3.6.3 scenario planning Flashcards
define scenario planning
visualising possible futures for a business, then planning how to get the best out of the opportunities and how to deal with the threats
risk assessments
comes in three parts;
identify the risk.
quantify their possible cost to the business.
attempt to quantify the probability each risk might occur
natural disasters
can strike any organisation, large or small.
it may take some time for the business to return to normal operation after an incident
it systems failure
it systems often contain data about;
customers details, suppliers details, stock control information, Human Resources information.
loss of key staff
losing a key figure can have serious repercussions on the organisations stakeholders
risk acceptance
balance between risk and reward is the very essence of business - without taking risks companies cannot generate profits
risk avoidance
the elimination of hazards, activities and exposures that can negatively affect an organisation’s assets
risk limitation
the bottom line for businesses is that some risks are both identifiable and manageable
risk transference
business have two types of risk insurance they can buy.
public liability insurance
employers liability
public liability insurance
covers the business for claims made against the business by a client or member of the public for accidental injury
employers liability
protects the business if an employee is injured and the business has been negligent
business continuity
the capability of the organisation to continue delivery of products or services at acceptable levels following a disruptive incident
succession planning
a process for identifying and developing internal people with the potential to fill key business leadership positions in the company
