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Risk management
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Closing Down a
Chemical
Manufacturing Plant
because of
Environmental Issues
Presented By-
Ankita Priyadarshini(BM18010)
Prince Kumar(BM18031)
Richa Prasad(BM18033)
Rounak Modi(BM18038)
Subhadeep Chakraborty(BM18052)
2. Agenda
Problem- Chemical Waste
Pollution from Plant
Possible Alternatives
Available
Evaluation of “Shut Down”
Process
Impact on the Business
Plan of Shutting Down the
Plant
3. Problem- Chemical Waste Pollution From Plant
Contraceptive pills manufacturing plant
Location of the plant
Contraceptive pills as a product for the company
Ethinyl Estradiol hormone, an active agent
Emission of the hormone as a waste
4. Environmental Impact
Linkage with the local water bodies
Affecting ecosystem of the water bodies
Affecting the lives of local residents
Incoming threats alert from the local sources
Urgency for taking a decision as soon as possible
5. Possible Alternatives Available
Install a Waste Management System
○ Positive Effects- Cost effective decision
○ Negative Effects- Solution for short term
Do nothing for now
○ Positive Effects- No costs incurred
○ Negative Effects- Substantial losses in long term
6. Possible Alternatives Available Continued
Shut the manufacturing plant here and shift the plant to a
new location
Positive Effects-
● Incoming threats can be resolved
● Help to rebuild the ecosystem once again
Negative Effects-
Substantial cost to pay and it will take time
7. Evaluation Of The Shut Down Process
Shut Down Planning and scheduling Preparation Pre Shut Down
Shut Down Evaluation Startup Shut Down Execution
Shut Down Complete
8. Risk Mitigation Plan
Safety
Management Plan
● Proper Documentation
● Check on Exposure Risk
Detailed Resource
Plan
● Equipments and Machinery disposal Plan
● Unsold Stock to be shifted
● Adequate supply to the existing contracts
Internal
Notification Plan
● Notification about the plan at the earliest
● Human Resource Management
9. Cost of Shutting Down
Costs to the
Company
Explicit Costs Implicit Costs
Inconvenience
caused in and
around
Loss of Human
Resource
Cost of Income
Loss
Cost of the
Shutting down
Cost of the
Consultant
Brand Image
10. Financial Analysis
Rs(crores)
Total Income by Disposing Assets………...300.00
Reserves and Surplus…………………………...427.50
Total Payment to be made………….……….(1500.00)
Net Loss (773.00)
Balance Sheet Reference
11. Action Plan
Immediate Action on :
Collection of outstanding receivable or sell them to a factor
Inform all the channel partners
Sell all Inventories and get the assets disposed
Pay off the creditors