Teacher's Script: Risk Ready

Introduction & Warm-Up (10 minutes)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 1)

"Good morning, everyone! Today, we're going to talk about something incredibly important for anyone who wants to run a business, or even just make smart decisions in life: risk evaluation.

Our lesson today is called, 'Risk Ready: Business Decisions.' Has anyone ever heard the saying, 'No risk, no reward?' What do you think that means?"

(Facilitate a brief discussion. Guide students to connect risk with opportunity and uncertainty.)

"That's right! Taking risks can lead to great things, but only if we understand and manage them. And that's what we'll learn to do today."

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 2)

"By the end of this lesson, you'll be able to identify different types of business risks, assess how serious they are, and come up with basic plans to deal with them. You'll become a 'Risk Detective'!"

"Let's start with our Warm Up: Risk Scenarios activity. I'm going to give each of you a scenario. Read it carefully and then think about the questions. We'll share our thoughts in a few minutes."

(Distribute Warm Up: Risk Scenarios and allow 3-4 minutes for students to complete it individually. Then, facilitate a brief class discussion based on student responses. For example: "Who had Scenario A? What was the risk? What did you decide to do?")

Understanding Risk: Video & Reading (15 minutes)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 3)

"Great job with the warm-up! You've already started thinking like risk evaluators. Now, let's dive a little deeper into what business risk really means. We're going to watch a short video that gives us an overview."

(Play the video on Risk Ready: Business Decisions Slide Deck - Slide 3. After the video, ask: "What was one key takeaway from that video about business risks?")

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 4)

"As the video showed, and as this slide reminds us, risk is truly everywhere when it comes to business. To help us understand this even better, I have a short Reading: Understanding Business Risk for you. Please take about 5-7 minutes to read this silently, or with a partner if you prefer. Pay attention to the different types of risks mentioned."

(Distribute Reading: Understanding Business Risk. After the reading, use prompts from Discussion Prompts: Weighing the Risks to lead a brief class discussion. For example: "What are some of the different categories of risk mentioned in the reading?")

Risk Identification & Assessment Activity (20 minutes)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 5)

"Now that we have a better grasp of what risk is, let's look at how we identify and assess it. Businesses don't just guess what might go wrong; they have systems to figure it out."

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 6)

"Here are some common types of business risks. You might have noticed some of these in your reading. Let's quickly go through them."

(Briefly explain each risk type: Operational, Financial, Strategic, Compliance, Reputational, giving a quick, relatable example for each.)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 7)

"Identifying risks is the first step, but how do you know how serious a risk is? That's where assessment comes in. We look at two main things: Likelihood – how probable is it that this risk will happen? And Impact – how much damage would it cause if it did happen? We often rate these as High, Medium, or Low."

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 8)

"Let's consider a simple example: planning an outdoor event, and the risk of rain. If the forecast says 90% chance of rain, the likelihood is High. If rain would completely cancel the event and lose a lot of money, the impact is High. So, a High Likelihood, High Impact risk! What would you do?"

"Now, it's your turn to apply these skills! We're going to do an Activity: Risk Detective Case Study. I'm going to divide you into small groups. Each group will receive a case study and a Worksheet: Risk Assessment Checklist. Your task is to identify the risks facing the business in the case study, and then assess their likelihood and impact using the worksheet."

(Divide students into small groups. Distribute the case study for Activity: Risk Detective Case Study and the Worksheet: Risk Assessment Checklist. Circulate among groups to offer guidance and answer questions.)

Risk Mitigation Strategies & Game (10 minutes)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 9)

"Welcome back, risk detectives! You did a fantastic job identifying and assessing risks. But what do businesses do once they know about a risk? They need a plan to deal with it – that's called mitigation.

There are generally four strategies: Avoid the risk entirely, Reduce its likelihood or impact, Transfer the risk to someone else (like buying insurance), or simply Accept the risk if it's small or unavoidable."

(Quickly explain each mitigation strategy with a brief example. For instance, for "avoid," don't open the outdoor event if rain is guaranteed.)

