Exercise 6 Risk Control Assessment (RCA) and Heat-map Floyd Berentsen (Tesla)

Note: We planned to work on the portfolio case on the day (tomorrow) of the lecture and in the days
after due to wanting to understand how to create a heat-map from the lecture. For this assignment, I
filled in the RCA with the input from A1 that we handed-in last week myself. The feedback both
written & from the feedback session has not yet been integrated. I used this exercise as practice so
that we can work more effectively the next time our group works on the assignment.

Step 1 & 2

Main risks are taken from assignment A1 which we got from brainstorming and then discussing &
researching which risks are the biggest for Tesla’s strategy.
Control Assessment

Controls against the risks were selected to see where Tesla is not in control.

For all of the 6 risks, assumptions are made on the controls in place and the indicators due to a lack
of information on risk controls for Tesla.
Risk Tolerance Parameters: The acceptable
risk levels for Tesla are the following:

Low risk apetite: 3

Medium risk apetite : 5

High risk apetite: 10

This means that currently the two

competition risks are above our acceptance
level and require incremental risk
manegement (Reviewed level of risks in red).
 Heat Map of Risks

3
4 1
2

likelihood 6 5

Impact

Based on the risk assessment, the heat map shows more of the risk in yellow or red (impact &
likelihood) but do to controls in place from Tesla, these risks do not pose a major threat to Tesla’s
strategy implementation. The two competition risks (3&4) do pose a big threat for Tesla as the
business is not in control when it comes to new & established competitors and tech giants in the EV
market. These risks require further researching to see how they can be mitigated to secure Tesla’s
position in the market.

RCA Template.xlsx
Link to Excel sheet used: