Mastering Risk Management

DEVELOPING RISK SCENARIOS

Points to consider before developing risk scenarios

The crisis management team

When management focuses on a major event, there is a loss of focus on other controls so that the firm is much more likely to experience another major event. A typical mitigant is the firm’s crisis management team, which should preferably exclude the CEO, and allow essential business line management to continue focusing on the business, confident in the knowledge that other members of the senior management team are sorting out the crisis (see Chapter 17, Business survival and recovery).

Combinations of events over a period of time

When developing a set of scenarios it is important to consider more than one major event happening over the period ...