(Teacher displays Risk Ready: Business Decisions Slide Deck - Slide 10)

"Remember, understanding and managing risks is crucial for any successful business. To quickly review and have a little fun, let's play the Game: Risk & Reward Challenge! This game will challenge you to make quick decisions about different risks."

(Explain the rules of Game: Risk & Reward Challenge and facilitate the game. After the game, ask: "What was the hardest part about making decisions in the game? How did you weigh the potential risks and rewards?")

Wrap-Up & Assessment (5 minutes)

"Excellent work today, everyone! You've learned a lot about risk evaluation."

"To quickly check your understanding, please complete this short Quiz: Risk Evaluation Check."

(Distribute Quiz: Risk Evaluation Check and allow 2-3 minutes for completion.)

"As you finish up, please take a moment for our Cool Down: One Big Risk. Think about one big risk a business might face and how they could handle it."

(Distribute Cool Down: One Big Risk as an exit ticket.)

"Before you go, I want to introduce your take-home Project: My Business Risk Plan. This project will allow you to apply everything we've learned today to a business idea of your own. The Rubric: Business Risk Plan outlines exactly what I'm looking for."

"The Answer Key: Risk Evaluation Assessments will be available after you've completed your assessments."

"Thank you for a great lesson!"

Warm Up: Risk Scenarios

Instructions: Read your scenario below. Think about the questions, then be ready to share your thoughts with the class.

Scenario A: The Outdoor Concert

You are planning a big outdoor music concert for your town. Thousands of tickets have been sold. The weather forecast for the day of the concert says there's a 40% chance of thunderstorms.

1. What is the risk in this scenario?
   
   
   
2. What are some of the potential consequences if this risk happens?
   
   
   
3. What is one thing you could do to prepare for or deal with this risk?
   
   
   

Scenario B: The New Product Launch

You own a small tech company and are about to launch a brand new smartphone app. You've spent a year developing it, but a much larger, well-known company just announced they are releasing a very similar app next week.

1. What is the risk in this scenario?
   
   
   
2. What are some of the potential consequences if this risk happens?
   
   
   
3. What is one thing you could do to prepare for or deal with this risk?
   
   
   

Scenario C: The Restaurant Opening

You are opening a new restaurant downtown. You've hired staff, bought ingredients, and planned a grand opening for next month. Suddenly, the city announces major road construction will begin right outside your restaurant on the same day as your grand opening, potentially blocking access for customers for several weeks.

1. What is the risk in this scenario?
   
   
   
2. What are some of the potential consequences if this risk happens?
   
   
   
3. What is one thing you could do to prepare for or deal with this risk?
   
   
   

Reading: Understanding Business Risk

Every business, no matter how big or small, faces challenges and uncertainties. These uncertainties are often called risks. Understanding and managing risks is a critical skill for any entrepreneur, business owner, or even just someone navigating their own personal finances.

What is Business Risk?

Simply put, a business risk is any exposure a company has to a factor that could lead to a decrease in profits, a failure, or a negative impact on its operations. It's the possibility that something unexpected or undesirable might happen, which could harm the business.

Imagine you open a coffee shop. What if the coffee machine breaks down? What if a new, popular coffee chain opens right across the street? What if the price of coffee beans suddenly doubles? These are all examples of business risks.

Why is Risk Evaluation Important?

Evaluating risk isn't about avoiding all risks – that's almost impossible in business. Instead, it's about making informed decisions. By understanding potential risks, businesses can:

• Prepare for the unexpected: Have contingency plans ready.
• Minimize losses: Reduce the financial or operational damage if a risk occurs.
• Seize opportunities: Sometimes, taking a calculated risk can lead to huge rewards.
• Build resilience: A business that can bounce back from challenges is stronger.

Common Types of Business Risks

Risks can come from many different sources. Here are some common categories:

1. Operational Risk: These risks relate to the day-to-day operations of a business. This includes things like equipment failure, supply chain disruptions, human error, cybersecurity breaches, or natural disasters affecting a physical location.

