3. HAZARD,
CHANCE OF LOSS; Negative Perception
UNCERTAINTIES ; ( common
EXPOSURE TO perception)
BAD
CONSEQUENCES
12Mac11 3
4. Knowledge Gap /
Untrained Human
Capital
External
factors :eg
new
regulations,
New Business Model
12Mac11 4
5. Avoid ?
Run Away ? - Not a smart
- Not a smart move
move
PLAN EARLY !!
CONFRONT IT/ MANAGE IT
12Mac11 5
6. RISIKO : LANGGAR ATAU DILANGGAR
PENGURUSAN RISIKO :
i. Belajar Memandu
ii. Memerhati Dash Board- minyak, suhu
iii. Tayar- Tekanan angin mencukupi
12Mac11 6
8. TYPES OF RISKS TO BE MANAGED
CAUSING SUBSTANTIAL FINANCIAL IMPACT
KESAN KEWANGAN YANG BESAR
CAUSING REPUTATION RISK
MENGAKIBATKAN RISIKO NAMABAIK
12Mac11 8
9. Technology Risk;
Example (eg) People’s Risk
obsolensence : Eg Insufficient staff,
REPUTATIONAL incompetent staff
RISK !!
Product Distribution
Business Risk: Risk
Eg : Business Eg Failure to
Objectives not distribute goods
achieved effectively
System Risk
Financial Risk: Eg systems down
Eg: not able to meet
financial obligations
Production Risk
Market Risk Eg not able to
Eg investment price produce as per
12Mac11 Falls, or interest rate Required 9
hike capacity
10. 1. RISK WHERE BUSINESS WILL NOT
BE ABLE TO MEET ITS TARGET OR
GOALS
12Mac11 10
11. 1. RISK WHERE STRATEGIC DECISIONS
EXECUTED FAIL TO TAKE PLACE,
OR FAIL, OR ACHIEVE BELOW
EXPECTATION
12Mac11 11
12. 1. TECHNOLOGY BECOME OBSOLETE
IE NOT RELEVANT IN BUSINESS eg
SUBSTITUTED PRODUCTS
2. example : USD THUMBDRIVE
REPLACING 3 ½ DISKETTE
12Mac11 12
21. THE RISK OF DIRECT OR INDIRECT
LOSS RESULTING FROM INADEQUATE
OR FAILED :
INTERNAL
PROCESSES SYSTEMS
PEOPLE
TRANSACTIONS
EXTERNAL
7 apr 08 EVENTS 21
22. - Potential Loss in Reputation
Key
Publicity Employees
Customers
Revenue Base
Costly
Litigation
7 apr 08 22
23. • PROACTIVE PROCESS /
DISCIPLINE OF MANAGEMENT
TO MANAGE UNCERTAINTIES
TOWARDS ACHIEVING
BUSINESS GOALS
• MINIMIZE THE ADVERSE
EFFECTS OF ACCIDENTAL
LOSSES UPON AN
12Mac11
ORGANIZATION 23
25. RISK MANAGEMENT STANDARDS
PRINCIPLES FRAMEWORK PROCESSES
FOR FOR FOR
MANAGING MANAGING MANAGING
RISKS RISKS RISKS
12Mac11 25
26. 7. Tailored
8. Human and Cultural
Factors into Account
9. Transparent and Inclusive
10.Dynamic, Interactive,
Responsive to Change
11. Facilitates Continual
Improvement and
Enhancement of the
Organization
12Mac11 26
27. MANDATES/
COMMITMENT
DESIGN
FRAMEWORK
RISK
TO MANAGE
PROCESS
CONTINUAL IMPLEMENT
IMPROVEMENT FRAMEWORK
MONITOR /
REVIEW
FRAMEWORK
12Mac11 27
28. 1. UNDERSTAND ORGANIZATON AND
ITS CONTENTS
2. CONSIDER RISK MANAGEMENT
POLICY
3. INTEGRATE INTO
ORGANIZATIONAL PROCESSES
4. ACCOUNTABILITY
5. RESOURCES
6. ESTABLISH INTERNAL
COMMUNICATION AND REPORTING
MECHANISM
7. ESTABLISH EXTERNAL
COMMUNICATION AND REPORTING
MECHANISM
12Mac11 28
31. RISK OWNERSHIP
WHO OWNS THE RISK IN EACH FUNCTION ?
