Risk Scenario Exercise

Scenario: Minor Software Bug Description: A minor bug is found in a non-critical feature of the product.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Scenario: Temporary Internet Outage Description: The office internet goes down for a few hours.

• 1 - Not significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Scenario: Key Employee Resignation Description: A key developer resigns unexpectedly.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Temporary slowdown in project development until a replacement is found and onboarded.

Scenario: Data Breach Description: Customer data is compromised due to a security vulnerability.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Significant damage to reputation, potential legal consequences, and loss of customer trust.

Scenario: Major Product Failure Description: A critical failure in the product causes widespread data loss for customers.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Severe reputational damage, legal action from customers, and potentially the collapse of the startup.

Scenario: Minor Compliance Violation Description: A minor non-compliance issue is identified during a routine audit.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophic

Answer explanation

• Impact: Low impact as it is a minor issue that can be rectified quickly without significant penalties.

Scenario: Office Maintenance Issues Description: A minor non-compliance issue is identified during a routine audit.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Slight discomfort for employees, but work continues as usual.

Scenario: Delayed Product Launch Description: The launch of a new product feature is delayed by a month due to unforeseen technical challenges.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Moderate impact on revenue projections and customer satisfaction.

Scenario: Major Partnership Loss Description: A major strategic partner terminates their agreement unexpectedly.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: High impact on revenue and strategic positioning in the market.

Scenario: Founders’ Dispute Description: A severe conflict between the co-founders leads to one or more leaving the company.

• 1 - Not Significant

• 2 - Low

• 3 - Moderate

• 4 - High

• 5 - Catastrophe

Answer explanation

• Impact: Catastrophic impact on the company’s stability, investor confidence, and overall direction.