Risk Management in a Global Context

This report discusses the importance of risk management in a global context, with a focus on the case study of Samsung Galaxy Note 7. It covers organizational learning, recommendations, environmental risk management, and organizational resilience. The report provides suggestions for Samsung to mitigate environmental risks and foster organizational resilience. The subject is risk management, and the course code, name, and college/university are not mentioned.

RISK MANAGEMENT IN GLOBAL
CONTEXT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organizational Learning..............................................................................................................3
Recommendations........................................................................................................................4
Environmental Risk Management-..............................................................................................5
Organisational Resilience-...........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Risk management can be defined as a process through which the organizations
determines, examines and controls the various risks associated with the business operations of an
organization. There are various risks associated with the business operations of an organization
which includes legal, financial, security and strategic risks. The present report is based on the
case study of explosion in Samsung Galaxy Note 7. The present study aims to determine the
ways in which the organization can manage its risks and identifies the learnings of the
organization from this incident. On the above basis of the report, the present report also
recommends how the risk can be managed within an organization.
MAIN BODY
Organizational Learning
There are several lessons which the Samsung learned from the incident of battery
explosion of its Galaxy Note 7 and through this the changes were implemented within the
company.
Sound Manufacturing Process:
The Samsung has learned the importance of a sound manufacturing process within their
operating systems with this incident. They have realized that the manufacturing process of the
batteries should be top most priority of a mobile manufacturing organization in order to ensure
the safety and reliability among the customers. It is essential for the Samsung to cross check the
quality of the batteries which they implant within their cell phones as their might be some hidden
quality defects which are difficult to identify normally (Haizar, N.F.B.M., and et.al 2020). As the
phones age, these hidden defects might turn into big blunders. Therefore, it is essential for the
company to make sure that each and everything used within their cell phones is up to date and
safe to use. The Samsung also learned the importance of a sound manufacturing and assembly
process of their products within the company. Therefore, the company adopted a sound
manufacturing process for the purpose of developing the mobile phones within the company.
This has helped the organization in enhancing its brand image among the customers.
Constant changes in the technology
This incident made the Samsung learn that there is a constant need to make necessary
changes within the batteries and other technology used by the company in order to receive
enhanced outcomes. The whole incident made the Samsung realized that the organization needs

to make special amendments within the technology they are using in order to develop their cell
phone batteries. The Samsung Galaxy Note 7 had lithium – ion batteries. The lithium ion
batteries have the risk of exploding attached to their nature. If the lithium ion batteries are over
charged by the operator or the user, the cell phone is at high risk of being exploded. The
organization is trying hard to provide their customers with smart phones which have exclusive
features within themselves in order to attract the customers towards the same. However, with the
innovation in the smart phones, the demand for high tech batteries has also increased as the
lithium based batteries can only consume the same amount of power as they could consume
before. Therefore, with this incident, the Samsung understood the importance of innovation in
the batteries being used in their smart phones and thus changed the existing battery technology
just after the occurrence of the incident.
Need of revised safety checks
The Samsung learnt that there is a need to enhance their existing safety checks with
respect to their phones within the company. Also, there should be a constant betterment within
the safety checks of the products with the enterprise. This is so, because, in order to grow within
the market, only providing the customers with high tech product is not enough. It is the
responsibility of the organization to make sure that the product they are offering to the customers
is safe to use and cannot harm the customers in any way (Miroudot, 2020). If for some reasons,
the product may be at risk even after several attempts to mitigate the same, the company should
either stop selling it or issue guidelines and notes for the customers on how to use it and what
should be precautionary steps in order to safeguard the customers from the risks attached to the
products of the company. Therefore, the company has introduced a specialized panel for the
safety check of the products being offered to the customers within the company.
Recommendations
In order to ensure that the cell phones launched by the Samsung within the market are
safe to use, there are certain suggestions for the company:
 Conduct safety and durability tests: Before implanting the batteries within the cell
phones, the Samsung should run additional safety and durability tests which can help the
company to determine whether the battery is safe to use or not. This might include
conducting overcharging tests and stress testing with high temperatures.

