Corporate Risk Management

Topic

Corporate Risk Management

Instructions

You have been appointed as the new Risk manager for a financial services company. In this capacity the senior executives of your organisation have come to you with concerns about a report in the guardian newspaper on 23 January 2018.

“The head of the UK’s National Cyber Security Centre has warned that a major cyber-attack on the UK is a matter of “when, not if”, raising the prospect of devastating disruption to British elections and critical infrastructure.

In remarks underlining newly released figures showing the number of cyber-attacks on the UK in the last 15 months, Ciaran Martin said the UK had been fortunate to avoid a so-called category one (C1) attack, broadly defined as an attack that might cripple infrastructure such as energy supplies and the financial services sector.”

To reassure the senior management you are required to identify the risk facing your organisation and develop a risk management plan including business continuity planning for your organisation to enable the organisation to continue trading in the event of the risk occurring.

(Word Count 1500 words approximately)

Answer preview

In the financial services sector; a risk would be defined as the probability of any other outcome away from the expected outcome – usually a stable and predictable micro & macro operating environment – or the likelihood that actual results (outcomes) may significantly differ from the projected results. All the two definitions of risk carry two outstanding elements – the uncertainty of when the event (outcome) will occur, and the actual associated loss to the organization. It is therefore imperative for the organization to be adequately prepared for all kind of eventualities that might negatively affect its operations, finances, persona (brand) and even infrastructure.

Word count: 1807