Risk Assessment Report for Tesla
Added on 2021-06-17
13 Pages3755 Words563 Views
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RISK ASSESSMENT REPORT2Risk Assessment ReportBackground informationTesla, Inc. initially known as Tesla Motors is an American Company that majors in electric automotive, storage of energy and the production of solar panels. Additionally, the company also manufactures batteries known as Tesla Powerwall and Powerback. The company headquarters is in California, and it was founded in 2003 by four people namely Marc Tarpenning, Jeffrey Straubel, Elon Musk, and Martin Eberhard. The organization's name is owedto the engineer Nikola Tesla (Lehtinen, 2015). The company like any other must be facing risks in its day to day operation (Bai, 2014). The company was involved in an investigation by the United States government in 2016 after two accidents were linked to the failure of the autopilot of their car. The same happened in China in August the same year and the sales representative for the company in Beijing defended his organization and said that currently there is no car autopilot system in the world that can offer absolute safety. This risk assessment report will discuss the risks and vulnerabilities of the Tesla Company as well as their possible impacts. The report will also give recommendations on how the company can deal with the threats so that it can thrive in business. Risk analysis is very important as it helps a company identify any potential threats and come up with how they can eliminate or reduce the threats to negligible status.Organizational StructureTesla Inc. has adopted a functional organizational structure which involves corporate function as the primary significant factor. The global hierarchy is the most significant one, followed by the worldwide centralization and lastly the minimal regional divisions. The
RISK ASSESSMENT REPORT3international structure consists of operational offices that supervise domestic and global operations (Nisar, Palacios, & Grijalvo, 2016). The purpose of the company is to initiate and develop public interest in electric vehicles and to replace the traditional fuel consuming vehicles. Tesla Inc. does this by manufacturing andmarketing high-performance electric cars that are technologically advanced in addition to powertrain components (Lehtinen, 2015). The company currently operates 265 stores and servicelocations globally out of which 60% of the sales is attributed to the US with Norway and China accounting for 5% and 15% respectively and is the leading producer of electric cars in the worldwide.The scope of the research and focusThe scope of this risk assessment includes all the operations of Tesla and are categorized into five groups namely, ecological outline, society associations, workers affairs, organizational governance, and threats associated with product-portfolio (Van Den Steen, 2014). The objective of this risk assessment is to ascertain the threats and vulnerabilities associated with Tesla Inc. Next, the relative likelihood and severity of the effect of the discovered threats and vulnerabilities would be identified in case they occur. Then recommendations to mitigate the identified risks and vulnerabilities will be made. Research method and resources This research assessment will adopt the standard risk assessment methodology that is allowed under the U.S federal government (NIST, 2002). Risk assessment of Tesla Inc. will be undertaken using various methods such as risk assessment questionnaire, and assessment tools (Marhavilas, Koulouriotis, & Gemeni, 2011). The researcher will use a personalized version of the online self-assessment questionnaire. The questionnaires will be distributed to the selected
RISK ASSESSMENT REPORT4employees and managers via e-mail after permission is granted for the same. This questionnaire will help the researcher in ascertaining the risks. The information sources for risk assessment will consist of the identified research articles that will be accessed online. The research will also focus on journals, articles, press releases and the proven document published on the company's official website. The data collected from all the various sources will be subjected to a validation process before it can be analyzed thoroughly to come up with comprehensive findings that can be proven. This risk assessment is going to look at the economic risks, social risks, environmental risks and even legal risks that the company may be involved in. Environmental Risks and ImpactTesla Inc Company is mostly known for the manufacturing of cars that run on electricity. They don't have a gas tank and they totally don't emit any gases since they run on their chargeable batteries. They may seem to be the cleanest and environmentally friendly cars on earth but the question of how clean the cars are will always remain. The environmental impact ofany vehicle is not just measured by considering what comes out as exhaust or emission, there is more to that (Kain, 2016). The Tesla Cars do not run on air but on electricity that is obtained from the battery. Applying systems thinking approach, we can assume that the electricity used to run the Tesla is generated through several sources consisting of natural gas, nuclear fission, windand even coal which is a dirty energy source. The environmental risk on the vehicle may not directly arise from the car but on the source of electricity. Looking at the electricity generation inthe United States, forty-five percent of the national grid is supplied from coal, natural gas supplies 25 percent, nuclear power supplies 20 percent and the remaining 15 percent comes fromrenewable energy sources with hydroelectricity being on top of the list. This implies that the increase in demand for Tesla cars will directly increase the demand for electricity and coal being
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