Risk management

[pic 1][pic 2]

Risk management assignment

1. Executive Summary

By taking into account all the elements concerning our company which turns out to be a company with rather particular problems (we propose a service of renting childcare clothing) we observe that all the strategy of the company is based on the good functioning of the digital.

The biggest risk would be to have a breakdown at the digital level, whether it is work software or a website on which customers can order...

After analyzing this risk, we conclude that the best way to manage this risk is therefore: Transfer.

By subscribing to insurance and upstream by collaborating with a reliable supplier.

The impact of this risk could reach up to 4500 euros.

1. Background information on the business / project

The company we want to create is a company based on the circular economy.

What is the circular economy?

The circular economy is an economic concept that is part of sustainable development and is inspired by the concepts of green economy, use economy or functionality economy, performance economy and industrial ecology (which means that waste from one industry is recycled into the raw material of another industry or the same one).

Such an economy operates in a loop, thus eliminating the notion of "waste". Its objective is to produce goods and services while strongly limiting the consumption and waste of raw materials and non-renewable energy sources.

Indeed, the project is to rent childcare clothes.

Having noticed that many parents buy clothes for their baby and that he does not use them again or very little.

Our company therefore offers affordable baby clothing rental and a wide choice, while ensuring optimal service, delivery included etc..

The company is set up in France, it’s a start-up that works with digital way.

We will start the company with 10 people in the team and an investment of 300 000 euros.

Risk Identification

1. Risk Identification

There are risks in all projects undertaken, because embarking on an adventure is a dangerous game. To be able to fight against these risks and prevent them, it is first necessary to identify the risks, which is a crucial process in the setting up of a project, for that process we need a brain storming, it’s the best way to point i=out the different risks we could face. After brainstorming and having our different risks we will put them into categories.

For our company, we will therefore identify the different risks that we may encounter.

Financial: As the project is based on financial support from banks, the risk would be that the banks with whom we have decided to work would not follow suit. Following the presentation of the business plan, banks may decide not to believe in the project. As mentioned above, we will need 300,000 euros in bank loans.

• Human: lack of skills, absenteeism, and resignation during the project, conflicts within the team, etc. The company will initially be a start-up, team management is a fundamental process in the launch of the project. With a small team of 10 people, each element is essential.
• Temporal: supplier delays, incorrect estimation of deadlines, etc. The sale of our products being 100% digitalized, the company's reputation is crucial for us!
• Techniques: unsuitable software, breakdowns etc., Indeed as mentioned above, our service is offered on the Internet, so the software must be optimal. Because our economic performance is based on the proper implementation of sales tools.

The risks related to the legal aspect are only minimal for our project. The company is based in France, it is a country that encourages the circular economy, no regulations govern this field.

• Environmental: environment having an impact on the project, concerning this risk it could impact our business for the delivery of products, because the products will be either damaged or lost.
• Organizational: As a strat-up we have very little exposure to this situation. Organizational problems in a company are often common when the company is large.

1. Risk Evaluation

• Explain what scoring system you used and why
• The next step for risk management is : risk evaluation.

For that process we will use a rank based on the impact of the risk 1 to 5 and the like hood 1 to 5.

I choose that scoring system because the 2 key elements we need to know about our project are: the impact of a risk and it’s likehood to be able to manage it.

Explain why you assigned the scores you did, i.e. what criteria did you use, give examples

of how you ranked the risks

Taking into consideration the country of the project, the fact that it’s a start-up, the environmental background I was able to rank my risks into the following sections.[pic 3]

...