SIAPA TUANPUNYA RISIKO ???
BASIS OF OWNERSHIP :
RESPONSIBLE / ACCOUNTABLE FOR
THAT FUNCTION
RESPECTIVE BUSINESS/ FUNCTION OWNER !
12Mac11 31
33. Integrated Heat Map :
The Profile of One Risk :
The Nature Of the Risk RED
HIGH RISK
OCCURANCE
IMPACT OF
YELLOW :
MEDIUM
GREEN : RISK
LOW RISK Likelihood
PROBABILITY OF OCCURANCE
33
34. CORPORATE GOVERNANCE
IN RISK MANAGEMENT
BOARD OF
DIRECTORS
CEO BOARD
BUSINESS BOARD
RISK AUDIT BUSINESS
DEPTS STRATEGIES
RISK
MANAGEMENT
RISK
STRATEGIES
INTERNAL
AUDIT
INDEPENDENT
12Mac11 ASSURANCE 34
35. CASE STUDY
• MANAGING RISKS IN A TECHNOLOGY
• BASED BUSINESS
• CASE : VENTURING INTO A GREEN
• TECHNOLOGY BUSINESS
12Mac11 35
36. GREEN TECHNOLOGY
• PRODUCTS, EQUIPMENT OR SYSTEMS
WITH :
1. Minimises Degradation of Environment
2. Zero or Low Green House Gas (GHS)
emission
3. Safe for Use and Promotes Healthy and
Improved Environment for all forms of life
4. Conserves use of energy and natural
resources
5. Promotes use of renewable resources
12Mac11 36
37. CASE STUDY; FACTS OF THE CASE
• NAME OF COMPANY : LIVERMORE SDN BHD
• PROJECT NAME : SOLID WASTE
MANAGEMENT
• OBJECTIVES: RECYCLE 35 TONS OF
WASTE TYRES USING PYROLYSIS
TECHNOLOGY INTO FUEL OIL, GAS,
CARBON BLACK , STEEL WIRE
• PROJECT OUTCOME: REDUCE 40%
ELECTRICIY CONSUMPION, REDUCTION OF
CO2 THROUGH FUEL SAVING FOR
TRANSPORTATION OF WASTE
•12Mac11
FIRST TIME BUSINESS VENTURE 37
38. CASE STUDY; FACTS OF THE CASE
• PAID-UP CAPITAL : RM200.0 MILLION
• TOTAL PROJECT COST : RM300.0 MILLION
• SEEKS GOVERNMENT ASSISTANCE
THROUGH GREEN TECHNOLOGY GRANT .
TOTAL GRANTED : RM100.0 MILLION
• ALSO BORROWS MONEY FROM LOCAL
BANK ; RM50.0 MILLION ON BLR + 2% (
BLR=6.3%)
• BORROWS FROM ABROAD : SGD40.0
MILLION
12Mac11 38
39. CASE STUDY; FACTS OF THE CASE
• BUSINESS OBJECTIVES AMONG THOSE :
TO CAPTURE AT LEAST 5% OF MARKET SHARE
TO DEVELOP NEW TECHNOLOGY IN THE SAME
BUSINESS SEGMENT
TO DEVELOP AND ESTABLISH DISTRIBUTION
CENTRES OF AT LEAST 50 THROUGHOUT THE
COUNTRY
TO REGISTER PROFIT BEFORE TAX OF RM20.0
MIO DURING YEAR 1
TO CONTAIN OPERATIONAL COST AT THE COST
INCOME RATIO OF 40%
TO INCREASE OPERATING EFFICIENCY BY 20%
AFTER YEAR 1
12Mac11 39
49. INTEGRATED HEAT MAP
RED :
HIGH RISK
OCCURANCE
IMPACT OF
YELLOW :
MEDIUM
GREEN : RISK
LOW RISK Likelihood
PROBABILITY OF OCCURANCE
49
50. WHAT IS NEXT ??
MONITOR EVERY QUARTER AS AND WHEN
NEEDED
DISCUSS AT THE MANAGEMENT LEVEL ,
AND MAKE
DECISION
PAY SPECIAL ATTENTION ON HIGH RISK
AREAS
PAY SPECIAL ATTENTION ON NEW RISKS
12Mac11 50
THAT MAY SURFACE
51. RISK IS PART OF BUSINESS
RISK SHOULD NEVER HINDER
BUSINESS GROWTH
RISK MGT= NOT A THEORY
RISK MGT= COMMON SENSE
RISK MGT= NO GUARANTEE OF
EFFECTIVENESS EXCEPT CONTINOUS
PROACTIVE AND DISCIPLINE PROCESS
.
