3.6.3 - Scenario Planning Flashcards

1
Q

Define Scenario Planning

A

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

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2
Q

State Key Risks that can be Explained Through Risk Assessment

A
  • Natural Disasters
  • IT System Failure
  • Loss of Key Staff
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3
Q

Explain Key Risk Identified through Risk Assessment - Natural Disasters

A
  • 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
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4
Q

Explain Key Risk Identified through Risk Assessment - IT Systems Failure

A
  • 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
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5
Q

Explain Key Risk Identified through Risk Assessment - Loss of Key Staff

A
  • 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
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6
Q

Define Risk Mitigation

A
  • actions Taken by Business to Minimise or Eliminate Risk Through a Process of : Identifying, Assessing and Prioritising
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7
Q

State 4 Degrees of Risk Migitation

A
  • Risk Acceptance
  • Risk Avoidance
  • Risk Limitation
  • Risk Transferences
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8
Q

Explain Risk Acceptance

A
  • 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
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9
Q

Explain Risk Avoidance

A
  • 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
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10
Q

Explain Risk Limitation

A

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

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11
Q

Risk Transference

A

a Business will buy Insurance :
- Public Liability
- Employers’ Liability

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12
Q

State 2 ways of Planning for Risk Migration

A
  • Business Continuity
  • Succession Planning
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13
Q
  • CONTINUE
A
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