   • Example: A restaurant's refrigerator breaks down, spoiling all the food.

2. Financial Risk: These are risks associated with a company's financial performance and stability. This can include issues like poor cash flow, rising interest rates, unexpected expenses, losing a major customer, or even a global economic downturn.

   • Example: A small business runs out of money to pay its employees and suppliers.

3. Strategic Risk: These risks relate to the big-picture decisions a company makes about its goals and direction. This could be launching a product that no one wants, entering a market that's too competitive, or failing to adapt to new technologies or changing customer preferences.

   • Example: A video rental store failing to adapt to the rise of streaming services.

4. Compliance Risk: This involves the risk of a business failing to follow laws, regulations, industry standards, or internal policies. Not complying can lead to fines, legal action, and damage to reputation.

   • Example: A food company unknowingly uses an ingredient banned by health regulations.

5. Reputational Risk: This is the risk of damage to a company's image or public perception. Bad customer service, ethical scandals, product recalls, or negative social media attention can all severely harm a business's reputation, leading to lost customers and revenue.

   • Example: A clothing brand is found to be using unethical labor practices.

By learning to identify these different types of risks, businesses can start to develop strategies to protect themselves and achieve their goals.

Activity: Risk Detective Case Study

Instructions: Read the case study below with your group. As you read, identify all the potential risks that "Fresh Bites" might face. Use your Worksheet: Risk Assessment Checklist to analyze each risk.

Case Study: "Fresh Bites" Food Truck

Maria has always dreamed of owning her own business. She loves cooking healthy, delicious meals and decides to open a food truck called "Fresh Bites." She plans to operate primarily in the downtown area, near office buildings during lunchtime, and at local festivals and events on weekends.

Maria has secured a loan to buy a used food truck, which is a few years old but seems to be in good condition. She's hired two part-time employees who are enthusiastic about her vision. Her menu focuses on organic, locally sourced ingredients, which means her ingredient costs are higher than average.

For her grand opening, she's rented a spot at a popular street fair next month. She's ordered a large amount of specialty ingredients and is excited for a big turnout. She plans to rely heavily on social media to spread the word about her unique, healthy offerings.

She recently heard about new city regulations requiring all food trucks to have a very specific type of fire suppression system, which her truck currently doesn't have. She thinks it might be expensive to install, but hasn't looked into it yet. Also, a popular burger food truck already has a loyal following in the downtown area she plans to target.

Your Task:

1. Read Carefully: Read the "Fresh Bites" case study with your group.
2. Identify Risks: Brainstorm all the potential risks that Maria and "Fresh Bites" might encounter. Think about everything that could go wrong or cause problems.
3. Use the Worksheet: For each risk you identify, fill out the Worksheet: Risk Assessment Checklist.
   • Describe the Risk: What is it?
   • Categorize the Risk: Is it Operational, Financial, Strategic, Compliance, or Reputational?
   • Assess Likelihood: How likely is it to happen? (High, Medium, Low)
   • Assess Impact: How bad would it be if it happened? (High, Medium, Low)
   • Suggest a Mitigation Strategy: What could Maria do to deal with this risk (Avoid, Reduce, Transfer, or Accept)?

Be prepared to share your findings and strategies with the class!

Discussion Prompts: Weighing the Risks

Use these prompts to guide a class discussion after the reading and activity.

After Reading: Understanding Business Risk

1. What was the most surprising type of business risk you read about, and why?
   
   
   
2. Can you think of a real-world example of a business facing one of the risks mentioned in the reading (Operational, Financial, Strategic, Compliance, Reputational)? What happened?
   
   
   
3. Why is it important for a business to evaluate risks instead of just ignoring them or hoping for the best?
   
   
   
4. Do you think some types of businesses face more risks than others? Give an example.
   
   
   

After Activity: Risk Detective Case Study

1. What was the most significant risk your group identified in the "Fresh Bites" case study? Why did you choose that one?
   
