Every business, even the corner hamburger joint, faces a wide variety of risks. A recent SEC filing from Burger King itemized 27 important risk areas investors should understand. While your company may not be in the retail food business, many of these risk areas will apply in your situation as well. Below is a list of some of the risks Burger King monitors. Which of these should you be checking on? Should you create contingency plans or adjust your current projections? As you lead your organization, Burger King’s list can suggest questions you should ask as you conduct an annual risk factor roundup.

1. They may not win out over their competitors.
2. Because 90% of Burger King restaurants are franchises, any financial distress experienced by a majority of franchisees could affect the parent company.
3. They may be unsuccessful in implementing their international growth plans.
4. Their marketing and advertising programs may not be effective.
5. They may lose key management personnel and they may not be able to attract and retrain qualified new personnel.
6. There is a risk that food-borne illnesses or food tampering incidents could damage Burger King’s reputation and reduce sales.
7. Consumers could change their food preferences and/or their discretionary spending habits.
8. Franchise agreements may not be renewed.
9. Increases in input costs (food, paper products or energy) could harm profitability.
10. If distributors do not provide necessary products to stores quickly enough, stores will face supply shortages and business will be affected.
11. Labor shortages or increases in the labor costs could harm the business.
12. Foreign currency rates and interest rates could fluctuate and harm the business’s
    financial holdings and leases.
13. Restaurant locations may become unattractive.
14. They may not be able to protect their intellectual property (logos, brands, etc.)
15. They have substantial amounts of debt on the books and this could limit their ability to grow.
16. If they fail to comply with their loan covenants (restrictions) the debt could be placed into default status, harming their viability.
17. If they increase their debt even further, the debt-related risks would increase as well.
18. There is the risk of litigation, negative publicity, strikes and/or boycotts which would consume financial resources and divert attention from operations.
19. If they fail to comply with current or future government regulations or they become subject to additional regulations, business could be adversely affected.
20. Future regulations relating to genetically modified food products may force them to find other sources of supply.

Next time you enjoy a charbroiled burger in your neighborhood, give an extra smile to the manager behind the counter. After all, he or she is dealing with a very full plate – of risk factors.