McBride Financial Services: Risk Assessment
What is RISK? Risk is the probability of an undesirable event. The probability of that event and the assessment of the events predicted harm must be put into a believable outcome or scenario this will combine the set of risk, reward and regret probabilities into a predicted value for that outcome.
Risk is defined as a function of three variables:
1. The probability that there is a threat.
2. The probability that there are vulnerabilities.
3. The potential impact.
What is risk management? Risk management is the means of balancing the costs and benefits of any business decision. The risk management process ...view middle of the document...
Risk management for companies is not unlike this, just on a different scale.
Public Transportation Facilities
Transportation is a necessity of life, whether it is by passenger vehicle, train, bus, boat, or plane. With so many different modes of transportation, the potential for accidents to happen are high. With this increase of risk there is the potential for various chemicals to be released into the area water, ground or air. Public transportation facilities can have dangerous chemicals and equipment that pose a potential risk to the community. Sioux Falls does not have a boat dock within the city limits but there is a bus station, airports, heliports, train station, trolley station, and a military installation in the city.
Bus and Trolley Station
The proximity of the Sioux Falls office to the bus station is about eight miles at the corner of East 6th Street and North Weber Avenue. The trolley station is four miles away and does not pose a threat to the office. The location of the bus station is not a threat to the Sioux Falls office but there is a bus stop a few feet from the office. Because of the close proximity of the bus stop to the office the potential for a bus crash is present, as is the threat of terrorist activity or bomb explosion in the area. A recommendation of reinforcing all the glass with security glass and security bars should be placed on all window frames. A steel security door with remote activation locks should be installed to the front entrance.
Airports and Heliports
Sioux Falls does not have an international airport but does have a regional airport, three heliports, and a military installation. The military installation is approximately 20 miles from the office and the regional airport is approximately seven miles away. Heliports are closer but pose a lower risk to the office. There is the existence of an aircraft striking a building in the city but the risk is extremely low. Even with the low risk McBride employees should have training in first aid and lifesaving techniques. McBride should designate a location for all employees to report to in case of an airplane crash so that all employees can be accounted for.
Sioux Falls has a train station and a trolley station. The train station is approximately eight miles from the office. The location of the railroads are not close to the office so the risk of a train derailment near the office is non-existent, however there is still the risk of a derailment within the city to call for an evacuation of the area if a hazardous situation occurs. McBride will need to establish a designated form of communication to account for the safety of all employees.
Criminal activity is common in every city; Sioux Falls is not an exception. It is necessary for McBride to protect the company, their employees, and customers from any criminal activity that may take place. Criminal activity can range from vandalism to robberies to software breaches...