   
   
2. Did your group find it easy or difficult to categorize the risks? Why?
   
   
   
3. How did you decide if a risk had a "High," "Medium," or "Low" likelihood and impact?
   
   
   
4. Share one mitigation strategy your group came up with for a specific risk in the case study. Was it to Avoid, Reduce, Transfer, or Accept the risk?
   
   
   
5. What did you learn about teamwork and decision-making while working on the case study?

Worksheet: Risk Assessment Checklist

Instructions: For each potential risk you identify in the "Fresh Bites" case study, fill out the sections below. Use the categories and assessment levels we discussed in class.

Risk 1:

1. Description of the Risk:

2. Risk Category (Circle one):

Operational | Financial | Strategic | Compliance | Reputational | Other (specify):

3. Likelihood (Circle one):

High | Medium | Low

4. Impact (Circle one):

High | Medium | Low

5. Suggested Mitigation Strategy (Briefly explain what Maria could do - Avoid, Reduce, Transfer, Accept):

Risk 2:

1. Description of the Risk:

2. Risk Category (Circle one):

Operational | Financial | Strategic | Compliance | Reputational | Other (specify):

3. Likelihood (Circle one):

High | Medium | Low

4. Impact (Circle one):

High | Medium | Low

5. Suggested Mitigation Strategy (Briefly explain what Maria could do - Avoid, Reduce, Transfer, Accept):

Risk 3:

1. Description of the Risk:

2. Risk Category (Circle one):

Operational | Financial | Strategic | Compliance | Reputational | Other (specify):

3. Likelihood (Circle one):

High | Medium | Low

4. Impact (Circle one):

High | Medium | Low

5. Suggested Mitigation Strategy (Briefly explain what Maria could do - Avoid, Reduce, Transfer, Accept):

Risk 4:

1. Description of the Risk:

2. Risk Category (Circle one):

Operational | Financial | Strategic | Compliance | Reputational | Other (specify):

3. Likelihood (Circle one):

High | Medium | Low

4. Impact (Circle one):

High | Medium | Low

5. Suggested Mitigation Strategy (Briefly explain what Maria could do - Avoid, Reduce, Transfer, Accept):

Risk 5:

1. Description of the Risk:

2. Risk Category (Circle one):

Operational | Financial | Strategic | Compliance | Reputational | Other (specify):

3. Likelihood (Circle one):

High | Medium | Low

4. Impact (Circle one):

High | Medium | Low

5. Suggested Mitigation Strategy (Briefly explain what Maria could do - Avoid, Reduce, Transfer, Accept):

Game: Risk & Reward Challenge

Instructions: In this game, your goal is to make the best decisions to achieve rewards while managing risks. Your teacher will present different scenarios. For each scenario, discuss with your group and decide the best course of action based on the risk and potential reward.

Game Rules:

1. Your teacher will read a scenario that presents a business decision with a potential risk and reward.
2. As a group, discuss the scenario for 1-2 minutes.
3. Decide on a strategy: Avoid, Reduce, Transfer, or Accept the risk.
4. Be prepared to explain why you chose that strategy.
5. Points will be awarded for well-reasoned decisions, not just for a "correct" answer, as real-world risk management often has multiple valid approaches.

Scenario 1: The Seasonal Ice Cream Shop

You own a popular ice cream shop that only operates during the summer months. You're considering staying open year-round, adding hot drinks and pastries to your menu. This would mean hiring more staff and investing in new equipment.

• Potential Reward: Increased revenue, year-round operation.
• Potential Risk: Low customer turnout in winter, high costs outweighing profits, difficulty finding good staff.

What is your strategy for this risk? (Avoid, Reduce, Transfer, Accept) Why?

Scenario 2: The Online Boutique

You run an online clothing boutique. You've found a new supplier who offers trendy clothes at a much lower price, which could significantly increase your profit margins. However, this supplier is located overseas, and you've never worked with them before.

