3.6.3

• what is scenario planning

  the process of anticipating possible changes in a business' situation and devising ways of dealing with them. it incorporates the features of contingency planning
• what does scenario planning also link to?

  risk management, decision-making, crisis management, PESTLE, external environment
• what does risk assessment involve?

  identifying any potential scenarios, categorising them by severity, assigning a probability, planning a response
• what are the 3 main risks to a business

  natural disasters, IT system failures, loss of key staff
• what do degrees of risk mitigation depend on?

  specific contextual influences and the overall attitude of the decision makers in the business
• what is risk acceptance

  the balance between risk and reward, an acceptance that there is an element of risk to every business venture
• what is risk avoidance ?

  the elimination of hazards, activities and exposures that can negatively affect an organisation's assets
• what is involved with risk limitation

  managing data carefully, becoming and LTD to gain limited liability, having plenty of insurance, investing in security systems
• what is risk transference

  protection against the risk e.g insurance
• what is public liability insurance?

  insurance that covers the business for claims made against the business by a client or member to the public for accidental injury
• what does employer's liability do?

  protects the business if an employee is injured and the business has been negligent
• what are the 3 stages of risk mitigation?

  identifying, assessing, prioritising
• what is business continuity

  the capability of a business to continue delivery of products or services at acceptable levels following a disruptive incident
• what is business continuity about?

  building/improving resilience, identifying the key products and services, devising plans and strategies
• what is succession planning?

  a process for identifying and developing internal people with the potential to fill key business leadership positions in the company, it may involved identifying and developing potential future leaders
• what does succession planning do?

  increases the availability of experienced and capable employees that are prepared to assume these roles as they become available