3.6 Causes And Effects 💥 Flashcards
What are some unexpected events under scenario planning?
MAIN
Natural disasters
losses of key staff
IT issues
crime
cyber crime
Non- paying customers
What is scenario planning?
Preparing for an unexpected event the business may face -
If properly prepared for can lead to a thereat to be an opportunity if the business 👩💼 
Or anticipating changes to the business and the best way of dealing with them
What is the point of scenario planning?
To mitigate risks
What are the four steps needed to mitigate risks and process of Scenario planning?
- Identify possible issues- Mirror affect the internal or external environment that may impact to the business
- Build possible scenario- Relevant to business
- Identify most likely scenario - Most likely
- Plan response- and look at response - How’s the likely impact effect
- Enact plan of scenario- prepare when necessary
What are risk mitigation plans ?
Identify assess and prioritise risks 
What are some examples of risk mitigation plans?
Set location that’s not too vulnerable to flooding
data backed up 🆙
organise backup power
adequate communication
What are the two things of risk mitigation is split up to?
A business continuity plan - how business will operate following a serious incident or disaster - how it expects to return to normal as soon as possible
Succession planning - involves identifying and developing current employees who have the potential to move into key roles in the future
What are the 6 stages of business continuity?
- Risk Assessment- Involves identifying potential risks- Could disrupt business operations
- Carry out business impact analysis- Identifies the functions and purposes gathering information so an appropriate Recovery strategy can be designed
may involve identifying critical business functions and determining the potential financial and operational impact of disruptions
- Formulate a recovery strategy - Formulate a response as a response to a disruption -Implementing backup systems
placing restrictions
4.Plan development - Outlines the specific steps taken When disruption takes place could outline procedures and guidelines
- Testing and training
Ensures that the plan is effective and all stakeholders understand their roles and responsibilities
This may involve conducting drills and simulations, as well as providing training to employees and other stakeholders
- Maintenance and review
Involves the regular review and updating of the plan to ensure that it remains relevant and effective
This may involve reviewing and updating the risk assessment, revising procedures and guidelines, and ensuring that stakeholders are aware of any changes
What are risk assessment?
Identifying and evaluating potential risks involving the activity of the business
What are the six stages of succession planning?
- Identify the characteristics that the successor should possess -
Look at a job description and person specification see if they portrayed the traits required - Decide how they will be found - External or internal
Plan - Once potential successors have been identified, a plan to prepare for the transfer of leadership is developed
Train and mentor - Potential successors need to have the skills and knowledge needed to take over the business
This may involve providing education, coaching and on-the-job training
Communicate - All stakeholders need to be informed of the plan including employees, customers, suppliers, and investors
This can help to build trust and ensure a smooth transition
Review and update plan This should be done regularly to ensure the plan remains relevant and effective as the business evolves over time
What can successful succession planning ensure?
can help to ensure the long-term viability of a business
while also providing peace of mind to key leaders or employees as they plan for their departure
