It is the responsibility of the manager to identify the risk drivers and associated risks so that they can adopt strategic plans to mitigate the risks. In the case of audio interface devices, the company has faced mainly two risk drivers, such as inexperience in brand extension and sustainability. Over the year, the audio interface devices have become the most desirable ways to listen and stream music all over the world. If an organization does not take into account the risk drivers, the company will face great economic depression due to the financial condition and poor product quality. However, they have managed to survive because of having loyal followers with the fan club and worldwide events.
What is the importance of risk mitigation strategies for an audio interface company?
Many risk factors have great impact on a business project, such as process, premises, providers, people’s performance, company profile and much more. It is the responsibility of the risk management team to identify the risk factors so that the company can mitigate the problems by adopting appropriate strategies. Sometimes a company takes the strategy of brand extension to survive from an economic depression.
Similarly, audio interface companies have taken such approach by introducing various products, such as other accessories under their brand name. However, this strategy was proven to be a failure as the company did not have any experience in those sectors. The risk management team should alert the company to this mistake and should suggest the company to extend their brand through other products related to audio devices. The brand extension would always take various forms to mitigate risks in an audio interface company.
How can risk mitigation strategies save an audio interface company from depression?
With the aim to survive from this depression, the audio interface companies have adopted a wrong strategic decision to extend their brand. The Audio interface companies are not affordable for the general public, therefore to spread their business among the general people, the company tried to extend their brand name. However, their management team has failed to identify the risk associated with this brand extension.
The company was not experienced in these sectors. Their brand acceptance was decreased instead of increasing in the market. Even their strategy of brand extension seemed to their old customers as over dignified. On the other hand, many rival companies are willing to provide greener bikes that have more demand in the market and thus more profitable. This is a significant risk associated with product sustainability of the best audio interface.
Therefore, the Audio interface companies have lost their brand image even to their old customers. It was a loophole in the risk assessment process of the enterprise. Sometimes the company failed to gain the reliability regarding sustainable products. Today’s consumers are more aware of their society and environment. Issues regarding the environment and climate change have the high priority among the customers. Therefore, there are many risk drivers related to climate change that has to be mitigated by the company.