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New Literacy Technology Consultants

Risk Assessment Template

/ 2 min read

startup, business-plan-series, writing, templates

1. Market Risk

  • Risk Description: [Briefly describe the risk, such as changing customer preferences or new competitors entering the market.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [Steps to reduce the impact of the risk, such as diversifying product lines, engaging in market research, etc.]
  • Contingency Plan: [What will the company do if this risk materializes, such as pivoting product strategy or adjusting pricing.]

2. Operational Risk

  • Risk Description: [Briefly describe the risk, such as supply chain disruptions or problems with scaling production.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [Steps to mitigate operational risks, such as implementing inventory management tools or contracting multiple suppliers.]
  • Contingency Plan: [Plan for handling operational setbacks, like having backup suppliers or scaling operations gradually.]

3. Financial Risk

  • Risk Description: [Potential risks related to cash flow shortages, raising funds, or unexpected expenses.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [Mitigating steps like maintaining a cash reserve, managing expenses carefully, or securing a line of credit.]
  • Contingency Plan: [Strategies if financial risks occur, such as seeking emergency funding or reducing non-essential expenses.]

4. Regulatory/Legal Risk

  • Risk Description: [Risk of changes in regulations or legal issues impacting the business.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [How the company will stay compliant, like regular consultations with legal experts, staying updated on regulations.]
  • Contingency Plan: [Backup plan for dealing with regulatory changes, like adjusting business models or acquiring licenses.]

5. Technological Risk

  • Risk Description: [Risks related to technology, such as system failures or new technology disrupting the industry.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [Mitigation steps like investing in robust tech, constant product testing, and developing backup systems.]
  • Contingency Plan: [Plan to handle tech failures, such as having an IT support team or tech development partnerships.]

6. Reputation Risk

  • Risk Description: [Potential threats to the brand image or public perception.]
  • Impact: [Low/Medium/High]
  • Probability: [Low/Medium/High]
  • Mitigation Plan: [Steps to ensure a positive brand image, like customer service training and effective PR.]
  • Contingency Plan: [Crisis management plan, such as a public apology or rebranding efforts.]

Visuals

  • Risk Matrix: A matrix showing the probability and impact of each risk to prioritize which to address first.
  • Mitigation Flowchart: A flowchart outlining steps for responding to different types of risks.