Question: Summarize

Template 5: Risk Response Undertaking the evaluation of the risk consequences for each of the significant risks and recording the results in Template 4 will enable the organization to decide what, if any, further actions are required. Template 5 records, on a control by control basis, the additional actions that have been selected. These additional actions relate to the introduction and/or modification of controls. Completion of Templates 3, 4 and 5 will enable the organization to analyze risk exposures, evaluate risk consequences and document the actions that should be taken to make each risk tolerable. Risk reference The risk reference is a unique identifier that should be assigned to each risk to enable easy reference and unambiguous identification of the risk. The risk reference can also be used to indicate the nature and/or location of the risk. It is an essential element of the risk management process, as it allows for the systematic tracking and monitoring of risks and their associated control measures. In the case of Itrustu Insurance, the company has identified several risks that require a risk management plan to be put in place. These risks include cyber threats, loss of IT and network communications, floods that cause denial of access to a building, loss of power, and snowstorms. While the company has plans in place to mitigate these risks, the recent COVID-19 pandemic has highlighted the need for a comprehensive pandemic risk management plan. The pandemic has presented a new challenge for risk management professionals, as it requires a different approach to risk mitigation and management. To address this challenge, Itrustu Insurance has established a crisis leadership team responsible for implementing the pandemic plan. The team includes representatives from the executive leadership and each functional area of the organization, including account management, business operations, communications, sales, human resources, marketing, and the IT department. To address these risks, Itrustu Insurance must investigate five elements: people, buildings/infrastructures, information, technology, and suppliers. The company must analyze the risk of unavailability for each of these elements and assign probabilities to each of the threats. Once the risk consequences have been evaluated for each significant risk and recorded in a risk evaluation template, the organization can then decide what additional actions are required. The risk response template records the additional actions on a control-by-control basis, relating to the introduction and/or modification of controls. The completion of the risk response template enables the organization to document the implementation of the risk action plan. This requires a description of the additional and/or modified controls to be introduced, who is responsible for undertaking the actions, and the deadline for completion. In summary, the risk reference is a unique identifier that allows for easy reference and unambiguous identification of risks. Itrustu Insurance has identified several risks, including cyber threats, loss of IT and network communications, floods, loss of power, snowstorms, and the emerging risk of pandemics. To address these risks, the company must investigate five elements, analyze the risk of unavailability, and assign probabilities to each threat. The completion of the risk response template enables the organization to document the implementation of the risk action plan, including the introduction and/or modification of controls, responsibilities, and deadlines for completion.

Additional control Risk reference: 1.1 Additional control: Increase investment funds to mitigate the risk of less productivity in the economy Risk reference: 1.2 Additional control: Develop and implement standardized procedures for allocation of funds Risk reference: 1.3 Additional control: Strengthen internal financial controls to prevent fraudulent activity Risk reference: 1.4 Additional control: Increase reserves to cover existing and historical liabilities Risk reference: 2.1 Additional control: Implement training programs to improve employee skills, competencies and experience Risk reference: 2.2 Additional control: Purchase or lease additional premises, plant and equipment to support operations Risk reference: 2.3 Additional control: Develop and implement processes to improve IT infrastructure resilience Risk reference: 2.4 Additional control: Diversify supplier base to mitigate risk of supplier unreliability Risk reference: 3.1 Additional control: Implement a public relations campaign to improve public perception of the industry and/or organization brands Risk reference: 3.2 Additional control: Develop and implement an ethics and corporate social responsibility program Risk reference: 3.3 Additional control: Develop and implement a compliance program to meet regulator expectations Risk reference: 3.4 Additional control: Improve product quality and after sales service to improve brand image Risk reference: 4.1 Additional control: Develop and implement a revenue generation plan Risk reference: 4.2 Additional control: Monitor and analyze market trends to adjust product offerings and maintain market share Risk reference: 4.3 Additional control: Monitor and assess sovereign economic health and/or economic and political stability to mitigate risks Risk reference: 4.4 Additional control: Develop and implement a supply chain management program to improve predictability and trust in the supply chain

Implementation date

We have a very clear understanding of the next steps that must be taken to ensure that the business and organization is protected from all kinds of risks. From our lecture this week we also come to know that judgement is a very important factor in an analyzing and evaluating risks. Since the beginning of this project, we have looked at so many possibilities where the risk lies and could potentially harm our finances, infrastructure, reputation, and the marketplace. Therefore, we need some of these additional low-cost controls mentioned above to ensure that the business is operating smoothly and the potential for loss is reduced to a minimum. This could be done by implementing these controls based on how much each of the factors directly affect our business process. Like we said previously finances are not at a significant risk so the additional controls should not weigh on that so heavily. Reputation and infrastructure on the other Paul Hopkin, 2013, Risk Management (Kogan Page, London) hand require more attention. The sooner we implement these controls the better. The controls will be documented and communicated to the relevant stakeholders in the form of a presentation. Because the stakeholders and the upper management make most of the decisions it is best if they decide which controls are best to implement and which ones to leave out, so we make a list of all the additional controls and they deem which ones are necessary. Every now and then testing will be done to see how effective the additional controls are. In the long run we might realize that some of these controls are not required and are just using additional capital so they can always be removed and reimplemented.

Responsibility for action

The responsibility of the action of implementing any additional controls, including financial, infrastructural, and reputational damage controls specifically will fall on the shoulders of the risk management team, senior managers of the departments involved and lastly sectional managers that will be responsible for deploying and maintaining the new controls. The risk management team of the company will evaluate Itrustu's current resources and formulate a risk management plan that includes newer and more advanced control methods, that will effectively make use of these resources. Resources required for newer controls include financial, which is the most important to ensure that the company can afford the newer control methods. It would require labor (human resources), that will work on developing and deploying the newer controls as well as ensuring that these controls are in fact effective. It may also require the company to upgrade assets such as hardware, software, infrastructure, etc. to ensure a safer and more effective risk management strategy. In order to ensure that the newer controls introduced are compliant with rules and regulations of Itrustu as well as the law in general, the risk management team would firstly have to consult with the legal team of the company before deploying any of the new controls. They will have to ensure that the controls are compliant and do not violate any regulations. After receiving clearance from the legal team, it would be wise to also consult with executives, stakeholders, and managers to ensure that the newer controls do not compromise rules and regulations that are currently practiced internally. For example, if the newer control is to encourage each member of staff to carry out personal audits on certain sections and report anonymously, managers would have to ensure that there is no rule preventing this from taking place. Upon receiving clearance from all levels of management as well as the legal team, the risk management team can implement the new controls in a compliant and effective manner. Monitoring action After doing until template 4, we have now the idea of how to deal and monitor the risks. To monitor the successful implementation of the Risk Management plan for Itrustu Insurance Company, the following actions will be taken: 1.Regular assessments will be conducted to analyze the risks associated with each of the five elements of the company: People, Buildings/Infrastructures, Information, Technology, and Suppliers. These assessments will assign probabilities to each threat and identify potential vulnerabilities. 2.The crisis leadership team responsible for pandemic plan implementation will be regularly reviewed and updated, ensuring that representatives from each functional area of the organization are present. The team will be responsible for developing and implementing a comprehensive Risk Management plan for dealing with pandemics. 3.Regular training and education will be provided to all employees to ensure that they are aware of the risks and how to mitigate them. This will include training on cybersecurity best practices, disaster recovery, and emergency response. 4.Regular testing and simulations will be conducted to test the effectiveness of the Risk Management plan. This will include tabletop exercises and simulated scenarios to test the crisis leadership team's response to different types of risks and threats. 5.Regular reviews and updates of the Risk Management plan will be conducted to ensure that it remains up to date with the latest risks and threats. The plan will be revised as necessary to address any new risks that arise and to improve the effectiveness of the company's risk management efforts.