December 2012 #4 Part C

Hello…

Is this right?
Dealing with the risk regarding supplier business failure:
– Identify other companies who can perform the maintenance should Topaz be wound up.
– Request that Topaz provide an audit report with gives a positive opinion on the accuracy and reliability of the cash flow forecast for the forthcoming year.
– Consult and visit some of Topaz’s enterprise customers. This can involve World Engine seeing the work Topaz developed working in real life.
– Ask Topaz to provide any form of evidence regarding industrial rewards and feedback from clients.

Dealing with the risk of employee travel:
The case study revealed the loss of World Engines complete evaluation team by a fatal aircraft crash. This risk can be mitigated and avoided in the following ways:

– World Engines should conduct an investigation into the accident to identify the root cause of the crash and take precautionary measures to avoid such a catastrophe from happening in the future. Also, World Engines can have their aircrafts subject to additional safety checks like the ones used by commercial airliners before allowing their planes to take off.
– Furthermore, World Engines can have their employees flown with a reliable commercial airliner with a proven safety record as opposed to using their planes which are used for testing purposes and are clearly not as reliable as certified commercial planes due to its development in progress engines which are installed on their planes.
– The crash resulted in the death of key employees at World Engines. Contingency measures should be discussed and agreed upon and put into place to deal with the risk of sudden death of key employees and avoid strategic problems.
– The new employees who would take over the job of the deceased evaluation team may hear stories (cultural web) about the former evaluation team which died on the aircraft. This can create a sense of fear and worry for those new workers and as such leave the organization. World Engine should really consider transporting their workers through official airlines to reduce this fear.
– Also, management should introduce policies and compensations which would be paid to the affected families should the worker die on work.

Thanks!