Axia College Material
Appendix C

Risk Management Options

Part I: Scenario and Identification

A retail chain has asked an outside security consulting team to perform a threat and risk assessment for one of its branches. The consulting team has identified the following threats and accompanying risk levels for this particular store:

1. Fire (medium) 2. Internal theft (high) 3. Shoplifting (medium) 4. Burglary (high) 5. Bomb (low)

The retail chain has decided to respond to these threats in the following manner:

For threat #1, management has decided to take no further precautions because the store is currently up to code and the insurance policy the company carries fully covers it in the event of fire.

For threat #2, management has decided to implement background checks for all new applicants and all employees must now have their bags and backpacks checked by security before exiting the store.

For threat #3, management has decided to add no additional security measures. Losses due to shoplifting are expected and have been included in the store’s budget.

For threat #4, management has installed a comprehensive alarm and surveillance system in all stores, with around-the-clock security monitoring. Now, break-ins at this store cannot occur without detection.

For threat #5, management intends to institute no countermeasures. With several other branches throughout the region, the company overall would suffer only minimal losses even if this threat were to materialize.

In the following table, identify the type of risk management option the company has employed for each threat:

Threat | Risk Management Option | Threat #1 | For the risk of fire, the company has decided to remain with their insurance policy because it has enough coverage to take care of everything in the event of a fire and their store is up to code. |