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Chapter 4.docx - Risk management is the basis of BCM. In...

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Risk management is the basis of BCM. In risk management there is a risk event chain thatconsists of: threat, crisis, disruption, and impact. Threats are universal and represent a potentialnegative impact to an organization. These threats are natural, accidental, or man-made. Threatscan lead to crisis; therefore, a crisis is a manifestation of a threat.There are different steps when looking at risk: risk analysis, risk evaluation, and riskassessment. Risk analysis is the process of identifying, determining cause, and estimatingprobabilities of impact. Risk evaluation is the process of comparing risk levels with the alreadyestablished risk criteria. Risk assessment is the process of using both risk analysis and riskevaluation. When using risk assessment there are multiple approaches to assess eventprobabilities. Some of these include reviewing historical data and discussing it with relevantgroups, system modeling, computer simulations, and judgement.
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Spring
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Schumaker

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