 X ray test: The Samsung should also conduct several X-ray tests of their batteries before
using them within the phones. The X-ray test would be helpful for the company in
checking any kind of possible battery issue, for instance, bending of the electrode which
was the major cause due to which the battery of the Galaxy Note 7 exploded (DuHadway,
Carnovale, and Hazen, 2019).
 Regular quality checks: It was found that one of the reason due to which the Galaxy
Note 7 exploded was battery tab welding and insulation tape conditions. Therefore, the
Samsung should conduct disassembling tests of the batteries that will be used within their
phones, this will help them in performing a detailed check of the overall quality of their
product.
 Conducting leakage trials: The Samsung should conduct different of sensing tests for
their batteries in order to determine if there is any leakage within the elements of the
battery and make sure that they are safe to proceed with.
 Check the temperatures of the batteries to be used: The Samsung should also conduct
test for the purpose of evaluating the battery conditions in the normal temperatures and
determine whether it should be used within their phones or not.
 Training and development programmes: The company should also organize the
training and development programmes within their organization. This will help the
company in ensuring the skill development of the existing employees and help them in
developing new and advanced technologies with respect to their product (Jang, and et.al
2019). This could help the organization in increasing their profitability and ensuring the
safety of their customers with regard to the product offered to them.
 Rewards and recognition: In order to motivate the employees to carry out their routine
tasks effectively, the company should increase the rewards provided to their workforce.
This will develop a sense of importance within the employees and make sure that they
carry out their tasks effectively within the company.
Environmental Risk Management-
Environmental Risk Management can be defined as the process of identification of the
credible hazards of the environment, analysing of the probability of the occurrence and severity
of the consequences of these as well as managing of the level of the risk. It is very important for

the organization to manage the environmental rusk as this will help them in managing the level
of the risk which can cause severe harm to the environment (Ziegler and et.al., 2021). The
organisation managing the environmental risk will help them in adding the value to the products
and services, creation of the competitive edge, improvements of the community image, reducing
the costs as well as increasing the bottom line. The Samsung Company’s Galaxy Note 7 mobile
phone has seen the failure as this was the environmental tragedy.
The environmental Risk management process will help the Samsung Company to
implement them in the organisation as well as enable them in clearly understanding the risk and
their opportunities which are present and how these could affect the working of the organisation.
The company has to evaluate and then manage the risks which are harming the environment
from the existing developments of the organisation. The lack of the transparency of the Galaxy
note 7 has left the tonnes of the precious metals of the planet on the risk after the mobile was
discarded into the environment. The company using the Risk management process effectively
will help them in increasing the capability of achieving the objectives as well as helps them in
managing the threats as well as the adverse situations.
The impacts of the Galaxy note 7 were very high that it has impacts the health as well as the
environment when discarded. The risk assessment process will help the company in identifying
the hazards, toxicity assessment in which all the things are releasing toxic air which is
contaminating the air as well as the risk characterisation. It is very necessary for the Samsung
Company to analyse the reason by which the mobile phones were getting exploded as this will
help them in eliminating the problems by identifying the effective ways for it (Rybalova and
et.al., 2018). The main reason for the exploitation of the mobile phone’s was the batteries as this
was causing much harm as when the phones were burning they were releasing the toxic gases
which was harming the environment badly. The environmental risk assessment will help the
Samsung Company in eliminating the risk which is causing to the environment.
Recommendations for improving the ERM-
The ways through which the Environmental risk can be mitigated are as follows-
Using energy more effectively and efficiently: This is the best way to mitigate the risk of
environmental risks. This helps in reducing the energy usage which results in reduction of
the demand for the fossil fuels. This leads to the lower level of the carbon dioxide in the

overall atmosphere. This shows that using the energy effectively will help in eliminating the
environmental risks.
Considering the near sourcing: When the near sources are used, this helps in mitigating the
risks of the environment as sourcing from the distance areas will have to use the
transportation and this will lead to release of large number of carbon dioxide in the
atmosphere. Using near sources will be highly benefit for the company.
Removing the wastes: It has been found that the ISO plays the vital role in reduction of the
greenhouse gases emissions. Reducing the wastage will help in eliminating the risks of the
environment as this will keep the places and areas clean and through this the climate change
will be reduced. Using the ISO 31000 will enable the companies to increase the achieving
the objectives of the environment and will be able to mitigate the risks.
Disposing of the chemicals: The disposed of the chemicals must be disposed of very carefully
as this creates the hazardous wastes which provides very much harm to the environment.
Doing this carefully will help in mitigating the risks of the environment.
Organisational Resilience-
Organizational Resilience can be defined as the ability of the organisation for preparing
and adapting the changes which will help them in surviving and prosper due to the sudden
disruptions. It is very important for the organisations to build the organisational resilience as this
helps them in taking the proactive decisions of the organisations. Samsung Company building g
the effective organisational resilience will help them in building the flexibility and innovation as
this leads to creation of the encouraging the employees of the organisation to try thinking new
things even while the situation is highly critical of the organisation. It has been identified that
ERM is considered as the key to the organisational resilience. The company which is having the
ERM strategy, allows them to stay ahead in the risks which threatens the operations of the
company in the present as well as in the future. There is very high level of relationship between
the ERM and organisational resilience as both has the main aim of managing the uncertainties
within the organisation by achieving the objectives and the missions.
It is very necessary for the Samsung Company to build the organisational resilience as this
will help them in surviving in the critical situation as well. When the capacity of anticipating as

