Risk Identification Techniques in Retail Industry

Abstract

Purpose: The prime purpose of this paper is to analyze the risks associated with the retail industry and provide a overview of the risk identification techniques and tools. The paper also investigates the relationship between risk identification and risk management.Research Methodology: This paper is a conceptual paper and the methodology included a literature search. The present study is a literature review that examines available studies based on risk identification and its techniques in the retail business.Findings:Many risks have a high impact on the retail industry. Supplier uncertainty, change in the taste and preference of consumers, data security and threats, inventory risks, etc. all these types of risks are faced by the retail industry. Identifying these risks is a big challenge for the company. There are numerous risk identification techniques that companies can use to identify risks. Brainstorming, expert judgment, Delphi method, root-cause analysis, etc. techniques are discussed in this paper. Tesco plc applies the brainstorming, risk register and top-down and bottom-up approach to identify the risks. The findings of this study can be used as a case study of Tesco’s retail operation, which is based in and managed primarily in this specific area. Tesco’s decisions may contain some common tactics for identifying hazards, and some extremely unique ones.Practical Implications: Various corporations developed risk departments to identify and manage risks during the modernization and automation era. As a result, there is a demand for experts with specialized skills and experience in managing and assessing risk factors involved in the retail industry. These specialists’ job is to identify hazards and develop methods to protect the organization from them. This study will assist the risk managers or professionals of the retail industry to use the techniques of risk identification and assess the risks appropriately.