Savanna Harvest Supermarket — Risk Analysis
The following risk assessment identifies the principal risks facing Savanna Harvest Supermarket and the mitigation strategies that management will implement to manage these risks to acceptable levels. The risk assessment follows a standard framework appropriate for a retail business operating in the…
Section 15 · Business Plan
Risk Analysis
The following risk assessment identifies the principal risks facing Savanna Harvest Supermarket and the mitigation strategies that management will implement to manage these risks to acceptable levels. The risk assessment follows a standard framework appropriate for a retail business operating in the…
The following risk assessment identifies the principal risks facing Savanna Harvest Supermarket and the mitigation strategies that management will implement to manage these risks to acceptable levels. The risk assessment follows a standard framework appropriate for a retail business operating in the South African context.
15.1 Risk Register
| Risk Category | Description | Likelihood | Impact | Mitigation Strategy |
| Competition | Entry of additional competitors into catchment area | High | Medium | Differentiate on service, freshness, and community engagement |
| Economic Downturn | Reduced consumer spending due to recession | Medium | High | Focus on essential goods and value positioning; maintain lean cost structure |
| Supply Chain Disruption | Supplier failure or logistics interruption | Medium | High | Diversified supplier base; maintain safety stock on critical items |
| Load Shedding | Power outages affecting operations and cold chain | High | High | Install generator and UPS systems; insure perishable stock |
| Shrinkage & Theft | Internal and external theft, wastage | High | Medium | CCTV, access controls, stock audits, staff training and incentives |
| Staff Turnover | Loss of trained staff to competitors | Medium | Medium | Competitive remuneration, career development, positive work culture |
| Regulatory Changes | Changes in food safety, labour, or tax regulations | Low | Medium | Maintain compliance monitoring; engage industry associations |
| Cash Flow Pressure | Working capital strain during ramp-up period | Medium | High | Maintain R1.5M working capital reserve; negotiate favourable supplier terms |
| Food Safety Incident | Product contamination or safety breach | Low | High | Strict HACCP protocols, temperature monitoring, supplier quality audits |
| Currency Fluctuation | Rand depreciation increasing import costs | Medium | Medium | Prioritise locally sourced products; pass through pricing where possible |
15.2 Business Continuity Planning
Savanna Harvest Supermarket will develop a comprehensive Business Continuity Plan (BCP) addressing major disruptive scenarios including extended power outages, supplier failures, natural disasters, pandemic conditions, and major equipment breakdowns. The BCP will identify critical business functions, establish recovery time objectives, and define the roles and responsibilities of key personnel during an emergency. The plan will be reviewed and tested annually through tabletop exercises and will be updated to reflect changes in the business environment and operational structure.
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