2.

Financial
Risk : If our competitor is managing employee costs in a more effective way which is
having an impact on our employees
Strategy: Reduce
Its a risk we cannot ignore and this is one of our key factors to impact our
bottomline. So we plan to reduce it through variable components (E.g.: Tying
employee pay with industry performance, providing ESOPs, employing employees
on contracts which will prevent them to leave the company too soon)
3rd Party:
Risk: Relationship with existing players , loyalty with existing players
Strategy: Transfer
Instead of variable contract, we can get into fixed contract with 3 rd party service
providers like hotel chain, restaurants.
Safety:
Risk: This might consume more capital
Strategy: Accept
New Airline, cannot compromise on safety even if it might consume more nonperforming capital