3.6.3 - Scenario Planning

Question 1

Define Scenario Planning

Answer 1

a Strategic Planning Method Designed to Explore Uncertainties, Learn How to Protect the Business From their Worst Consequences and Prepare How to Exploit Any Opportunities that might Present Themselves

Question 2

State Key Risks that can be Explained Through Risk Assessment

Answer 2

• Natural Disasters
• IT System Failure
• Loss of Key Staff

Question 3

Explain Key Risk Identified through Risk Assessment - Natural Disasters

Answer 3

• may Take some Time for Business to Return to Normal Operation After an Incident
• Climate Change means UK Business must Plan for Extremes of Weather

Question 4

Explain Key Risk Identified through Risk Assessment - IT Systems Failure

Answer 4

• Often Contain Data about ; Customer Details including Emails, Phone Numbers, Stock Control info etc
• Human Resources data ; Sensitive Info on Contracts, Pay Rates, Health Matters and Personal Circumstances
• If this Info is Lost -> Could be Disastrous for Business
• Scenario Planning means Adequate Firewalls, Backups are Planned for in Place

Question 5

Explain Key Risk Identified through Risk Assessment - Loss of Key Staff

Answer 5

• when a Key Figure Leaves -> can Have a Serious Repercussion on Stakholders
• is Important to Plan for Loss of Key Staff so When it Happens -> Business Continues as Normal

Question 6

Define Risk Mitigation

Answer 6

• actions Taken by Business to Minimise or Eliminate Risk Through a Process of : Identifying, Assessing and Prioritising

Question 7

State 4 Degrees of Risk Migitation

Answer 7

• Risk Acceptance
• Risk Avoidance
• Risk Limitation
• Risk Transferences

Question 8

Explain Risk Acceptance

Answer 8

• Balance between Risk and Reward is Essence of Business
• is a World of Difference Between Calculated Risks, Taken with Planning and Careful Judgement
• an Acceptance That there’s an Element of Risk to Very Business Venture is at Heart of Successful Business and Risk Management

Question 9

Explain Risk Avoidance

Answer 9

• elimination of Hazards, Activities and Exposures, that can Negatively Affect an Organisation’s Assets
• whereas Risk Management to Control the Damages and Financial Consequences of Threatening Events, Risk Avoidance seeks to Avoid Compromising Events Entirely

Question 10

Explain Risk Limitation

Answer 10

Risk can be Limited by :
- Watching what it’s Said and Done to Reduce the Possibility of Being Sued
- Managing Data Carefully
- Become a LTD to Gain Limited Liability

Question 11

Risk Transference

Answer 11

a Business will buy Insurance :
- Public Liability
- Employers’ Liability

Question 12

State 2 ways of Planning for Risk Migration

Answer 12

• Business Continuity
• Succession Planning

Question 13

• CONTINUE