3.6.3 Scenario planning

Question 1

What is Scenario planning?

Answer 1

The process of identifying uncertainties that may affect the future of the business and putting in place procedures to deal with these events if they occur

Question 2

What do stratergies always involve and why?

Answer 2

Strategies are medium to long-term, they therefore always involve risk and uncertainty

Question 3

What do risk assesments include?

Answer 3

Identifying any potential scenarios
Categorising them by severity
Assigning a probability
Planning response

Question 4

What are Natural disasters?

Answer 4

Events caused by enviromental factors. Flooding, earthquake

Question 5

What are some diffrent types of risk?

Answer 5

Natural disasters
IT systems failure
Loss of key staff

Question 6

What are IT systems risks?

Answer 6

Failure:

IT can be mission critical i.e. without it a business can no longer operate

Question 7

What are some effects of key staff?

Answer 7

Loss of expertise
Damage to brand if the person is seen as key to the brand integrity
Knowledge going to competitors.

Question 8

What is Succession planning?

Answer 8

Succession planning is the process by which organisations try to prepare for unexpected and potentially disastrous events

Question 9

What is Risk mitigation?

Answer 9

Risk mitigation is the actions taken by business to minimise or eliminate risk through a process of:
Identifying
Assessing
Prioritising

Question 10

What is the value from Succession planning?

Answer 10

Sense of security
Limits damage
Speeds up recovery process
Informs staff training
Preventative measures can be part of CSR

Question 11

What are some limmitations of Succession planning?

Answer 11

Costly and time consuming
Including opportunity cost
Needs reviewing
Lack of predictability