Context under business continuity and risk management . 1. Define and explain th

Question

Context under business continuity and risk management .

1. Define and explain the difference between threat and crisis.

2. Define and explain the difference between risk analysis, risk evaluation and risk assessment.

3. What are some approaches to assess event probabilities?

4. Describe some of the difficulties associated with determining the probability and impact of a terrorist attack.

5. When considering disruptions, how important are building structure and building contents for a typical service-related organization?

6. When considering disruptions, how important are building structure and building contents for a typical manufacturing-related organization?

7. What are the four options for risk treatment?

Explanation / Answer

1.Threat is a possiblity of occurance of an undesirable event that may occur in near future if a corrective action is not taken immediately. A crisis is a situation when the undesirable event has already happened and has caused its negative effect, resulting in the undesired outcome, the effects of which need to be addressed on urgent basis to minimise the damages.

2. Risk analysis is a process of identification and analysis of issues that may negatively impact the business functions or progress of an organisation. Risk assessment is a part of risk analysis, where specific risk causing elements are identified with the potential harm they can cause, wth an intent to design measures to reduce them. Risk evaluation is assignment of qualitative and quantitative terms to the risks identified previously and prioritize them in order to the scores assigned to them.

3 The probability can be assigned with help of previous experiences, expert opinions, past occurances of similar events and use of advanced forecasting technologies that predict the probability of occurance by assigning weightage to a number of relevant factors.

4. Terrorist attacks often occur without any warnings and at any scale at any place. The random nature of the attacks and uncertainty about volume of damages desired by thre prepetrators and degree of success achieved. The only way probability can be assigned is through previous pattern of attacks in near past, choice of time and place, presence of huge gathering of target groups, nature of places ( religious shrines etc.) and time ( some event of international importance).

5. The building and its content for a service organisation must address customer and employee safety measures like security against armed assault, fire resistant structure, passage for evacuation, communication channels, protection against deluge and floods, access to the police and fire brigade, a public address system to alert and guide the people, emergency plan with demarcation. For places with high probability of earthquakes, specific materials needs to be used to minimise the loss of lives and damages.

6. For a manufacturing organisation, the building must address evacuation plan for employees and shopfloor workers, fire prevention systems, preventive measures to protect the machines from damage due to fall and deluge. The foundation of the building should be good enough to survive a calamity like Hurricane, earthquake or typhoon, and have access to fire brigade and police, as these buildings are away from urban areas.

7.Four options of risk treatment

(a) Risk avoidance

(b) Risk transfer

(c) Risk reduction

(d) Risk acceptance.

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