SpazaHub — Risk Analysis and Mitigation
SpazaHub maintains comprehensive insurance: public liability (ZAR 5M), business interruption, stock-in-trade, employer’s liability, and building/contents cover. Annual premiums: approximately 1% of revenue.
Section 13 · Business Plan
Risk Analysis and Mitigation
SpazaHub maintains comprehensive insurance: public liability (ZAR 5M), business interruption, stock-in-trade, employer’s liability, and building/contents cover. Annual premiums: approximately 1% of revenue.
| Risk | Description | Prob. | Impact | Mitigation |
|---|---|---|---|---|
| Competition | Foreign-owned spaza price war | High | High | Trust, quality, compliance differentiation |
| Theft & Crime | Robbery, shrinkage, fraud | High | High | CCTV, safe, security, insurance |
| Food Safety | Contamination or spoilage | Med | High | Cold chain, FIFO, expiry audits, HACCP |
| Cash Flow | Working capital shortfall | Med | High | 6-month buffer, digital payments, tight stock |
| Regulation | Compliance failure or changes | Low | High | Proactive compliance, legal counsel |
| Load-shedding | Power outages spoil stock | High | Med | UPS, battery backup, gas alternatives |
| Food Inflation | Ingredient cost increases | High | Med | Supplier negotiation, category mix adjust |
| Staff Turnover | Key person dependency | Med | Med | Cross-training, above-market wages |
| Location Risk | Foot traffic decline | Low | Med | Pre-opening traffic surveys, flexible lease |
| Credit Risk | Informal credit defaults | Med | Med | Strict credit policy, digital tracking |
SpazaHub maintains comprehensive insurance: public liability (ZAR 5M), business interruption, stock-in-trade, employer’s liability, and building/contents cover. Annual premiums: approximately 1% of revenue.
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