CHAPTER 10 BUSINESS RISK

BUSINESS RISK 1.Natural disasters 2.Financial risk 3.Legal risk 4.Technology-related risks 5.Mismanagement 6.Safety and security risk

Risk management process 1. Establish the context 2. Identify the risks 3. Analyse the risks 4. Evaluate the risks 5. Treat the risks

Source of strategic risk Human behaviour Technology and technical issues Occupational health and safety Economic Legal Political Financial/market Property and equipment Environmental Natural events

Treating the risk 1.Avoid the risk by abandoning the activity 2.Reduce the likelihood of the occurrences implementing prevention programs 3.Reduce the severity of the consequences, contingency planning for first aid training

DEVELOPING A RISK MANAGEMENT POLICY Obtain the support of senior management for ongoing risk analysis evaluation and treatment. Decide who is responsible for managing risks. Develop the required documentation. Develop timeline for implementation and ongoing review of the policy.

Integrate risk management with strategic and operational planning. Communicate with staff on an ongoing basis. Manage the program at each relevant level and integrate with all other management responsibilities. Monitor and review the policy, procedures and outcomes

CRISIS MANAGEMENT Notify senior management. Obtain information. Reach decisions on statements and action. Set up a media centre. Send journalists’ questions up the line to a spokesperson and respond promptly with a prepared respond, not ‘off the cuff’.

Provide accurate, reliable information to the media. Brief and counsel employees. Maintain a watching brief as the issue emerges. Provide information to the public via the Internet or advertising.

SPOKESPERSON show deep concern avoid speculation avoid attributing blame, making excuses or passing the buck avoid providing information unless sure of the facts explain the steps to be taken

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