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Corporate Risk Management - Non-Conformance Term Paper

A lack of foresight and initial risk assessment therefore resulted in the losses suffered by the company. In the area of maintenance and risk assessment, a lack of regular spillage inspection resulted in financial, legal and environmental risks for an oil company. The oil rig was not inspected on a regular basis, which resulted in a lack of regular maintenance. Hence the damage to one of the oil containers was overlooked, and a substantial amount of spillage occurred as a result. The environment suffered considerable damage as a result, and the company lost financial resources because of the need to clean up the spillage and mitigate the environmental damage. Furthermore, the company's reputation was damaged in terms of public perception.

Also I the area of maintenance and risk assessment, a lack of adequate safety clothing resulted in injury for several workers of a construction company. Disregarding safety regulations, several workers failed to wear their hardhats on a construction site, and were injured by falling construction materials. This resulted in their injury, for which their families demanded compensation. The compensation was not however legally required, as the workers were fully informed regarding safety...

The company was however placed at financial risk in terms of losing labor hours and the necessity to hire additional workers to handle the workload. Labor hours were also lost to the training necessary for temporary workers. It is therefore important that conformance form part of the risk assessment procedure of a company.
Sources

Eduneering. 2007, Feb. "Understanding the Financial Risks of Regulatory Non-Conformance." www.eduneering.com/downloads/whitepapers/fr_WP_020907.pdf

HM Treasury. 2004, Oct. "The Orange Book: Management of Risk - Principles and Concepts." www.hm-treasury.gov.uk/media/FE6/60/FE66035B-BCDC-D4B3-11057A7707D2521F.pdf

Proctor, Ken. 2007. "Manage Risk, Improve Performance: Brintech's Enterprise Risk Management Guidelines. www.brintech.com/Knowledge_Center/PDF/Brintech%20White%20Paper%20Manage%20Risk%20Improve%20Performance.pdf

Statutory Instrument 1999 No. 3242. 1999. "The Management of Health and Safety at Work Regulations. http://www.opsi.gov.uk/SI/si1999/19993242.htm

UNSW Corrective Action Procedure. 2007. www.riskman.unsw.edu.au/ohs/corporate_ohsms/CORRECTIVE%20ACTION%20procedure%20v2%20may%202003.pdf

Sources used in this document:
Sources

Eduneering. 2007, Feb. "Understanding the Financial Risks of Regulatory Non-Conformance." www.eduneering.com/downloads/whitepapers/fr_WP_020907.pdf

HM Treasury. 2004, Oct. "The Orange Book: Management of Risk - Principles and Concepts." www.hm-treasury.gov.uk/media/FE6/60/FE66035B-BCDC-D4B3-11057A7707D2521F.pdf

Proctor, Ken. 2007. "Manage Risk, Improve Performance: Brintech's Enterprise Risk Management Guidelines. www.brintech.com/Knowledge_Center/PDF/Brintech%20White%20Paper%20Manage%20Risk%20Improve%20Performance.pdf

Statutory Instrument 1999 No. 3242. 1999. "The Management of Health and Safety at Work Regulations. http://www.opsi.gov.uk/SI/si1999/19993242.htm
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