Operational risks are related to the daily operations, and the ability to fulfil obligations to customers. Operational risks can often be managed with internal mitigation strategies, such as preventive actions and monitoring controls.
- Risk for technical disruptions – websites. Risk for webstore breakdowns, or features directly connected to the webstores, such as payment systems, due to capacity issues, outside hacker attacks or other causes.
- Risk for technical disruptions – internal operations. Risk for break-down of systems essential for internal business operations.
- Risk regarding efficiency and capacity at the Boozt Fulfilment Centre.
- Risk for non-IT incidents. Incidents include risk for fire in the warehouse, or other accidents that disables operations partly or fully.
- Risk for partner/supplier dependency. Risk arising from having a contractor performing the pick and pack processes at the BFC.
- Risk regarding change management. Risk that the business will not be able manage its growth efficiently.
Mitigation of risk
- Risk for technical disruptions – websites. Boozt assesses and monitors the risk for the occurrence of different scenarios that affect the function of the webstores that Boozt operates. Our IT Disaster Recovery Plan prioritises roles and responsibilities and actions to mitigate disruption events. The webstores are monitored in real time and actions can be taken in minutes to ensure website functionality.
- Risk for technical disruptions – internal operations. Majority of the software the Group uses are proprietary and are developed in-house, malfunctions of any features are easy to spot and can within pre-specified time frames be corrected or withdrawn if needed. Full failover on all essential services exists.
- Risk regarding efficiency and capacity at the Boozt Fulfilment Centre. In March of 2017, we started automating the fulfilment process and significantly expanded the warehouse capacity. Beyond the new BFC, we contracted options of building up to a total of 77,000 m2 at the new location, which will strengthen the ability for Boozt to expand according to expectations.
- Risk for non-IT incidents. Boozt assesses and evaluates different possible scenarios and has defined what actions to take if such events occur. Contingency plans are adopted and includes responsibility- and crisis management.
- Risk for partner/supplier dependency. We have a long term and well-functioning relationship with the contractor, who has been the contracted supplier of pick and pack services for Boozt since the business was started. Contractual terms reflect the need to ensure compliance with demands and policies set by Boozt, including values as stated in the Group’s Code of Conduct.
- Risk regarding change management. The growth of the business is in accordance with the strategic business plan. Strategic and tactical planning is performed to support the growth considering factors such as warehouse/logistics capacity, recruitment strategies etc. Group Management and the Board of Directors continuously review the business plan and the strategic and tactical planning that support the business to achieve the goals relating to growth.