well as responding to the opportunities and threats of the organisations is increased facilitates
them in sustaining even in the critical situation within the company (Butler, 2018).
The four T's of risk response are such as-
Tolerate: Sometimes it is very important to stay okay and do nothing as in the case where the
likelihood and impact of the risk is very low. The Samsung company cannot tolerate the risks as
due to this, the environment was largely harmed.
Terminate: Sometimes the risks which are outside the control of the business or has very severe
impacts on the working of the business then the organisation has to stop the activities which are
the cause of this. The Samsung has done the same as the mobile phone which was creating the
risk of death for the companies has to be stopped to be manufactured. This manufacturing
activity was stopped so that this risk can be eliminated.
Treat: There may happen that sometimes the companies decide to take the actions on very severe
situations. The Samsung company has taken various actions for the severe situation as they asked
the customers to return the mobile phones and not to use them. This helped them in reducing the
risk of any negative impacts on the environment.
Transfer: The insurance is not available for all the things so sometimes it is not possible for the
company to transfer the activities to the third party. This is true that every time there is no
insurance for each and everything so the mobile phones of the Samsung was also not having the
insurance.
The following are ways which will help the Samsung Company in fostering the organisational
Resilience are such as-
Keeping positive mind set: It is very important for the overall organisation to be positive as this
will help them in thinking innovatively as this will help them in preparing for any future as well
as the outside disruptions.
Focusing on profit: When the company is profitable, this will help them in adapting the changes
effectively even in the tough times. As once the Samsung Company has faced many issues and
now it is very important for them to build the organisational resilience.
Identification of the purpose: Purpose is the reason or the aim for which the company is
performing the tasks. Samsung Company must have the aim for performing the activity as this
will help them in focusing on the tasks (Evans, Cregan and Wall, 2019).

Lead with connection as well as focus: These both together are very important for the company
as this will help them in creating the common goal as well as directing the employees in right
direction. When the effective and strong leadership is used in the organisation helps them in
avoiding the disconnected teams as well as encourages the employees to ask their concerns.
Adopting agile practices: The main aim of the agile project management is that the team is able
to pivot and adjust according to the changes which are needed in the organisation. This type of
the practices adopted by the Samsung Company will help them in encouraging the employees for
thinking efficiently and make the improvements consistently as this leads to creation of the
collaborative working culture.
Hence, Samsung Company using these strategies for building the organisational resilience
will help them in effectively managing the risk as well as preparing in advance for any future
disruptions.
CONCLUSION
From the above report it can be concluded that it is very important for the organisations
conduct the risk assessment as this helps them in taking the corrective measures for the future.
This report has discussed the organizational learning which involves what all things the
organisation has learned by the incident as well as the recommendations for the company which
will help them in eliminating these kinds of the issues in the future. Along with this, the report
has also covered the environmental risk management which will help the organisation in
identifying the risk and then managing them as well as the creation of the organisational
resilience which will help them in preparing for the future and outside disruptions.

REFERENCES
Books and journals
Butler, C., 2018. Five steps to organisational resilience: Being adaptive and flexible during both
normal operations and times of disruption. Journal of Business Continuity & Emergency
Planning, 12(2), pp.103-112.
DuHadway, S., Carnovale, S. and Hazen, B., 2019. Understanding risk management for
intentional supply chain disruptions: Risk detection, risk mitigation, and risk
recovery. Annals of Operations Research, 283(1), pp.179-198.
Evans, V., Cregan, K. and Wall, T., 2019. Organizational resilience and sustainable
development. Springer.
Haizar, N.F.B.M., and et.al 2020. The impact of innovation strategy on organizational success: A
study of Samsung. Asia Pacific Journal of Management and Education (APJME), 3(2),
pp.93-104.
Jang, S.H., and et.al 2019. Planting and harvesting innovation-an analysis of Samsung
Electronics. International Journal of Quality Innovation, 5(1), pp.1-16.
Miroudot, S., 2020. Resilience versus robustness in global value chains: Some policy
implications. COVID-19 and trade policy: Why turning inward won’t work, pp.117-130.
Rybalova, O., and et.al., 2018. Development of methods for estimating the environmental risk of
degradation of the surface water state. Восточно-Европейский журнал передовых
технологий, (2 (10)), pp.4-17.
Ziegler, A.D., and et.al., 2021. A call for reducing tourism risk to environmental hazards in the
Himalaya. Environmental Hazards, pp.1-28.
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