Section 5 - 5.7 crisis management and contingency planning

Question 1

Contingency planning

Answer 1

is about being proactive to changes in the business environment. It involves developing a plan before an unwanted or unlikely event occurs by using “what if?” questions to identify or probable threats

Question 2

A crisis

Answer 2

is a situation of instability that results in major problems for a business. Crises are usually unexpected and often unpredictable e.g. natural disasters, accidents and computer failure

Question 3

Crisis management

Answer 3

is about being reactive to events and disasters that can cause serious disruptions and harm to a business i.e taking action as and when a crisis happens

Question 4

Quantifiable risks (insurable risks)

Answer 4

are probable and financial measurable threats to a business such as fire damage

Question 5

Unquantifiable risks (uninsurable risks)

Answer 5

are threats to a business that are impossible or prohibitively expensive to examine and measure