A sound risk response names the risk, states the action, and says what risk remains. It lowers a risk, and it does not claim to remove it.
This lesson is part of student-owned business plan reasoning. It uses the stall from reconciling a sales forecast with stated capacity and assumptions.
How do I write a risk response?
Use three parts in order.
- Risk: what could go wrong, and how it would affect the plan.
- Response: the specific action the business will take.
- What remains: the part of the risk that is still there, and how it will be watched.
Most plans leave out the third part, yet it is what keeps the answer honest.
Worked example: a rainy day at the stall
Aiman sells kuih from a table in the school canteen area. On a wet day fewer classmates walk past the table, and his sales drop.
Risk. On rainy days, sales may fall from about 18 boxes to about 11 boxes a day, which is 7 fewer. This is an estimate from the two wet days last month.
Response. Aiman will take pre-orders for collection in the canteen, so classmates can order without walking to the table. He assumes pre-orders will cover about 4 of the 7 lost boxes.
What remains. Even with pre-orders, sales on a wet day may still be about 3 boxes lower. Aiman will record each wet-day total and review the assumption after 4 wet days.
The response lowers the risk and says how much is left. It does not claim the stall is safe from rain.
The mistake that costs marks
The common slip is to promise an outcome. “This will make sure the stall never loses money” cannot be proved, and one bad week disproves it.
| Step | Wrong | Right |
|---|---|---|
| Risk | rain | sales may fall from 18 to 11 boxes on wet days |
| Response | pre-orders will make sure there is no loss | pre-orders aim to recover about 4 boxes |
| What remains | not stated | about 3 boxes lower, reviewed after 4 wet days |
| Tone | promise | estimate with a review date |
Words such as reduce, limit and aim to are not weak. They are accurate.
Check yourself
A cake maker’s flour supplier sometimes delivers late. She writes, “Using a second supplier will ensure there are no delays.” Rewrite the sentence as a qualified risk response.
Answer
Risk: a late flour delivery could stop baking for a day and delay orders.
Response: she will keep the contact of a second supplier and keep one extra bag of flour in stock, which lowers the chance of a stop.
What remains: if both suppliers are late, baking may still stop. She will note each late delivery and review the suppliers at the end of each month.
What to study next
Go on to recording revisions and sources rather than submitting a generated project. Then try the integrated practice set.
The business case answer planner helps you lay out a risk, a response and what remains. For a teacher to review your wording, see online one-to-one Business tuition.