Answer:

Identification:

Risk $1$: Operational Risk $-$ IT System Failure

Risk $2$: Strategic Risk $-$ Market Competition

The company is facing two significant risks: operational risk of IT system failure and strategic risk of market competition.

Balanced scorecard component:

Risk $1$: Financial perspective $-$ Loss of revenue, increased costs, or decreased profitability due to IT system failure.

Risk $2$: Customer perspective $-$ Loss of customer trust, reduced customer satisfaction, or decreased market share due to market competition.

Risk $1$: Operational Risk $-$ IT System Failure

This risk refers to the potential failure or inadequacy of the company's information technology $($IT$)$ systems. Such failures can result in disruptions in operations, loss of productivity, delayed services, or even data loss. The impact of this risk is high because IT systems are essential for the company's daily operations, and any disruption can have a cascading effect on various aspects of the business. The probability of this risk is medium because IT systems are complex and prone to errors, hardware failures, software glitches, cybersecurity threats, or natural disasters.

Risk $2$: Strategic Risk $-$ Market Competition

This risk pertains to the intense competition in the industry, which can pose challenges to the company's market position and profitability. The impact of this risk is high because the competitive landscape in the industry is constantly evolving, and new players can emerge, pricing strategies can change, or customer preferences can shift. The probability of this risk is medium because the market competition is a known factor, and the company must continually adapt and innovate to remain competitive.

Mitigation:

Risk $1$: To mitigate the operational risk of IT system failure, the company can implement a comprehensive IT disaster recovery plan, conduct regular IT system audits, invest in backup systems, and provide regular IT security training to employees.

Risk $2$: To mitigate the strategic risk of market competition, the company can conduct market analysis, develop a strong brand identity, foster customer loyalty, and continuously innovate and adapt to changing market dynamics.

Final answer: In conclusion, the company is facing two significant risks: operational risk of IT system failure and strategic risk of market competition. The identification of these risks is crucial in developing effective risk mitigation strategies to ensure business continuity and competitiveness. The balanced scorecard perspective helps in understanding the impact and probability of each risk, which enables informed decision$-$making and resource allocation. By implementing proactive risk management strategies, the company can enhance its resilience and competitiveness in the market.