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Contents
Limitations...................................................................................................................................................1

Team Risk..............................................................................................................................................3

Proposed solution.............................................................................................................................3
[DATE]
KPMG
Risk Register.....................................................................................................................................3
[Company address]
 Technological Risk................................................................................................................................4

Proposed solution.............................................................................................................................4

Risk Register.....................................................................................................................................4

Capital Risk............................................................................................................................................5

Proposed solution.............................................................................................................................5

Risk Register.....................................................................................................................................5

Market Risk............................................................................................................................................6

Proposed solution.............................................................................................................................6

Risk Register.....................................................................................................................................6

SWOT Analysis.........................................................................................................................................7

Market analysis.........................................................................................................................................8

Target market........................................................................................................................................8

Growth plans.........................................................................................................................................8

Promotion plans....................................................................................................................................8

Marketing mix........................................................................................................................................8

Product...............................................................................................................................................9

Price....................................................................................................................................................9

Place...................................................................................................................................................9

Promotion...........................................................................................................................................9

Bibliography................................................................................................................................................9

Limitations
Risks are involved within every human endeavor. The process of resolving or managing the risk
is a key factor in determining the success or failure of the endeavor. however, it is still not
possible to mitigate each risk. The least we can do is either mitigate a risk or devise ways to
avoid the risk. Mitigation is normally carried out by transferring the cost of the risk to another
person or analyzing the deficiencies and changing the structure to mitigate the risk. A project
team is responsible to perform the risk analysis of a project and inform the risks associated with
the project and always proposed solutions to mitigate the risks (Sadgrove, 2015).

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This section of the report includes a detailed analysis of various risks that can occur during the
endeavor. It also provides solutions which are devised to mitigate the risks or at least avoid
them.

Below mentioned are some of the risks identified that would be faced while starting this
business;

— Schedule of project and deadlines are not clearly defined and communicated

— Any task that was not already scheduled for would have to accommodate for.

— Communication gap between team members.

— Issues during migration of data onto website

— Deprived website quality

— Problems relating to the implementation of website

— Inefficient resources

— Costs of running the business might not be bearable

— Unexpected farewell of a partner

— Risk of innovation

— Manufacturing risks

— Receipt of unused clothes and delivery of new clothes might not be efficient

Detailed analysis of the above-mentioned risks within their categories along with proposed
solutions is as follows;

Team Risk
Team risks are the risk associated with experience and communication among team members.
This also includes planning and execution of tactical, strategic and day to day task. Since, the
business plan is innovation and unique, it is very necessary to have a set of plan/ schedule for
the proper implementation of the project (Dash, 2010). Some of the main risks associated
relating to team risk within the business plan are as follows;

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— Schedule of project and deadlines are not clearly defined and communicated

— Any task that was not already scheduled for would have to accommodate for.

— Communication gap between team members.

Proposed solution
Business plan should clearly identify the deadlines and schedule of implementation of tasks
relating to the business. This would allow the smooth setup of the business and prove as a cost
efficiency factor.

Risk Register
Likelihood of
Description
occurrence
Schedule of project and
deadlines are not clearly
defined and communicated
Any task that was not
already scheduled for would
have to accommodate for
Communication gap
between team members.
Impact Proposed solution
Business plan clearly identifies
Medium High
the deadlines and schedule
Workshops on daily basis to
reschedule in order to
Low High
accommodate any new task in a
more systematic manner
Conduct routinely meetings and
seminars and encourage
Medium Medium
sharing of ideas and resolving
conflicts

Technological Risk
Technological risks are mainly due to the rapid advancements and complex world of technology
(Dvir, 2002). Since, according to the business plan, an app and a website are to be created for
the easy buying and selling of unwanted clothes, therefore some of the following risks might
interfere with the business;

— Issues during migration of data onto website

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— Deprived website quality

— Problems relating to the implementation of website

Proposed solution
In order to mitigate the risk, it is very important that an experienced and reputed IT consultant is
hired to create the website and app. This would allow seamless integration of data and further
after installation services would also be hectic free. Moreover, detailed requirements should be
mentioned within the contract with the consultant in order to avoid any omission of
requirements.

Risk Register
Likelihood of
Description Impact Proposed solution
occurrence
Use of quality assurance
Issues during migration of protocols and regular
Medium High
data onto website maintenance of website to
reduce overloading
Validation of website using
different types of tests and
Deprived website quality Low High
checking satisfaction of each
requirement
Problems relating to the Hire experienced consultant for
Medium High
implementation of website the development of website

Capital Risk
The question of initial capital for business and whether the business would be generating
enough inflows to break-even falls within capital risk. Since, this business is providing unwanted
clothes at cheaper prices to poor people or people in need, it is very crucial that purchasing of
clothes is done at minimal or no price at all. Inefficient resources. Some of the capital risks are
as follows;

— Costs of running the business might not be bearable

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— Unexpected farewell of a partner

— Inefficient resources

Proposed solution
Partnership deed should be made after analyzing the total capital needed to cover business
initial expenses and clauses relating to the exit of Partner should be mentioned within.

