A market risk assessment is a document which is compiled by a company equipped with the logistics of conducting market research and providing a detailed inventory of the dos and don’ts of a business move. The business move can be the launch of a new product or a new outlet, changes caused to an existing one and so on.
All of these should be determined by market trends which have to be propitious enough for the move to be successful. Thus, it is needless to mention that a market risk assessment is a crucial document and must be formulated with sincerity.
Sample Market Risk Assessment
Market risk assessment created by: Silver Consultant Company Pvt. Ltd.
Date of compiling market risk assessment: 12th January 2012
Market risk assessment for: James Patterson, CEO, Instant Foodies Pvt. Ltd.
Purpose of market risk assessment:
- This market risk assessment is aimed at determining whether the launch of the third branch of Instant Foodies Pvt. Ltd. in the Green Valley Estate, New York will be favourable.
- The market risk assessment also aims at providing the client with proper feedback in understanding how to go about the launch of this new outlet, what factors to keep in mind and the kind of target clientele to expect.
Conditions for the opening of the new outlet [extract from the conclusions section of the actual document, available for preview on our company website]:
- The third outlet may be opened at the location mentioned before as conditions are suited for its launch. There are no major fast food outlets in this area, but the upward mobility of the inhabitants of the area is borne out by the increase in their annual spending amounts.
- The outlet, however, must specifically target clientele of the area mentioned above. This can be done by conducting a thorough assessment or survey of the target age group, their food habits, their preferences and so on.