Risk Management Model
Investors can go through this section of our whitepaper document to investigate the probable, and most likely risks involved in creating and running a platform of this magnitude.
Objectives of Our Risk Management Model
● This Model shows investors and potential users how we identify, record, analyze and handle potential risks.
● It shows our mitigating strategies.
● It contains a comprehensive risk analysis that is updated periodically to ensure concurrent accuracy.
● It displays the solutions we’ve mapped out for likely threats to the structural and communal integrity of our ecosystem.
Audiences
This model is addressed to the following people
SN | Group | Reason |
1 | Investors | For pre-investment risk assessment |
2. | Users | To ascertain possible threats to the platform |
3. | Spectators | For general assessment and ideological marketing |
Organizatinal Context
● It is technically impossible to avoid risk totally. To state its possibility is to act deceitfully.
● As a blockchain NFT solution, we are aiming to be the unifying agent that serves as a cross-link between multiple blockchains
● Our platform’s financial asset (STSP) connotes the profiteering component for our investors.
Risk Strategy
To ensure that risks are identified consistently across our platform, a risk assessment model will be applied. The risk diagram shows how we identify, analyze, evaluate and treat the risks found within our system.
Risk Diagram
Risk Identification
Internal | External |
Financial Management: ● Income reduction ● Poorly calculated income margins ● Fraud control ● Availability of liquidity. | Optics ● Posibility of being seen from the wrong perspective by members of the public ● Public obserevers only focusing on weak points |
Human Resource Factor: ● Possibility of workload overload of platform’s staff ● Possibility of difficulty in recruiting competent hands | Competition: ● Possibility for the emergence of clone projects. ● Project plan of similar projects. |
Platform Integrity Fails: ● Possibility for a hack ● Possibility for a server fail ● Our cross-chain protocol may not work effectively | Market Trends ● Volatility of the entire crypto market ● Downward trend in the clamour for NFT adoption into mainstream |
Internal Market Structure Implementation: ● Insuffuicent market plan implementation. ● Possibility of the STSP token not flying ● Volatility of the STSP token | Partnership Failures ● Our Visa- link may not work ● Some of our partners might not believe in the project |
Leadership Fails ● Possibility of the leadership giving up on the project | Hack Attempts on Similar Platforms ● Users may pull out resources siting hack attempts of similar projects. |
Risk Analysis
For simplicity, all risks will be allotted risk points (from 1 - 10) based on speculative risk margins.
The 1 - 10 scale measurement will be used based on the selective input of real estate professionals to ascertain the level of correctness of each risk point allotted to each risk point enlisted in the identification phase of this risk management plan.
The data will be represented in a table that contains the risk, risk score, and possible catastrophic outcomes if not handled properly.
Risk Evaluation
S/N | The Risk | R. Score | Status | Possible Risk Consequences |
Internal Risk Factors | ||||
1 | Financial Management | 4 | low | ● However unlikely, it may result in reduced income inflow ● A total crash of the financial structure ● Inability to carry on our roadmap judiciously. |
2 | Human Resource Factor | 2 | Very low | ● We may get good human input, but probably not the best if not handled properly. ● We may have to search for better hands depending on the performance we see. |
3 | Platform Integrity Fails | 4 | low | ● The platform may suffer from hacks. ● High volume may lead to a crash of the platform |
4 | Internal Market Structure Implementation | 7 | high | ● The STSP token may fall uncontrollably ● Our market strategy may not covert |
5 | Leadership Fails | 1 | Very low | ● Our leaders may leave the platform. |
External Risk Factors | ||||
6 | Optics | 3 | low | ● Members of the public who try to find faults in our project may find a few loopholes ● We may end up with a few negative comments |
7 | Competition | 9 | Very high | ● Our project may be cloned ● Similar projects may begin to emerge with top-tier features |
8 | Market Trends | 7 | high | ● There may be a total market crash |
9 | Partnership Failures | 5 | moderate | ● Our partners may not keep to their end of the bargain, or their gateways may not work as planned. |
10 | Hack Attempts on similar Platforms | 6 | moderate | ● Users may pull out their funds if similar platforms suffer mismanagement or cyber hack proboems, for fear of loss of funds. |
Risk Reduction & Management Strategy
Below are the steps we will take to reduce the risks involved to the barest minimum.
1. Financial Management: To ensure that we don't have a problem with finances and financing, first, the resources of the platform are not subjected to central control. Also, the platform has multiple income sources to keep it running. All investments and private sales entered by investors incur charges. We make more money to sustain the platform that way. Listing fees for our launchpad is also another avenue to make profits.
2. Human Resources: We have unrestricted access to professional developers, designers, and more. These experts can be recruited once we are able to pull our resources together. We are already inculcating a few of them into the core of our team.
3. Platform Integrity Fails: We are only employing the best hands to handle our platform's creation and periodic maintenance. We are also putting professional security measures in place to ensure the safety of our users and our platform.
4. Internal Market Structure Implementation: We have tested and trusted market control mechanisms that can be utilized to control and stabilize the price of the STSP token. The token will also be listed on other exchanges; creating utility for the tokens outside the Stackspace ecosystem. Also, since the token has tangible utility within our platform, its potentials are pretty high.
5. Leadership fails: it is implausible that the leadership board of our platform will quit, also, our ecosystem adopts an effective DAO model that involves many users of the platform in the leadership process.
6. Optics: We will look for negative comments and statements from users and spectators. Oftentimes, they may have genuine concerns placed on their comments. We will use their feedbacks to work on our updates and upgrades, (to help the platform continue to move forward).
7. Competition: Firstly, we only give out as much information to the general public to avoid being cloned. Also, with our periodic mapped-out updates, we will consistently improve.
8. Market Trends: Whenever such happens, we have internal mechanisms that we can adopt to counteract the effects of the market. One such mechanism is the token burn protocol.
9. Partnership Fails: We are working with reputable companies and individuals. The likelihood of that occurring is quite slim; however, we have alternatives planned out just in case.
Hack Attempts on similar Platforms: A hack on a similar platform will only make us assess the threat, and make improvements to our security architecture if the need arises. We will also update our users through various channels to avoid panic sales of our tokens. The key is to stay on top of the game.
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