Critical Risk Factor
Every company faces different critical risks. If you can’t figure out how to mitigate or avoid a risk there probably is a major problem with you business idea or business model. These risks may include any risk related to the industry, risk related to the company, and risk related to its employees. The company should also take into consideration the market appeal of the company, the timing of the product or development, and how the financing of the initial operations is going to occur. Example, the product after manufacture and sell to the market, it is found that the product is unsafe. The company of this product may face bankrupt or losing a big amount of money. Critical risk factors are needed to be identifying when planning the business plan to make sure the business plan can be successful.
There are a few critical risk factors that face by our company. First, there is higher potential for loss of assets by nationalization or war. This means that when nationalization or war happen, the company will lose their businesses. There are few examples happen due to this factor. Kennecott Copper Company lost all its assets in Chile when it temporarily became a communist country. During the Gulf war, many Indians also lost their businesses in Kuwait when the country was invaded by Iraq. If the war has happen in Kampar, there will seriously affect our pet shop because when war or nationalization, the people will more care about themselves other than go to the pet shop and buy materials or foods to the pets.
Secondly, possible changes in political system or political parties may create a risk factor to the company. This is because when the political system or political parties changes, the industry policies will changes that may become unfavorable to the interests of the company. There are pet’s foods and the materials that import from the foreign country. The changes industry policy may increase the cost and increase the prices if these all pet’s...