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One team one spirit,one goal

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KOC 4362 Organizational Crisis Management

Group 13DR Nurul Ain Binti Mohd Hassan

Leong Tack Khang 169219

Yang Tong Kai 171624 Siti Nur Fatonah Binti Che Mat 170508

Noorafhizah Binti Abdul Rahman 170543

Nurkhairunnisa Binti Elias 170532 Hazwani Binti AB. Rahman 170486

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Cont~ Listed on the main board of Bursa Malaysia, the

Company employs approximately 33,500 staff toserve a customer base of over 8.5 million inPeninsular Malaysia, Sabah & Labuan.

Today, TNB continues to lead the effort in fosteringeconomic growth & social development in thecountry.

TNB was the most profitable government linkedcompany.(GLC)

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D History of TNB Keeping the nation's interest in mind, the government

relentlessly pursued its ultimate objective and two piecesof legislation were passed to replace the existingElectricity Act, and to provide for the establishment of anew corporation TENAGA NASIONAL BERHAD(TNB), purposefully replacing the NEB (Successor

Company Act). Datuk Hj. Ibak bin Abu Hussein becamethe last Deputy Chairman and General Manager of theNEB and the first Managing Director of TNB.

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Cont~ On 1 September 1990, Prime Minister Dato Seri Dr.

Mahathir bin Mohamad officially proclaimed TNB asthe heir and successor to NEB. TNB became aprivate company wholly-owned by the government;on the same day, Tan Sri Dato Haji (Dr) Ani bin

Arope was appointed Chairman.

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Three Core Businesses

Generation Division Transmission Division Distribution Division

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Generation Division

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Transmission Division

National rid

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Distribution division The Distribution Division is entrusted to conduct

two value chain business activities on behalf of TNB, which are the Distribution Network Operations &Electricity Retail Operations.

To date, the Distribution Division has 13 offices atstate level, 38 area offices, 56 branches, 8 smallbrances, 4 Call Management Centres (CMC) and 140Pusat Khidmat Pelanggan throughout PeninsulaMalaysia.

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Customer The graphite electrode plant here serves the entire

Asian region. Our clients are steelmakers who own electric arc

furnaces. Practically all of the steel companies in Malaysia use

graphite electrodes - Southern Steel, KinsteelPerwaja, Mega Stee.

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Other Activities Other activities include repairing, testing and

maintaining power plants, providing engineering,procurement and construction services for powerplants related products, assembling andmanufacturing high voltage switchgears, coal miningand trading. Operations are carried out in Malaysia,Mauritius, Pakistan, India and Indonesia.

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Crises That Have Been Facing TNB has experienced power outage crises in 1996,

2004, and 2005, due to faulty component of circuitbreaker then caused blackout, which immediatelyjeopardized the image of the organization.

The 1996 blackout came to be a very big surprise forMalaysian especially the government and media.

The explanation and actions delivered by TNB hadnot helped reduce the uncertainty of the publicstowards TNB's management.

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Cont~ In fact, more accusations of poor management were

raised. Being the most vital company involving in the power

generation in Malaysia, TNB failed to overcome crisisand TNB did not perform effectively and efficientlyto the matter concerning the blackout.

TNB was slammed by the Prime Minister and theoppositions. Media had taken the opportunity tocondemn TNB' s management and the entirecorporate image through publications.

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Cont~ The EWRM framework ensures a uniform

application of risk management across the Groupthrough standardised risk management processes andGroup-wide exchange of risk information.

As a result, the Management is able to make

conscious and informed decisions by formulatingand implementing necessary action plans andmonitoring the results.

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Cont~ EWRM framework is able to prioritise operational

reviews throughout the Group, it also enables thedevelopment of an effective internal audit plan in therisk management process.

Consequently management and audit resources can

also be directed to high-risk areas on an informedbasis.

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Risk Management Structure

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Communication Crisis Plan Risk communication, focusing on the dissemination of

risk information at all levels, forms an integral part of therisk management activities in TNB.

Two Risk Management Forums were organised as aplatform to communicate decisions made by theGRMWC, GRMC and BAC to the Risk Managers, RiskCoordinators and senior management. During the forums,risk management issues identified in the course of risk-based audits conducted by the Group Internal Audit werehighlighted.

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Cont~ Also discussed was the success of using the EWRM

framework to turnaround the performance of a subsidiary Their crisis communication manual was analysed to

identify the contents. Their Corporate Communications Department also

focused of the study as public relations is responsible inproducing and exercising crisis communications, as theyare the experts in the field of communication, whichallows them to communicate strategically in any crises.

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