The process of identifying and analyzing potential issues that could negatively impact key business initiatives or projects is known as risk analysis (Uwe Stegemann, 2016). This process would help companies to avoid or mitigate risks. Assessed risks could be divided into internal risks and external risks as shown in the table below. Risk analysis is a crucial aspect for any business as a company could end up facing legal suits over poor risk management (Viscusi, 2015). Hence, risk mitigation measures are necessary for companies to avoid various negative consequences involving financial risk, product market risk, distribution risk and communication risk.
| INTERNAL RISKS | EXTERNAL RISKS |
| Financial – Budget – Pricing Strategy | Predictable but Uncertainty – Banking Procedures and Policies – Economy – Inflation and Taxation – Exchange Rates |
| Legal – Copyright Infringement – Data Rights | Unpredictable Regulatory Changes – Politics – Public Interest |
| Scheduling – Delays – Employee – Availability – Inadequate Planning – Scheduling Feasibility | |
| Technical – Integration – Requirement – Technical Expertise Availability |
The table below demonstrates an action plan to help eliminate or reduce the risk elements of the advertising and marketing campaigns.
| Risks | Action Plan to Mitigate Risks |
| Economy | – Research on interest rates. – Keep track of changes in government policies. |
| Financial | – Regular schedule reviews and analysis on budget performance. – Use a budgeting software that helps in setting realistic budgets based on historical data. – Reassign resources for maximum efficiency. |
| Legal | – Contents for marketing campaigns should be original, creative and not plagiarized. |
| Regulatory changes | – Up-to-date policy requirements. – Marketing campaigns are insured. |
| Scheduling | – Follow the Gantt chart time frame accordingly. – Regular team meetings. – Track and measure progress of datelines. |
| Technical | – Data backup. – Liaison with up-skilling technical expertise on board. |
Based on the table above, companies could evaluate whether to move forward with their advertising and marketing campaign for a long-term basis in future. The action plan helps to streamline the risks in handling the uncertainties that can never be predicted besides minimizing the occurrences or the impact of those uncertainties (Wilbury, 2014). In return, companies could definitely improve the chances of a successful campaign and thereby reducing the consequences of those risks.
References
- Uwe Stegemann, Beckers, Frank, Andrea. (2016). “A risk-management approach to a successful infrastructure project and plan”. McKinsey & Company. Retrieved from https://www.mckinsey.com/industries/capital-projects-and infrastructure/our-insights/a-risk-management-approach-to-a-successful-infrastructure-project.
- Viscusi, Brian Criasellde, W. Kip. (2015). “Monetizing the Benefits of Risk and Environmental Regulation”. Fordham Urban Law Journal 33 (4): 101-142. Retrieved from https://ir.lawnet.fordham.edu/cgi/viewcontent.cgi?article=2199&context=ulj.
- Wilbury Stratton. (2014). “Sustainability Risks and Opportunities Report”. Retrieved from https://www2/deloitte.com/content/dam/Deloitte/in/Documents/risk/Board%20of%20Directors/in-gc-sustainability-risks-and-opportunities-report-noexp.pdf.