A business case risk plan is a section in a business plan that outlines the risks associated with running the business in question. The risks section presents the risks in terms of cases, allowing for the risks and problems to be highlighted. By outlining the risks in a case format, ample opportunity is given to suggest solutions for the risks by outlining steps required to implement the solutions. Although every business has its own purpose and plan, some risks remain similar in nature.
Instructions
1. Start by outlining all of the potential risks that your business is subject to. Common risks include spending beyond the budget, lack of employee training, lack of insurance or permits, poor branding strategies and polluting the environment. Each risk should pertain directly to your business.
2. Provide one or two solutions to each of the risks you have outlined in the previous step. The solution should be detailed and precise. Do not simply write "pollute less" as a solution to your business' pollution problems. Instead, write a detailed description of the solution to the problem. For example, a solution could be to only operate during set hours instead of 24 hours a day.
3. Write a detailed step-by-step description of how each solution should be implemented in case a problem occurs, where the solution needs to be used. It is important that you are prepared and have a plan B in place to avoid any major product delays or poor service for your clients. An example can be finding sponsors for a non-profit organization, where the risk is losing sponsors and being unable to operate. A solution could be to always have a specific amount of sponsors available, even when one decides to stop the sponsorship. The implementation includes finding additional sponsors each time one leaves the organization.
4. Adjust your budget to fit your risks and solutions. For example, you may only have a small amount of funding left in your budget after product development, marketing, utilities and labor costs have been distributed. Cut down in areas where spending is unnecessary to have some back-up funding in case a risk scenario should occur. Taking the example from the previous step, a new sponsor may not be able to step in immediately, so having funding available during the period with any sponsors can save your organization.
5. Add the risks and solution section to your overall business plan. If you experience one of your potential business risks years after you have started your business, you can refer to your business plans for potential solutions and implement them.
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