Risks Mitigation Strategies
Only by facing up to potential risks and planning various avoidance measures can we ensure the long-term development of the enterprise and be accountable to all stakeholders.
Business Risks
We may not be able to proft or sustain long-term proftability. As our business expands, our operating costs may increase substantially, and the costs involved may be much higher than we expect. In addition, the merging or loss of customers will also signifcantly affect our performance and proftability.
Mitigation Strategy
Focus on developing new products and improving production processes to safeguard our proftability. In addition, we will also diversify our customer base to reduce the risks arising from excessive customer concentration
Financial Risks
We may need more funds to achieve our goals. Foodtein® may be forced to temporarily delay, postpone, reduce or even terminate product manufacturing and expansion plans if suffcient funds cannot be obtained whenever necessary. Since Foodtein® ’s inception, all funds gained from investors have been used for product development, and while we’ve made a lot of money over the years, we’re not sure if more money could be needed to further expand the business.
Mitigation Strategy
We will carefully plan a feasible development blueprint and implementation plan, carefully use investor funds, and purchase suitable machinery or equipment to produce products. We will comprehensively oversee business operations and their growth prospects to ensure we are on the right track and achieve our goals at the ideal point and time.
Competitive Risks
If the healthy food supply chain market becomes saturated, we may not be able to stand out from the competition. While there are currently no other Foodtein® competitors in Malaysia, there is no guarantee that more health food empires will not emerge in the future to gain market share. While diverse competition is a good thing, it also means we have to lower the prices of our products to remain competitive, leading to less proft.
Mitigation Strategy
We will focus on developing new products and improving the effciency of the production process, so that we can still have an advantage in the future competition. We will also focus on creative marketing campaigns to capture the consumer market of healthy foods ahead of other competitors.
Business Risks
Food businesses are exposed to regulatory risks at all times. The products we sell may contain allergens, foodborne illnesses or other food safety concerns that can lead to unanticipated side effects, illness, injury and even death, ultimately forcing us to stop selling these products. In addition, such incidents would expose us to law enforcement scrutiny and cast a bad reputation on the brand.
Mitigation Strategy
We will ensure that our business processes, operations, product packaging, distribution processes and employee training comply with industry regulations, and we will do our best to fulfll our ESG corporate obligations. In addition, our factories have a strong track record, thus minimizing the aforementioned food safety risks.
