Risk Management
Stress Test Questions
Rudy’s wheels fit, maintain and repair a bike, they also custom the sports goods athletic clothes, shoes etc. to tackle with the everyday stress, Rudy’s wheel is concerned to develop stress test questions. Some are as following.
- What if a market is targeting first, that for which group of people bikes should be maintained and for whom clothes should be custom? What will happen if we target youngsters and upper-middle class, middle-class people?
- What if Rudy’s wheel assumes the macro-environment and if the adverse financial market scenario proves sustainable, how would profitability will be maintained over long-term?
- What if in the market the company unwind its position in 6 months? In which market the assets need to be reduced.
- Is downtown area modern-day Mayberry is the suitable area for this business? What if the business shifts to any other place, it would be effective?
- The problem could be there regarding HR functions because no management is there. What will happen if company recruits an HR manager to handle the HR functions and principle, the example to manage compensation and benefits, hiring, health and safety of employees etc?
- What will happen if HR does not recruit the right person for a right job, will it result in loss of customers and bad repute in a market?
- Rudy’s Wheel can face financial risks. What will happen if a company has to face instability and financial losses in the market? Financial risks could be caused by stock prices, currencies, interest rate etc.
- What if the company goes in a loss and does not able to pay the staff, as the company is paying for several years? If the company stops affording the medical cost, will employees retain.
- What will happen if company’s strategies fail to reach its goal? Would the company struggle in a market for the long-term and have to leave the market? What if new powerful competitors enter in market moreover, customer demands shift?
- There are risks associated with the compliance risks. What happens if there is the change in a legislative and bureaucratic rule? Example, bicycles are banned with the increase in death rate, due to accidents etc.
- What will happen to the business in case of economic crashes, the recession occurs, and interest rate increase or natural disasters take place? If people have less money, will they wear customize sports goods? Will they buy bicycles?
- What new strategies company will make, if few of the strategies do not work or not give the desired outcomes? Is there need to take the quick decision?