Risk Assessment at Home Depot

            Home Depot is the 33^rd largest company in the US but is faced with three distinct risks. An operational risk assessment shows that the company is at risk of a damaging blunder by inadequately trained workers who do not meet customer needs. For example, it 2008, the company compromised on personal data of more than 56 million customers. Largely, this was attributed to employees’ incompetence in handling customer data thus exposing key data to cyber-attacks. A supply chain risk assessment reveals that the quality of goods and services being supplied to customers’ is declining. Thirdly, a customer risk assessment at Home Depot found that the company is at an imminent risk of a housing downturn that heaps financial stress on home builders thus lowering sales of homes

Key Performance Indicators (KPIs)

            A customer feedback survey shows a worrying trend of increasing customer dissatisfaction at Home Depot. The main grievances expressed by customers is poor performance of staff at the store. An increase in customer complaints points to the incompetence of employees in rendering services to customers.

Data on the number of product returns show an increase in the number of products returned by customers. This measure of defects is a signal that the quality of Home Depot products is deteriorating at an alarming rate. Data collected on housing starts on a countrywide level reveals a decrease in housing starts. This external risk shows a dwindling economic performance because the rate at which people are becoming homeowners is decreasing (Cloyd, 2014). People’s disposable income is reduced and therefore are unable to start or remodel their houses. Home Depot is poised to register a significant decline in sales if the economic performance of the country does not improve fast enough.