Co-operative Assistance Network Limited

The basic process is:

• Think about what could go wrong
• List all those possibilities
• Grade them:

1. Very likely (3) / quite likely (2) / unlikely (1)
2. High potential problem (3) / moderate (2) / minor (1)

• Multiply out
• Prioritise those rated 9, then 6, then 4, then 3
• For each risk:

1. Devise a strategy to minimise it or avoid it completely
2. Devise a strategy to deal with it if it arises anyway
3. Consider a fall back position

For example

Risk: Fewer than the predicted number buy into the service offered.

Minimisation strategy

Use marketing channels trusted by target group. Get recommendations and referrals. Build up waiting list before official launch.

Strategy to deal with the problem if it arises

Have marketing campaign ready to go. It is better to increase marketing budget than to operate below capacity. Have press advertisements ready to place, leaflets designed ready for print, etc.

Fall back position

Have mix of core staff and sessional employees. Start with reduced activity and reduced numbers of staff. Have finance available to subsidise short-term trading losses while market confidence is built up and activity increases.

Free download: Risk Analysis work sheet

CAN would be happy to carry out an impartial and objective risk analysis for you.  We are skilled and experienced in analysing risk in the context of developing co-operatives and social enterprises.

Our Business Planning Product Area Team Leader is Chris Funnell: This email address is being protected from spambots. You need JavaScript enabled to view it.