Velvet Fig Dining — Risk Management Matrix
The following risk register has been developed using a structured risk assessment framework consistent with ISO 31000 principles and typical Big 4 advisory risk management standards. Each risk is evaluated on likelihood and impact, with explicit mitigation strategies and residual risk ratings.
Section 9 · Business Plan
Risk Management Matrix
The following risk register has been developed using a structured risk assessment framework consistent with ISO 31000 principles and typical Big 4 advisory risk management standards. Each risk is evaluated on likelihood and impact, with explicit mitigation strategies and residual risk ratings.
The following risk register has been developed using a structured risk assessment framework consistent with ISO 31000 principles and typical Big 4 advisory risk management standards. Each risk is evaluated on likelihood and impact, with explicit mitigation strategies and residual risk ratings.
| Risk | Likelihood | Impact | Mitigation Strategy | Residual Risk |
|---|---|---|---|---|
| Economic Slowdown / Recession | HIGH | MEDIUM | Maintain premium positioning; introduce prix-fixe menus; leverage tourism insulation | MEDIUM |
| Eskom Load Shedding | HIGH | HIGH | Install solar/generator backup; contract energy provider; LED fit-out | LOW |
| Labour Cost Escalation | MEDIUM | MEDIUM | Multi-skilling; incentive-linked wage structure; lean staffing model | LOW |
| Key Person Dependency | HIGH | MEDIUM | Deputy chef programme; equity retention for chef; documented IP | LOW |
| Food Cost Inflation | HIGH | MEDIUM | Seasonal menu rotation; multiple suppliers; forward purchasing agreements | LOW-MED |
| Competition / Market Entry | MEDIUM | LOW | Strong brand moat; experiential differentiation; loyalty programme | LOW |
| Regulatory / Licensing | LOW | HIGH | Engage specialist hospitality compliance counsel pre-launch | LOW |
| Rental / Property Risk | MEDIUM | HIGH | Negotiated lease breaks; turnover-linked rent clauses | LOW |
| Pandemic / Health Event | LOW | HIGH | Delivery channel; outdoor seating; hygiene certification | LOW |
The management team has stress-tested the financial model under the scenarios outlined in Section 7.8. The business maintains solvency and positive cash generation in all scenarios above -25% revenue deviation from the base case.
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