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Navigate Learning Assignment

The document outlines three key risks faced by a company: website outages during peak sales, spam emails indicating potential data breaches, and delayed revenue from 'Buy Now, Pay Later' options. It proposes strategies to manage these risks, including improving website reliability, enhancing cybersecurity measures, and transferring financial risk to third-party providers. Additionally, it suggests implementing cloud-based hosting and staff training to mitigate these risks effectively.

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Phuti Pearl Moloto
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2 views2 pages

Navigate Learning Assignment

The document outlines three key risks faced by a company: website outages during peak sales, spam emails indicating potential data breaches, and delayed revenue from 'Buy Now, Pay Later' options. It proposes strategies to manage these risks, including improving website reliability, enhancing cybersecurity measures, and transferring financial risk to third-party providers. Additionally, it suggests implementing cloud-based hosting and staff training to mitigate these risks effectively.

Uploaded by

Phuti Pearl Moloto
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

RISK MANAGEMENT ASSIGNMENT

Question 1: Identify Risks


1. Website Outage During Sale

Type of Risk: Operational Risk


The website outage disrupted business operations during a peak sales period, leading
to lost revenue and poor customer experience. This affects the company’s ability to
function effectively and reliably.

2. Customers Receiving Spam Emails


Type of Risk: Cybersecurity / Compliance Risk
Customers receiving spam emails suggest a possible data breach or misuse of personal
information. This exposes the company to legal consequences (data protection laws)
and loss of customer trust.

3. Delayed Revenue from “Buy Now, Pay Later”


Type of Risk: Financial Risk
The delayed receipt of funds creates cash flow constraints, affecting the company’s
ability to meet its financial obligations and maintain operations.

Question 2: Risk Management Strategy (RAISE)


1. Website Outage
Strategy: Reduce (Treat)
The company cannot avoid having a website, so it should reduce the risk by improving
system reliability (e.g., better servers, backups, and monitoring). This minimizes
downtime and revenue loss.

2. Spam Emails / Data Breach


Strategy: Reduce (Treat)
Implementing stronger cybersecurity measures (encryption, firewalls, data protection
policies) reduces the likelihood of data breaches and ensures compliance with data
protection laws.

3. Buy Now, Pay Later Cash Flow Issues


Strategy: Transfer
The company can transfer the risk to third-party financial providers who assume the
credit risk and pay the retailer upfront, improving cash flow stability.

Question 3: Risk Controls


1. Website Outage
Control: Implement cloud-based hosting with redundancy and backup systems
This ensures that if one server fails, another takes over immediately, reducing downtime
and maintaining availability during high-traffic periods.

2. Data Breach / Spam Emails


Control: Staff cybersecurity and data protection training
Training employees reduces human error (e.g., phishing attacks, poor data handling),
lowering the likelihood of breaches and protecting customer information.

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