enterprise risk management: study in alam flora sdn bhd malaysia

ALAM FLORA SDN BHD

Presented For:PROF. DR ZURIAH ABD RAHMAN

Presented By: NURUL NADIA BINTI ABDULL RASHID

(2014715621) NOR HAFIZAH BINTI SAMANAL

(2014970723) NIK NAINUNIS BINTI ABDUL GHANI

(2014701609)

BACKGROUND ALAM FLORA SDN BHD •Alam Flora is a wholly-owned subsidiary

of DRB-Hicom Berhad, one of Malaysia’s leading companies listed on the main market of Bursa Malaysia Securities Berhad, playing an integral role in supporting Malaysia’s transformation into a competitive, knowledge-based and high income nation.

CONT..•Alam Flora was incorporated as a special

purpose company to undertake the privatization of solid waste management (“SWM”) services within the vested concession areas covered in the Federal Territories of Kuala Lumpur and Putrajaya and the states of Selangor, Pahang, Kelantan and Terengganu.

Enterprise risk management for Alam Flora Sdn Bhd

COSO;2004

Internal environment

•Vision, Mission and Shared Values Management has established and provide direction to employees towards achieving the goals and objectives of the Alam Flora Sdn Bhd.  

Vision

To be a leading environmental management company committed to improving the quality of life.

Mission

Committed to a clean environment Committed to excellent customer

service Consistently optimize high return to

shareholders Committed to the development of a

skilled, dedicated and knowledgeable workforce

 Shared Values

Excellent Customer Relations Sense of Urgency Teamwork Harmonious Relationship Quality Services

Objective setting• Board of director Alam Flora Sdn Bhd should set

objectives risk management program to mitigate all the potential risk in the company.

• Board is to set objectives effectively, and to be aware of the risks arising if different objectives are pursued.

• Risk objective must be exist before management can identify the potential events affecting their achievement.

Illustrative Impact ScaleRating

Impact Description

1 Insignificant

Not reportable to top management

2 Minor Reportable incident to top management, no follow up

3 Moderate Report to top management with immediate correction to be implemented

4 Major Report to top management requiring major corrective action

5 Catastrophic

Top management take more serious action

Illustrative Likelihood Scale

Rating

Likelihood

Description

1 Rare <10% chance of occurrence2 Unlikely 10%-35% chance of

occurrence3 Moderate 35%-65% chance of

occurrence4 Likely 65%-90% chance of

occurrence5 Almost

certain>90% chance of occurrence

(a) Vehicles risk

Vehicle breakdown may affect the Collection of

services Likely

Major

Event Identification Mapping

(b) Equipment risk.

Equipment damage will affect service operation

Moderate

likely

Event Identification Mapping

(c)Safety

and health risk at

workplace

Accident at workplace- related

injuries Moderate (3)

Moderate (3)

Event Identification Mapping

(d) Service quality

risk

Non-performing/ inexpert worker

during the collection of waste landscaping

activities

Moderate (3)

Unlikely (2)

Event Identification Mapping

Risk mapping Impact

Likelihood

Insignificant

Minor

Moderate

Major

Catastrophic

Almost certain          

Likely  

  (b) (a) 

Moderate    

(c)  

Unlikely    

(d) 

Rare          

Risk Reduction

- Instruct and train workers take care the vehicles safely.

-Always check the vehicle be in good condition.

Risk respond

Vehicle breakdown may affect the

Collection of services

Risk Reduction

-Employer prepares suit such as safety jacket, boat, gloves, goggles and others-Provide a back-up team of workers

Risk respond

Accident at workplace- related

injuries

Risk reduction

-Alam Flora Sdn. Bhd might buy a high quality of equipment.-Instruct and train worker to use equipment properly. -Prepare extra equipment.

Equipment damage will affect service

operation

Risk respond

Non-performing/ inexpert worker

during the collection of waste/landscaping

activities

Risk Reduction

-Provide training and skill based on workers’ expertise- All the workers will be supervised by the leader.

Risk respond

Control activities •The control activities are aimed at assessing

the effectiveness and relevance of controls and management action plans implemented to mitigate the occurrence and severity of risk.

Information and communication•To enables all parties involved to carry

out their duties. •Enterprise risk management is to ensure

all employees put their full cooperation in accomplishing Alam Flora Sdn. Bhd objectives and goals.

Monitoring •The risk treatment will be monitored and

review performance Alam Flora Sdn. Bhd in periodically

•The risk treatment method will be changed to another method in any event of ineffectiveness

Conclusion•The existing risk encountered by Alam

Flora Sdn Bhd should properly managed to avoid any possibility lost.

•Risk Committee plays an important role to control activities and monitor risk response.