12Mac11 51
53. CASE STUDY
• MANAGING RISKS IN A TECHNOLOGY
• BASED BUSINESS
• CASE : VENTURING INTO A GREEN
• TECHNOLOGY BUSINESS
12Mac11 53
54. GREEN TECHNOLOGY
• PRODUCTS, EQUIPMENT OR SYSTEMS
WITH :
1. Minimises Degradation of Environment
2. Zero or Low Green House Gas (GHS)
emission
3. Safe for Use and Promotes Healthy and
Improved Environment for all forms of life
4. Conserves use of energy and natural
resources
5. Promotes use of renewable resources
12Mac11 54
55. CASE STUDY; FACTS OF THE CASE
• NAME OF COMPANY : MAN U SDN BHD
• PROJECT NAME : ZERO LIQUID WASTE
DISCHARGED
• OBJECTIVES: DIVERT CONSUMPTION OF
PETROLEUM BASED RESION IN LOCAL
PLASTIC BAGS MANUFACTURING
• REDUCTION OF GHG EMISSION
• NEW ENTRANT IN UPCOMING MARKET
12Mac11 55
56. CASE STUDY; FACTS OF THE CASE
• PAID-UP CAPITAL : RM200.0 MILLION
• TOTAL PROJECT COST : RM300.0 MILLION
• SEEKS GOVERNMENT ASSISTANCE
THROUGH GREEN TECHNOLOGY GRANT .
TOTAL GRANTED : RM100.0 MILLION
• ALSO BORROWS MONEY FROM LOCAL
BANK ; RM50.0 MILLION ON BLR + 2% (
BLR=6.3%)
• BORROWS FROM ABROAD : SGD40.0
MILLION
12Mac11 56
57. CASE STUDY; FACTS OF THE CASE
• BUSINESS OBJECTIVES AMONG THOSE :
TO CAPTURE AT LEAST 5% OF MARKET SHARE
TO DEVELOP NEW TECHNOLOGY IN THE SAME
BUSINESS SEGMENT
TO DEVELOP AND ESTABLISH DISTRIBUTION
CENTRES OF AT LEAST 50 THROUGHOUT THE
COUNTRY
TO REGISTER PROFIT BEFORE TAX OF RM20.0
MIO DURING YEAR 1
TO CONTAIN OPERATIONAL COST AT THE COST
INCOME RATIO OF 40%
TO INCREASE OPERATING EFFICIENCY BY 20%
AFTER YEAR 1
12Mac11 57
68. About Bank Simpanan Nasional (“BSN”)
Background
BSN or the National Savings Bank was established in 1974
to take over the functions and responsibilities of the Post
Office Savings Bank.
Governed by:
BSN Act 1974; and
Development Financial Institutions Act 2002.
68
69. About BSN
Mandated Roles
BSN’s mandated roles are initiated by the Malaysian
government.
BSN has dual obligations i.e. to remain sustainable and
profitable whilst carrying out its mandated social roles to
ensure financial inclusion and accessibility to banking
services at reasonable costs to all segments of society.
To ensure the “non-bankable” communities are not
deprived of having access to banking facilities and
service, with emphasis on the rural areas.
To provide micro financing for micro enterprises through
Micro Financing loans.
69
70. About BSN
Socio-economic impact
Elevating the underserved who do not necessarily have
access to banking services.
To ensure “financial inclusion” of all Malaysians.
Financial inclusion is the corner stone towards elevating
the standards of living and eradicating poverty.
70
71. About BSN
Socio-economic impact
By providing Micro Financing loans, it enables
opportunities and support for micro-enterprises to
participate in business activities and contribute to a
balanced economic growth.
This will, in turn, elevate the standards of living of low-
income households due to higher incomes generated.
Closes the financing gap of the underserved segment of
micro-enterprises and reduces their reliance on illegal
moneylenders.
71
75. Your Slide Title
Main point goes here
Main point goes here
Main point goes here
• brief description for the main point
Main point goes here
