ID | Risk | Consequence | Probability | Impact | Treatment |
1 | Risk of underestimating the cost of testing and implementing the drone system. | No sufficient budget to support test and development of a new delivery system, the whole project might stop or terminate. | 80% | High | Avoidance: a detailed budget plan is supposed to be prepared and cut off unnecessary processes. |
2 | Risk of local government change requirements and regulations all the time. | Longer testing time and more budget needed in order to adapt to new requirements. | 70% | High | Acceptance: understand and adopt the new requirements as soon as possible. |
3 | Risk of drones are destroyed or damaged on the way of delivering. | Delivered goods lost and decrease customer satisfaction; might lead to pedestrians injured. | 60% | High-Medium | Mitigation: Carry out ground inspection before flying; Ensure sufficient electricity; plan the path before flying. |
4 | Risk of personal data leaks or invaded caused by network vulnerability. | Customer’s privacy cannot guarantee, reputation of Woolworth will be harmed. | 40% | Medium | Transfer: can this risk be transferred to a third party company to ensure customer’s data security. |
5 | Risks of customers are not willing to accept the drone delivery method. | Customer may not used to this system and it is eventually eliminated. | 30% | Medium | Avoidance: Woolworth should spend more investment on advertising the drone system to enhance customer’s understanding. |
6 | Risks of key managers or professional experts leave testing team. | May lead working efficiency decrease or testing cannot continue, leading to project failure. | 20% | Low | Avoidance: ensure effective communication and create back-up team. |
7 | Risk of lack of communication with shareholders. | Senior managers are not satisfied and the system needs a lot of time to redesign the drone system. | 10% | Low | Mitigation: manager of team need to boost communication and report to shareholders regularly. |
8 | Risk of competitors such as Coles demonstrates a better deliver system earlier. | Reduced market share and core competitiveness of Woolworth. | 5% | Medium | Mitigation: Ensure the drone system can be implemented as scheduled. |