[BCM] [FP] [E2] [C2] Risk Analysis and Review

Chapter 2

For Frasers Property

Practical Business Continuity Management (BCM) is crucial for an organisation like Frasers Property, which operates across a diverse portfolio of residential, commercial, retail, and industrial properties.

Implementing the Risk Analysis and Review (RAR) phase of the BCM planning methodology ensures a strong foundation for resilience against disruptions.

This chapter provides a step-by-step guide to executing the RAR phase tailored to Frasers Property.

Understand the Organisational Context

The first step in the RAR phase is to gain a deep understanding of Frasers Property’s operational landscape. Key areas to focus on include:

• Business Structure: Review the organisational hierarchy and the roles of different business units, such as property development, asset management, and customer service.
• Geographical Presence: Assess the geographical spread of Frasers Property’s operations across different regions and markets.
• Stakeholders: Identify internal and external stakeholders, including employees, tenants, investors, and regulators.
• Strategic Objectives: Align the BCM objectives with Frasers Property’s strategic goals, such as enhancing operational efficiency and customer satisfaction.

Identify and Assess Risks

Risk identification and assessment are central to the RA&R phase. For Frasers Property, this involves:

• Risk Identification Workshops: Conduct workshops with key stakeholders to identify potential threats, including natural disasters, cyberattacks, supply chain disruptions, and regulatory changes.
• Risk Categorisation: Group risks into operational, financial, technological, and reputational risks.
• Risk Assessment Tools: Utilise tools such as risk matrices or heat maps to evaluate the likelihood and potential impact of each identified risk.

Evaluate Current Risk Controls

Frasers Property must assess the effectiveness of existing risk controls. This includes:

• Policy Review: Review existing policies and procedures to ensure effective risk management.
• Audit Findings: Incorporate findings from internal and external audits.
• Gap Analysis: Identify gaps in current controls and areas for improvement.

Develop Mitigation Strategies

Based on the risk analysis, mitigation strategies should be developed to reduce vulnerabilities. Examples include:

• Infrastructure Resilience: Invest in resilient building designs and backup power systems for properties.
• Cybersecurity Measures: Strengthen IT infrastructure to prevent data breaches and cyberattacks.
• Supplier Diversification: Ensure critical materials and services are sourced from multiple suppliers to minimise disruptions.

Continuous Monitoring and Review

Risk analysis is not a one-time activity. Frasers Property should establish processes for continuous monitoring and periodic review to ensure effective management. This includes:

• Risk Monitoring Framework: Implement key indicators (KRIs) to track emerging threats.
• Regular Updates: Update the risk register and BCM Plans to reflect changes in the operating environment.
• Stakeholder Engagement: Maintain open communication with stakeholders to gather feedback and address concerns.

Leverage Technology and Expertise

Finally, leveraging technology and industry expertise can enhance the effectiveness of the RA&R phase. For instance:

• BCM Software: Use BCM software tools to streamline risk analysis, reporting, and documentation.
• Training and Certification: Invest in BCM training for staff through programs like the BCM Institute’s courses.
• Industry Collaboration: Participate in industry forums to stay updated on best practices and emerging risks.

Summing Up …

Implementing the Risk Analysis and Review phase of the BCM planning methodology is a strategic imperative for Frasers Property.

By systematically identifying, assessing, and mitigating risks, the organisation can build a robust foundation for resilience.

This proactive approach safeguards operations, enhances stakeholder confidence, and strengthens the company’s market position.