Week 3

Introduction

risk management is the proactive technique of figuring out, assessing, and mitigating capability troubles that could negatively effect your business. it's about awaiting challenges, minimizing their effect, and capitalizing on capability possibilities that get up from uncertainty.



1. Risk Identification:

Imagine you're opening a bakery. Here are some potential threats and vulnerabilities you might encounter:

  • Not enough customers, rising costs, or equipment breakdowns can hurt your wallet.
  • Staff shortages, power cuts, or supply chain problems can disrupt operations.
  • Food safety violations, employee lawsuits, or recipe copyright issues can land you in legal trouble.
  • Changing customer trends or new competition can affect your market share.
  • ️ Negative reviews or product recalls can damage your reputation.

Stay alert and plan ahead to keep your bakery fresh and successful!

 

2. Risk Assessment:
Starving for Customers (High Impact): It's moderately likely (new bakery, competition), but super serious (closure!). 
Action: Attract customers with killer marketing, tasty promotions, and community love.

Power Plays (Moderate Impact): Unlikely (reliable grid), but can cause headaches (lost sales, wasted goodies). 
Action: Consider a backup generator for extra peace of mind.

Food Safety Fumbles (High Impact): Low chance (hygiene protocols 
in place), but super damaging (fines, closures, bad rep!). 
Action: Keep things squeaky clean with strict hygene, trained staff, and regular equipment checkups. (Henninger, 2019)
TP077524 Epure Matvei

3. Risk Mitigation:
Now, let's explore strategies to address these risks:

Not Enough Customers (High Severity): This is a moderate threat (new bakery with competition) but could be very serious (closure risk). Focus on marketing, promotions, and community engagement to attract customers.
Power Outages (Moderate Severity): This is a low threat (reliable power grid) with moderate consequences (lost sales, wasted ingredients). Consider a backup generator for added security.
Food Safety Violations (High Severity): While the likelihood is low (hygiene protocols are in place), the consequences are severe (fines, closures, reputation damage). Maintain strict hygiene, train staff, and regularly service equipment. (Herrera, 2023)

4. Risk Monitoring:

As your bakery grows:

-        Customer Trends: Don't get stuck in a floury rut! Develop a system for regularly monitoring customer trends. This could involve social media listening, analyzing online reviews, or even conducting surveys.

-        Competitive Intelligence: knowledge is energy, in particular on the subject of your competition. Track the activity of new and existing bakeries in your area. Analyze their offerings, pricing strategies, and marketing tactics. This valuable intel can help you identify potential threats and opportunities. (Villanueva, 2023)

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Tools

-        The Risk Register is your bakery's battle plan against potential problems. It's a checklist that lists all the threats your bakery could face (e.g., power outages, customer decline). For each risk, you rate its likelihood (high, moderate, low) and severity (financial loss, reputation damage). Most importantly, you outline specific actions to fight each risk. Think marketing campaigns for attracting customers or backup generators for power outages. This helps you prioritize threats.

 


-        FMEA: Think of this as a magnifying glass for your bakery processes. It helps you zoom in on specific steps (like baking or taking orders) and identify where things could go wrong (oven breaks, order system crashes). You then brainstorm ways to prevent those issues (maintenance, backups).

-        Scenario Planning: This is like playing future bakery games! You imagine both good things (healthy food craze!) and bad things (supplier shortage) to see how you'd react. This helps you find hidden risks and prepare for whatever comes your way.

-        SWOT Analysis: This is a bakery checkup. You look at your strengths (great bakers!), weaknesses (limited marketing), opportunities (online sales!), and threats (new competition) to see where you might be vulnerable. This helps you use your strengths to overcome potential problems. (Athuraliya, 2023)

 TP077653 Ibrahim mohamed soliman Hussein

 

Strategies

As an entrepreneur, managing risk is crucial for your business's success. Here are some specific strategies you can use.

 


1. Forge a Comprehensive Risk Register:

Think of this as your bakery's personalized risk assessment document. This isn't a static listing; it's a dwelling file that evolves along with your business. start by using brainstorming capacity threats across various classes: monetary (e.g., rising factor expenses, inadequate sales), operational (e.g., workforce shortages, system malfunctions), legal (e.g., food safety violations, worker complaints), reputational (e.g., negative consumer opinions, product recalls), and marketplace-associated (e.g., converting purchaser developments, multiplied opposition). (Shukla, 2021)

2. Foster a Culture of Risk Awareness

Open communication is key. Encourage your crew individuals to overtly discuss ability dangers they encounter in the course of each day operations. This could be some thing from noticing a mild alternate in element high-quality to observing a shift in purchaser alternatives. By way of developing a safe area for risk consciousness, you may benefit precious insights and empower your crew to be proactive in identifying and mitigating capacity problems. (Shukla, 2021)

TP077093 Minami Otsuka


3. Build a Financial Safety Net: Consider Insurance Coverage

While preventative measures are vital, a few dangers are absolutely beyond your complete manipulate. Recall coverage for critical risks that could have devastating effects in the event that they materialize. explore alternatives for property and casualty coverage to protect your bodily assets, as well as commercial enterprise interruption coverage to help mitigate economic losses in case of surprising closures.

4. Embrace Adaptability: Regularly Review and Update

The commercial enterprise panorama is continuously evolving. New tendencies emerge, policies alternate, and unforeseen events can disrupt the market. don't allow your danger management plan end up a dusty file gathering cobwebs in a drawer. time table normal critiques (quarterly or annually) to evaluate the effectiveness of your techniques and adapt to changing instances.

5. Seek Professional Guidance When Needed

Risk control may be a complex project. Don't hesitate to search for professional guidance, mainly whilst dealing with intricate conditions or new rules.

Conclusion

By using following these steps, you will create a complete chance control plan that acts as a guard to your bakery. This proactive approach will can help you consciousness on what topics most – crafting scrumptious treats and building a thriving commercial enterprise that could face up to the take a look at of time.

TP075563 Seif el sayed abdelrazek nasr abdelmaksoud


References

 

Henninger, P., Brem, A., Giones, F., Bican, P. M., & Wimschneider, C. (2019). EFFECTUATION VS. CAUSATION: CAN ESTABLISHED FIRMS USE START-UP DECISION-MAKING PRINCIPLES TO STAY INNOVATIVE? International Journal of Innovation Management, 24(01), 2050002. https://doi.org/10.1142/s1363919620500024


Villanueva. E.,2023 Risk Management 101: Process, Examples, Strategies | AuditBoard. (n.d.). AuditBoard. https://www.auditboard.com/blog/risk-management-101/#authors


Herrera, M. (2023, July 26). Risk mitigation: The four types. MHA Consulting. https://www.mha-it.com/2013/05/17/four-types-of-risk-mitigation/


Athuraliya, A. (2023, March 1). The ultimate list of visual risk management techniques. Creately Blog. https://creately.com/blog/project-management/risk-management-techniques/


Shukla, A. (2021, August 10). How entrepreneur handle business risk, Risk Management entrepreneurship. https://www.paggu.com/entrepreneurship/how-entrepreneur-handle-business-risk-and-uncertainty/

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