A risk management plan describes the probability of damage or other negative consequences caused by external forces and the steps that can mitigate or reduce the effect on a service. Important information in a risk management plan includes a description of the risks, the cost of each risk, the likelihood of each risk, and the business continuity plans or disaster recovery plans that mitigate the risk from occurring (business continuity) or the rapid restoration of service (disaster recover). In this application, you will develop a risk management plan in anticipation of a disaster.

Choose an industry such as a public utility, higher education, retail, shipping, healthcare, or manufacturing. In a 2–3 page risk management plan, identify and analyze the potential consequences of three issues that might arise (e.g. natural disasters, or health crises such as H1N1) that would affect the ability of the company to provide its services. Recommend and rationalize the measures the company might initiate to avoid disruption of service and/or recover from a disruption of service. Consider the type of services and/or products provided, the relative location of the customers to the company, and other aspects that are unique to the industry segment.