Risk of New Venture

HSBC Young Entrepreneur Challenge 2012

Johnson Chang

PREPARED FOR: ALAN GRIEVE

Public

Intro

Agenda
Objective
The whole picture
Goals & Measures
Returns
End Game

Review and Understanding

Rewards/Risk
Internal/External Risk
Operational/Environment
Current Issues

Story Telling
Story Flow
Key Risk Identification
Mitigations
Conclusion

Public
3

Objective
The Whole Picture
What do you want to tell and sell/project ?

Goals & Measures

How do you measure success and benchmark ?

Returns
What is your expectations, shareholders, market and stakeholders
expectations.

End-Game
The end goal versus the investment vs the expectations

Review & Understanding

Rewards versus Risk
What is the right balance? What is the currently achievable?

Internal/External Risk
Financial and Non Financial

Operating Environment
Operational/Environment
Tangible & Non-Tangible Risk

Current issues
Understanding what affects your project and exceptions

Intermission

Story-Telling Story Flow (1)

Executive Summary
Overview
Purpose / Goal

Background Story
Nature & History of Proposal / Track Record
Profile of business and products

Operating Evaluation
Industry Drivers Stage of Business Cycle / Regulatory / Sector (Market) / Competitor
Supplier / Buyer Information / Market Position

Story-Telling Story Flow (2)

Operating Evaluation
Environment
Economic / Political / Social / Regulatory / Currency / Health / Environmental / Technology
Strategy
Clarity / vision/ production planning /scale/ technology/ brand/ distribution
Conclude on Key Operating Risk and Mitigating Factors
Management
Candid evaluation re experience/track record & resources availability
Conclude on success re implementation of strategy and steps mitigating weaknesses

Story-Telling Story Flow (3)

Financial Evaluation
Cash-Flow (historical / projected / stress-testing what is the difference & why needed?)
Working Capital Management & Liquidity / Capital Structure / Contingent Liabilities
Conclude on Financial Strength & Impact, if any

Conclusion Strategy
Summarize profitability / importance of project
External Support/3rd Party Endorsement
Potential
Forward looking conclusion

Wrap-up

10

Wrap-up

Good Luck
Q&A

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Disclaimer

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