Trubus Fight the Risk

The Risks

Risk could be defined as an uncertainty about a particular event which could be quantified. There are two things that are needed in order for something to be called risk to exist. The first is uncertainty about the potential outcomes from some event or experiment and the second is that the outcomes have to matter in providing utility. From the interview, some of the risks that Trubus Bakery has are:

1. The price of ingredients for making bread could just suddenly goes up because of the recent year of volatile economic condition. This risk is categorized as business risk which Trubus Bakery has to cope with. Because when this happen, the price of bread might just go up and because of that the number of customer might go down, lthough this risk also affects not only Trubus Bakery, but also the competitor who will have no other choice but to increase the price of the bread.

2. Because Trubus Bakery not only sells bread in its store but also utilizes local workforce to go into the streets and sell bakery, it is liable to have some risk. Anything could happen on the streets for example criminality or accident, the probability is low but this risk cannot be denied of its existence. Furthermore, low probability events almost always yield high level of risk. For example, a severe earthquake has a very low probability but the impact will be devastating. But in order to avert this risk, the Trubus Bakery pairs the selling force one to another so that they would not go to the streets alone, that way the risk is reduced.


3. There’s also the risk of the unsold bread. There’s no way that a bakery store could just store the unsold bread today so that they could be put into stand again the next day or the day after tomorrow. The freshness would be gone and the taste will be bad and if the customers eat such bread it will worsen their health. That is why the Trubus Bakery made the number of the bread based on their average number of sales in the past to make sure they do not made too much but just right.