What risks can the following fixed assets be exposed to and what can the business do to prevent or compensate for them? Quantify the risk in terms of probability and severity:
(6)
Fixed asset
Risk(s): Probability and severity
Fire
Building
House breet-ins
Virutel
Computers
Employees con waste time, by cloteny irrelevant fark on computers
Vehicle
3
Theft Damage
Aruident
Prevention
and compensation measures:
1. Fire risk for the building:
- Probability: Moderate (3/5)
- Severity: High (4/5)
Prevention: Install fire alarms, sprinkler systems, and smoke detectors. Conduct regular fire drills and maintenance checks to prevent fires.
Compensation: Purchase insurance coverage for the building to cover any damages in case of a fire.
2. House break-ins for the building:
- Probability: Low (2/5)
- Severity: Moderate (3/5)
Prevention: Install security cameras, alarm systems, and secure locks on doors and windows. Implement access control measures to restrict entry to unauthorized individuals.
Compensation: Purchase insurance coverage for theft and burglary to cover any losses due to break-ins.
3. Employee wasting time on computers:
- Probability: High (4/5)
- Severity: Low (2/5)
Prevention: Implement internet usage policies, monitoring software, and training programs to educate employees on the proper use of company resources.
Compensation: Implement productivity measures such as time tracking software and performance evaluations to minimize time wastage.
4. Vehicle theft and damage:
- Probability: Moderate (3/5)
- Severity: High (4/5)
Prevention: Install GPS tracking devices, alarm systems, and secure parking facilities for vehicles. Conduct regular maintenance checks to ensure vehicles are in good condition.
Compensation: Purchase insurance coverage for vehicles to cover theft and damages.
Overall, it is important for the business to assess and address these risks proactively to protect its fixed assets and minimize potential losses. Regular maintenance, security measures, insurance coverage, and employee training are key strategies to prevent and compensate for these risks.