Word count: 1200 words
Referencing style: Harvard Referencing.

Two friends who met at university are thinking of going into business together. They plan to start a company that provides high visibility clothing to roadside workers across UK and Europe.

In preparing their business plan, they are going to include a section on risk management.

Please write this section for them. Itemise all relevant risks that they need to take into account and give each one a risk rating from 1 to 5, where 1 is very low risk (VL), 2 being low (L), 3 being medium (M), 4 being high (H) and 5 is very high (VH) risk, explaining why you have ascribed such a rating.

Then go on to explain how you propose they address each of the risks.
In terms of structure please write:

1. A brief introduction explaining the proposed business as stated above. You should explain that you have been asked to write the risk management for two friends who met at university and are thinking of going into business together. They plan to start a company that provides high visibility clothing to roadside workers across UK and Europe. In preparing their business plan, they are going to include a section on risk management. They have asked you to prepare this section for them. You would itemise all relevant risks that they need to take into account and give each one a risk rating from 1 to 5, where 1 is very low risk (VL), 2 being low (L), 3 being medium (M), 4 being high (H) and 5 is very high (VH) risk, explaining why you have ascribed such a rating. Then go on to explain how you propose they address each of the risks and introduce your risk management plan.

2. You should critically analysis the business looking at it from two side.The first side being that the two friends want to start a company that provides high visibility clothing to roadside workers across UK and Europe which; they product themselves or they outsource to manufacturers in the UK or outside the UK.

3. Itemise all of the risks that you think could impact the business for example if the company decided to produce the product themselves then how would policies in the UK threaten them. How would the government and other things like the corona virus pandemic, the UK economy, the interest rates and Brexit would all pose a certain risk to them starting their business. Explain what they are in terms of Routine, Complex, etc and why they need to be addressed to a greater or lesser degree. Also do the same for if the two friends decided to outsource their manufacturing.

4. Using the risks outlined in number 2 above, apply a risk rating, explain why you have ascribed such a rating and how you would propose the risk be dealt with. For example if the company decided to produce the product themselves then all the risks stated above would be given a risk rating from 1 to 5, where 1 is very low risk (VL), 2 being low (L), 3 being medium (M), 4 being high (H) and 5 is very high (VH) risk, explaining why you have ascribed such a rating.

5. Summary and conclusion. Provide: A summary of your analysis of the risks that could affect the business with clear links to any risk management literature, websites or research that you have carried out.* This should lead to a conclusion that would represent advice to the business as to how to proceed and any other comments that you think would aid the on-going risk management of the enterprise in the future

*Please reference in the correct manner, in a bibliography at the end of the assignment, any sources that you have used to prepare this essay.

Risk in business