Savannah & Sakura Hospitality Group — Risk Analysis & Mitigation

A structured risk register and the mitigation measures covering market, operational, financial, execution and regulatory risks.

Savannah & Sakura Hospitality Group Business PlanSection 11 › Risk Analysis & Mitigation

Section 11 · Business Plan

Risk Analysis & Mitigation

A structured risk register and the mitigation measures covering market, operational, financial, execution and regulatory risks.

The plan’s principal risks, their assessed likelihood and impact, and
the Company’s mitigation measures are set out below. Risks are actively
managed through the Audit & Risk Committee, with the financial model
stress-tested against the most material exposures (Section 13).

Risk Likelihood Impact Mitigation
Execution / multi-site commissioning Medium High Phased roadmap; experienced team; Year-1 losses modelled
Revenue ramp slower than planned Medium High Conservative ramp; working-capital buffer; scenario testing
Food & input-cost inflation Medium–High Medium Central procurement; backward integration; menu engineering
Macro / currency / load-shedding High Medium Backup power; premium price-resilient guests; FX-earning tourism
Skilled-talent scarcity & emigration Medium High Owned academy; retention incentives; equity participation
Tourism shock (health, security) Low–Medium High Diversified domestic + international demand; flexible cost base
Funding / covenant pressure Low–Medium High Conservative gearing; DSCR headroom; phased drawdowns
Brand / reputational event Low High Quality systems; food safety; crisis protocols; insurance

Table 10. Principal risks, assessment and
mitigation.

Bankability note

The financial model maintains a minimum debt-service cover ratio of
1.20x (Year 2) and recovers to 5.93x by Year 5, providing meaningful
headroom against the lender’s typical 1.20x covenant even under the
modelled downside scenarios.

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 Savannah & Sakura Hospitality Group (Pty) Ltd.