I’m studying for my Business class and need an explanation.
There are three risks of Chanel to create an online store. 1.The brand is exposed to the risk of high
competition. The clothing industry is clouded as brands are no longer concerned about
differentiating their products. 2. Price wars and counterfeits also pose a risk to the success of
Chanel. 3. There are lower and cheaper brands that have emerged, copying Chanel’s timeless
products. With these being affordable, the organization is at risk of losing customers.
Key Risk Indicators (KRI’s) are often used to ensure that management remains aware of potential
risks. In this assignment you are requested to create hypothetical KRI’s using the methods provided
by COSO (2010) see attachment. Under the heading of Risk Response Strategy, I would like you to
provide a short description of the three risks and the associated KRI that you will use for each risk.
For each KRI you should explain the basis for its development, referencing the phases of CRISP-DM
to ensure that you fully understand the specific risk along with the data sources and models to be
used in monitoring and reacting to the risks. Lastly, I would ask you to provide thresholds that would
represent trigger points for each risk and a risk response strategy that management would invoke if
the risk threshold was breached.