PESTLE Risk Assessment
By: A Staff Writer
Updated on: Jul 19, 2024
What: Analyzes external factors that could create risks (or opportunities) for a business, using macro-level categories: Political, Economic, etc.
Who: A variation on classic PEST analysis, with added risk assessment.
Why: Helps entrepreneurs avoid “tunnel vision” on internal factors. Keeps an eye on the big picture that could impact them.
When: When developing strategy, launching new initiatives, entering new markets, or if the external environment feels particularly turbulent.
How:
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- Brainstorm factors under each PESTLE category.
- Use a matrix to assess the likelihood and severity of impact.