RISK MANAGEMENT PLAN PROJECT

Risk Assessment and Mitigation Plan for a New Business Venture Project:

Create a Risk Management Plan for a new business project, such as opening a restaurant or starting an online store. This plan should begin by conducting thorough market research to identify both the internal and external factors that could impact the business. Following this, evaluate the likelihood and potential effects of each identified risk.

The plan must also detail steps to minimize the chances of these risks occurring or to lessen their impact if they do happen. This includes continuously monitoring and keeping track of all identified risks and being ready to adjust your strategies as necessary.

Additionally, the plan should examine the financial prospects of the venture, include a SWOT analysis $($Strengths$,$ Weaknesses, Opportunities, Threats$),$ consider options for transferring some of the risks $($for example, through insurance$),$ and ensure the plan is clearly communicated to potential investors or other stakeholders.

Source: $($Masiba $24)$

QUESTION $1[30$ MARKS$]$Use the following template below to develop a Risk Management Plan:

$1.$ Executive Summary: $(5$ marks$)$

$$Briefly introduce your chosen business venture $($e$.$g$.,$ name, type, location$).$

$$Summarize the key findings of your risk assessment and mitigation plan.

$$Highlight the overall financial viability and potential return on investment $($ROI$).$

$2.$ Business Description: $(5$ marks$)$

$$Provide an overview of your business venture, including its products$/$services$,$ target market, and competitive landscape.

$$Conduct a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats.

$3.$ Risk Assessment: $(5$ marks$)$

$$Employ a risk assessment framework $($e$.$g$.,$ FMEA, risk matrix$)$ to identify potential risks associated with your business venture.

$$Describe risks based on their probability $($likelihood$)$ and impact $($severity$)$ on your business.

$$Explain the potential financial impact of each risk, if possible.

$4.$ Risk Mitigation Plan: $(5$ marks$)$Develop specific actions to address each identified risk. These can include:

$$Risk avoidance: Eliminate the risk altogether $($e$.$g$.,$ choose a different location$).$

$$Risk reduction: Minimize the likelihood or impact of the risk $($e$.$g$.,$ diversifysuppliers, implement quality control measures$).$

$$Risk transfer: Transfer the risk to another party $($e$.$g$.,$ insurance$)$

$$Risk acceptance: Accept the risk and monitor it closely.

$$Define clear risk ownership and responsibility for each mitigation action.

$5.$ Implementation Plan: $(5$ marks$)$

$$Describe the key steps involved in launching your business venture andimplementing your risk mitigation plan.

$$Define a timeline and milestones for each step $($High Level$).$

$$Identify key resources and personnel needed.

$6.$Conclusion: $(5$ marks$)$

$$Summarize the key points of your model solution.

$$Reiterate the potential of your business venture and its risk management approach.

$$Recommend further actions or next steps.

Additional Considerations:

$$Throughout your model solution, utilize relevant academic sources and support your claims with data and evidence.

$$Present your findings in a clear, concise, and well$-$organized manner, considering your target audience $($e$.$g$.,$ potential investors, stakeholders$).$

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