Answer to Question #164363 in Management for BradleyB

Question

You have recently been appointed Chief Information Officer (CIO) at a large multinational corporation. The Chief Executive Officer (CEO) requested you to brief him on the risks listed below, and explain how you will mitigate these risks where applicable:

4.1.1 Business operations risk (6)

4.1.2 Program risk (4)

4.1.3 Business interruption risk (4)

4.1.4 Minimised risk (2)

Answer 1

Business operations risk refers to the risk of loss resulting from inadequate or failed internal processes, people, controls, systems, or external events. It is better viewed as the risk arising from the execution of an institution's business functions. To mitigate the risk the Multinational Corporations (MNC’s) should partner with experienced local professionals who understand the local culture and business practices. The right business partner can help guide you through the maze of regulations and cultural expectations, but the wrong partner can do significant damage.

Program risk refers to a potential outcome that causes a program to fail to meet a goal. It is related to individual project risks with a focus on risks that have a cross-project impact. Regardless of how much research and preparation an international business does before entering a market, things can take an unexpected turn quickly. Be realistic about the risks involved in international expansion. Even large, successful corporations have had spectacular market-entry failures.

Business interruption (BI) risks can be physical, such as fire or storms, or virtual, such as an IT outage, which can occur through malicious or accidental means. They can stem from their operations but also a company's suppliers, customers, or service providers. Having a backup plan can help a company in times of need like having a comprehensive insurance policy.

Minimized risk is generally risk that has undergone risk minimization policies and brought to lower levels of uncertainty. Measures should be taken to reduce the risk to a minimum level of exposure.