Risk Management
Systematic identification, assessment, and mitigation of risks that could hurt the business.
A single unmanaged risk (fraud, supply, FX, cyber) can undo years of growth.
Cawan's Shoes enterprise risk register — top 8 risks (likelihood × impact, 1–5 scale): Risk Likelihood Impact Score Mitigation • China sourcing concentration 4 5 20 Shift 30% to Vietnam by 2027 ($40M capex) • US tariff escalation 3 5 15 Duty-drawback program, price surcharge playbook • FX (USD strength vs. EUR/JPY) 4 3 12 50% of next-12-mo exposure hedged, $2.3M cost • Cyber breach 3 4 12 $6.4M program + $50M insurance (see Cybersecurity) • Cotton/rubber commodity shock 3 3 9 Forward contracts, dual-source suppliers • Wholesale customer bankruptcy 2 4 8 Credit insurance on top 10 accounts • GLP-1 demand shift 2 3 6 Pivot mix toward performance running • Talent attrition (design team) 2 3 6 Retention bonuses, dual-hub Portland+Boston Risk committee (CFO chairs) meets monthly; top 3 reviewed by full board quarterly.
Skip it and you'll be surprised by risks you should have foreseen.