Company A is involved in the construction industry and was founded in 1976. It is listed on Bursa Malaysia's main market as Company A is involved in the construction industry and was founded in 1976. It is listed on Bursa Malaysia's main market as one of the largest infrastructure development entities in Malaysia, with businesses across Southeast Asia.

Company A's share price has exhibited a sharp fall from January 2018 to January 2019, that is, from RM4.95 to RM 2.29. The company was in a headline for 20,000 job losses and lawsuits resulting from the termination of its tunnelling project works due to the new government's decision to overcome the country's existing financial crisis; by avoiding major projects to reduce borrowings.

To fund the project, the government must borrow a large sum of money to support the high costs of construction which will result in higher interest payment. As a result of the government's decision, the company had to cancel contracts with over 600 companies in its supply chain for the stated project.

In addition to the above, dissatisfied parties affected by the contract cancellations have initiated lawsuits to claim compensation from Company A. However, the company was still open to renegotiations as it believed that a compromise could be achieved to overcome the issue.  In addition, an accident involving the collapse of a launching gantry has occurred at the company's construction site. The accident has resulted in the death of one worker, and another two injured workers who are in a stable condition. Company A has defended itself that all safety procedures relating to the use of the launching gantry at the construction site have been strictly adhered to.  

REQUIRED:

In a dynamic environment, companies should consider the consequence of political change. A change of government may affect many aspects of the environment in which the business operates.

(a) Identify and critically elaborate FIVE (5) strategies that multinational companies can adopt to limit the effects of political risk.  
(b) Discuss FIVE (5) techniques that the Company A can apply for risk identification process. 

(c) Discuss FIVE (5) reasons why reputation risks are faced by companies. one of the largest infrast.