1

About the Speaker

Mr. Jonathan C. Macaraeg

Sustainable Development Head/
QEHS Integrated Mgt. System (IMS) Rep.
Mariwasa Siam Ceramics, Inc.

Professional Background
• Quality Assurance Engineer
• Production Engineer
• TQM Practitioner
• IMR, Mgt. Representative for ISO 9001, ISO
14001 & OHSAS 18001
• OHS Safety Officer 3
2
Natural Hazard Risks in Philippines
The Philippines is at high risk from typhoons, earthquakes, floods, landslides,
tsunamis, volcanic eruptions, and wildfires. It has been affected by 565 natural
disaster events since 1990 claiming 70,000 lives and $23 billion damages. At
least 60% of the country’s land area is exposed to multiple hazards, and 74%
of the population is vulnerable to their impact.

About 20 typhoons hits Philippines every year which are becoming stronger
and more devastating. In 2013, Typhoon Yolanda caused over 6,000 fatalities
and damaged 1.1 million houses. The country is also affected by
earthquakes and volcanic eruptions. There are 22 active volcanoes. In
January 2018, Mount Mayon eruption caused evacuation of more than
56,000 people and damaged agriculture.
Source: https://www.gfdrr.org/philippines
3
Natural Hazard Risks in Philippines
TYPHOON AND FLOOD

LANDSLIDE

4
Natural Hazard Risks in Philippines
VOLCANIC ERUPTION and EARTHQUAKE

5
Covid-19 Business Risk
Corona Virus Business Disruption

Employees are
Working from Home
Stores and
establishments are
temporarily closed

Challenging times for Businesses as

they are losing sales due to the
Pandemic Crisis

6
Operations Related Business Risks
Business Risks for Contractors

Unreliable Subcontractors
Lack of Skilled Workers
Poor Cash Flow
Rising Raw Material Cost
Negatively Affects the
Contractor’s Business
Disrupts Operations

Causes Money Loss

Document Management
Data Loss or Data Corruption

Poor Communication in Team

7
Results of Improper Risk Management
Immense Money Loss resulting to Poor Cash Flow

Complete Business Operations Closure

8
Workshop Objectives
• Highlight the importance of RISK
MANAGEMENT and RISK ASSESSMENT for
the continued success of a business

• Identify common threats which can affect the

business negatively

• Finding ways to measure risks and look for safe

measures to mitigate potential losses which
comes from these risks

9
 Risk Management

Risk management is the

identification, evaluation, and prioritization
of risks followed by coordinated and
economical application of resources to
minimize, monitor, and control the
probability or impact of unfortunate events
or to maximize the realization of
opportunities.

Risk management is the handling of risks to an

acceptable level through a systematic approach of
identification, measurement , treatment & review. (Safety
concept)

10
 What is Risk?
RISK ASSESSMENT
Risk
is the probability of an event occurring in the
future, which could have an impact on an organization’s
ability to achieve its goals

Change in Envi. People

laws & trends capabilities
regulations

Business Goals
activities
For example :
- EBITDA
- Cost effectiveness
- Staff productivity
- Process efficiency
- Cycle time
11
 What is Risk?
RISK ASSESSMENT

Risk (Occupational Health & Safety)

Combination of the likelihood of an occurrence of a
hazardous event or exposure and the severity of injury or ill
health that can be caused by the event of exposure.
What is “Risk”

1 2 3

12
 Risk Management Process
RISK ASSESSMENT
4 Reporting
1
Risk 2
Risk 3
Risk
&
identification assessment response Monitoring
Risk assessment Action Plan/
Risk categories Risk Dashboard
methodology Mitigation plan
• Serves as a basis for • Risk assessment • Explicit risk • Monitoring and
common risk guidelines for risk mitigation plans to reporting tool for
language and owner reduce risk impact discussion of risk in
checklist • Increased ease for key forums
• Assigns clear roles & evaluating risk
responsibilities for impact for both
each risk category to quantitative &
specific risk owners non-quantitative
risks

13
Risk Management Process
RISK ASSESSMENT
1. Risk Identification, by categories
Safety, Health, Compliance risk Input risk
Environment risk • Laws and regulations • Raw Materials
• Safety and health risks – • Social/business - Rising cost
COVID-19 Pandemic commitment • Energy/Utilities
• Environmental damage • Internal rules and • Labor
• Natural & man-made regulations • Trading goods
disaster

