Risk Assessment Plan Term Paper Example | Topics and Well Written Essays - 1000 words

Risk Assessment Plan - Term Paper Example At one end are the patents and trademarks, which are legally protected and formally recorded. What follows is the knowledge incorporated in formal process and software. There is also the knowledge found in instructions, manuals, as well as other written sources. At the other end is the unwritten knowledge that is enshrined in the way people do the way they do. The risks associated with this category of capital includes: weak and inconsistent work process, inadequate documentation and diffusion of knowledge, and inadequate protection of proprietary knowledge. ii. Human capital Human capital includes all people that work in SunnyVille. The key risks associated with human capital includes: failure to create a culture that values learning and accepts change, inconsistent dissemination across the company and insufficiency of skills levels, and vulnerability to and probability of key staff and management turnover. iii. Relationship capital. Relationship capital includes customer relationsh ips, external network of vendors, partnerships, and outsourced services among many others. The key risks associated with this category of capital include the: threats to the brand, relationship loyalty to individuals, and vulnerability, and probability to partner defections or customers. iv. Business recipe This is the company’s strategy, because the appropriate strategy is an asset. The key risks associated with business recipes include the: exposure to economic cycles, potential substitutes, and threats of new competitors. Project Scope Statement During SunnyVille’s recent IT audit, the final report mentioned that the company’s risk assessment needs greater detail, the IT policies are inadequate, and the overall management of risk itself is unsubstantiated with little oversight from the board of directors. Following these observations, the risk assessment team met on June 10, 2013 to review the scope of risk assessment to be conducted in order to deliberate on how address the problems identified during the audit. The team reviewed the entire risk structure of the company, with strong emphasis being paid on IT policies, intangible risks, as well as the role of board of directors in mitigating risks. The findings of these assessments, reviews, and audit were used to develop risk assessment scope statement. On June 13, 201, SunnyVille’s staff conducted the risk assessment. The aim of this process was to identify threats that could have contributed to the issues raised following the audit. Different stakeholders, including the employees and board of directors were involved in the process of risk assessment. Qualitative/Quantitative Risk Analysis A quantitative method can be used for the risk analysis, whereby the risk will be presented using a variety of scales or through the financial extent as forecasted amount of losses associated with different types of risks (Szczepankiewicz & Szczepankiewicz, 2006). This method will rely on the available data; though where data is not available qualitative approach can be used. For the purpose of setting values, definition of the information will be done in order to ensure proper achievement of different business processes and their relevance for functioning of the company’s units and as a result the whole company (Galach, 2004). There are many Qualitative approaches to risk analysis, including NIST 800-30, CRAMM,