Question: draw a risk matrix with below information at hand: 1 . Economic Instability ( R 1 ) : Probability: Moderate Economic instability due to fluctuations
draw a risk matrix with below information at hand: Economic Instability R:
Probability: Moderate Economic instability due to fluctuations in currency exchange rates is a common risk, especially in emerging markets like South Africa. While it's not an everyday occurrence, it's also not rare.
Impact: High Economic instability can significantly impact purchasing power and demand for technology, which directly affects the distributor's sales and profitability.
Regulatory Compliance R:
Probability: High Failure to comply with local regulations is a frequent risk, especially for new entrants in a market with potentially unfamiliar regulatory frameworks.
Impact: High Noncompliance can lead to fines, legal penalties, damage to reputation, and disruption of operations, which can be detrimental to the distributor's success and sustainability.
Supply Chain Disruption R:
Probability: High Supply chain disruptions are fairly common in any industry, with issues ranging from supplier problems to logistics challenges.
Impact: Moderate While supply chain disruptions can cause delays in product delivery and stockouts, potentially leading to lost sales opportunities, they may not have as severe consequences as regulatory noncompliance or economic instability.
Technological Obsolescence R:
Probability: Low Rapid advancements in technology are a continuous but relatively slowmoving risk. It's less likely to occur suddenly but still warrants consideration.
Impact: High Technological obsolescence can lead to decreased demand for outdated technology, ultimately resulting in loss of market relevance and potentially significant financial losses for the distributor.
Competition R:
Probability: High Competition is a constant factor in any market, and the entry of new competitors or intensified competition from existing ones is highly probable.
Impact: Moderate While competition can lead to price wars and reduced profitability, it's a risk that can be managed with effective strategies, although it still poses a significant challenge to the distributor's objectives.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
