You own a local restaurant that specializes in chicken sandwiches and fries. You are developing a risk management process and need identify sources of supply disruption to develop risk mitigation plans.

Steps 1- 3: Complete in Microsoft Excel and upload your file here. An example template is below.

Step 1: Risk Identification

• Identify 10 risks that could cause a supply disruption

Step 2: Risk Monitoring

• How is the nature (probability and potential impact) of this risk changing?
• How are we preparing for this risk?

Step 3: Disruption Assessment

• Assign a risk probability (how likely is the risk) to each risk
  • Scale 1-5
  • 1 = rare, 5 = highly likely
• Assign a risk consequence (how severe is the impact likely to be) to each risk
  • Scale 1-5
  • 1 = trivial, 5 = severe
• Calculate risk exposure for each risk
  • Risk exposure index = risk consequence index X risk probability index
  • Use this to rank and prioritize your risks