Objective 11 of 12
Reduce risk
Reduce exposure to events that could significantly damage the business.
- Customer concentration
- Supplier concentration
- Compliance metrics
- Debt ratios
- Operational resilience
- What could seriously harm the business?
- Where are we overly dependent?
- What assumptions are fragile?
- Diversifying customers
- Diversifying suppliers
- Succession planning
- Regulatory compliance
- Cybersecurity improvements
Frameworks that serve this objective
Primarily- PESTEL A scan of the macro forces — political, economic, social, technological, environmental, legal — that move beneath an industry.
- Scenario Modeling (base / bull / bear) A small set of internally consistent futures — base, bull, bear — instead of one false-precision forecast.
- Porter's Five Forces Why some industries are structurally profitable and others starve — read through five competitive pressures.
- SWOT Strengths, weaknesses, opportunities, threats — useful only when grounded in real competitive evidence, not opinion.
- McKinsey 7S A coherence check across seven interdependent elements: strategy, structure, systems, skills, staff, style, shared values.
- BCG Matrix A portfolio view — stars, cash cows, question marks, dogs — for a business with multiple revenue streams.