Risk management - Essay Example

The fire disaster has occurred in the tower once and destroyed significant part of the floor of the tower under construction then. Therefore, there is no proof that it would not occur again anywhere in the tower. With increasing activities of terrorism it is important to be wary of explosions cause by them. There is no known political risk at the moment known to V-bite restaurant. Human risks that may face the restaurant are numerous including but not limited to sickness and absenteeism of the employees as well as embezzlement and pilferaging perpetuated by the employees.

According to Malcom, Ward and Smith (36), the probability that the market will not be large enough to sufficiently generate enough revenues as outlined in the business plan is a serious market risk. This occurs when there are few customers in the locality or when there is a fierce competition among the market players. The market risks facing V-bite restaurant include product risks, market existence risk, sale volume risk and pricing risks. A product risk refers to the small size and poor quality of the menu available to customers.

Pricing risks are evident when the prices of delicacies in the menu are higher than what other similar restaurant offer. The above risks may bring with it reputation damage, interruption of business operations, customer loss, reduced productivity as well as high damaged reduction and control cost. The cells shaded red is extremely high risk zone. Market risks have been identified as extremely high risk facing the enterprise. V-bite restaurant would not be the only restaurant that offers purely vegetarian delicacies.

Instead, there are other nine restaurants offering identical or similar menu. The restaurants are Spice Kraft JLT, 77 Veggie Boutique, Sukh Sagar Swift, Sukh Sagar at the Beach, Saravanaa Bhojan Shala, Yogurberry, SMS Restaurant, Kamat and Kamat Shireen. Most of the named restaurants have been in operation for longer time.