Case Study Of UMW Holdings Berhad

Over the past 14 years, Martinrea has evolved from a tiny subsidiary of Royal Laser Tech Corporation into a worldwide leader in its field. To benchmark the company’s performance, Martinrea’s financials will be compared to those of Magna Inc. (TSX:MGA) and Linamar Inc. (TSX:LNR) throughout the report. These companies are both direct competitors in the Canadian automotive manufacturing space, with Magna being the largest Canadian auto-manufacturing company, and Linamar being a highly-diversified manufacturer with revenues similar to Martinrea’s.

The company’s strategic vision is “To be world’s leading company in IT industry ...and a reputable global auto brand by offering ECO friendly, high quality & low cost products & services.” (BYD Co. Ltd, 2007)

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

2. The senior management and members of board of directors satisfy themselves that a company has a reliable way to track and respond to strategic risk based on the plans that company have. Most companies focus on the quality of the

The board of director. The board of director should discuss enterprise risk management with management and t oversight the implementation. They need to ensure that most of significant risks have been

However, companies generally adopt a methodology for overall risk assessment. Sometimes these methodologies involve the assignation of risk oversight to leaders in each area. The approach is based upon the assumption that each area knows itself best. However, this often overlooks potential issues in favor of confronting them after they develop. As the need for

Risk refers to a likelihood, probability, a chance that a loss may occur in a given organization. Most of the times, there is a high risk when there is vulnerability. In this case, vulnerability refers to a weakness that the organization has. Risk assessment refers to the process of identification of potential hazards and proper analysis of the expected losses if those hazards occur (Homeland Security, n.d.). Risk assessment as a way of profiling risk according to impact to the organization. Some organizations have business impact analysis exercises geared towards determination of potential hazards based risk assessment approaches. Organizations’ risk differ depending on the size and the type of business they are doing. The disparity in organizations’ risk call for different adaptation of risk assessment approaches. Even with the disparities of the businesses, proper risk management not only ranks the risks according to the seriousness but also identifies the best methods to control risks in an organization.

Risk Management issues are often handled at the facility where the problem(s) exist. One of the duties of Risk Manager’s is to communication and collaboration between departments within an organization in question. In addition, to sinking risks, and cutting costs in order to promote process efficiency .By analyzing incident reports is one way to correct current problems, and future problem areas. Risk managers are also responsible for certain criteria that must be met in order for full participation in certain government and state reimbursement programs ("World Health Organization," “n.d.”). Risk Management is a structured approach to managing improbability, related to a risk, through a structure of human interaction.

Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).

Our implementation plan mainly focuses on five risks, which are compliance risk, strategic risk, credit risk, operational risk, and financial risk. The corporation has established risk management committees to assess and manage the corporation’s exposure to the above risks. Then, the committees will prioritize these risks and establish guidelines for risk management processes. After that, it will assign the management of some risks to appropriate operating departments or individuals. The management process and department control activities are monitored by the committee and board of directors. However, each individual within the company has responsibility to identify and report potential risks to their managers.

Over the past 14 years, Martinrea has evolved from a tiny subsidiary of Royal Laser Tech Corporation into a worldwide leader in its field. To benchmark the company’s performance, Martinrea’s financials will be compared to those of Magna Inc. (TSX:MGA) and Linamar Inc. (TSX:LNR) throughout the report. These companies are both direct competitors in the Canadian automotive manufacturing space, with Magna being the largest Canadian auto-manufacturing company, and Linamar being a highly-diversified manufacturer with revenues similar to Martinrea’s.

The risk manager is empowered by the governing body to implement the functions and activities of the risk management program with the assistance of the patient care and administrative staffs. The governing body has overall responsibility for the effectiveness of the program and providing the necessary resources. The governing body’s responsibilities are supported through regular written and verbal communications regarding risk management activities that may affect the organization’s finances.

Risk assessments are the responsibility of line management; this applies equally to a business, a market or a function, and any mitigating actions identified in the assessments are the responsibility of the individual line management. If Group-level intervention is required, responsibility for mitigating actions will generally be determined by the Executive Board. The results of the Group Enterprise Risk Management are presented annually to the Executive Board and to the Audit Committee, and conclusions reported to the Board of Directors. Nestlé uses the outcome of stakeholder meetings to better understand potential gaps between internal and external perception of risks and their impact on

Employs 4000 people, with 11 sales offices, 23 representatives, 300 dealers, 5 factories and e offices.

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is