Company Shielding – A Threats Analysis Overview

It is important for each and every organization to conduct threats analysis in order to get them armed and prepared for any factor that might have a negative impact on their business, regardless if it is big or small. In visualizing and planning the future, you should not only focus on the positive things that might come your way, but also for the possible bad things that could damage any aspect of your organization. Threats analysis is usually conducted along with other factors analyses because it can affect decision-making which leads on affecting the strategy plan.

First of all, how can we consider if something is a threat to the organization? Obviously, it is something that indicates impending danger or harm but how can you pinpoint if it will have an impact to your company?

Threats analysis can only be successful if the organization has a clear understanding of what they want, where and when do they want it to happen and how do they want it. There are several factors that should be considered which will lead into successfully understanding whether something could be a potential weakness for the company. For example, if a company is aiming to deliver goods such as the latest clothes for a certain season and the talk of the town is that there is an increase in the price of sugar, does that current event serve as a threat? Obviously, it is not. However, if the news will say something relevant like the increase in technological instruments price hike, we can say that it is a possible threat because in order to manufacture clothes, an organization will need machines and instruments.

Threats analysis does not only determine the potential danger for the company, but it also helps the organization in preparing back-up and recovery plans. Furthermore, threats analysis enables a company to shield itself from the incoming evaluated danger by arming itself using possible shields that could at least minimize the damage it has yet to receive.

There are a number of ways to conduct threats analysis, but usually, organizations opt for the SWOT Analysis strategic planning tool. This tool evaluates the strengths, weaknesses, opportunities and threats that could affect and make an impact on a certain business venture. However, even if it is said that it is the most common tool, you have to remember that in order to perform an accurate threats analysis, like in any other aspect analysis, you have to gather more tools and interlock them with each other. Now you may think that it might post different results, but the truth is, it will just basically have a variation of results which you can further cascade in order to help you prioritize each.

The SWOT Analysis may be an effective tool for conducting a threats analysis but if you want a more in-depth and hardcore evaluation of potential weaknesses, you also have to use a few other tools, like the PEST Analysis. SWOT is mostly focused on the internal factors while PEST is focused more on the Political, Economical, Social and Technological external factors that may affect an organization’s profitability.

By: Sam Miller

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