In this month’s newsletter I have given some thought to the identification of flawed business models and the concept of Business Model Risk. I got some great feedback and ideas from GRC members last month on the subject.
Key questions to be asked include:
- How sound and sustainable is the underlying growth and profitability ?
- Does the business truly own a piece of the value chain or is it essentially just a trader ?
- Does the business need to continually engage in high or excessive risk taking to sustain itself and continue to grow ?
- Is your business at risk of becoming obsolete ?
- Is the business reliant on key agreements or a government concession to exist ?
I would welcome any further comments, insights and additional ideas on the subject.
The newsletter is at http://www.almagrove.com.au/insights
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