Question

Identify one risk from each category (internal, external, and technical) and identify how you would select a recovery strategy to manage that risk.

Provide specific examples. Using the additional reading on the Japanese earthquake and tsunami, assess the recovery strategies you would have in place if a similar situation affected your place of work.

Answer 1

Internal risk: When the internal activities, operations and functioning of an organization creates risk for the organization is referred to as internal risk. The companies can somehow forecast the risk as only the internal factors are responsible for such risk.

For instance, change in the organization’s policy regarding remuneration can affect the employees and thus affects the organization. A recovery strategy for this can be the involvement of employees while formulating such a policy. Employees must be well informed in advance before finalizing such policies.

External risk: External risks refers to those risks over which an organization has no control at all. An organization can only create some contingency plan for such risks as an exact possibility is difficult to make.

For instance, fluctuations in the import and export policy and rules of the country is a type of external risk that can affect the internal functions of the company. A recovery strategy for such a risk is to be updated as far as the external environment is concerned. A contingency plan must be formulated by every organization to handle such risks that are out of control of an organization.

Technical risk: A technical risk can be one that is related to the technical aspect of an organization.

For instance, A breakdown of machinery and equipment while operating is a technical risk.

A recovery strategy that must be formulated for this risk is to regularly inspect the working of the machinery and equipment so that organization operations will not interrupt.

11 March 2012 was the day when a destructive earthquake hit japan followed by Tsunami. Japanese government immediately took the safety measures and constructed the entire japan again in less time.

If the workplace is hit by an earthquake, I will take the following steps and ensure that:

• The workers and non-workers will escape from the building as soon as possible or run to the nearest open place in the building.
• The people waling or moving will take as smaller steps as possible.
• All the members of the organization have knowledge of how to be patient and use a fire extinguisher in case of such emergencies.
• Not to use elevators as there are chances of being stuck in between.