FACULTY OF TECHNOLOGY MANAGEMENT AND

TECHNOPRENEURSHIP

FINAL ASSESSMENT – CASE STUDY (40%)

Course Name: RISK MANAGEMENT

Course Code: BTMT 4293

Name(s) of Academic Staff: TS. DR. YUSRI BIN ARSHAD

Students’ Name: NORSYAFIQAH BINTI ABDUL RASHID

Matric Number: B061710337

Section: 4 BTMM S2

Due Date: 22 JUNE 2021

 TABLE OF CONTENT

No Items Marks Allocation Marks Obtain

1) SEC A; QUESTION 1 50

2) SEC B; QUESTION 1 30

3) SEC B; QUESTION 2 20

/100 marks
TOTAL
/ 40%
FINAL ASSESSMENT
SECTION A: CASE STUDY (50 MARKS)

INSTRUCTION: Answer ALL questions 1 and 2 based on the article provided.

An international comparative analysis of local hazard mitigation plan evaluation for flood

The USA, Japan and Korea

Natural disaster preparedness is an emerging issue all around the world, specifically, because of the recent
climate change. The magnitude of damage from natural disasters – landslide, flood and earthquake – is getting
growing and even worse than the past. Based on the statistics from United Nations International Strategy for
Disaster Reduction (UNISDR), period from (1970-2005), the major threat of natural disaster in the world is a
flooding (30.7 per cent) and second is a storm (20.6 per cent) (UNISDR, 2014). Therefore, many researches have
been conducting for structural measurements for community resilience against those impediments. It is, however,
not possible that all natural disasters can be controlled. Then, there have been many studies to understand
community capacity and elasticity against natural disasters in Japan (Matsuda and Okada, 2006). That would be
one of appropriate approaches to live with natural hazards. Also, a research estimating flood flow volume and
predicting time covered by overflow water in Kumamoto, Japan was conducted to increase a participatory
approach for community-based flood risk communication, which is one of community capacity against natural
disasters (Yamada et al., 2011). Likewise, there have been many research to deal with community capacity.
Unfortunately, however, few studies have been found in a plan quality evaluation in Japan. Additionally, there
are gradually emerging climate-related disasters and losses in Korea as well. For example, Mt. Umyeon landslide
disaster in Seoul caused dozens of casualties in 2011, though the amount of precipitation was just ten-year return
period. For the above reasons, it is emerging that more methods are required to make communities resilient
against fierce natural disasters. It could easily find out that a research paradigm movement from structural
mitigation to non-structural one in many researches. For example, there is a local government self-assessment
tool for disaster resilience in the UNISDR website and plan quality evaluation protocol in academia. Specifically,
flood risk management in a local government has mainly done by a local hazard mitigation plan (LHMP), which
is a very fundamental commitment to protect citizens and properties. With these all efforts, this research tries to
show which categories or components are practically needed to be more improved in a LHMP in the developed
and developing countries through the international comparative case study and also what we have to consider for
local government self-assessment under the different political system with regard to a plan-making process.
Fundamentally, this research finds out common elements (indicators) among countries that have totally different
cultural and political basis with regard to LHMP evaluation.

Source: Kim, H. and Kakimoto, R. (2016), "An international comparative analysis of local hazard mitigation
plan evaluation for flood: The USA, Japan and Korea", International Journal of Disaster Resilience in the Built
Environment, Vol. 7 No. 4, pp. 406-419.
QUESTION 1 (25 MARKS)

a. Describe briefly ONE (1) compliance, hazard, control and opportunity risks found in the article.
i. Compliance
Kumamoto, Japan, improved a participatory technique for community-based risk of flooding
communications, which is one of the community's natural disaster preparedness measures.
ii. Hazard
Hundreds of people were murdered in a landslide tragedy in Seoul, and climate-related disasters and losses
are growing increasingly regular in Korea. It is becoming obvious that more solutions are required to make
communities resilient to catastrophic natural catastrophes.
iii. Control
A local government self-assessment tool for disaster resilience, as well as a plan evaluation methodology,
are available on the UNISDR website.
iv. Opportunity
illustrating which categories or components of an LHMP in developed and developing countries need to be
improved, as well as what we need to consider for local authority self-assessment under various political
studies with regard to the strategy process.

