Outline of Risks Management Plan
1. Risks Identification
We make the risks plan to ensure our company operates successfully. We list the risks we might have met. products and the funds rate of return may be low. and for the energy, raw materials supply. prices, marketing demands and analyses in market. technician may also be lack. experience, introduced a management manual, but the company’s internal
management may impossible to keep up with the rate of expansions. For example, the power of headquarters control divisional continuously reduced and the system cannot support the process. such as choice of channels, transport of the time, cost and route.
To our business, anytime we should focus on other’s competition policy, to make the best response strategy or a pre-emptive strike to get more consumers to generate earnings growth.
2. Risks Avoidances
1. Make full use of our own money, select the right capital structure and the less risky funding mix and choose a variety of funding channel, such as, issuing shares, bonds, borrowing from banks or non-financial institutions. It is essential to improve
efficiency of using money and guarantee the solvency and profitability of enterprise.
2. To strengthen collaboration with large and middle size companies to shift the
relations from competition to cooperation partners. Avoiding sharp competition risks and developing together.
3. Choose a low-risk market. Turn the key investment to the region market which is not saturated. Jump out of sharp competition and quickly occupy the market, according to our own characteristics and market demand. 1. Open chain stores to reduce risks through professional method to operate and manage the company, and optimize capital structure to enhance stability.
2. Combine production and marketing .Reduce the process of the flow of goods, and cut down logistic cost.
3. Adapt standardized management and build perfect supervision and inspection system. 1. Joint venture, combine the strong foreign capital and advanced management expertise with our own advantages and ability to reduce inputs and risks.
2. To build distribution centers with large shopping malls .It is good to form and improve long-term stable supply-sale ship to reduce the risk. 1. Set up fund of accident loss.
2. Find professional insurance company
3. Exit Strategy
Under no circumstances will we choose the exit strategy unless there is no way out. We have three exit strategies in case there is such a situation.
1. Sale the whole company: It can withdraw the capital
2. Merger the company: This way we can get more capital and resources.
3. A management buyout: Sell the shares to management to return all or part of capital.
4. IPO: To attract more investors to invest our company.
Outline of Risks Management Plan
1. Risks Identification
We make the risks plan to ensure our company operates successfully. We list the risks we might have met. products and the funds rate of return may be low. and for the energy, raw materials supply. prices, marketing demands and analyses in market. technician may also be lack. experience, introduced a management manual, but the company’s internal
management may impossible to keep up with the rate of expansions. For example, the power of headquarters control divisional continuously reduced and the system cannot support the process. such as choice of channels, transport of the time, cost and route.
To our business, anytime we should focus on other’s competition policy, to make the best response strategy or a pre-emptive strike to get more consumers to generate earnings growth.
2. Risks Avoidances
1. Make full use of our own money, select the right capital structure and the less risky funding mix and choose a variety of funding channel, such as, issuing shares, bonds, borrowing from banks or non-financial institutions. It is essential to improve
efficiency of using money and guarantee the solvency and profitability of enterprise.
2. To strengthen collaboration with large and middle size companies to shift the
relations from competition to cooperation partners. Avoiding sharp competition risks and developing together.
3. Choose a low-risk market. Turn the key investment to the region market which is not saturated. Jump out of sharp competition and quickly occupy the market, according to our own characteristics and market demand. 1. Open chain stores to reduce risks through professional method to operate and manage the company, and optimize capital structure to enhance stability.
2. Combine production and marketing .Reduce the process of the flow of goods, and cut down logistic cost.
3. Adapt standardized management and build perfect supervision and inspection system. 1. Joint venture, combine the strong foreign capital and advanced management expertise with our own advantages and ability to reduce inputs and risks.
2. To build distribution centers with large shopping malls .It is good to form and improve long-term stable supply-sale ship to reduce the risk. 1. Set up fund of accident loss.
2. Find professional insurance company
3. Exit Strategy
Under no circumstances will we choose the exit strategy unless there is no way out. We have three exit strategies in case there is such a situation.
1. Sale the whole company: It can withdraw the capital
2. Merger the company: This way we can get more capital and resources.
3. A management buyout: Sell the shares to management to return all or part of capital.
4. IPO: To attract more investors to invest our company.