Risk Management Flashcards
(11 cards)
What is risk defined as
the possibility of injuring losses due to problems and circumstances, expected or unexpected
what are some likely business risks
- natural disaster
- technological failure
- product failure
- employee failure
- PR scandal
what is mission critical
something that a business cannot operate without
what are the 4 steps of risk assessment
- identifying any potential risk
- categorising each risk by severity
- assigning a probability
- planning response to each risk
what are the 2 types of risk
Insurable vs Uninsurable
what are contingencies
uncontrollable events that are not anticipated for
what is contingency planning
preparing resources for unplanned events
what is crisis management
how the emergencies are managed in the moment
what are the stages of contingency planning
- identify possible contingencies
- assess consequences (quantifiable and non)
- assess degree of risk
- determine a strategy to deal with it
- test the plan
what are some standard plans for contingencies
- contingency funds
- alternative methods of production
what are the pros and cons of contingency plans
pros
- reassures staff (can operate without fear)
- minimises impact upon disaster
cons
- needs to be constantly update/costly and time consuming
- prevention is better than planning
- not al risks can be planned for
