"facing the potential" is correct and usable in written English.
You can use it when you are discussing a situation in which someone or something is facing an uncertain outcome or a difficult possibility. For example, "The company is facing the potential of bankruptcy if sales don't increase."
Mr. Musharraf is also facing the potential option of asylum.
That same reluctance has been matched by our aversion to facing the potential threat of nuclear emergencies.
[A14.] The New York region, which appeared to escape a looming electricity crisis, is unexpectedly facing the potential for serious power shortages, utility executives said.
But unlike past tournaments, when the coach was facing the potential boot, the newly installed Roy Hodgson is surprisingly laid back.
The Knicks are also facing the potential loss of three key rotation players to free agency: J. R. Smith, Pablo Prigioni and Chris Copeland.
The government is also facing the potential collapse of the British steel industry after Tata Steel announced it planned to pull out of all its UK operations, putting 15,000 jobs at risk.
Emergency room nurses say they also face the potential for violence from patients' family members.
In the world of online education, where students rarely or never see their professors face to face, the potential for cheating is even greater.
The Greens now face the potential opportunity of a post-Ed Miliband Labour party shifting away from the left, giving them more political space.
The corporation may have headed off a strike over pay, but it still faces the potential of industrial action over widespread cuts to BBC News.
As a result, Bernstein and its fans say, the company does not face the potential conflicts of interest confronted by analysts at investment banks like Merrill Lynch and PaineWebber.
