Risk Solution Likelihood Level of

(scale 5) difficulty to
solve (scale 5)
- For an essential clothing line using sustainable
material (Lyrocell), we should strongly emphasize the
Competition risk: value of "environmentally friendly", moreover, the
comes from competing brands that product is not only sustainable but also long-lasting
are cheaper and more well-known. and cheaper for long-term use.
- Combine sales promotion and communication, SEO
on platforms.
- Break down production batches. After each
production round, carefully calculate the market
capacity and survey to re-evaluate thoroughly to see
Economic risk:
the target customers’ sentiment.
products do not sell as much as
- If the case happened: promoting commercial and
expected to turn capital (?) (capital
promotional tactics, internal selling policy to push
turnover/ break even)
goods
- Set sales KPIs and sales policies to motivate sales
performance.
- Work clearly from the beginning and have to correct
where the product is only distributed in the original
Brand risk:
place.
comes from counterfeit distribution
- Speak out to correct + give gifts + promote
facilities, distributors offering
- Work closely on contracts and pricing with
inflated prices, harming the
distribution facilities.
reputation of the goods.
- Interfere with the law if phony goods have a large
influence
Legal risks:
If the enterprise's legal department is
- Learn and establish a legal department from the
slow to update, it is likely to push
ground up.
the business into the path of
- Build clear contracts with all parties involved, from
breaking the law or losing its
product administration to distribution.
competitiveness when forced to
- Continuously keep track and conduct quality
comply with the law in stages such
surveys of stakeholders.
as distribution, taxes, suppliers,
related parties, sales contracts,
shareholders, etc.
Supply chain risks:
sourcing sustainable materials (like
Lyrocell) from vendors can reduce
costs and internal workloads, but it - During material selection, assess vendors for not just
also makes products vulnerable to pricing but also reliability.
supply chain disruptions. There’s - Stay updated on supply chain issues and make
always the possibility that a supplier quicker decisions.
can’t meet its contractual
obligations.