Corporate Risk Management

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Course work Assignment

Don’t plan for a bomb or a hurricane, but look at whether you can operate with a reduced staff, disruption to the office or the loss of a key supplier

Words: 1945

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Introduction

Terrorism and hurricane belong to hazard risk category. They are unforeseen events that arise outside the normal operating environment of the organisation and are often thought of as insurable risk. According to their frequency and severity there are low and high.

Eleanor Hughers a spokesperson of Financial Service Authority in UK considers that the establishment of a plan in order to avoid or prevent hazard risk in not necessary. Evidence of this argument is provided by the fact that operational risks such as staff absence, disruption to the office or the loss of a key supplier have better chances to occur. Moreover, consequences might represent a huge issue for a company.

In order to be able to overcome this kind of issues, it is appropriate for an organisation to adopt a Business Continuity Management (BCM). This one is based on the principle that an organisation has the responsibility to ensure the continuation of its business operations at all times (Chattered Management Institute, 2009). A survey of National Risk Register in 2008 has identified risks which are of particular concern to managers. Human disease such as pandemic influenza (57 per cent) is one of those (Chattered Management Institute, 2009). As a result it can lead to a consequent staff absent inside an organisation.

In order to deliver an efficient BCM in a bank, facing some difficulties of reduced staff, it is required to be pragmatic. This method consists in a first time to develop a plan based on observation and theories. Then, the procedure will be tested in a real situation. At last, from this evaluation it will be possible to bring out elements which have to be changed in order to integrate more