Scenario Planning

• Scenario planning is the process of anticipating possible changes in a business’s situation and devising ways of dealing with them

  • This risk assessment is where a business identifies, evaluates and prioritises risks and the precautions that may be taken to protect against them
• Natural disasters:

  • Natural disasters are often unpredictable but their impact can be so devastating to business operations that they are a common element of risk assessment
  • Identify the types of natural disasters that could be expected to occur in a particular area 
  • Assess the potential extent of the impact of a natural disaster on the business and its assets
• IT systems failure:

  • Information technology systems are used extensively by most businesses and an IT systems failure can have a devastating effect on a business's ability to carry on operating normally
  • Business IT systems are at risk for a variety of reasons, such as
  • Malware can infect a business's IT system and cause significant damage
  • A data breach occurs when sensitive or confidential data is lost due to a cyberattack, human error or negligence
• Loss of key staff:

  • Losing key members of staff can cause difficulties especially if they are unplanned (e.g. as a result of sudden illness or incapacity)
  • Loss of experience and knowledge can impact a business competitive edge
  • Losing a figurehead or influencer can affect the morale of remaining employees as well as the culture and direction of the business
• Planning for Risk Mitigation:

  1. Risk assessment
  2. Impact analysis
  3. Strategy development
  4. Plan development
  5. Testing and training
  6. Maintenance and revue
• Succession planning involves identifying and developing current employees who have the potential to move into key roles in the future

  • It is often used to preparing for the eventual retirement death or departure of the a senior executive and ensure the smooth transition
• Elements of Succession Planning:

  • Identify potential successors
  • Develop a plan
  • Train and mentor
  • Communicate with stakeholders
  • Review and update the plan