7/27/2019 Scenario Risk Analysis Worksheet #E

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1. Scenario Description(Initiating Event)Inability to establish steady clientele after 9 months of aggressive field trials

2. Potential Causes (factors that could lead to the initiating event occurring) Improper packaging Wrong Strategy Incompetence/poor skills for the job Technically competent but very poor in marketing or people relations Runs on a poor budget that is exhausted too early leading to cutting corners in outreach

after only 2 months

Scattered focus: Rapidly changing ideas, products or services Wanting to do everything at once Inability to hide emotions when dealing with potential customers---begging posture or

annoyed stance

3. Potential Consequences(Final outcomes/Impact) Frustration Business Closure Emotional trauma Eating becomes difficult Severe cash flow trauma

4. Probability Analysis(Used as guide to select Probability on Matrix based on experience/pastevents) High if business is poorly planned Probable if technical competence is much higher that marketing competence given that the

sole proprietor is combined designer, producer and marketer

5. Consequence Analysis(Guide to select Consequence Severity on Matrix based on experience/pastevents)

Many sole proprietors are poorly funded Poor training and awareness of effective strategies Limitations in market research data may lead to poor pricing mechanisms. Poor collateral levels make recapitalization difficult

6. Existing Safeguards/Controls: Prevention Started small using own property, minimizing initial capital exposure Attended Risk Management Seminar and as such aware of such dangers and will take actions

to minimize likelihood of occurrence.

7. Existing Safeguards/Controls: Mitigation Started small, so consequence severity in terms of losses will also be small. May still have

funds remaining. Only the trauma of no customers might make continuation difficult.

8. Risk Estimate(Before Recommendations)

7/27/2019 Scenario Risk Analysis Worksheet #E

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