(5 marks)

b. Record in table below and explain sufficiently one for each type of risks found in the article.
Categorise level of risk based on your arguments.
 Risk Risk type Risk description Current level of risk
index Likelihood Magnitude Overall
rating
1 Strategic The structural and non-structural 3 3 9
implementation is uneven when local
emergency responders address hazard
mitigation at the local level and plan
development activities in hazard-
prone areas to lessen community
vulnerability to natural disasters.
2 Tactical annual precipitation and temperature 3 2 6
are higher than those of other
countries, such as the United States
and Korea, it will be necessary to set
aside time to observe the pattern of
probability as a result of the various
weather seasons in order to develop
hazard mitigation strategies.

3 Operational Environmental disasters have a very 4 4 16

high impact on business, not just in
terms of physical assets like lifelines
and infrastructure, but also in terms of
non-physical assets like capital
mobility, business scale, and market
devastation.

4 Compliance As a result of the late implementation 4 3 12

of a plan quality evaluation technique
based on fact, goal, and action,
communities are not resilient and
have been impacted by natural
disasters.
 (10 marks)

c. Discuss risk likelihood, magnitude, hazard risks, loss prevention, damage limitation and cost
containment adopted by each country.

Risk Type Likelihood Reasons

Strategic
Risk Type 3Magnitude
Because a basic comprehension of the risk is sufficient, there is a
Reasons
Strategic 3 risk There
of unbalanced
will be structural
no minor and non-structural
economic execution.
losses or legal breaches that
Tactical 3 The can
risk be
is controlled.
 moderate, and the probability pattern due to the various

Tactical 2 weather
Thereseasons is only
is no breach of observed
the law oratconsiderable
different periods in loss,
financial orderjust
to a
develop
littlehazard mitigation
short-term loss ofstrategies..
reputation.
Operational
Operational 4 4 The There
risk arises frequently
has been as a result
a tremendous of natural
economic lossdisasters
that willthat
takeoccur
a long
everytime
year, such asfrom.
to recover flash floods in the United States, Korea, and

Compliance 3 Japan.
If the LHMP is implemented sooner, there will be no infractions
Compliance 4 Natural catastrophes
of the frequently
law or modest ariselosses.
economic as a result of a lack of
community awareness of natural disasters and the government's
tardy response.
(10 marks)

QUESTION 2 (25 MARKS)

a. Evaluate the local hazard mitigation plan adopted by the USA, Japan and Korea to mitigate risks
involved.

In Baltimore, Maryland, substantial flooding, also known as riverine flooding, is a common

occurrence. The three phases of the local hazard mitigation strategy developed by the United States are
fact, goal, and action. The phases, in reality, include a history of hazard, current population, and
prospective population growth trends, as well as texts and maps. They have an emergency action plan and
an emergency plan for every possible hazard scenario, however the plan does not include the amount of
private facilities located within the floodplain.The goal is the second phase. It has made a number of
commitments and set goals to protect its citizens and the environment. In the strategy and action chapter,
they classified their goal and target into four categories: infrastructure, building, natural system, and
public service.
 Flooding and landslides are the natural disasters of choice in Japan. Japan's local hazard mitigation
plan is divided into three phases where are fact, aim, and action.In fact, they selected the number and
position of single-headed homes, the number and location of local key services, the number of private
structures exposed to dangers, and the number of households as important indicators of their plan. During
the objective phases, the projects may be handled by a department or agency such as civil construction.
Korea has the fewest problems with hazards. In fact, the length of the SMP phase is an issue, as it
does not ensure the quality of the LHMP. The information and plan revealed that the local government
designated "Frequent Vulnerable Areas" and "Frequent Natural Hazard Dangerous District." There are no
maps for the information and plan. During the goal-setting phase, the focus is on the post-event recovery
action.
(15 marks)

b. Why it is crucial to have public private partnership and the need for PP’s to be integrated into
LHMP? Justify your answer.

