Question

Apparel Risk Management Analysis Market Risk(s) Competition Competitive comparative cost/benefit ratio Competitive pricing pressure Credit Risk(s) Level of debt Impact of debt service on working capital Retained safety margin Operational Risk(s) Size of inventory Raw material availability Delivery timing Quality control Adequate gross margins (loss leaders?) Adequate working capital
Develop Risk Inventories for robotic industry and apparel industry The case can be completed with a bullet point list with the type of risk and then what the risk is for that industry. Please assume the below list is just a beginning and you will need to add risks like a global pandemic.

Answer 1

Industry- Apparel

Risk Inventories

Risk	Type or Category	Description of the Risk
Life of the products could be much Shorter	Product and service risk	Product life cycle of each apparel product is usually shorter and they can exist in the market for short duration.
Consumer preferences are ever changing and highly volatile	Marketing Risk	Consumer looks for several fashionable products and their needs, requirements are changing over time.
Demand Uncertainties	Marketing Risk	Demand of the items could be fluctuating
Global Pandemic situation	Environmental risk	During Covid 19, we have seen effect of lockdown in several areas, countries, Apparel industry is affected due to such pandemic situation.
Issues with Supply chain flexibility	Operational and strategic risk	Many apparel products could be delivered to restricted areas due to issues with transportation availability, cost, political situation, etc.
Issues with production and Infrastructure facilities	Operational risks	Limited capability of the operational sites, Limited Infrastructure could limit productivity; we may not attend the needed demand due to issues with production and Infrastructure facilities.
Effect of Globalization and Media Exposure	Environmental and Market risk	Due to globalization and Media Exposure, consumers are aware of various trends, they look for new and unique style, and they need fashionable products.
Competition, pricing related pressure, cost benefit ratio	Financial – Market risk	Apparel industry faces huge competition as there are several firms within the same industry, further, each firm could not keep price of the products at their choice, as there are several competitors in the same Industry. Cost benefit ration another important factor, firm could lose if they invest more cost over the benefits for a specified period of time.
Issues with Daily cash flow	Financial – Liquidity Risk	Apparel industry may face issues where cash flows could be interrupted due to various situations like global pandemic.
Inventory size, Raw Material availability, Insufficient working capital, Profit margins	Financial – Operational Risk	Apparel Industry could be affected due to Limited availability of raw material, issues of profit margins. They could earn low profit margin and they need to target for more consumers or volumetric sales. Inventory size could be another risk as such size usually limited, change in demand should be accommodated with such inventory size.
Level of debt, Effect of debt on working capital, Retained safety margin	Financial – Credit risk	Due to long debt, this industry could be affected and such industry need to evaluate the effect of the current debt on their working capital and other areas.

Industry- Robotic

Risk Inventories

Risk	Type or Categories	Description of the Risk
Mechanical Failures of various Robotic machineries and products	Operational Risks- risk in Products and processes	There could be several mechanical failures; such failures could happen due to technical glitch, issues of design and programming.
Power failure risk	Operational Risks	Power system could be disrupted and Robotic machineries will lose their operational abilities.
Communication related risk and Loss of power, Networking problem	Environmental risk	Robotic Industry could be highly impacted due to issues with communication and networking.
Global Pandemic – Lockdown of the Industry	Environmental risk	Due to Global pandemic, this industry can be affected and people will not interact and keep their interest low due to pandemic and out breaking of fear.
Changing needs of People	Market Risk	Robotic industry could be affected with needs of the people, as not all robotic operations will be satisfied and accepted to the human groups.
Debt related issues, their impact on working capital	Financial – Credit risk	Robotic Industry look for heavy funds at its initiation, there could be huge debt incurring and it could affect entire business in poor way.
Pricing pressure, competition	Financial –Market risk	Pricing pressure could be important issues, as people may not have sufficient purchase power to buy such robotic services.
Issues with Raw Material, Inventory size, Delivery timing	Financial –Operational Risk	Robotic Industry could face issues of Inventory size and raw material supply, they need to work on demand prediction to manage their operational issues in efficient way.