• Potential Reward: Higher profits, competitive pricing.
• Potential Risk: Poor quality products, unreliable shipping, ethical concerns with labor practices.

What is your strategy for this risk? (Avoid, Reduce, Transfer, Accept) Why?

Scenario 3: The Small Tech Startup

Your small tech startup has developed an innovative new app. A large technology company offers to buy your startup for a significant amount of money, but it means you would no longer be in control of your creation.

• Potential Reward: Financial security, widespread adoption of your app.
• Potential Risk: Loss of creative control, potential misuse of your intellectual property, regret over selling.

What is your strategy for this risk? (Avoid, Reduce, Transfer, Accept) Why?

Scenario 4: The Local Bakery

You own a successful local bakery. Your main oven, which is essential for 80% of your products, is very old and occasionally malfunctions. Replacing it would be a large expense, but you're worried about it breaking down completely during a busy holiday season.

• Potential Reward: Saving money in the short term by not replacing the oven.
• Potential Risk: Complete oven breakdown, loss of all production, angry customers, damage to reputation.

What is your strategy for this risk? (Avoid, Reduce, Transfer, Accept) Why?

Answer Key: Risk Evaluation Assessments

This answer key provides guidance for the Worksheet: Risk Assessment Checklist, Quiz: Risk Evaluation Check, and Test: Mastering Risk Evaluation.

Worksheet: Risk Assessment Checklist - "Fresh Bites" Case Study

(Note: Student answers may vary slightly in wording, but should capture the essence of the risks and strategies.)

Potential Risks and Analysis:

Risk 1: Used Food Truck Breakdown (Operational Risk)

• Description: The used food truck, being older, might break down frequently or completely, leading to lost sales and repair costs.
• Risk Category: Operational
• Likelihood: Medium (used truck, no mention of recent maintenance)
• Impact: High (if the main tool breaks, the business stops)
• Suggested Mitigation Strategy: Reduce - Regularly inspect and maintain the truck, set aside an emergency fund for repairs, or research reliable mechanics for quick fixes.

Risk 2: High Ingredient Costs (Financial Risk)

• Description: Relying on organic, locally sourced ingredients leads to higher costs, which might make the food too expensive for customers or reduce profit margins.
• Risk Category: Financial
• Likelihood: High (explicitly stated in the case study)
• Impact: Medium (could impact profitability or customer base)
• Suggested Mitigation Strategy: Reduce - Research multiple local suppliers for best prices, offer different portion sizes, or occasionally use a mix of organic and non-organic ingredients to balance costs.

Risk 3: New City Fire Regulations (Compliance Risk)

• Description: Maria's truck doesn't have the required new fire suppression system, risking fines, closure, or inability to operate legally.
• Risk Category: Compliance
• Likelihood: High (explicitly stated she doesn't have it and it's a new regulation)
• Impact: High (could shut down the business)
• Suggested Mitigation Strategy: Avoid/Reduce - Immediately research the requirements and cost, and install the system before opening. Avoiding operating without it is key to compliance.

Risk 4: Competition from Burger Food Truck (Strategic Risk)

• Description: A popular burger food truck already has a loyal following in her target downtown area, potentially limiting "Fresh Bites" customer base.
• Risk Category: Strategic
• Likelihood: High (existing, popular competitor)
• Impact: Medium (could impact sales, but "Fresh Bites" offers a different product)
• Suggested Mitigation Strategy: Reduce - Differentiate by emphasizing "Fresh Bites" healthy, organic niche. Partner with local offices for catering. Offer loyalty programs. Find less saturated spots or times.

Risk 5: Low Turnout at Grand Opening due to Competition/Lack of Awareness (Strategic/Reputational Risk)

• Description: Despite social media efforts, the grand opening at the street fair might have low customer turnout due to other popular vendors or insufficient marketing reach.
• Risk Category: Strategic / Reputational
• Likelihood: Medium (street fairs can be hit or miss, and new businesses need to build buzz)
• Impact: Medium (lost initial sales, bad first impression, wasted ingredients)
• Suggested Mitigation Strategy: Reduce - Increase pre-opening social media marketing, offer grand opening specials, collaborate with other vendors at the fair, have tasting samples ready.

