Risk Management List

Risk list.doc/3/tony Whittingham Page 1 of 4 POTENTIAL RISKS IN DIGITAL MEDIA PRODUCT DEVELOPMENT The purpose of this list is to provide a list of potential risks that digital media companies and freelancers might face. The list is not exhaustive, but it should give an indication of the risks that may affect product development and therefore have to be managed. Human resource management  over-reliance on a small number of staff  problems with outside contractors  problems with own staff o badly-designed workplaces o claims of sexual harassment o criminal activity o cultural/religious conflicts o equal Employment Opportunity/AntiDiscrimination disputes/litigation o inadequate/inappropriate training o inappropriate skills mixes o industrial disputes  insufficient technical skills o language difficulties o loss of key staff o Occupational Health and Safety disputes  unfair dismissals/litigation Risk list.doc/3/tony Whittingham Page 2 of 4 Personnel  loss of key personnel  poor industrial relations  skills, training  succession planning  theft, misappropriation Operational  badly-designed products  unsafe products  equipment o breakdown o unavailability of parts  inexperienced personnel  planning and scheduling conflicts  poor service leading to angry customers  poorly maintained equipment and/or infrastructure  superseded equipment  supply delays Financial  audit risk  bad debts  business interruption o industrial action o interruption of supply o machine breakdown  fraud  inaccurate accounting and/or reporting  inadequate costing systems (leading to unsustainable pricing)  inadequate insurance Risk list.doc/3/tony Whittingham Page 3 of 4 inventory risk o obsolescence o stock losses  negligence  over-reliance on a small number of customers/suppliers  poor cashflow  utilities interruption Disasters which affect senior and key staff  accidents (for example, vehicle, aeroplane, train)  key individual losses Natural and man-made disaster  arson  electrical 'spikes'  espionage  fire  flooding  industrial accidents  lightning strikes  power cuts  sabotage/vandalism  staff exposure to long-term hazards and pollution  water cuts Technological change  competitors may innovate successfully  materials may be supplanted  processes may be made obsolete Economic cycle/marketing  Risk list.doc/3/tony Whittingham Page 4 of 4 defective products  import competition  limited range of products o broaden product range  loss of distribution rights or marketing channels  undetected changes in market/customer demands Contractual/legal  breach of contract  director and officer liability  errors and omissions  limitation of liability  product liability  public liability  statutory breaches Business activity by-products  client service  computer breakdown  contingency planning/business resumption  occupational injury, illness, physical security, property loss 