(10 marks)
SECTION B: APPLIED QUESTIONS (50 MARKS)

INSTRUCTION: Answer ALL questions in this section.

QUESTION 1 (25 MARKS)

Reports on how the Covid-19 outbreak is affecting supply chains and disrupting
manufacturing operations around the world are increasing daily. But the worst is yet to
come. We predict that the peak of the impact of Covid-19 on global supply chains will
occur in mid-March, forcing thousands of companies to throttle down or temporarily
shut assembly and manufacturing plants in the U.S. and Europe. The most vulnerable
companies are those which rely heavily or solely on factories in China for parts and
materials. The activity of Chinese manufacturing plants has fallen in the past month and
is expected to remain depressed for months.
Equally important, mounting pressure to reduce supply chain costs motivated
companies to pursue strategies such as lean manufacturing, offshoring, and outsourcing.
Such cost-cutting measures mean that when there is a supply-chain disruption,
manufacturing will stop quickly because of a lack of parts. The vast majority of global
companies have no idea of what their risk exposure to what is going on in Asia actually
is; that’s because few, if any, have complete knowledge of the locations of all the
companies that provide parts to their direct suppliers.
Source: Haren, P., & Simchi-Levi, D. (2020, February 28) How Coronavirus Could
Impact the Global Supply Chain by Mid-March. Harvard Business Review.
https://hbr.org/2020/02/how-coronavirus-could-impact-the-global-supply-chain-by-mid-
march

a. Lazada Group is Southeast Asia’s leading e-commerce platform. Based on the above article of
current supply chain scenario, conduct risk assessment for Lazada Group by identifying TWO (2)
risks for each following PESTLE category. Use the following template for your assessment.

Category of Risk Identified Risk

Political (P) a. International Trade & Other Treaties –The government has a strong
track record of adhering to international treaties signed with a variety
of foreign partners.

b.Transition of Government and Changes in Policy -From one

government to the next, policy making is consistent.Second,
governments of all political stripes adhere to past governments'
treaties.
Economic (E) a.Consumer Disposable Income -Using a distinctive marketing effort,
Lazada Alibaba can take advantage of this trend to extend its market
 beyond its traditional clients.
b. Inflation rate - The demand for Lazada Alibaba products may be
influenced by the pace of inflation. Higher inflation may force Lazada
Alibaba to increase prices in lockstep with inflation, resulting in reduced
brand loyalty and persistent cost-cutting efforts.
Sociological (S) a.Societal norms and hierarchy - The types and levels of consumption in
a culture are influenced by the hierarchy and standards that are acceptable
in that community. In highly hierarchical societies, decision-making
power is generally concentrated at the top.
b.Attitude towards health and safety - Lazada Alibaba has strict health
and safety standards, thus it may have to compete with players who do
not have the same high cost structures as Lazada Alibaba in emerging
markets.
Technological (T) a.Intellectual Property Rights and Patents Protection -Lazada Alibaba
should consider the climate for intellectual property rights before
entering a new area.
b.Transparency and Digital Drive - To combat corruption in the local
economy, Lazada Alibaba can employ digitization of many processes.
Legal (L) a.Transparency in Judiciary System and Processes - Transparency is
necessary for making fair and consistent decisions. Lazada Alibaba may
plan ahead with greater confidence if the procedure is consistent and
clear.
b.Data Protection Law - Lazada Alibaba must determine what the
country's data rules are and what it must do to comply with them.
Ethical or a.Waste management - The potential market's waste management policy
Environmental (E)
and how Lazada Alibaba can conform to the market's waste management
standards.
b.Corporate Social responsibilities culture -

(24 marks)
b. What is the purpose of risk assessment?
 risk assessment is process to identify potential hazards, then eliminate or reduce their risk by implementing
control measures as needed.
(1 mark)

QUESTION 2 (25 MARKS)

a. Effective risk communication is essential to the well-being of any organization and those people who
depend on it. Ineffective communication can cost lives, money, and reputations. Argue the needs for
effective risk communication in organization.
 To Avoid making comparisons between old and new dangers because they might come out as arrogant and
insincere if not handled properly.

