Answer to Question #165719 in Management for Prudence

Question

You have recently been appointed Chief Information Officer (CIO) at a large multinational 

corporation. The Chief Executive Officer (CEO) requested you to brief him on the risks 

listed below, and explain how you will mitigate these risks where applicable:

4.1.1 Business operations risk (6)

4.1.2 Program risk (4)

4.1.3 Business interruption risk (4)

4.1.4 Minimised risk (2)

4.2 You have been tasked to establish a functioning Health and Safety Committee in accordance with the requirements of the Occupational Health and Safety Act. Explain your understanding of your responsibilities based on the requirements of the mentioned Act. (5x2) (10)

4.3 The Labour Relations Act, No. 66 of 1995, as amended make provision that one or more registered trade unions and one or more employers’ organisation may form a bargaining council. What will the powers and functions of such a bargaining council be?

Answer 1

Business operation risk can be mitigated through managing the failures of the equipment. The equipment that is used to carry out the business operation can still breakdown, extra steps have to be taken to ensure that the information is safeguard, ensuring that all the equipment’s are working properly and making sure that the alternative plans are put in place in case of any failure of the equipment’s. Secondly, keeping strong business to business relationship is another way of reducing operation risk. Without the work of the other business your business will not able to perform very well, there must be assurance that there is an agreement with the vendors and the suppliers. Having enough insurance is another point. In the event that something happens the business should have the proper equipment in need to cover the event. Knowing the regulations reduces the business operation risk, this is by ensuring that the business operations are in the accordance with the law. Monitoring and evaluating at regular intervals, reduces the operation risk. It helps to identify the discrepancies and manage them accordingly. Assigning task to the right people mitigate the operation risk, this is by giving the task to the trained individuals and those who are ready to take additional responsibility.

The risk mitigation options in program risk include accepting, avoiding, control and transfer. Accepting the existence of a particular risk without making any efforts to control it. Avoiding the risk is by adjusting the requirements of the program by eliminating the risk. Control is minimizing the impact of the risk. Transfer is the reassigning the responsibility and accountability of the organization to the other stakeholder willing to accept the risk.

Business interruption risk can be minimizing by determining the risk, considering the environmental risk, human risk, preventable risk and non – preventable risk. Calculating the business interruptions, analysing the impact of each risk after the ranking of the risk. The insurance coverage should be understood, its significant to understand the policy terms periods for waiting, limits of coverage and exclusion. Creating a crisis communication plan in order to provide the customers and employees the critical information, the communication plan should have network, messages and a chain of command.

The risk can be minimised by inspecting the physical location of the business, ensuring the workers follow the safety requirement and use the equipment properly. Prevent burglaries, customer and employee’s theft, making sure the business is well secured both inside and outside.

The duties of the occupier are to provide at no cost to the committee, suitable facilities and venue for holding the meetings. Should provide the committee with the information on any accidents immediately when it comes to its awareness. Should allow the members to attend the meetings without the lose of promotions and earnings. The occupier should make a report to the director concerning the issue of health and safety and also ensure that all matters set in the rules are complied.

The power and the functions of the bargaining council include to make a recommendation in the collective agreements, to prevent and resolve the disputes of the labor, to promote the training and education, to establish and administer the funds to be used in resolving the disputes and to provide the industrial support within the sector.