Management risks
NEW RISKS COMPANIES ARE FACING
Natural calamities
Natural disasters such as fire, floods, and drought seen as a threat to companies in 2020. with the extreme climate changes experienced in the year, 2020 businesses have had a hard time trying to locate facilities and how to design supply chains. According to Ding et al. (2020, fire is the main threat to property and human safety in materials storage of process industry plants as well as other industrial sectors. For instance, bush fires in Australia have burned some 32,000 square miles, which tops the Amazon fires by about 5,000 square miles and dwarfs the California wildfires. In Kenya, fire consumed the Tsavo national reserve, the largest game reserve, reducing large acres of land to ashes. On 5th August 2020, the fire burned down many businesses in the Ajman market in Dubai. It is crucial to focus on this risk because even a small fire can have massive impact hence can ripple the whole company.
Epidemics
Epidemics are real threats facing companies and businesses as it exposes them to financial losses and business interruptions. For instance, the outbreak of the coronavirus has placed the whole world at risk in the business sector. Companies have left short of labour hence disrupting the chain of supply. It is due to travel restrictions, quarantines, and work disruptions experienced due to the disease outbreak. It is good to focus on this pandemic because if not well handled, the company might lose good workers.
How companies can prevent these risks
To prevent fire outbreaks, companies should ensure there is proper disposal of hazardous wastes that can be flammable and combustible. The company should ensure chemicals and flammable materials are well stored. According to Rider et al. (1982), In response to an incoming fire alarm, the company must decide how many and which engine and ladder companies (firefighters and their apparatus) to dispatch to the scene.
Companies should consider developing a clearly defined pandemic response to their operations so that individuals can identify health threats early and act appropriately to protect the organization. Organizations should also review critical suppliers and vendors if they are affected by an outbreak, while also considering alternative suppliers and vendors.
How the risks affect comfort at work
Fire affects one’s comfort of working such that the smoke from the fire has toxins that can bring health complications to the workers. In case there is injury or death during a fire outbreak, other employees may be shocked and feel that they are not safe while working at the company may lose interest in working in the organization.
The outbreak of the coronavirus epidemic has affected workers such that they are not comfortable in their working places. Workers can not greet one another or talk to each other because of the issue of social distancing. Some staffs in companies are uncomfortable while working because the wearing of masks makes them not to breathe well.
References
Ding, L., Khan, F., & Ji, J. (2020). Risk-based safety measure allocation to prevent and mitigate storage fire hazards. Process Safety and Environmental Protection, 135, 282-293.Ignall, E., Carter, G., & Rider, K. (1982). An algorithm for the initial dispatch of fire companies. Management Science, 28(4), 366-378.