Kasi Crisps — Risk Analysis & Mitigation
Given South Africa’s well-documented electricity supply challenges, Kasi Crisps has designed a three-tier energy security strategy. The primary supply is Eskom grid power supplemented by a 500kW rooftop solar photovoltaic installation providing approximately 30% of daytime energy requirements. Secondary backup comprises a…
Section 12 · Business Plan
Risk Analysis & Mitigation
Given South Africa’s well-documented electricity supply challenges, Kasi Crisps has designed a three-tier energy security strategy. The primary supply is Eskom grid power supplemented by a 500kW rooftop solar photovoltaic installation providing approximately 30% of daytime energy requirements. Secondary backup comprises a…
12.1 Risk Register
| Risk Category | Description | Likelihood | Impact | Mitigation Strategy |
|---|---|---|---|---|
| Market Risk | Lower-than-expected consumer adoption rate | Medium | High | Phased launch, heavy sampling, flexible marketing spend |
| Supply Chain | Potato crop failure or price spikes | Medium | Medium | Dual sourcing, 3-month inventory buffer, forward contracts |
| Competitive | Aggressive PepsiCo response (price war) | Medium | High | Differentiated positioning, avoid head-on price competition |
| Operational | Equipment breakdown during ramp-up | Low | High | Comprehensive maintenance contracts, critical spare parts inventory |
| Regulatory | Delays in FSSC certification | Low | High | Pre-audit gap analysis, dedicated QA team, buffer timeline |
| Financial | ZAR depreciation increasing import costs | Medium | Medium | Local sourcing preference, FX hedging on equipment imports |
| Energy | Load shedding / electricity supply disruption | High | Medium | 500kW solar + battery, 250kVA diesel generator backup |
| Political | Policy changes affecting SEZ incentives | Low | Medium | Diversified incentive strategy, strong government relations |
12.2 Energy Security Plan
Given South Africa’s well-documented electricity supply challenges, Kasi Crisps has designed a three-tier energy security strategy. The primary supply is Eskom grid power supplemented by a 500kW rooftop solar photovoltaic installation providing approximately 30% of daytime energy requirements. Secondary backup comprises a 250kVA diesel generator capable of sustaining critical production systems. Tertiary backup is a 200kWh lithium-ion battery storage system for short-duration interruptions. This layered approach ensures production continuity under all but the most extreme scenarios, with estimated annual energy cost savings of 18–22% versus grid-only supply.
12.3 Insurance Coverage
Comprehensive insurance coverage will be maintained, including: property and assets (replacement value), business interruption (12-month cover), product liability (ZAR 50M per occurrence), commercial general liability, goods in transit, and directors and officers liability. Total estimated annual insurance premium: ZAR 1.8–2.2 million.
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