Risk Register
Likelihood of
Description Impact Proposed solution
occurrence
Early cost analysis of the
Inefficient resources Low Medium project to determine the viability
of the project
Add donations option for the
Costs of running the public for support
business might not be Medium High
bearable Devise ways to make the
project break-even
Early agreement between
Unexpected farewell of a
Low Medium partners for early notices and
partner
devise backup plan

Market Risk
The risk of decline or unacceptance of the product launched by a business is included within
market risk (Anon., 2003). Since, this business is a rather innovative approach, it is very highly
exposed to market risk and mitigation of this risk is necessary in order to avoid any loss. Some
of the market risks faced by the business would be as follows;

— Risk of innovation

— Manufacturing risks

— Receipt of unused clothes and delivery of new clothes might not be efficient

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Proposed solution
Market research relating to the business idea and developing a rough estimate of population
happy with the project is very crucial to this business plan. Further, the receipt and delivery
methods should be brainstormed, and the most efficient and cost-effective method must be
selected.

Risk Register

Likelihood of
Description Impact Proposed solution
occurrence
Market research and survey
Risk of innovation High High analysis relating to business
product will be conducted
Written streamlined manuals
Manufacturing risks Medium Medium and contingency plans to
mitigate the fault risk
Receipt of unused clothes Devise the receipt and delivery
and delivery of new clothes Low Medium process which is the most
might not be efficient efficient

SWOT Analysis
SWOT analysis is an abbreviation used from Strengths, Weaknesses, Opportunities and
Threats relating to a business (Valentin, 2015). It helps analyze and identify all four aspects
relating to the business. This further helps a business to devise strategies in accordance to the
above mentioned four aspects before time. SWOT analysis of the business plan is detailed as
follows;

Strengths
— Due to small scale of business in the future, attractive customer care can be provided which
would earn loyal customers to the business

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— If ways of marketing are not efficient, changing and adopting new strategies would be
smooth and hassle free

— Due to low overhead costs, customers can be offered products at insane cheap prices

Weaknesses
— Due to innovative idea, market approach might be unpredictable

— Due to low budget, break-even might be hard to achieve

— Cash flows might be unpredictable in the initial phases, hence making it difficult for planning
of future.

Opportunities
— There are no or very few competitors following this business plan as of now

— Until competition arises, we might have achieved a competitive advantage and earned loyal
customers

— Due to the concept of saving environment and helping people in need, this idea might be
greeted with open hands

Threats
— If the market does not accept the concept, there might be a risk of insolvency

Market analysis

Target market
According to the business plan,
target market relating to purchasing
would be rich people or people with
unwanted clothes, whereas our
customers would be poor people or
people in need. Recycling and
remaking of the clothes into fresh

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ones would provide our target market to wear brand enriched clothes at amazingly affordable
prices.

Growth plans
Start of the business would be from origin state and free delivery will also be provided within the
state. But with good response, market would be increased state by state by firstly explaining the
concept behind the business, getting people to trade in their waste cloths and them establishing
a proper presence within the state.

Promotion plans
Use of social media, print media and media activists would largely help to promote the product
within the society. Regular advertisements managed by an advertising company would help with
engagements of people and increased supply of unwanted clothes. This would increase variety
of clothes available within the website for purchase by other people.

Marketing mix
Marketing mix of 4P would be largely use within the organization in order to successfully
achieve customers and suppliers (Waterschoot, 2005);

Product
Product is unwanted clothes from rich people which will be sold at cheaper prices after recycling
and refurbishment to people in need. Variety of clothes which would be branded and suited for
all seasons will be available on the official website and app.

Price
Since, product will be recycled thus reducing cost of production, it would enable the organization
to keep the selling prices as low and affordable as possible. This would help poor people wear
clothes of their choices without going broke.

Place
Main selling place in the initial phases of the business would be the official website and app. But
with good response and passage of time, shops would also be rented out to display and sell the
variety of products in the catalogue.

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Promotion
Marketing agencies would be hired to generate an awareness among the society about the idea
of our business and how it could help them get rid of their unwanted clothes while helping
someone in need.

Bibliography
Anon., 2003. Risk Management with Derivatives by Dealers and Market Quality in Government Bond
Markets. The Journal of Finance, 58(5), pp. 1873-1904.

Dash, D., 2010. Enterprise risk management: small business scorecard analysis. Production planning &
control, 20(2), pp. 362-369.

Dvir, T. R. A. J. S. D., 2002. Risk management, project success, and technological uncertainty. R&D
Management, 32(2), pp. 101-109.

Sadgrove, K., 2015. The complete guide to business risk management. 3 ed. USA: Gower Publishing.

Valentin, E. K., 2015. Swot Analysis from a Resource-Based View. Journal of Marketing theory and
practice, 9(2), pp. 54-69.

Waterschoot, W. V., 2005. The 4P Classification of the Marketing Mix Revisited. Marketing Mix
Revisited, 2(1), pp. 124-125.

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