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: 1. Economic Instability (R1):
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.
2. Regulatory Compliance (R2):
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 Non-compliance can lead to fines, legal penalties, damage to reputation, and disruption of operations, which can be detrimental to the distributor's success and sustainability.
3. Supply Chain Disruption (R3):
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 non-compliance or economic instability.
4. Technological Obsolescence (R4):
Probability: Low Rapid advancements in technology are a continuous but relatively slow-moving 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Impact: High Technological obsolescence can lead to decreased demand for outdated technology, ultimately resulting in loss of market relevance and potentially significant financial losses for the distributor.
5. Competition (R5):
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.

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