For each risk, write individual bullets to indicate whether the risk is speculative or pure, controllable or uncontrollable, and insurable or uninsurable.

Question

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

Answer 1

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