Risk Management

Kevin Haynes

Final Exam

CVN-Simulation Paper

Intro to Continuity, Security and Risk Management

October 20, 2010

1. What were the actions taken by CVN executives?

Assume they made a reasonable decision based on solid criteria that is defensible. What did they see as the major issues? How did they respond? What makes this a solid solution from their viewpoint? What are the advantages, results, etc. that this solution would or did yield that reinforce their approach?

Disaster happened to Capay Valley Naturals (CVN), on June 14, 2010 as a result of operational hazards. Our risk framework had been tested and the business continuity plans were prepared to handle the details of CVN’s disaster recovery plan. The executives of CVN joined to create the crisis management team (CMT), their goal was to establish crisis management plans in regards to two major impacts on the CVN brand reputation. The company stands to endure a brand impact that could disrupt the strategic goals of the company. A performance baseline was designed that included the scope of the recovery, which lasted from June 14, 2010 until June 17, 2010. The continuity plan will include an emergency response and a written crisis management plan to assist and guide the business continuity project. The total cost of recovery will be $4.95 million before business can return to normal. To begin, the crisis management team used cross-functioned brainstorming among C-level employees to assess the organization’s risk exposures.

The crisis management team, led by the chief risk officer, Meryl Roberts, joined by the chief operative officer, Alberto Giannetti, chief financial officer, Todd Fulton and public relations officer, Daniel Zeiglitz, supplied their recommendations in a frantic attempt to protect revenue drivers. After learning of the crisis, the team immediately began to plan an emergency response to ensure the continuation of the critical functions that sustains CVN’s survival....