 Recognize and respond to risk perceptions' emotional components.Speak with empathy and never rely solely
on argument to persuade an emotional audience.

 Risk can be expressed in a variety of ways, as long as the risk question is not avoided.

 To Explain how to use uncertainty factors in risk assessment and standard setting.

 In all communication activities, maintain an openness, flexibility, and acknowledgment of public

obligations.

 To Develop an understanding of the advantages of taking a risk.

(8 marks)

a. A good risk culture will be the product of individual and group values and of attitudes and patterns

of behaviour. Why good risk culture brings benefits to firm? Justify your answer.

 A strong risk culture can assist manage the risks associated with more complex operational methods and
the difficulties of effectively supervising them.For active risk management, many companies use
multidimensional, interdependent systems that rely heavily on employee judgment at all levels.
 Risk culture promotes efficiencies, which leads to increased margins. Good operational discipline in
industrial organizations can reduce downtime and boost production while also providing a safer working
environment for employees by predicting potential issues.A decrease in the number of events might also
mean lower employee payouts, fewer regulatory fines, and fewer consumer compensation claims.A
 decrease in the number of events might also mean lower employee payouts, fewer regulatory fines, and
fewer consumer compensation claims.
 It aids in the prevention of occurrences that could harm a company's reputation.Customers can now more
easily share their opinions on the quality of service they received, and victims of industrial accidents or

product recalls can work together to seek reparation

(8 marks)

b. Discuss the key activities in business continuity planning for SME in food industry by giving
appropriate examples.
 Evaluate corporate activities to determine which personnel, materials, procedures, and equipment are
required to keep the organization running.

 Determine which suppliers, shippers, resources, and other companies are contacted on a daily basis.

 Make plans for what to do if any key buildings, plants, or stores become inaccessible.

 Determine the steps that must be taken to maintain the continuity of important business services,
particularly payroll.

 Review the emergency plans on an annual basis, as well as when the company grows and new members or
personnel are hired.

(9 marks)
- END OF ASSESSMENT -
ANSWER ONLY
by norsyafiqah
Submission date: 22-Jun-2021 04:04AM (UTC-0400)

Submission ID: 1610529431

File name: answer_only.docx (22.99K)

Word count: 1474

Character count: 8152

 i. Compliance
Kumamoto, Japan, improved a participatory technique for community-based
risk of flooding communications, which is one of the community's natural
disaster preparedness measures.

ii. Hazard
Hundreds of people were murdered in a landslide tragedy in Seoul, and climate-
related disasters and losses are growing increasingly regular in Korea. lt is
becoming obvious that more solutions are required to make communities
resilient to catastrophic natural catastrophes.

iii. Control
Jtocal government self-assessment tool for disaster resilience, as well as a plan
evaluation methodology, are available on the U Nl SDR website.

iv. Opportunit y
illustrating which categories or components of an LHMP in developed and
developing countries need to be improved, as well as what we need to consider
for local authorit y self-assessment under various political studies with regard to
the strategy process.

Risk Risk t ype Risk description Curren level of risk

index Likelih‹xid Magnitude”* Overall

rating

Strategic The structural and non-structural 3 9

implementation is uneven when local
ernergenc y responders address hazard
mitigation at the local level and plan
development activities in hazard-
prone areas to lessen community

vulnerability to natural disasters.

2 Tactical ‹innu‹il precipitation ‹ind temper‹iture 2
‹me higher th‹in those ot’ other
countries, s uch ‹is the United St‹ites

‹ind Kore‹i, it w’ill be necess‹iij’ to set

‹is ide time to obserx’e the p‹ittern ot

prob‹ibilii}’ ‹is ‹i res mm ot the v‹iriou s
w’e‹ither se‹is one in order to des’e1op
haz‹ird mitig‹ition › tr‹itegies

3 Operational Env’ironrnental disasters hav’e a very 4 4 1fi

high impact on business, not just in

terms of physical assets like lifelines
and infrastructure, but also in terms of
non-physical assets like capital
rnobilit y, business scale, and market
devastation.

