3.6.3 - Scenario Planning Flashcards
Define Scenario Planning
a Strategic Planning Method Designed to Explore Uncertainties, Learn How to Protect the Business From their Worst Consequences and Prepare How to Exploit Any Opportunities that might Present Themselves
State Key Risks that can be Explained Through Risk Assessment
- Natural Disasters
- IT System Failure
- Loss of Key Staff
Explain Key Risk Identified through Risk Assessment - Natural Disasters
- may Take some Time for Business to Return to Normal Operation After an Incident
- Climate Change means UK Business must Plan for Extremes of Weather
Explain Key Risk Identified through Risk Assessment - IT Systems Failure
- Often Contain Data about ; Customer Details including Emails, Phone Numbers, Stock Control info etc
- Human Resources data ; Sensitive Info on Contracts, Pay Rates, Health Matters and Personal Circumstances
- If this Info is Lost -> Could be Disastrous for Business
- Scenario Planning means Adequate Firewalls, Backups are Planned for in Place
Explain Key Risk Identified through Risk Assessment - Loss of Key Staff
- when a Key Figure Leaves -> can Have a Serious Repercussion on Stakholders
- is Important to Plan for Loss of Key Staff so When it Happens -> Business Continues as Normal
Define Risk Mitigation
- actions Taken by Business to Minimise or Eliminate Risk Through a Process of : Identifying, Assessing and Prioritising
State 4 Degrees of Risk Migitation
- Risk Acceptance
- Risk Avoidance
- Risk Limitation
- Risk Transferences
Explain Risk Acceptance
- Balance between Risk and Reward is Essence of Business
- is a World of Difference Between Calculated Risks, Taken with Planning and Careful Judgement
- an Acceptance That there’s an Element of Risk to Very Business Venture is at Heart of Successful Business and Risk Management
Explain Risk Avoidance
- elimination of Hazards, Activities and Exposures, that can Negatively Affect an Organisation’s Assets
- whereas Risk Management to Control the Damages and Financial Consequences of Threatening Events, Risk Avoidance seeks to Avoid Compromising Events Entirely
Explain Risk Limitation
Risk can be Limited by :
- Watching what it’s Said and Done to Reduce the Possibility of Being Sued
- Managing Data Carefully
- Become a LTD to Gain Limited Liability
Risk Transference
a Business will buy Insurance :
- Public Liability
- Employers’ Liability
State 2 ways of Planning for Risk Migration
- Business Continuity
- Succession Planning
- CONTINUE