Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
No changes
EXPENSES
No changes
CASH FLOW
No changes
PROFIT
Little or no impact
< 5% decrease
5- 10% decrease
10 - 30% decrease
Macroeconomic Environment
Continuing Slow growth in growth in the certain sectors economic environment Minimal impact on reputation with letters to local/ industry press On-site environmental exposure immediately contained Series of articles/ complaints in local/industry press leading to potential impact on reputation
Slowdown in the general economy (no growth) Reputation will be affected in the short term with complaints to minister/local govt & stakeholders On-site environmental exposure contained with outside assist'ce
Economic recession
Reputation/ Credibility
Serious with potential for permanent diminution in reputation with adverse publicity Off-site environmental exposure contained with outside assist'ce
Serious longer term reputation impairment with extensive -ve nationwide coverage
Environment
RISK LIKELIHOOD DESCRIPTION Degree Almost Certain Description Event is expected to occur in most circumstances Event will probably occur in most circumstances Event should occur at some time Probability Frequency >90% Monthly
Likely
50-90%
Once a year Once in 2 years Once in 3 years Once more than 3 years
Moderate
30-50%
Unlikely
10-30%
Rare
<10%
Notes: a) Likelihood should be ascertained based on past historical data whenever possible. b) A record of the incidents of the risk occuring should be established. This should be recorded in the risk register. E.g. Risk of Flooding affecting business of hotel in Kuantan 11 Jan 1994 - heavy rain causing flood in widespread area in Kuantan affecting business.Period : 8 to 11 Jan 1994 26 Dec 1998 - heavy monsoon for past 2 weeks causing severe flood in Kuantan town and Balok Beach area. Damaged to beach and hotel facilities for outdoor activities. c) Each event which gave rise to the risk does not follow the same probability or frequency. Therefore, when using frequency as the basis, the number of times the risk is expected to happen should be indicated clearly. d) The above are merely guidance notes and other basis could also be used to determine the Likelihood of the identified risk. This is due to the different businesses in PJD Group where different performance requirements are set for each business division depending on their assets employed, capital requirements, size of operations, etc.
Risk 1 2 3 4 5 6 7 8 9 10 Change in Government Policy Competition Risk Risk of dependency on Key staff Supply risk Regulatory risks Risk of bad debts Ineffective Cost management Change in technology Fire & other disruptions Breakdown of Information systems & secuirty breaches
Likelihood Moderate(L3) Likely(L4) Moderate (L3) Moderate (L3) Moderate (L3) Moderate (L3) Moderate (L3) Moderate(L3) Unlikely (L2) Unlikely (L2)
Impact Moderate(I3) Major (I4) Major (I4) Major (I4) Moderate (I3) Moderate (I3) Moderate (I3) Moderate (I3) Catastrophic(15) Moderate (I3)
When submitting to Risk Management Committee, only risk assessed to be SIGNIFICANT or HIGH need to be submitted.This means only the risks numbered from 1 to 9 will be submitted. The risk profile should be submitted in 2 formats: 1 A listing of all SIGNIFICANT and HIGH risks identified, evaluated and assessed as in the above table (Table 2). 2 A Residual Risk Profile Map as shown in Table 1
CATASTROPHIC MAJOR
O4 R5
O3 F7 O8
B2
IMPACT MODERATE
B1
F6
B1 B2 O3 O4 R5 F6 F7 O8 R9
Change in Government Policy Competition Risk Risk of dependency on Key staff Supply risk Regulatory risks Risk of bad debts Ineffective Cost management Change in technology Fire & other disruptions LEGEND Strategic/Business risk Financial risk Operational risk Other risk
INSIGNIFICANT