Scenario Planning (3.6.3)

Question 1

What is scenario planning?

Answer 1

Anticipating possible changes in businesses situation and devising ways of dealing with them. You have to visualize many potential futures for the business and plan what will happen if it takes place. Proactive approach to capitalize on opportunities or react to threats with more speed.

Question 2

What are some examples of Scenario Planning?

Answer 2

-Risk Assessments
-Loss of Key Staff
-External Shocks
-New Competition
-New Technology
-Changes in Consumer Trends

Question 3

What are some hazards commonly covered by business risk assessments?

Answer 3

-Natural Disasters
-IT Systems Failures
-Loss of Key Staff

Question 4

What are natural disasters? How can it affect business operations?

Answer 4

Catastrophic events that occur due to natural processes of the Earth, causing significant damage to the environment, property, and human life. These events are often sudden and unexpected, and they can vary in scale and impact. Often unpredictable but their impact can be so devastating to business operations.

Question 5

What is an IT systems Failure? How can it affect business operations?

Answer 5

Refers to the malfunction, disruption, or breakdown of technology infrastructure, software, hardware, or networks that support and enable business operations, services, or other critical functions. Information systems are used extensively by most businesses and an IT systems failure can have a devastating effect on a businesses ability to carry on operating normally. Can cause loss of data, data breach etc..

Question 6

What is loss of key staff? How can it affect business operations?

Answer 6

Departure or unavailability of critical employees who hold essential roles or possess unique skills within an organization. Loosing members of staff can cause difficulties especially if they are unplanned and loss of experience cand knowledge can impact a businesses competitive edge or can lower morale. Businesses also could loose relationships with customers and suppliers.

Question 7

What is risk mitigation?

Answer 7

Plans identify and assess risks and then prioritise and plan responses to those risks.

Question 8

What are two key elements of risk assessment plans?

Answer 8

Business continuity plans and succession plans

Question 9

What is a business continuity plan?

Answer 9

Sets out how a business will operate following a serious incident or disaster and how it expects to return to normal as soon as possible

Question 10

What is the process of the Business continuity plan?

Answer 10

1. Risk assessment- identify risks
2. Impact analysis-assessing impact of events on business
3. Develop strategy- approaches to be taken to respond
4. Plan development- Specific steps
5. Testing and Training-ensures plan is effective
6. Maintain and review- regular review and updating of plan so remains relevant and effective

Question 11

What is a business succession plan?

Answer 11

Involves identifying and developing current employees who have the potential to move into key roles in the future. Often used to prepare for the eventual retirement death or departure of a senior executive and ensure the smooth transition of the business to the next generation of leadership

Question 12

What are the key elements of a business succession plan?

Answer 12

1.Identify potential successors -finding potential candidates and assessing skills and commitment
2.Develop a plan- Once potential successors identified, plan to prepare for transfer of leadership
3.Train and mentor- Potential successors need to have skills and knowledge to take over business which may include education, coaching and on-the-job training
4. Communicate with stakeholders- Informed of plan which can help to build trust and ensure smooth transition
5.Review and Update the plan-Should be done regularly to ensure plan remains relevant and effective as the business evolves over time