Crisis Management

1. Crisis Management How would you �cope�?

5. If you were a terrorist, what business areas would you threaten? physical security document security personnel security hardware security telecommunications security software security

6. So what is Risk Analysis?

7. So what is risk analysis? Risk Analysis has been defined as: "a formal process of determining risks and developing a plan to deal with them" Risks do not arise all by themselves. A risk is normally a product of two factors: threats (something could go wrong) and vulnerabilities (the information system/s used by the business will allow things to do wrong). http://www.tutor2u.net/business/ict/intro_security_risk_analysis.htm Print this on handout http://www.tutor2u.net/business/ict/intro_security_risk_analysis.htm Print this on handout

8. Threats & vulnerabilities Threats include Deliberate manipulation of information Impersonation of a legitimate user Untrained or poorly trained staff Vulnerabilities include:- Poor website or network design (e.g. which can allow "hackers" into a system or web site)- Poor recruitment procedures Print this on handout Print this on handout

9. Stages of Risk analysis Risk Analyst's need to identify�. The potential cost of the loss of �data� The probability of problem occurring The cost of measures to protect The inconvenience to staff � security measures are useless if everyone bypasses them! Print this on handout Print this on handout

10. Disaster Avoidance�.

11. What can a business do to avoid the following �disasters�? Fire in building Power supply breakdown Virus infection Theft of equipment Theft of customer data Got to here in lessonGot to here in lesson

12. So why should anyone bother with disaster management?

13. Effects can be catastrophic 90% of businesses who suffer major loss of data go out of business within 2 years 43% go out of business almost immediately In the UK, company and directors may be prosecuted by the Health & Safety Executive In financial and insurance sectors, customer may well sue

14. More recent crisis? 2008

15. Can you think of any businesses that have had to deal with a �crisis� recently?

18. Can �crisis� be avoided? Companies can have contingency plans established in order for staff to know how to deal with a crisis when it occurs!

20. Contingency Planning The very nature of this unit reflects that businesses have to be able to respond to change and change can be unpredictable What is contingency planning? The process by which organisations try to prepare for unexpected and potentially disastrous events What is crisis management? The manner in which an organisation responds to an unexpected and potentially disastrous event

21. Contingency Plans Value Sense of security Limits damage Speeds up recovery process Informs staff training Preventative measures can be part of CSR Limitations Costly and time consuming Including opportunity cost Needs reviewing Lack of predictability

22. Contingency Plan Cadbury�s testing out of date Cadbury�s withdraws products made in China Cadbury�s is fined

23. How would you cope?

24. Group work In twos or threes You will be given a crisis to decide on a contingency plan Be prepared to feedback how you would react as the MD/BoD to your scenario You need to consider each stakeholder group!

25. Long term strategy Need to consider the BIG picture! What will be the impact on ALL sectors of the business� HRM Operational Management Marketing Finance

26. Strategy issues include Profit margins � what will the impact be? (short term less important than the LONG TERM!) Risks & uncertainty � what is the business� attitude to risks? Opportunity costs Business objectives Constraints � internal & external Ethics Business culture Ansoff matrix & Boston matrix

32. Homework Revise for assessment next lesson!