Identify Risk Responses and New Service Opportunities

“Ok, now that we have listed the events, causes, and impacts of the risks, we need to identify what is the risk response to each one of them. Have a look at the next table in Section 3.1. You will see that the events that you listed in the earlier table are already listed and ranked based on the risk ratings. The most severe risks are listed high on the table whereas, the least severe is on the bottom. This helps you focus on the risks that are more severe first. Note that there may be multiple responses to each risk, hence, I’ve put space for three risk responses. What else is on the table?”

“There are two columns on additional business opportunities.”

“Aha! Can you explain why I put it there?”

Baisali seemed lost, and upon noticing her confusion, Tashi took the initiative to explain in more detail.

“Sometimes risk events trigger actions that were probably not in demand before. This may sometimes lead to risk responses that present a new opportunity to the existing business. Kishor, can you go forward and fill in the next table? Let’s see if there are new business opportunities for you.”

Kishor quickly filled in the table.

“There you go – you did identify one. Can you explain it?”

“Well, one of the risk responses for crop loss events of farmers is to advise them to consider crop insurance options. Given the landscape in rural areas, farmers could need help with this. Hence, this can be a service I can expand upon. I can provide crop loss aversion advisory services to farmers that can include crop insurance. I can tie up with insurance companies and become their interface to the locality I work in.”

“Yes, that’s a new opportunity for your business that adds value to your customer base. At this stage, we have evaluated the risks, identified risk responses, and also evaluated any new business opportunities that the changing climate landscape has brought upon the MSME. Let’s move on to the next section which focuses on renewable energy. Kishor, can you open the next tab on the Excel sheet titled ‘RE integration’?”

Tashi’s eyes sparkled as he stressed the point.