Possible risks specific to Foresense Technologies Ltd as an
investment opportunity include:
-
Industry reliance on retail (though Foresense has a diverse
approach to sales)
-
The delivery of another data solution to an already
crowded analytics environment
-
Reputation or brand damage suffered by Foresense
following an incident or series of incidents:
-
An example could be a negative review of the way
Foresense sensors have been deployed on social media,
which is then shared and goes 'viral'
-
Negative responses to employment practices or
treatment of staff, or
-
Breach of environmental regulations or best practice
guidelines in manufacturing Foresense products.
-
A reduction in demand for the goods and services
supplied by Foresense – as a B2B business, Foresense may
find customers that periodically tender for its business,
leading to a risk that Foresense may be unsuccessful in retaining its existing contract or keeping
the same terms
-
A reduction in material manufacture and/or supply chains,
possibly due to shortages of components further down
the supply chain or at source
-
An increase in labour costs
-
Foresense being unable to secure or retain relevant
licences or certifications to roll out its products in certain
regions or outlets
(Foresense must comply with a range of laws and
regulations in each country in which it sells or produces
its products, including on labelling, packaging, fair trading
and consumer protection, employment, health and safety,
the environment)
-
Foresense being affected negatively by unforeseen
regulatory factors
-
A further decrease in the numbers of bricks-andmortar stores – as online shopping continues to
have a
detrimental effect on the presence in the marketplace of
physical locations, there may be fewer outlets available in
which to place Foresense products
-
Foresense failing to meet its financial and commercial
forecasts
-
Foresense failing to retain existing key management
personnel, and/or attracting new such personnel
Challenges accessing capital markets or refinancing the business on attractive terms
-
Foresense facing litigation and/or disputes and becoming
involved in unforeseen legal proceedings, with a variety
of parties, including employees, former employees,
community members, consumers, vendors or suppliers
-
Possible outages and failure of Foresense information
technology systems, leading to loss of productivity and
affecting decision-making and operational processes.