Risk 6: Social Media Marketing Effectiveness (Strategic/Reputational Risk)

• Description: Over-reliance on social media might not reach a broad enough audience or convert into actual customers, leading to poor sales.
• Risk Category: Strategic / Reputational
• Likelihood: Medium (social media algorithms can be unpredictable)
• Impact: Medium (limits customer acquisition)
• Suggested Mitigation Strategy: Reduce - Diversify marketing efforts (local flyers, partnerships with gyms/yoga studios, local events), engage with followers, encourage reviews.

Quiz: Risk Evaluation Check

1. What is the primary purpose of evaluating business risks?

   • Correct Answer: To make informed decisions and minimize potential harm.
   • Explanation: Risk evaluation is not about avoiding all risks, but understanding them to make strategic choices and reduce negative consequences.

2. If a factory's machinery frequently breaks down, causing production delays, what type of risk is this primarily?

   • Correct Answer: Operational Risk
   • Explanation: Operational risks relate to the day-to-day functioning and processes of a business.

3. Which two factors are typically assessed when evaluating a risk?

   • Correct Answer: Likelihood and Impact
   • Explanation: These two factors help determine the severity and probability of a risk occurring.

4. Describe a scenario where a business might choose to 'Accept' a risk instead of trying to avoid or reduce it.

   • Sample Answer: A business might accept a risk if the likelihood and impact are very low, and the cost of mitigating the risk outweighs the potential harm. For example, a small local shop might accept the very low risk of a minor power outage rather than investing in an expensive backup generator, especially if they can quickly recover.
   • Reasoning: Students should demonstrate an understanding that acceptance is a conscious decision for low-priority risks where mitigation isn't cost-effective.

5. Buying insurance to protect against potential financial losses is an example of which risk mitigation strategy?

   • Correct Answer: Transfer
   • Explanation: Insurance transfers the financial burden of a risk from the business to the insurance company.

Test: Mastering Risk Evaluation

1. Define business risk in your own words and explain why it's a critical concept for any business owner.

   • Sample Answer: Business risk refers to the possibility of facing events or actions that could negatively impact a company's operations, financial health, or overall success. It's critical because understanding risks allows businesses to anticipate problems, make informed decisions, protect assets, and develop strategies to minimize losses or even turn potential threats into opportunities. Without risk evaluation, businesses operate blindly and are highly susceptible to unexpected failures.
   • Rubric: Full credit for a clear definition and at least two strong reasons for its importance.

2. Which of the following is an example of a Strategic Risk?

   • Correct Answer: A competitor launching a superior product that makes your core offering obsolete.
   • Explanation: Strategic risks involve long-term planning, market position, and significant competitive changes. The other options are more operational, financial, or compliance-related.

3. Explain the difference between 'Likelihood' and 'Impact' when assessing a business risk. Provide an example for each.

   • Sample Answer: Likelihood refers to the probability or chance that a specific risk event will occur (e.g., 'high chance of rain'). Impact refers to the severity of the consequences or damage if the risk event does occur (e.g., 'heavy rain would cancel our outdoor event, costing us thousands'). For example, a minor technical glitch (low likelihood, low impact) is different from a major data breach (low likelihood, high impact).
   • Rubric: Full credit for clearly differentiating likelihood and impact and providing a relevant example for each or a combined example.

4. A company decides not to expand into a new country due to political instability and high corruption. Which risk mitigation strategy is being applied?

   • Correct Answer: Avoid
   • Explanation: By choosing not to undertake the activity that carries the risk, the company is avoiding it entirely.

5. On a scale of 1 (Strongly Disagree) to 5 (Strongly Agree), how much do you agree that identifying risks is more important than assessing their likelihood and impact?

