The unique difference – be it product, service, location, or reputation – has to be spelled out. It is vital to understand what business the company is in. This may sound easy but many managers lose sight of the core nature of the company; they lose sight of what need it is trying to satisfy and what they have been good at in the past.
The readers must get an understanding that the past and current positioning give the entity opportunities that it can explore and that these opportunities are reality.
Threats are “expressions of intent to do harm”. It is an external action that may damage the future of your plan. A Risk is a chance of happening that can damage but requires no intent. Threats are actions undertaken by competitors to reduce the entity’s position, such as predatory pricing or price fixing through collusion. Risks are civil commotion, floods and “acts of God”, economic chaos due to poor economic management by the central government. Risks are dormant and await as opposed to threats, that are actively directed towards the entity by another.
Risks and risk management are separate headings, such is their importance, they are seldom even thought of as needing to be considered.
These are usually areas such as under capitalisation, lack of skills available in the work force. There may be operational matters that effect product or service delivery, such as weaknesses in the planning procedures.