risk management Flashcards
1
Q
what is risk
A
Business risk is a circumstance or factor that may have a significant negative impact on the operations or profitability
of a given business.
2
Q
internal risks
A
- Public relations failures
- employee error
- product failures
- failure of equipment
3
Q
external risks
A
- natural disaters
- suplly chain problems
- legal challenges
- economic factors
4
Q
what is risk managment
A
Risk management is the process of understanding and minimising what might go wrong in an organisation
5
Q
risk managment process
A
- the identification and analysis of risks to which the organisation is exposed
- a measurement of the likelihood of the risks occurring
- an assessment of potential impacts on the business
- deciding what action can be taken to eliminate or reduce risk
6
Q
what is a contignecy plan
A
A contingency plan is a plan of action to be followed in the event of an emergency or crisis occurring which threatens to destroy or significantly disrupt the continued operation of normal business activities
7
Q
what is the value of contigency planning
A
It is likely that an effective contingency plan will minimise the risk and limit the damage caused by a crisis.
