Risk Management, Crisis Management, and Business Continuity Report

This report delves into the critical aspects of risk management, business continuity, and crisis management within the context of financial institutions. It begins by identifying potential vulnerabilities, such as those related to personnel, physical security, and technological infrastructure, and emphasizes the importance of vulnerability assessments. The report then explores various approaches to crisis management, including the situational crisis communication theory and issue management. It also outlines practical strategies for business continuity planning, such as the 'fear approach' and the use of frameworks. To illustrate these concepts, the report includes a case study of Pepsi's crisis management, showcasing how a company can effectively navigate a crisis. The report concludes by providing a list of relevant references, including books and journals, to support the analysis and provide further reading on the topic.

Risk Management

3.1 Vulnerability of organization to break
continuity
 Some circumstance which can break continuity of business process of Equitable
Funding Ltd., are : personal security, physical and environmental security, system
development and maintenance etc
 Vulnerability is assessment will help to identify various vulnerabilities in organist ion
and will help to manage them properly.
 Physical security
 Insufficient trained personnel
 lack of security awareness
 Use of outdated or poor software
 Inadequate recruitment process

3.2 Approaches to crisis management and business
continuity planning
 The situational crisis communication theory : As per this theory Equitable funding ltd.,
should react strategically to the crisis situation. This theory is audience oriented theory.
 Second is Issue management theory : The capacity to understand coordinate, direct and
policy making functions, and all public relation skills etc. Therefore company can also
make use of this theory in order to manage and formulate policies.
 Tactical approach : According to this approach helps in analyzing that what steps
needed to be taken in order to avoid crisis which will help company to analyze various
factors of risk and managing business successfully

Approaches for business continuity plan are :
 Fear approach : This approach motivates the Equitable funding Ltd., by considering the
horrible events which has taken in past.
 This fear approach will help company to get the people's interest and attention. A
company can use this approach for upcoming audits in order to find motivation.
 Framework : Framework approach refers to creation of various policies, milestones and
schedules in order to create a instruction document which helps in planning and testing.
 Such type of approach will help company to improve long term participation by
people's of the organization
 Reinforce & Support : The purpose this approach is to empower the planner. Once the
planner has been decided the company should try to remove any type of barrier in
planning.

M1 case which show how organisation can manage
crisis
 A company should be efficient in order to manage crisis so that organization can work
successfully. For example in the case of Pepsi. The company has faced crisis in year
1913 as it was claimed that syringes are found in the cans of diet Pepsi. The company
has urged to various supermarkets and stores to not remove their cans from stores.
 After the investigation of case the company was found in default. The company has
decided to launch its first video in which production process was shown thus claiming
that no such practice is possible in the company. Second video show the culprit was
arrested.
 The company has worked with FDA during the time of crisis. Which has helped to
make the communication effective. After all the blame has been removed from
company a campaign was held in order to thank the public.
 As in the case it has been shown that how a company deal with crisis. Similarly
equitable funding can also manage risk

References
Books and Journals
 Fearn-Banks, K., 2016. Crisis communications: A casebook approach. Routledge.
 Froot, K.A. and Stein, J.C., 1998. Risk management, capital budgeting, and capital
structure policy for financial institutions: an integrated approach. Journal of financial
economics, 47(1). pp.55-82.
 Froot, K.A., Scharfstein, D.S. and Stein, J.C., 1993. Risk management: Coordinating
corporate investment and financing policies. the Journal of Finance, 48(5). pp.