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Management of Specific Risk Exposures - Essay Example

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The paper "Management of Specific Risk Exposures" describes that the management staff will also be held responsible for reputation risk. The company has to be in constant touch with its stakeholders and monitor the public’s perception and opinion of the company…
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Management of Specific Risk Exposures
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Management of Specific Risk Exposures Q a) The construction workers' union objectives The main contention of the workers' union is that since the construction of units were to take place in a contaminated site (even though it would be cleaned), they want the management to assure the union for the safety of their workers. In effect, construction work is temporary and workers have acute insecurity about the quantity of work they will get. They have their own doubts with regard to the person with whom they would be working and also their earnings each year. Workers who work at construction sites do not get ailing days and once they fall sick they are out of work and ultimately no pay. In one current research, 40% of workers appraised stated said that a major work-linked issue was "working while hurt" (Cook, et. al 1996). Objective of the environmental auditors Environmental auditing helps identify the problem areas. This would aid in developing schemes and precedencies by which the different issues may be dealt. Environmental auditors' objective with regard to this particular construction work is to clean the contamination of the water table and the running stream as these areas are assigned for tiny parks within the new Village. Objective of the Wishford Bird Lover's Society The objective of the Wishford Bird Lover's Society is to see that the endangered species of birds are not harmed. Wishford Council's new administrator The main objective of the new administrator of the council is to see through the completion of the project. He has to see to it that all the employees whether temporary or otherwise is satisfied once the project gets over. It is his duty to see that all the legal rules and regulations are followed by the company. Hartford Brown contracted construction workers The main objective of the contracted construction workers is to earn as much as possible till such time the project lasts. As these workers are not permanent but are contracted for a particular job their aim is to make money which might see them through in the lean season also. Q.1. (b) Risk perceived by the construction workers' union The union of the workers' feels that since the administrator is new there may be some hitch in their relationship with regard to the workers welfare. The union also feels that the new administrator may handle workers roughly which might lead to disaster. Risk to the environmental auditors The environmental auditors perceive risk with regard to cleaning the contaminated water table. Since no companies are available at the local to clean the polluted water the company is at a high risk of not getting the project approved. Risk perceived by Wishford Bird Lover's Society There are three nests of the orange crested cuckoo (listed as an endangered species) in areas designated for new houses. The Wishford Bird lover's Society feel that these birds may migrate to other places when they (birds) perceive danger to their breeding and nesting. Risk to Wishford Council's new administrator Since the administrator is new it might take some time for him to adjust with the other employees and to gain their confidence. Gaining the confidence of employees has to be achieved within no time or else the project may take more time for completion. Apart from this since he is a new employee it might take some time for him to study the present workers and the rules and regulations of the council. Risks to Hartford Brown contracted construction workers Contracted workers at construction sites are always in danger of contacting occupational diseases. They also are exposed to some highly dangerous materials like asbestos which might be used in construction works. Q.1. (c) The overall project manager can draft all the risks attributed to the different stakeholders and form a report. This report has to be prepared in consultation of each of the stakeholders by identifying risks involved in their respective areas. The risk arising directly from the project has to be segregated from other risks which might rise during the course of the project. Such risk may be accidental and which cannot be foreseen earlier. Meeting with each leader in every field of the project is a must to get an idea of the different risks involved in different branches of the construction work. Q.1. (d) One of the most important issues when dealing with the stake holders is the communication of the project development. The exact stage of the project stage has to be communicated so that the stake holders are satisfied. Also financial issues may crop up. Since the state government had already dismissed the mayor and the councilors from the Wishford City Council due to poor financial management is most likely to be one of the most important issues which the project manager may have to deal with. Q.2 Environment Risk Contaminants in the water table cause migrating wildlife into the Village to die due to insufficient clean up. Since the site is reclaimed from a chemical factory may be hazardous to workers and may contact occupational diseases. Asbestos risk in the original structure is high resulting in asbestosis which is a health risk which would affect all those who are exposed to asbestos. Occupational health and safety (OHS) risk Since construction involves work from heights fall may be fatal to a worker resulting in permanent injuries. Asbestos in the old building might cause asbestosis disease, due to high asbestos risk in the original structure. Clouds of dust rising out of demolition of old building result in choking leading to health hazard. Outsourcing risk Contaminants in the water table may not have any takers to clean them up due to safety measures. Strange smell resulting in breathing difficulty may result in not having any takers to demolish the old building. Difficulty in finding local company to clean contaminants may result in stopping the work for some time. Project management risk Elected representatives (mayor