Process risk Financial risk Business risk

• Plant Operations • Exchange rate • Changing behavior of
• Sales & Marketing • Interest rate customers (offline to
• Distribution • Liquidity online)
• Human Capital • Financial market • Industry risks (e.g.
• Supporting system (e.g. consumer, competitor,
IT) technology)
• Engineering/Construction • Reputation/Brand risk

14
Risk Management Process

2. Risk Assessment
Process of evaluating the risks arising from hazards or threats,
taking into account the adequacy of any existing controls and
deciding whether or not the risk is acceptable

Example:
û Lack of skilled workers
û Unprotected documents
û Pandemic, COVID-19
û Unavailability of raw materials
û Increasing interest rates

15
2. Risk Assessment

Severity of Consequence (SOC)

Level SOC
1 No impact/ insignificant
2 Minor
3 Tolerable/ Moderate
4 Major
5 Extreme

16
 2. Risk Assessment
Severity of Consequence (SOC)
Ø Use of factor or ranking and numerical computation
(1,2,3,4,5 or 2,4,6,8,10)
NEGLIGIBLE MINOR (2) SERIOUS (3) Major (4) CRITICAL (5)
(1)
Health & Discomfort/ Slight Minor Serious injury Chronic illness
Safety Nuissance injury/ injury (w/ partial Result to
1stAid Case disability) fatality
PENALTY None Notice of Technical P100K/day or Closure
Warning/ Conference 50K per ECC
Letter violation
COST None Cost of PhP 10K PhP < 100K PhP > 100K
(accident) First-aid
Case
OPERATION PhP 5K PhP PhP PhP PhP
COST < 30K 30K – 50K 50K - 100K > 100K
(shortage of
raw material) 17
 2. Risk Assessment
Likelihood/ Probability of Occurrence (POO)
Ø Use of Level, Rating,
RARE UNLIKELY POSSIBLE LIKELY/ MOSTLY
(1) (2) (3) ALMOST (4) (5)
Health & Safety < 1 hr/day 1 hr/day < 2 hr/day < 4 hr/ day > 5 hr/ day
Hours of exposure
Abnormality One in One in 10 One in 5 Occassional, 1/ quarter
- Emergency more than yrs. yrs. 1/yr.
- Material 10 yrs.
shortage
- Utility failure
- Distribution/
delivery
problem

18
 2. Risk Assessment
Risk Control Prioritization
Risk Rating = SOC x POO
POO
SOC 1 2 3 4 5
SOC – Severity of 2 2 4 6 8 10
Consequence 4 4 8 12 16 20
POO – Probability 6 6 12 18 24 30
of Occurrence 8 8 16 24 32 40
10 10 20 30 40 50
Significance Rating Prioritization Documented PPE/ Signage
Criteria Procedure
Intolerable 41 – 50 1st Priority Required Required
Substantial 30 – 40 2nd Priority Required Required
Tolerable 10 – 29 Optional Required
Moderate 4 – 9 Optional Required
Trivial 1 - 3 Optional Optional
Ø Evaluate the highest rate rating
19
 2. Risk Assessment
Workshop
Crisis/ Risk Potential POO SOC Risk Risk
Consequence/ Rating Category
Impact
Taal Volcano Partial shutdown of 1 6 6
eruption plant
Shortage of raw Stoppage of 3 10 30
materials construction (3 times)
COVID-19 Total shutdown 5 10 50
No delivery (60 days)
No sales

SOC – Severity of Consequence

POO – Probability of Occurrence
EC – Existing Control

Ø Evaluate the highest rate rating

20
Risk Management Process
3. Risk Response – Mitigation Plan

Make an action plan/ mitigation plan

- Assign Risk Owners or Responsible
- Provide resources: Budget, manpower

21
 Risk Management Process
3. Risk Response – Mitigation Plan

Mitigation Plan
➲ Strong Storm / Flood
Budget
Threat Outage Scenario
(Php)
Flood - Study the drainage system from the
Machines & spare mountain to protect the warehouse from
parts will be flooding.
damaged and
cannot run - Provision of flood control canal in the
new acquired lot

-Loss of data - Save online/ Use cloud base

22
 Risk Management Process
3. Risk Response – Mitigation Plan
➲ Fire Mitigation Plan
Budget
Threat Outage Scenario Risk Treatment Options and BC Strategy
(Php)

