EXTERNAL
POLITICAL LEGAL/REG.
Legislative change- interpret of
regulations
Punitive damages fines and penalties
HUMAN
NATURAL
Theft
Explosion
Product/idea piracy
Fire
Currency conversion difficulty/nonconversion
New legislation
Piracy
Economic Downturn
Political terrorism
Earthquake
Shipment quarantine
Terrorism (bomb explosions)
Floods or mudslides
Change in import/export
Civil unrest war
regulations/laws
Foreign trade constraints boycotts/
Hijacking
embargoes
Difficulty/ inability to gain export license Kidnapping & ransom
Hurricane, tornado, wind
Change in political leadership
Water
Change in reg. enforcement posture
Lightning
Environmental loss or damage
Frost or freezing
Antitrust fair trade issues
Legislative/ regulatory slowdowns of
market offering
Inadequate copyright patent IP
protection
Change in Account code
Non-compliance with legal relations
Extension of taxing authority
Change in tax laws
Wage and Price controls (non-domestic)
Expropriations
Unexpected change in leadership
Volcanic eruption
Loss of utilities
INTERNAL
TECHNOLOGY
OPERATIONS
FINANCE
Changing technology Inventory shrinkage
Fluctuation in financial
standards
markets
Not properly using
Inventory
Credit
information
obsolescence
downgrade/credit risks
Unreliable information Mechanical breakdown Currency fluctuations
systems
(foreign)
Inadequate
Inadequate
Exchange control
information on
transportation
regulations
systems
Unethical sharing of
Inadequate quality
Interest rate flux
information-insider
control
trading
Technology vandalism Inadequate cycle time Inadequate asset
write downs
Missed opportunities
Resource
Losses due to merger
to upgrade technology dependencies
and acquisitions
(availability supply)
Failure to keep pace
Business interruption Cost of capital
(technology advances)
Lack of viable
Wage and price
technology substitute
control
Year 2000
Stock Elasticity
Volatility in computer
systems & storage
devices
Excessive risk to
return ratios
Low/lack of liquidity
Inadequate risk
financing
Inadequate cash flow
Misapplication of
financial products
Mishandling of funds
Unrecognized deferred
tax liability
Improper
reinvestment/rollover
Undercapitalized
Fiduciary duties
GENERAL
Automotive and truck
liability
Unfunded liabilities
Special event liability
Miscellaneous liability
Public liability
STRATEGIC
Lack of vision, direction,
focus
Inadequate succession
planning
Misaligned organizational
structure
Inadequate capacity to
meet market demands
Too much capacity for
market demands
Property loss or damage Inadequate facilities
Premises liability
Inadequate internal
processes and controls
Loss of freight or cargo
Inadequate resources
allocation and planning
Inadequate financial
information systems
Inadequate budgeting
Owned and non-owned
property
Injury liability to nonemployees
Retroactive liability
General liability
Poor financial
management
Inadequate disaster
recovery systems
Incomplete inaccurate
financial information
Takeover targets for
hostile takeover
STOCKHOLDERS
Insider holding
liabilities
Unrealistic investor
expectations
Wrongful acts and
misstatements
CHANNEL
MEMBERS
Default on delivery
by a supplier
Losing confidentiality
within the channel
Declining health
/stability of resellers
Gaining/losing access
to distribution
Wrongful acts and
misstatements
Shipment
holdup/delays
Channel conflict
External service
dependencies
Inadequate financial
strength of business
partners
Poor/inadequate
agreements within
channel
Low commitment
from channel
members to mfg
Customer alienation
due to partnerships
Liabilities from
alliances and
partnerships
Misalignment of
business systems
with partners
Not meeting
contractual
commitments
Loss of a key supplier
Cultural mismatch
and conflict
Conflict of interests
Loss of control to
RELATIONSHIPS
EMPLOYEES
Unrealistic commitments,
entitlements, or promises
Employee defections to
competition
Inequitable employee
benefits
Inadequate compensation
packages
Misaligned employeeemployer workforce skills
Embezzlement
Breaches in confidentiality
Sexual harassment
Poor/non-standard
workplace
safety practices
Labor strikes and work
slowdowns
Employee dissatisfaction
Employee dishonesty
Inadequate employee
compensation
Employee injury on job
Discrimination in
employment practices
Improper/wrongful
termination
Contractual liabilities
Lack of experienced
employees
Inadequate staffing
CUSTOMERS
Customer not
paying bills
Wrongful acts and
misstatements
Unmet customer
expectations
Customer going
bankrupt
Contractual
liabilities
Tenant/neighbor
liability
BUSINESS PARTNERS
Lack of performance by
outsource vendor
Vicarious liability from
vendors and contractors
Lack of control over
outsource vendor
Misalignment with business
partners
Wrongful acts and
misstatements
Contractual liability
business partners
Liability for business
partner actions
Implications of
partnering
Choosing the wrong
business partner for
joint venture or
strategic alliance
Inadequate recruiting
and hiring practices
Wrongful acts and
misstatements
Liabilities from at-will
employment
MARKET PLACE
MARKET DYNAMICS
Single market dependence
COMPETITIVE
IMAGE
Demands of multiple markets
Violations of Intellectual
Product recall
Property rights by others
Copyright & patent infringement Unkempt business promises
by others
Competitor litigation
Unethical business practices
Capturing market share
Competitor collision
Lack of business integrity
Inadequate/misaligned research
and development
Excess industry dominance
"Goliath"
Poor timing in
distribution/transportation
Advertising problems
Competitor products = higher
quality
Competitor price competition
False advertising
Competitor actions
Poor perceived corporate
citizenship
Being ahead of the market
Poor eroding public image
Competitive espionage
MARKET OFFERING
Product liability
Product misaligned with product
needs/expectations
Unplanned product/customer
support
Inadequate/poor product
support
Poor pricing practices
Unrealistic product business
mixes
Decreasing brand equity
Product development/market
place complacency
Buyer changes product order
mix
Product life cycle
Unexpected shifts in market
Easy entry into restricted
markets
Access to global markets
Single product dependence
Shifts in market demand factors
Co-dependency of products
Misaligned marketing strategies
Sub-par product quality
Market customer crisis
Cannibalization of products in
line
Product deception on false
advertising
Errors & omissions
Our firm: violation of copyright
and patent
5
Excessive product development
time (time to market)
Unrealistic promises
Express & implied warranties
6