risk management an east asia experience tue 22 nov 2011

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RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

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Page 1: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

RISK MANAGEMENTAN EAST ASIA EXPERIENCE

Tue 22 Nov 2011

Page 2: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

East Asia Experience

Shah AlamMalaysia

BintanIndonesia

TianjinChina

RojanaThailand

KaoshiungTaiwan

ChengduChina

Chengdu

Singapore

SuzhouChina

Page 3: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Scope of Risk Management

• Workplace Safety &Health• Environment• Flu Pandemic• Natural Disasters• IT • HR• Supply Chain• BCP

Page 4: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Focus on Risk Management• Safety function as part of engineering

training 1968 • EHS function w.e.f. 1983 with GE (USA)• First encounter with RA in JSA• Formed Consultant Firm 1993• Risk Management truly initiated in 2000

after NPP accident Sept 1999• Delayed by 11 Sept 2001 incident

Page 5: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

NPP Criticality Accident 1999

an accidental increase of nuclear chain reactions

Page 6: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Impetus on Risk Management Catastrophes provided impetus in RM

• 9/11 – Travel Restrictions• SARS - 2003• 2 + 1 consecutive days fatalities• Operators falling into conveyor belt & molten metal• Earth Quakes in Japan, Chengdu, Taiwan• Earthquake & Tsunami - 2011• Contractors falling into HCL tank - 2011• Floods in Thailand - 2011

(DUPONT EXPERIENCE IN 1965)

Page 8: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Earthquakes in Japan

•12 sizeable earthquakes between 2004 & 2010

Page 9: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Chengdu Earthquake 2008

Page 10: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Tsunami in 2011

Photo courtesy of National Geographic

Page 11: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

HCL Acid Tank Incident 2011

Page 12: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Floods in Thailand 2011

Photo courtesy of Bangkok Post

Page 13: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Risk Management

• Implementation – not of choice but by circumstances of catastrophes

• Emerging economies do not have a pro-safety culture

• “Safety First” not truly understood• “Safety when there is no other choice” is more true• Safety is more reactive than proactive for local

companies• MNCs fared better.

Page 14: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Tianjin & Chengdu Experience - China

• GuanXi Culture effects on safety• “Three Quotations” governance• Meetings with officials• homogeneous local workforce - better teamwork• Siesta culture• Paced livelihood• Risk Taking Culture – HCN case• MNC effect – CEO effect

Page 15: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Suzhou Experience - China• GuanXi Culture effects on safety• “Three Quotations” governance• Meetings with officials• Non-homogeneous local workforce• Transient workforce• “Each man for himself” mentality• High labour turnover• Risk Taking Culture – Snow laden roof incident• MNC effect – CEO effect

Page 16: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Kaoshiung - Taiwan• GuanXi Culture effects on safety – not as strong• “Three Quotations” governance – lesser degree• Meetings with officials – more business-like• homogeneous local workforce• Multi-tasking culture• Siesta culture• Risk Taking Culture – lesser degree, more compliant• MNC effect – little ; CEO effect – more• Greater peer pressure evident – Triad & Japanese influence

Page 17: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Rojana Bangkok - Thailand• Meetings with officials – more business-like• homogeneous local workforce• Strong easy going & gentle culture• No “bad guy” mentality• Lesser Multi-tasking culture• No Siesta culture• Risk Taking Culture – lesser degree• MNC effect – little ; CEO effect – more• Little peer pressure evident

Photos courtesy of Bangkok Post

Page 18: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Shah Alam, KL - Malaysia

• Meetings with officials – more business-like• homogeneous multiracial local workforce• High turnover – recruitment & safety problem• No “bad guy” mentality – counseling & warning• Multi-tasking culture• No siesta culture – Friday prayer culture• Risk Taking Culture – production focus• MNC effect – little ; CEO effect – more

Page 19: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Bintan - Indonesia• Authority Power• Non-homogeneous workforce from various regions• High turnover within Industrial Zone – recruitment &

safety problem• No “bad guy” mentality – counseling & warning• Dutch Law influence – peculiar firing policy • No siesta culture – Friday prayer culture• Workforce generally compliant – less production

focus• Contractor/Supplier & Client Relationship

Page 20: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Electrocuted

Page 21: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Cut by Paper Shredder

Page 22: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Left Hand Cuts Right Hand

Page 23: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

MNC Experience - Singapore

• US, UK, EU & Japanese influence• Formal EHS Systems in place but not safety culture• British Law prevalent since independence – 1965• Paradigm Shift in 2006 to reach developed economy

status in EHS• Strong enforcement of the law• Cultivating Safety Culture – for long term• SMEs present greatest challenge – contractors & major

accidents

Page 24: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

Contractor Related MishapsPhoto courtesy of SCDF Photo courtesy of Today

Page 25: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

2007 May 03• Exxon Mobil said in a statement on Tuesday

that two contractors were found unconscious in an enclosed space filled with nitrogen.

• Engineering contractor was fined $100,000 on Tuesday for failing to ensure the safety of three workers who died from injuries sustained in a fire at the ExxonMobil oil refinery on Jurong Island in 2007.

Page 26: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

In Conclusion …RMS in East Asia• Implementation – not of choice but by circumstances of

incidents• Emerging economies do not have a pro-safety culture –

bottom-line profit focused• “Safety First” is merely a slogan & not truly understood• “Safety when there is no other choice” is more true• Safety is more reactive than proactive for local companies• MNCs fared better – but implementation & enforcement

have much room for improvement• Safety is top driven • Progress is made albeit moderate

Page 27: RISK MANAGEMENT AN EAST ASIA EXPERIENCE Tue 22 Nov 2011

HAVE A NICE DAY

THANK YOU FOR

YOUR TIME …

GOODDAY !