EWRM at “W-LAT”ByAlbin joseAby philiposeuma1v22

COMPANY OVERVIEW “W-LAT” Company ‘W’ was established in early 80’s and in Latvia it

represented by its subsidiary ‘W-Lat’ since 1994. Company’s headquarters is located in Scandinavia and

have branches in all three Baltic states and Russia. Company have a regional CEO for each countries for

managing their activities. Company has two main departments: development and

sales. Development department is specialized in industrial

communication solutions, mobile and PC automation and software.

Sales department delivers product assortment for various electrification and industrial applications.

RISK MANAGEMENT

“The process involved with identifying, analyzing, and responding to risk. It includes maximizing the results of positive risks and minimizing the consequences of negative events”

“Risk is like fire: if controlled it will help you; If uncontrolled it will rise up and destroy you.”

COMPONENTS OF EWRM.

Establish the content. Risk categorization and identification. Risk analysis (analyze) Risk matrix. Risk evaluation. Risk treatment. Monitoring and Reporting.

FOCUSING AREAS

TECHNOLOGY E-COMMERCE LOGISTICS PRODUCTION

EWRM ANALYSIS OF ‘W-LAT’Establishing the content.

1) TechnologyPrimary line of business is supply of industrial components and

automation PC and mobile solutions.

Communication software's for several environments; Windows, Window NT, OPC, DOS, and embedded operating systems.

Also providing supporting technologies such as GSM and GPRS cellular networks, modem based remote control and protocol conversations.

Wireless automation in mobile phone network, internet/WAP solutions with databases, industrial Ethernet and all major fieldbuses are the technologies covered by W-Lat.

2) E-commerceIts the trading or facilitation of products or services using computer

networks, such as the Internet.

W-Lat E-Commerce Platform will help Rapidly changing consumer behavior, Shifting consumer loyalties, Ineffective consumer engagement.

Lack of a consumer-centric model, Rising costs, Inability to cope with the advancements in technology that empower consumers with access to multiple shopping channels.

3) LogisticsW-Lat input products are coming from leading international

manufactures.

Headquarters is in Scandinavia and branches are in three Baltic states and Russia.

Central warehouse is in Scandinavia supported by several local stocks.

Communication servers and drivers are shipped to companies in over 60 countries around the world.

4) ProductionThe development department develops PC based

automation communication software's for several environments.

Department expertise covers wide range of automation systems and fieldbuses.

Specialists develops and produces the communication servers and drivers for various industrial protocols.

RISK IDENTIFICATION1) Technology Cyber attacks Massive digital misinformation Data fraud or theft Deficient products

2) E-commerce Infecting a web site with computer viruses Internet service provider (ISP) server crashes Insufficient bandwidth to handle traffic  Insufficient integration of e-commerce with supply chain channels

3) Logistics Shipping risk Energy and fuel price swings. Accidents Natural disasters, weather and epidemics.

4) Production Material availability Over-production Defect rate Accidents

POINT CALCULATION IMPACT -C (1-5) LIKELIHOOD -L (0-100%)

1)Extreme 5 1)Promote 0-10%

2)High 4 2)Unlike 10-25%

3)Medium 3 3)Possible 25-50%

4)Low 2 4)Probable 50-90%

5)Negligible 1 5)Certain 90-100%

Technology E-commerce Logistics Production

Cyber attacks

C-5L-1

Massive digital misinformation

C-2L-4

Data fraud or theft

C-3L-4

Deficient products

C-4L- 4

computer viruses

C-3L-5

server crashes

C-3L-5

Insufficient bandwidth to handle traffic

C-1L-1

Insufficient integration

C-1L-1

Shipping risk

C-3L-1

Energy and fuel price swings.

C-3L-4

Accidents C-5L-1

Natural disasters, weather and epidemics.

C-5L-1

Material availability

C-5L-5

Over-production

C-3L-5

Defect rate

C-2L-5

Accidents

C-5L-1

RISK ASSESSMENT MODEL-TECHNOLOGY

5R1

10 15 20 25

4 8R2

12R3

16R4

20

3 6 9 12R3

15

2 4 6 8R2

10

1 2 3 4 5R1

LIKELIHOOD

IMPACT

5

4

3

2

1

1 2 3 4 5

Critical

High

Moderate

Low

Calculations

R=L*CR- RiskL- LikelihoodC- Impact

RISK ASSESSMENT MODEL-E-COMMERCE

5 10 15R1 & R2

20 25

4 8 12 16 20

3 6 9 12 15R1 & R2

2 4 6 8 10

1R3 & R4

2 3 4 5

LIKELIHOOD

IMPACT

5

4

3

2

1

1 2 3 4 5

Critical

High

Moderate

Low

Calculations

R=L*CR- RiskL- LikelihoodC- Impact

RISK ASSESSMENT MODEL-LOGISTICS

5R3 & R4

10 15 20 25

4 8 12R2

16 20

3R1

6 9 12R2

15

2 4 6 8 10

1 2 3R1

4 5R3 & R4

LIKELIHOOD

IMPACT

5

4

3

2

1

1 2 3 4 5

Critical

High

Moderate

Low

Calculations

R=L*CR- RiskL- LikelihoodC- Impact

RISK ASSESSMENT MODEL-PRODUCTION

5R4

10R3

15R2

20 25R1

4 8 12 16 20

3 6 9 12 15R2

2 4 6 8 10R3

1 2 3 4 5R4

LIKELIHOOD

IMPACT

5

4

3

2

1

1 2 3 4 5

Critical

High

Moderate

Low

Calculations

R=L*CR- RiskL- LikelihoodC- Impact

RISK EVALUATION

Technology

E-Commerce

Logistics

Production

Critical High Moderate Low

Deficient products R4

Data fraud or theft R3

Cyber attacks R1Massive digital misinformation R2

Computer viruses R1server crashes R2

Insufficient bandwidth to handle traffic R3 & R4Insufficient integration

Energy and fuel price swings. R2

Accidents R3 & R4disasters

Shipping risk R1

Material availability R1 & R2Over-production

Defect rate R3

Accidents R4

RISK TREATMENT1) TechnologyCyber attacksregularly patching firewalls.

updating firmware.

setting strong passwords.

Massive digital misinformationKeep on double checking.

Keep back up of data

Data fraud or theftProperly dispose of sensitive data.

Use password protection.

 Control physical access to your business computers.

Encrypt data.

Protect against viruses and malicious code.

2) E-CommerceInfecting a web site with computer viruses Run Regularly Scheduled Scans with Your Anti-Virus Software.Keep Your Operating System Current.Secure Your Network.Think Before You Click.

Internet service provider (ISP) server crashesUse a content delivery network (CDN)

Keep daily backups

Keep all website software

Do a basic check on your server

3) LogisticsShipping riskThe packaging.

Shipment labeling.

AccidentsContinuous maintenance.

Safety precautions.

4) ProductionMaterial availabilityInventory Management

warning message or an error message

Over-productionInventory management

Zero stock

Defect rateTechnical up gradation

Zero correction

MONITORING AND REPORTING. Checking of growth level. 360 degree feedback. Revaluation. Overall product assessment.