and councilors) removed resulting in induction of new employees due to poor financial management. Leadership risk may result in poor project management due to appointment of new administrator. Financial deficiency will affect the progress of the project due to poor management of funds by the previous manager. Q.3. a Contaminants in water will result in water borne outbreaks and they are qualified by transmission to a substantial number of people in a very short period of time. The pattern of extend of cases is directly connected with the design of the allocation system or with the water resource. Well known water borne irruptions is the viral hepatitis plague in Delhi (India), with 99 300 cases (Gabovic et all, 1983) and the cholera outbreak in Peru, where 177 000 people were effected out of which died (WHO, 1991). Uninterrupted contamination of drinking water due to polluted water table might result in gastro-intestinal infections including sporadic cases (Shrestha et all, 1988). The pollution standard in the air due to the area reclaimed from a previous chemical factory is very low. There will be very foul odours which might fill the nose of the workers causing inconvenience to the workers. Workers might shudder from working at such places. Also due to the chemicals still present in the soil there will always be a fear of fire breaking out in the place. Chemicals catch fire very easily and so chances of a fire become inevitable. Asbestos in air at work places is a foremost cause of unfavourable consequences on health of industrial workers. Epidemiological studies and observational studies have demonstrated that asbestos is a carcinogen and co-carcinogen also (Mossman et al, 1996; IARC 1987). Chronic breathing in of airborne wastes of asbestos is most likely to result in the fibrotic lung disease. Evidence has also been found that the incidence of chronically set off alveolar macrophages (AM) is connected with the process (LaSalle et al., 1990). Deposit of these pollutants i.e., fibres or particles in the lung is accompanied by a succession of effects, which begins with alteration in the free cell populace and includes AM and polynuclear seditious cells through their invasion (Spurzen et al., 1987). Asbestosis is yet another typical asbestos-linked disease. Asbestos fibres once breathed in reaches the lung and begins to injure the lung cells resulting in asbestosis (formation of scar tissue in the lung), and or lung cancer. The danger of lung cancer amid people disclosed to asbestos is augmented by 7 times equated with the common population. Asbestosis is an interstitial pulmonary fibrosis, which subdues the lung capability to deport the oxygen in right way to the entire body as the lung tissue loses its capability to function properly. It is described by the airway hindrance and air trapping, decreasing very important capacity (Kilburn, 2000). Q.3. b. Diseases due to water contamination are at high level-the reason being that water borne diseases spread very fast. Chemical risk is also high as these if inhaled will cause diseases of the lungs etc. The risk from asbestos is at a low level since the latency period of diseases due to asbestos is about 40 years. Q.4. a Almost Certain Likelihood Consequence Likely Insignificant Minor Moderate Major Catastrophic Possible 1 2 3 4 5 Unlikely 5 Rare 4 3 5. 10 8 2 2. 1 4 7 9 Water Contamination: Test water at each stage of consumption for pollutants to avoid health hazards. This has to be undertaken by the construction supervisor. Safety measures for workers have to be provided in case there is a risk of workers falling from heights. Q .5 a It is important for Hartford Brown P/L to consider possible reputation risks associated with this project or else it might impact the public view of the company's activity. Its product and its brand name may also be affected. This might lead to distrust among the stake holders of the company. It might affect the prices of shares of the company which might lead to a loss. Raising capital in this situation will become very difficult. Q .5 b The directors of the company and council of members inducted by the government will hold the sole responsibility for reputation risk of the company. The management staff will also be held responsible for reputation risk. The company has to be in constant touch with its stakeholders and monitor the public's perception and their opinion of the company. Q .5 c There are a number of tools and techniques to manage reputation risks by a company. They are: i. The company has to develop reputation risk policy and procedures. ii. Risk mitigation procedures like escalation processes and crisis management plans have to be devised. iii. The staffs have to be well trained on crisis management and they have to be made through on the existence policies and functions of the company. iv. Devising some role playing and planning for a crisis scenario; v. Checking from time to time the various risk management policies and plans. References 1. Cook, TM; Rosecrance, JC; Zimmermann, CL; The University of Iowa Construction Survey, The University of Iowa and the Center to Protect Workers' Rights, Washington, DC, April (1996). 2. Gabovic, R. A., Poznansky, S. S. & Shahbazan, G. H. (1983) Gigiena (Hygiene) (in Russian), 60. Kiev. 3. Kilburn, K.H., (2000). Indoor air effects after building renovation and in manufactured homes. Am. J. Med. Sci. 320 (4): 249-54. 4. Lasalle, P., Coosset, P., Aerts, C., (1990). Abnormal secretion of interleukin-1 and tumor necrosis factor alpha by alveolar macrophage in coal workers pneumoconiosis; Compassion between simple pneumoconiosis and progressive massive fibrosis. Exp. Lung. Res. 16: 73 - 80. 5. Mossman, B.T., Kamp, D.W., Weitzman, S.A., (1996). Mechanisms of carcinogenesis and clinical features of asbestos-associated cancers. Cancer Invest. 14: 464-78. 6. Spurzen, J.R., Saltini, C., Rom, W., Winchester, R.J., Crystal, R.G., (1987). Mechanisms of macrophage accumulation in the lungs of asbestos-exposed subjects. Am. Rev. Respir. Dis. Aug. 136: 276-80. 7. Shrestha, S. M., Misra, K., Shrestha, S. & Shrestha, K.B. (1988) An epidemic of HNANB (E) in Nepal. In: Hepatitis Scientific Memoranda 6, 119-120. 8. Trethewy, R., M. Atkinson and B. Falls. 2000b. Improved Hazard Identification for Contractors. Journal of Occupational Health and Safety - Australia and New Zealand. 16 (6): 507-520. 9. WHO (1991) Weekly Epidemiological Record 20, 66, 141-143. Read More
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