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In this case I will build a situation case and hopefully we will discuss it together and help each other and new members to understand Risk Management. Any person can participate and add points or ask questions.
The Case:
XYZ CO. is publicly traded company, that manufacture chemicals in MENA region, they do everything from raw materials to logistics.
The main facilities are located on an important water source for a nearby city where XYZ CO. dumb their chemical waste.
XYZ CO. operate its own auto fleet, that include sedan cars, medium sized, cargo vans, and trucks.
XYZ CO. engineers discovered a new way to make a chemical product, and they are currently in the process of issuing a patent.
XYZ CO. is an equal opportunity employer, thus no employment should be done based on race or any criteria.
Please in the answers section, try to identify a risk from the list provided above, and tell us how you'd manage it. I'll start to show an example.
P.S. you can add your own point and answer it also.
good information and answer by u
regards
The auto fleet is a major risk for the company, i'd simply suggest to buy insurance for the sedan cars, medium sized cars and the cargo vans, All after train the drivers on safety and regulations. (Risk Financing technique AKA insurance)
The trucks i'd simply suggest to outsource this operation, since insurance for big trucks is expensive. By doing this, XYZ CO. will save money on salary, fuel, maintenance, and depreciation. (Risk Control)
Problem Solving and Risk Management. A major challenge for all companies is identifying, assessing, and mitigating risks, including human and financial capital, in addition to the macro economy. The lack of a sophisticated problem-solving competency among today’s business leaders is limiting their ability to adequately deal with risks facing their businesses. This is why corporate managers tend to jump from one fire to another, depending on which one their executives are trying to put out, and in many cases the fast-changing business environment is what ignites these fires. So what is the problem to be solved? We believe, to do well into the future, companies must resolve that problem solving is the key to business, then develop a robust problem-solving capability at all levels. As companies proceed to identify risks, they will then have the problem solving skills to know how to best mitigate them.
Great theme includes many powerful elements is not enough room to write.
-kadd Experiments proved that the credit operations is always accompanied byrisk, even if the bank sought to banking rules and customs ... no matter what theguarantees provided because the risks may be beyond the control of both the client and the bank ....
- So it was necessary to create a department dealing with risk management inbanks shall be as an early warning to all of the risks faced by banks in credit operations.
(I apologize if the mistakes)
Thanks for the invite I leave the answer to the specialists.
Well, I really like the way you have put up the question and the scenario. The major risk in this scenario is 'Dumping of Chemical waste' near the water body which is the main source of drinking water to the city and not the 'Auto fleet'. (will discuss on this in the end).
Chemical waste are hazardous not only for human & animal life but also for the environment. They create profounding damage which will have the impact for years and the generations to come. As the company is dumping it near the water body which is against the law and policies stipulated by the governments of any nation and especially with handling of the industrial waste and also it is unethical and goes against the CSR (Corporate Social Responsibility). If the company goes on dumping its chemical wastes, it will lead to
1. Pollute the drinking water,
2. Create health risk to the residents of the city.
3. Drinking water being scarce, will deprieve a major source of supply.
4. Damage the environment & its surroundings
5. Destroy the aqua life.
6. Will incur monetary burden on the Government for cleaning up & other incidental costs.
The company should access this risk on high priority basis and chart out the plan to dispose off the chemical waste in a safe manner and with accordance with the regulation which are norm in dealing with these kind of waste.
Coming to the point of 'Auto Fleet' being a major risk, I disagree but agree it on being a routine risk which is associated with every business as every organisation own vehicles and they have to be prepared for it. Regarding Insurance, it is a product which you buy along with the purchase of vehicle.
Please do write if Mr.Zughaibi or any one agree or disagree with my point of view. And I also convey my 'Thanks' to Mr. Zughaibi for posting such a wonderful & learning question.
Agreed to fathi salem.good question for my knowledge
I would agree with Mr. Imran Ali analysis ... Thank You
Thanks I amagree with your details at the question
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