Khula Retail — Risk Assessment & Mitigation
A structured risk register and the mitigation measures covering market, operational, financial, supply-chain and execution risks.
Section 13 · Business Plan
Risk Assessment & Mitigation
A structured risk register and the mitigation measures covering market, operational, financial, supply-chain and execution risks.
13.1 Risk Management Framework
Khula Retail has implemented a structured risk-management framework
covering identification, assessment, treatment, monitoring and reporting
of risks across the business. The framework is consistent with
established enterprise-risk-management principles and is calibrated to
the scale and complexity of an early-stage retail operator. Material
risks are reviewed quarterly at board level, with operational risks
reviewed monthly by the senior management team.
13.2 Risk Heat Map
13.3 SWOT Analysis
13.4 Detailed Risk Register
| Risk | Pr | Imp | Mitigation |
|---|---|---|---|
| Load-shedding / energy disruption | 4 | 4 | Hybrid solar+battery for core systems; diesel back-up; UPS for POS |
| Crime & shrinkage | 4 | 3 | 32 CCTV cameras; armed-response contract; staff training; daily till variance reporting |
| Margin compression from chains | 4 | 3 | Buying-group affiliation; KVI discipline; private label pipeline; loyalty switching cost |
| Consumer demand softness | 3 | 4 | Diversified basket (essentials provide floor); rapid markdown protocol; flexible staffing |
| Supplier disruption | 3 | 3 | Dual-sourcing on top 80 SKUs; 38-day stock cover; emergency procurement protocol |
| Currency volatility (imports) | 3 | 2 | Limited import exposure (<8% of COGS); USD-denominated supplier hedge for >R500k orders |
| Lease renewal / rent escalation | 2 | 4 | 5-year initial term with renewal option; rent capped at 7% p.a. escalation |
| Cyber / POS breach | 2 | 3 | PCI-DSS compliant POS; quarterly penetration testing; cyber insurance |
| Talent retention | 2 | 2 | Above-market wages; structured career path; profit-share from Year 2 |
| Climate / severe weather event | 1 | 3 | Comprehensive insurance including business interruption; flood-risk pre-screened site |
| BBBEE / regulatory non-compliance | 2 | 1 | Annual verification by accredited agency; quarterly compliance review by external advisor |
Table 34. Risk register (Pr = probability 1–4; Imp = impact
1–4)
13.5 Insurance Programme
The Company will maintain a comprehensive insurance programme
covering the principal risks set out above. Total annual insurance
premium is budgeted at approximately R38 000 in Year 1 rising in line
with insured value.
- Stock and contents insurance: full replacement value, with theft,
fire and water-damage cover. - Public liability: R10 million limit per occurrence.
- Business interruption: 12 months of revenue and continuing
expenses. - Money-in-transit and cash-on-premises: limits matched to peak
weekly cash holding. - Cyber liability: R5 million limit covering data breach, business
email compromise and ransomware. - Directors’ & officers’ liability: R5 million limit.
- Workers’ compensation: as required under the Compensation for
Occupational Injuries and Diseases Act.
Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Khula Retail (Pty) Ltd.