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

Transfer the risk threat
Threat #1

Assume the risk threat

Threat #2

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 Assume the risk threat
Threat #3

Eliminate or Mitigate the risk threat

Threat #4

Spread the risk threat

Threat #5

Part II: Follow-up questions

1. Do you agree with the company’s responses to these threats? Why or why not? I do not
agree with companies risk threats because for instance on fire threat the company even
though it does have insurance what if something bad were to happen years later and the
company loses the building by fire what is the amount of money they are planning in
using for rebuilding the new building.

2. Considering the risk-level associated with each threat, list an alternate countermeasure
or response for each threat and the type of risk management option your proposed
countermeasure represents:

• Threat #1: Identify and eliminate any potential risks for the building in order of

any fire, company will be well prepared. Have an understanding to the insurance

policy.

• Threat #2:Company will provide background checks before employment as well

as drug tests.

• Threat #3: Train employees to recognize and report suspicious behavior,

because losing merchandise can give the company a great loss of money.

• Threat #4: Security cameras, security guards and having gates in the doorways

will help in protecting the building from break- ins.

• Threat #5: Having a security guard and maintaining control of locks and key of

the store.

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