4 Compliance As ‹i result ot the late implement‹it ion 4 12

ot ‹i pl‹in qu‹ilitj ex’alu ‹ition

technique b‹ised on t‹ict. go‹il, ‹ind
‹iction, communities ‹me not resilient
‹ind h‹w’e been imp‹icted bj’ n‹itur‹il
dis‹isters

Risk Type Likelihood Reasons

Strategic 3 Because a basic comprehension of the risk is sufficient, there is a

risk of unb‹il‹inced tructural and non-structural execution.

Tactical 3 The risk is mtxlerate, and the probabilit y pattern due to the various
weather seasons is only observed at different periods in order to
 des’elop hazard rnitigat ion strategies..

Operational 4 The risk arises frequently as a result of natural disasters that occur

every year, such as flash flc›nds in the United States, Korea, and
Japan.

Compliance 4 Natural catastrophes frequently arise as a result of a lack of

comm unit y awareness of natural disasters and the government's

tardy response.

Risk Type Magnitude Reasons

Strategic 3 There will be no minor economic losses or legal breaches that

can be controlled.

Tactical 2 There is no breach of the law or considerable financial loss, just a

little short-term loss of reputation.

Operational 4 There has been a tremendous economic loss that will take a long

time t o recover from.

Compliance 3 lf the LHMP is implemented sooner, there will be no infractions

of the law or modest economic losses.

In Baltirnore, Mar yland, substantial flrx›ding, also known as riverine florxling, is a

common occurrence. The three phases of the local hazard mitigation strategy
developed by the United States are fact, goal, and action. The phases, in
realit y, include a histor y of haz‹ir current population, and prospective
population growth trends, as well as texts and maps. They have an
emergency action plan and an emergency plan for every possible hazard
scenario, however the plan dc›es not include the amount of pris’ate facilities
located within the floodplain.The goal is the second phase. lt has made a
number of commitments and set goals to protect its citizens and the
environment. In the strategy and action chapter, they classified their goal and
target into four categories: infrastructure, building, n‹itur‹i ystem, and public
service.

Flooding and landslides are the natural disasters of choice in Japan.

Japan‘s local hazard mitigation plan is dis’ided into three phases where are
fact, aim, and action.ln fact, they selected the number and position of single-
 headed homes, the number and location of local key services, the number of
private structures exposed to dangers, and the number of households as
irnponant indicators of their plan. During the objective phases, the projects
may be handled by a department or agenc y such as civil construction.

Korea has the fewest problems with hazards. In fact, the length of the
SMP phase is an issue, as it does not ensure the qualit y of the LHMP. The
information and plan revealed that the local government designated " Frequent
Vulnerable Areas" and " Frequent Natural Hazard Dangerous District." There
are no maps for th information and plan. During the goal-setting phase, the
focus is on the post-event recovery action.

Category of Risk Identified Risk

Political (P) a. International Trade & Other Treaties —The government has a strong

track record of adhering to international treaties signed with a variety

of foreign partners.

b.Transition of Government and Changes in Policy -From one

gov’ernrnent to the next, policy making is consistent.Second,
gov’ernrnents of all political stripes adhere to past gos’ernments'

treaties.

Economic (E) a.Consu mer Disposable Income - Us ing a dis tinctive marketing eifnrt,

Lazada Alibaba can take ad s’antage of this trend to extend its market
beyond its traditional c lients .

b lnflati on rate - The demand for Lazada Alibaba products may be

influenoed by the pace of inflation. Higher inflation may force Lazada
Alibaba to increase prices in lockstep with inflation, resulting in reduced
brand loyalty and persistent cost-cutting efforts.

Sociological (S) a.S oc iet‹il norms ‹ind hier‹irc hj’ - Th pe nd les’el› ot’ con›u mption in
‹i c ulture ‹me int4uenced bj’ the hierarchy and st‹ind‹irds th‹it ‹me

‹ic cept‹ible in thin community. ighl y hierarchical societies, decision-

making }xiwer is generally conoentrated at the top.
 b.Attitude towards health and safety - Lazada Alibaba has strict health

and safety standards, thus it may have to compete with players who do

not have the same high cost structures as Lazada Alibaba in emerging
markets.