   • Correct Answer: 3 (Neutral) or lower. (Ideally, students recognize both are equally important for effective risk management.)
   • Reasoning: Identifying risks is the first step, but without assessing likelihood and impact, a business cannot prioritize or effectively mitigate them. Both are crucial for comprehensive risk evaluation.

6. Imagine you own a small online bookstore. Describe one Financial Risk and one Reputational Risk your business might face. For each, suggest a specific mitigation strategy.

   • Sample Answer:
     • Financial Risk: A sudden drop in sales due to increased competition from large online retailers. Mitigation: Reduce by diversifying product offerings (e.g., selling used books, unique literary merchandise) or finding ways to cut operational costs.
     • Reputational Risk: A customer posts a highly negative review on social media about a damaged book they received. Mitigation: Reduce by implementing a robust quality control check before shipping and having a clear, prompt customer service policy for addressing complaints and offering resolutions.
   • Rubric: Full credit for identifying one relevant risk for each category and providing a logical, specific mitigation strategy for each. Strategies should align with Avoid, Reduce, Transfer, or Accept.

Project: My Business Risk Plan

Objective: To apply the concepts of risk evaluation to a hypothetical business of your own design, identifying potential risks and developing strategies to manage them.

Due Date: [Insert Date Here]

Project Overview:

For this project, you will imagine you are starting a new business. It can be any type of business you like – a physical store, an online service, a tech startup, a local enterprise, etc. You will then act as a "Risk Manager" for your business, identifying potential challenges and creating a plan to address them.

This project will help you understand the practical application of risk evaluation in the real world.

Project Steps:

Step 1: Choose Your Business Idea

• Briefly describe your chosen business idea. What will it sell or offer? Who are its customers? Where will it operate?
  
  
  
  
  
  
  

Step 2: Identify Potential Risks

• Brainstorm at least five (5) different risks that your business might face. Try to think of a variety of risks, drawing from the categories we discussed (Operational, Financial, Strategic, Compliance, Reputational).
• For each risk, describe it clearly.
  
  
  
  
  
  
  
  
  
  
  
  
  

Step 3: Assess Each Risk

• For each of the five risks you identified, assess its Likelihood (High, Medium, or Low) and Impact (High, Medium, or Low) if it were to occur.
• Explain why you rated it that way.
  
  
  
  
  
  
  
  
  
  
  
  
  

Step 4: Develop Mitigation Strategies

• For each of the five risks, propose a specific mitigation strategy. Will you Avoid, Reduce, Transfer, or Accept the risk? (You must use at least three different strategies across your five risks).
• Clearly explain how your chosen strategy would help manage that specific risk.
  
  
  
  
  
  
  
  
  
  
  
  
  

Step 5: Executive Summary

• Write a short executive summary (1-2 paragraphs) for your project. In this summary, explain why understanding and managing risk is so important for the success of your specific business idea.
  
  
  
  
  
  
  

Submission Requirements:

Your final submission should include:

1. A clear description of your business idea.
2. A list of at least five identified risks, each with a description.
3. For each risk, an assessment of its Likelihood and Impact, with explanations.
4. For each risk, a proposed mitigation strategy (Avoid, Reduce, Transfer, or Accept) with an explanation of how it works.
5. An executive summary reflecting on the importance of risk management for your business.

(You may present this as a written report, a presentation, or a poster board – consult with your teacher for preferred format.)

Rubric: My Business Risk Plan

Student Name: ________________________

Project Title: ________________________

Scoring Criteria:

Cool Down: One Big Risk

Instructions: Before you leave, reflect on today's lesson about risk evaluation. In the space below, identify one major business risk that a company you know (or a hypothetical one) might face, and briefly explain one strategy they could use to manage it.

My Big Business Risk:

1. Describe the major business risk:

2. What type of risk is it? (Operational, Financial, Strategic, Compliance, Reputational):

3. What is one strategy (Avoid, Reduce, Transfer, or Accept) the business could use to manage this risk? Explain how it works.

Thank you for being a risk-ready learner today!