At the Governance Institute’s Virtual Governance and Risk Management Forum 2020, 52 Risks® Creator & Founder, Peter Deans presented a session on business model risk.

During the session, five key questions (in the infographic shown here) that can assist stakeholders critically assess excessive risk taking, cyclical business risk and other more serious structural flaws in the business model were discussed.  The questions are:

  1. How sound and sustainable is the underlying growth and profitability ?
  2. Does the business truly own a piece of the value chain or is it essentially just a trader ?
  3. Does the business need to continually engage in high or excessive risk taking to sustain itself and continue to grow ?
  4. Is your business at risk of becoming obsolete ?
  5. Is the business reliant on key agreements or a government concession to exist ?

Read the full article on Business Model Risk here: