Determine appropriate control measures for risks and assess for strengths and weaknesses
The risks have a unique way of being reduced to the minimum or eliminate it completely. One of the surest ways of risk elimination is risk assessment in the beginning of any project or entering into the new market. When risks are identified and marked against their impact and likelihood, they can be treated in a manner most suitable for its elimination (Chorafas, 2004). The other measure of risk control is to measure the impact of each risk identified and then identify the methods that are available for minimizing the risks. Rio cocktail will have market risks, partner risks, political, environmental, legal and economic risks which can be reduced by the identification of the impact of each type of risk and then taking action to minimize them immediately. The strength of the company is their product which can be capitalized on by effective marketing and the weakness of being in the new market and competition can be minimized by the differentiating factor of the product and quality assessment during production activities.
Identify control measures for all risks
The control measures are multiple and depends on the ability of the company to implement them and assessing the environment in which the implementation is allowed. The first control measure of Rio cocktail’s risk assessment is to produce a hierarchical structure of risks and then develop actions that reduced the likelihood of the identified risks. If the company is expecting competition in prices, the company can initially introduce products at lower prices and then gradually increase it to win customers. If the company is expecting many legal risks to arise, it can take its own time in formulating the business structure in such a way that the likelihood of risks are studied and factored in before launching the product in the market (Perin, 2005). The agreement with partners can be structured in such a way that Rio will experience less risk on its head and pass on maximum risk on the partners and the distributors.