2. Empada berhad is considering creatinga risk management programme for the company as a part of its new risk management framework. Explain what are the key element of the risk management process.

Subject - Corporate Admin and Risk Management

Case Study 2

Empada Berhad is a construction company operating in Shah Alam. The company provides consulting services for building construction, housing development and infrastructure projects. During the previous board meeting, Ms Sharina, a board member draw the attention of the board to an alarming issue which was reported by the local newspaper. A few other board members seem to be agreeable with Ms Sharina. She is so concerned about the current practice at the construction sites. Recently a worker barely avoided serious injury from failing when thescaffolding that he used suddenly broken. Meanwhile, another fainted after working in the work area that stored the chemical substances and there were three cases of theft at the worksite. She stressed the importance of safety issues in the company. The company's reputation may be at stake. In continuation to the discussion, Encik AN, who is another board member, feels the need to review the current policy with regards to risk management including safety and health issues in the company. A few other directors are seemed to agree with Encik AN suggestion.

Based on the previous risk audit report, the findings show that cranes which are used to lift heavy materials are not properly maintained. The scaffoldings which are being used by the construction workers need replacement as they have passed their disposal date. Therefore, they are not safe to be used anymore. The auditor also discovered that the plant has not installed safety guards on all exposed machines. The entrance and exit are partially blocked by some of the construction materials. On top of that dangerous chemicals are not properly stored. The audit findings also indicate that, dutring the risk audit, the auditor have asked the person in charge about the records of accidents at the construction sites. After hours of searching the employee approached the auditor with incomplete set of information. According to the safety and health officer of Empada, most of the employees take lightly safety and health related issues. The officer is worried that the company might get sued by those who retain any kind of injuries in the company. The safety auditor has submitted her findings report with a proposal for the improvement and estimated that it would cost RM100,000 to complete the necessary rectification works. Six months passed and nothing was done.