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FBLT092 Risk Management

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In recent times, unusually heavy rains   have caused the river to overflow its banks. This flooded your site and caused a large leak from your chemical storage tanks into the river.  In the summer of 2016, an explosion in the plant spread toxic fumes to the surrounding residential areas and the fishing village. This has had serious health consequences (including a dramatic increase in respiratory diseases) on the local population for which your organisation is currently facing legal actions from various individuals and interest groups. As a result of these incidents, a section of the local community has been quite vocal in their objection to your continued presence at the site. However, because you employ approximately 300 workers the majority of whom come from the local community, there is still some tolerance of your business among a sizeable majority of the locals.   Whilst the local administration and planning authorities want your plant to relocate, they cannot enforce the move through the planning laws as the plant’s site carries some immunity. They are also very much aware of your company’s contribution to the local economy as a major employer.

In addition to the environmental and planning issues, your company has been unable to achieve its annual sales targets in the last two years due mainly to increased competition from suppliers from Eastern Europe and Asia. This has been of great concern to the shareholders of your company who are worried about the value of their investments.

You are required to carry out the following tasks:

  • Profile the risks to your organisation given the above scenario and prepare a quantitativeassessment of the risks using an appropriate  risk register for the following strategic categories of risk:

i Political

  1. Economic
  2. Social
  3. Technological
  4. Legal
  5. Environmental
  6. Competitive
  • Prepare a disaster recovery plan against some possible hazards to your company’s operations. The plan must include 2 environmental hazardsand 2 technological hazards. The format of your report should include a profile of the hazards as well as the contingency plan and the disaster response for each hazard.
  • Provide a detailed value chain analysis of your company’s business with a view to improving your performance in the market.
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