3.6.3 Scenario Planning

Identifying Key Risks through Risk Assessment

Risk assessment: The process of identifying potential events or circumstances that could negatively impact the organisation.

• Types of Risks:
  • Natural Disasters: Events such as earthquakes, floods, or hurricanes that can disrupt operations.
  • IT Systems Failure: Risks associated with the breakdown or hacking of critical IT systems, leading to operational paralysis.
  • Loss of Key Staff: The departure of individuals with crucial skills, knowledge, or leadership roles, which can significantly impact the business.

Planning for Risk Mitigation

Risk mitigation: Developing strategies to reduce the impact of identified risks and ensure business continuity.

• Strategies:
  • Business Continuity Planning:
  • Ensuring that essential functions can continue during and after a disaster.
  • Includes backup systems, alternative work arrangements, and emergency response procedures.
  • Succession Planning:
  • Identifying and developing internal candidates to fill key roles when necessary.
  • Ensures that the organisation is not overly dependent on any single employee and can maintain leadership and expertise continuity.