Torque Precision Auto Business Plan — Appendix D: Risk Register
Detailed risk register scoring likelihood and impact, with mitigations and the pre-committed trigger points adopted as board policy.
Appendix D: Risk Register
Jump to section
- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Opportunity
- 3. How a Workshop Actually Makes Money
- 4. Accreditation and Compliance
- 5. SWOT and Competitive Position
- 6. Operations and the Bay Build
- 7. Route to Market
- 8. Management and Governance
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Operating Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
|
Risk |
Assessment |
Mitigation and residual position |
|---|---|---|
|
Technician scarcity and turnover |
High likelihood, high impact |
Above-award pay for efficiency, apprentice pipeline through merSETA, tool allowances, and a documented efficiency bonus so the best technicians earn visibly more |
|
Utilisation shortfall in Years 1 and 2 |
High likelihood, high impact |
Fleet contracts pursued before opening; two-year capital moratorium; bay and technician expansion deferrable within one quarter if utilisation lags |
|
Manufacturer resistance to data access |
Moderate likelihood, moderate impact |
Multi-marque diagnostic platform plus targeted subscriptions; complaints route to the Competition Commission; marque focus narrowed to those where access is reliable |
|
Comeback and warranty rework |
Moderate likelihood, moderate impact |
Quality control sign-off before release, road test protocol, rework provision at 1.2% of labour revenue and rework tracked by technician |
|
Parts margin compression |
Moderate likelihood, moderate impact |
Multiple suppliers, negotiated volume terms, and a policy of quoting parts and labour separately so the customer sees the labour saving |
|
Damage to a customer vehicle |
Moderate likelihood, high impact |
Comprehensive workshop and public liability cover; documented vehicle condition on intake; controlled key management |
|
Electricity interruption |
High likelihood, moderate impact |
Solar and backup sized for compressors, lifts and diagnostics; these are revenue-critical rather than convenience loads |
|
Cash absorption through the ramp |
High likelihood |
Equity sized to fund two years of losses; monthly covenant review; parts stock held tight against a fast-moving list |
D.1 Pre-committed trigger points
|
Point |
Trigger |
Committed response |
|---|---|---|
|
Month 5 |
Fewer than four bays operational or accreditation application not submitted |
Do not open. A workshop that opens without RMI and MIWA standing cannot pursue fleet or insurer work |
|
Month 12 |
Utilisation below 55% or no fleet contract signed |
Do not add bays. Fill the four you have; defer the Year 2 expansion by a quarter at a time |
|
Any week |
Effective labour rate below R720 |
Leakage has drifted above 9%. Review goodwill write-offs, quote overruns and rework by service advisor and technician |
|
Any month |
Technician efficiency below 95% after Year 2 |
Retrain, re-tool or replace. Efficiency is the lever most dependent on people |
|
Year 3 |
Debt service cover below 1.30 times |
Defer the next bay and approach the financier before the covenant is tested |
|
Any year |
Utilisation above 80% for two consecutive quarters |
Only then add the next bay. A waiting list and a full car park are not the trigger; the utilisation number is |