3.6.3 scenario planning Flashcards
Risk assessment involves
Identifying any potential scenarios
Categorising them by severity
Assigning a probability
Planning response
risks include
Natural disasters
Events caused by environmental factors e.g. earthquake, flooding, landslides
IT systems failure
IT can be mission critical i.e. without it a business can no longer operate
Ability to make transactions, contact customers, control operations
Threat of cyberattacks
Loss of customer trust
Loss of key staff
Loss of expertise
Damage to brad if the person is seen as key to the brand integrity
Knowledge going to competitors
define Risk mitigation
Risk mitigation is the actions taken by business to minimise or eliminate risk through a process of:
Identifying
Assessing
Prioritising
This helps minimise disruption allowing the business to enjoy business continuity i.e. to continue to operate
This can be achieved through succession planning i.e. planning for the unexpected
define success planning
Succession planning is the process by which organisations try to prepare for unexpected and potentially disastrous events
define Crisis management
is the manner in which an organisation responds to an unexpected and potentially disastrous event
Business Impact Analysis
Potential threats
-What could go wrong?
Probability
How likely is it to happen?
Estimated effect
What will the cost to the business be?
Financial and reputation
Speed
How quickly will it impact on the business functions?
How quickly can the business respond?
Mission critical functions
Will it stop the business performing its main function?
Succession plans values and limitations
values Sense of security Limits damage Speeds up recovery process Informs staff training Preventative measures can be part of CSR
limitations Costly and time consuming Including opportunity cost Needs reviewing Lack of predictability
