Business Risks And Inherent Risks

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Business Risks and Inherent Risks Starbucks’ success depends significantly on the value of their brands and failure to preserve their value, either through their actions or those of their business partners, could have a negative impact on their financial results. Brand value is based in part on consumer perceptions on a variety of subjective qualities. Business incidents, whether one-time or recurring and whether originating from Starbucks or their business partners, that weaken consumer trust, such as actual or perceived breaches of privacy, contaminated food, recalls or other potential incidents discussed in this risk factors section, particularly if the incidents receive considerable publicity, including rapidly through social or digital media, or result in litigation, can significantly reduce brand value and have a negative impact on their financial results. The unauthorized access, theft or destruction of customer or employee personal, financial or other data or of Starbucks proprietary or confidential information that is stored in their information systems could impact their reputation and brand and expose them to potential liability and loss of revenues. Information technology systems, such as those they use for their point-of-sale, web and mobile platforms, including online and mobile payment systems and rewards programs, and for administrative functions, as well as the information technology systems of their third party business partners and service providers, can
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