OPERATIONAL RISK

OPERATIONAL RISK

1. PROCUREMENT

   • CLAIM SETTLEMENT
   • CONTRACTOR INSOLVENCY
   • INADEQUATE LEAD TIME
   • INADEQUATE SUPPLY SOURCES
   • INCOMPLETE QUANTITY ESTIMATE
   • DIFFICULT TO OBTAIN PERMIT
   • INCORRECT INFORMATION FROM INVESTOR
   • OVER-OPTIMISTIC WORKERS
   • SCHEDULE OVERRUNS
   • BUDGET EXCEEDS
   • UNDOCUMENTED CHANGE ORDERS
   • ACCEPTANCE TOWARDS UNREALISTIC DATELINE
   • LACK SUCCESSION PLANNING
   • DEFECTIVE DESGN
   • REMUNERATION (LATE SALARY)

2. LOGISTICS

   • TRAFFIC CONGESTION
   • OVERLOADING
   • ROAD ACCIDENTS
   • MATERIAL DELIVERY DELAY
   • PROJECT DELAY
   • WEATHER CONDITION
   • ACCIDENT DURING LOADING/UNLOADING
   • ACCIDENTS ON WORKERS
   • ROAD CONDITION (SLIPPERY)
   • LORRY/TRUCK BREAKDOWN
   • CRANE/FORKLIFT BREAKDOWN
   • PRIME MOVER TYRE EXPLODE
   • STRUCK BY EQUIPMENT/MACHINE

3. HUMAN RESOURCES

   • HIGH ABSENTEEISM
   • HUMAN ERROR
   • SHORTAGE SKILLS
   • POOR ETHICS
   • WORKERS STRIKE
   • SABOTAGE
   • SHORTAGE LABOR
   • WORKERS NOT ABIDE REGULAR WORK HOURS
   • CORRUPTION IN WORKERS
   • FRAUD
   • WORKERS INJURED DURING WORKING HOURS
   • POOR LEADERSHIP
   • WORKERS TURNOVER
   • CONFLICT AMONG WORKERS
   • CUSTOMER COMPLAIN

4. RESOURCES

   • MACHINERY NOT AVAILABLE
   • WASTE OF RESOURCES
   • WEAR/TEAR MACHINE
   • EQUIPMENT NOT PROPERLY HANDLE
   • MATERIAL SHORTAGE
   • SKILL GAPS BETWEEN WORKERS
   • NON-QUALITY MATERIAL
   • MATERIAL/LABOR AVAILABILITY
   • LOW OPERATING PRODUCTIVITY
   • WRONG MATERIAL ORDER
   • DEFECT MATERIAL/EQUIPMENTS
   • INCOMPLETE DESIGN DOCUMENTS
   • NATURAL DISASTER
   • UNABLE ADAPT WITH NEW TECHNOLOGY
   • INTERRUPTING DURING LOADING/UNLOADING

5. CONSTRUCTION