identifying and managing potential risks for the Takealot group to ensure the company's long-term success and sustainability. By implementing effective risk management strategies, management can protect the company from potential threats and safeguard its reputation and operations.