Risk Universe: Product and Market
What is the role of risk register in preparation for potential risks? How the risk weight and impact should be calculated?
Posted: Mar 2012
RISK UNIVERSE ASSET CATEGORY: PRODUCT AND MARKETPLACE
1. Consumer/ Marketplace Trends/ Issues: Ability to achieve business objectives is affected by consumer taste changes e.g. due to concerns over obesity, GM foods, caffeine, sweeteners, or marketplace trends e.g. recycling systems, pressure over water use, selling in schools.
2. External Environment: Ability to achieve business objectives is threatened by regulatory changes; weather or climate change or natural disasters; social or political unrest.
3. Competitive Environment: Ability to achieve business objectives is threatened by competitor activity which threatens market share/ pricing or volume, or government/ supranational level regulatory regime affects ability to compete.
4. Price pressure: Ability to achieve business objectives is threatened by retail trade/ consolidation
5. Competition: Inability to compete with competitors who are more technically capable/ faster to market etc.
6. Malicious Product Attacks: Ability to achieve business objectives is threatened by malicious attacks on product e.g. counterfeiting, contamination/ tampering, extortion or terrorist threat.
7. Manufacturing Process/ Quality Control Risk: Ability to achieve objectives is affected by inefficient manufacturing processes or waste management; environmental contamination; poor product quality exposes the organisation to production losses, consumer complaints, warranty claims, recalls, returns, product liability claims, litigation, failure to comply with customer quality requirements/ audits and loss of market share and business reputation. Use of toll fillers affects quality and ability to achieve strategic objectives.
8. Trademark/ Brand Name Erosion: Demand for products is affected by erosion of value of company brands.
9. Relationship Management: Ability to develop our business is adversely affected by relationships with key accounts, customers/ agents and distributors.
10. Marketing and Promotions: Failure to implement an effective market strategy to achieve marketing mix. Poor control of promotions leading to e.g. failure of key promotions; allegations of anti-competitive behaviour; fraud; customers consumers being alienated by offensive advertising; quality of promotional material and poor marketplace execution; inability to measure performance of promotional activity.
11. Commercialisation of New Products: Ability to achieve business objectives is affected by failure to develop new products, impact of new products on existing product lines; performance of product/ package or manufacturing issues.
Risk Register as a Tool of Risk Management
Risk Universe: People Assets
Risk Universe: Product and Marketing Assets
Risk Universe: Infrastructure Assets
Risk Universe: Information Assets
Risk Universe: Finance Assets