Fire - Fire inside the plant - Set-up of Occupational Health and

because of gas leak, Safety Management System (OHSAS
fire from raw 18001), including work procedures, work
materials, electrical instructions
fire from short - Emergency Preparedness Training
circuits and
overloading - Fire Drill (twice a year), Tabletop Drill

- Creation of Fire Brigade Team and Fire

Brigade Training

Loss of data - Save online/ Use cloud base

23
Risk Management Process
4. Reporting and monitoring
Ø Make a Risk Dashboard
Ø Set regular meeting
Ø Re-evaluate risk rating after the
new countermeasure
Apply P-D-C-A Concept

24
 Risk Assessment
Risk Management Dashboard Example
Category/ Risk Action Plan/ Mitigation Result
Sub- Description Plan
Category
Health, Safety On-site accident Safety Program - Employee Zero major case
& involvement, H&S trainings, or fatality
Environment promotions, drills, Awards & 1.2M Man-hour
Risk Recognitions no loss-time
Input Risk: Shortage of raw Sourcing of additional suppliers No shortage
Raw materials materials Additional RM warehouse
(RM)
Process Risk: Power Additional external provider Zero breakdown
Plant interruption Solar power
Operations
Delivery Delay in delivery Improve warehouse 99% delivery
Shortage of arrangement
stocks New warehouse in Central
Luzon & Vis-Min
25
 Risk Assessment
Risk Management Dashboard Example
Category/ Risk Action Plan/ Mitigation Result
Sub- Description Plan
Category
Health, Safety Non-compliance Appoint Safety Officer No work
& to DOLE stoppage
Environment On-site accident More H&S trainings, Zero major case
Risk promotions, drills or fatality
Input Risk: Shortage of raw Sourcing of additional suppliers 100% availability
Raw materials materials
(RM) (cement)
Process Risk: Loss of data Save online/ cloud base Data availability
Loss of
documents
Business Risk: Exposure to Work from home/ online
COVID-19 virus
Pandemic
26
 Way to Business Success

Free Online Cost Control Software for

Contractors
Way to mitigate potential losses in the event of risk

27
Let us Help you Succeed in your Business!
BUILK helps Contractors succeed despite existing crisis

1 Connect with Contractors trusted by Builk

2 Control cost and set budget to maximize
profits
3
Secure data and documents in the cloud
4
Work online and simultaneous with others
5 Advertise your company for free online

28
Ways on How Builk can Help Contractors
Business Risks for Contractors
Unreliable Subcontractors
Lack of Skilled Workers
Poor Cash Flow
Rising Raw Material Cost
Document Management
Data Loss or Data Corruption
Poor Communication in Team
29
Connect with other
Contractors in the business
Know trusted Contractors
with good work background
Control cost, Fix budget, and
know actual cost to avoid
unnecessary expenses
Manage documents
accessed by employees
Secure data and documents
in the cloud online
Work online and monitor
document trail for
accountability purpose
BUILK can lead Contractors to Success!
2 Plan your Budget, Know your Expenses, Save more Costs!

30
BUILK can lead Contractors to Success!
2 Let Builk help in making Drill Down Cost Structure Report!

31
BUILK can lead Contractors to Success!
2 Plan the Budget, Know the Expenses, Control the Budget!

From the completed projects of existing Builk PRO users,

PHP 270,000 6.58%

Average Contract Amount Average Cost Saving

Cost savings from minimizing unnecessary expenses

32
BUILK can lead Contractors to Success!
3 Save your time and create documents easily with Builk!

33
BUILK can lead Contractors to Success!
5 Create your Own Website, Advertise Online for FREE!
Make searching for your company in the web easier with Builk

34
Summary
Risk Management
Handling of risks to an acceptable level through a systematic approach

Risk Assessment
Evaluation of risks arising from hazards, taking into account the
adequacy of any existing controls and deciding whether or not the risk
is acceptable

Prioritization and Action Planning

1 Evaluating the highest risk rating
2 Making an action plan
3 Providing resources
4 Monitoring the system
4 Re-evaluating of risk after new countermeasure

35
Summary

Make your way to SUCCESS!!!

Go Digitalize your Business with BUILK

Maximize Opportunities in Crisis through BUILK

Prepare for the Changing World by Using BUILK

36
 Summary

Don’t get left behind, Join our growing community!

Go to https://builkph.com/ and REGISTER FOR FREE

37
Summary
Learn how to use BUILK: Free cost control software

38
Summary

Register to join the BUILK Workshop

SCAN HERE

39
THANK YOU!

40