# ERM-107-12: Strategic Risk Management Practice - Ch.7: Strategic Risk Analyses

#1

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• Environmental scanning in a predicable world
• Scenario planning - A simple technique in an unpredictable word
• Dealing with the unknown
• Handling the different images of risk
• Conclusion

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ERM-107-12: Strategic Risk Management Practice - Ch.7: Strategic Risk Analyses
#2

Hi!

I’d like to discuss the four modes of viewing the environment a bit (Formal Search, Conditional Viewing, Informal Search, Undirected Viewing)

• When would a firm use each of these modes?
• How could this list be tested on the exam?

Also, how often should a firm do environmental scanning, and how might this fit into the larger ERM picture?

Thanks!!

#3

I also have same questions as yours.
About to how could these modes can be tested, I suggest you take a look at 2013 ERM FALL core question 6c) and 6e).

If you have any idea, please share.

#4

May I ask one more question?

In the chapter, it states the steps to create influence matrix,

• sum all the numbers across column (left-to-right) to get the total value.
• sum all the numbers across row (top-down) to get the total value.

Is that a typo? I think column is top-down, and row is left-to-right.

#6

The textbook is correct. You sum all the numbers across the columns from left to right, and vice versa.

With the example of e-insurance, you add left-to-right each of the (top-down) columns 1, 2, 3, 4, 5, 6 (0, 2, 1, 1, 1, 1) to get a total of 6 (which is how much e-insurance impacts the other factors).

To get the number of how much e-insurance is influenced by other risk factors, you add the rows top-down.

Does that make sense?

#7

Thanks, I got your points. I think I have misunderstood the words.