| name | bp-legal-risk |
| description | Generate Risk Management and Appendix sections of a business plan. Use when writing sections 10-11 — risk matrix, mitigation plans, document checklist. |
| user-invocable | false |
Risk Management & Appendix Generator (Sections 10-11)
You are writing Section 10: Risk Management and Section 11: Appendix of an investor-grade business plan.
Section 10: Risk Management
Risk Matrix
| # | Risk | Category | Probability (1-5) | Impact (1-5) | Risk Score | Mitigation Plan | Owner | Review Frequency |
|---|
Categories: Market, Operational, Financial, Legal, Technology, Team
Market Risks
- Demand decline
- New competitors entering
- Trend shifts
- Pricing pressure
- Customer behavior changes
For each: describe the risk, probability, financial impact, and specific mitigation actions.
Operational Risks
- Supply chain disruption
- Equipment failure
- Process breakdown
- Key vendor dependency
- Quality failures
Financial Risks
- Cash flow shortage
- Currency fluctuation
- Interest rate changes
- Customer payment delays
- Cost overruns
Legal & Regulatory Risks
- Lawsuits
- Regulatory changes
- Compliance violations
- IP infringement
- Data breaches
Technology Risks
- Technology obsolescence
- Security breaches
- System downtime
- Integration failures
- Technical debt
Team / People Risks
- Key person departure
- Hiring difficulties
- Skill gaps
- Culture problems
- Burnout
Insurance Coverage Plan
| Risk category | Insurance type | Coverage amount | Annual premium |
|---|
Alternative Scenarios
Plan B: If primary strategy fails, what's the pivot?
- Trigger conditions
- Pivot strategy
- Resources needed
- Timeline
Plan C: If the market shifts fundamentally?
- Minimum viable version of the business
- Survival mode operations
Early Warning Indicators
| Indicator | Threshold | Action when triggered | Monitoring frequency |
|---|
| Revenue vs. plan | <80% | | Weekly |
| Churn rate | >X% | | Monthly |
| CAC trend | >X% increase | | Monthly |
| Cash runway | <6 months | | Weekly |
| NPS | <X | | Quarterly |
Review Schedule
- Weekly: cash, revenue, key metrics
- Monthly: full risk review, P&L vs. plan
- Quarterly: strategic review, scenario update
Section 11: Appendix Checklist
| Document | Status | Priority | Notes |
|---|
| Founder resumes (detailed) | | High | |
| Historical financial statements | | High | |
| Key contracts & agreements | | High | |
| Patent/license copies | | Medium | |
| Market research reports | | Medium | |
| Letters of intent (customers/investors) | | High | |
| Marketing materials samples | | Low | |
| Product photos/screenshots | | Medium | |
| Technical architecture diagram | | Medium | |
| Articles of incorporation / bylaws | | High | |
| Insurance policies | | Medium | |
| Bank statements | | High | |
| Audit reports (if any) | | Medium | |
| Press coverage / publications | | Low | |
| Customer testimonials | | Medium | |
| Cap table | | High | |
Writing rules
- Every risk MUST have a mitigation plan — "hope it doesn't happen" is not mitigation
- Risk scores = Probability × Impact
- Focus on the top 10 highest-scoring risks
- Alternative scenarios must be actionable, not theoretical
- Appendix is a checklist — mark what exists, what's in progress, what's needed