Technological (T) a.Intellectual Property Rights and Patents Protection - Lazada Alibaba

should consider the climate for intellectual property rights before

entering a new area.

b.Transparency and Digital Drive - To combat corruption in the local

economy, Lazada Alibaba can employ digitization of man) processes.

Legal (L) a.Transparency in Judiciary System and Processes - Transparency is

necessary for making fair and consistent decisions. Lazada Alibaba may
plan ahead with greater confidence if the procedure is consistent and
clear.

b.Data Protection Law - Lazada Alibaba must determine what the

country's data rules are and what it must do to comply with them.

Ethical or a.Waste management - The potential market's waste management policy

Environmental (E) and how Lazada Alibaba can conform to the mar ket's waste management
standards.

b.Corporate Social responsibilities t

• risk assessment is proces to identif) potential hazards, then eliminate or reduce

their risk by implementing control measures as needed.
G To Avoid making comparisons between old and new dangers because they might
come out as arrogant and insincer f not handled properl y.

• Recognize and respond to risk perceptions‘ emotional components.Speak with

empathy and nes’er rely solely on argu ment to persuade an emotional audience.

G Risk can be expressed in a variety of ways, as long as the risk question is not
avoided.
G To Explain how to use uncertaint y factors in risk assessment and standard setting.
1n all communication activ’ities, maintain an openness, flexibility, and
acknowledgment of pu blic obligations.

To Develop an understanding of the advantages of taking a risk.

A strong risk culture can assist manage the risks associated with more complex
operational methods and the difficulties of effectiv’ely su perv’ising them.For
active risk management, many companies use mult idimensional, interdependent
systerns that rely heavily on employee judgment ‹mall levels.

Risk culture promotes efficiencies, which leads to increased margins. Good

operational discipline in industrial organizations can reduce downtime and
boost production while also providing a safer working environment for
employees by predicting potential issues.A decrease in the number of events
might also mean lower employee payouts, fewer regu latory fines, and fewer
consu mer compensation claims.A decrease in the number of es’ents might also
mean lower employee payouts, fewer regulatory fines, and fewer consumer
compensation claims.

lt aids in the prevention of occurrences that could harm a company's

reputation.Customers can now more easil y share their opinions on the quality of
serv’ice the y received, and v’ictims of industrial accidents or product recalls can
work together to seek reparation

Evaluate cor}x›rate activities to determine which personnel, materials, procedures,

and equipment are required to keep the organization running.

Determine which suppliers, shippers, resources, and other companies are

contacted on a daily basis.
Make plans for what to do if any key buildings, plants, or stores become
inaccessible .
0 Determine the steps that must be taken to maintain the continuity of
important business serv’ices, particularly p‹iyrol

• Review the emergenc y plans on an annual basis, as well as when the company
grows and new members or personnel are hired.
 ANSWER
ONLY
ORIGINALITY REPORT

26 0% 8% 18%
INTERNET SOURCES PUBLICATIONS STUDENT PAPERS
%
SIMILARITY INDEX

8%
PRIMARY SOURCES

Hwayoung Kim, Ryuji Kakimoto. "An international comparative

1
analysis of local hazard mitigation plan evaluation for flood",
International Journal of Disaster Resilience in the Built
Environment, 2016
Publication

2
Submitted to Swinburne University of
Technology
5%
Student Paper

3
Submitted to University of Malta
Student Paper
3%

4
Submitted to Edith Cowan University
Student Paper
3%

5
Submitted to City University of Hong Kong
Student Paper
2%
 1
Submitted to Global Banking Training
6 Student Paper %

7
Submitted to University of Adelaide
Student Paper
1%
8 Submitted to Coventry University
Student Paper 1%
9
Submitted to Heriot-Watt University
Student Paper
1%
10

Submitted to Bolton Institute of Higher

Education
1%
Student Paper

Exclude quotes Off Exclude matches Off

Exclude bibliography Off
ANSWER ONLY
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