Individual Assignment: Risk and Value Management Report - Prostay Ltd

This report provides a comprehensive analysis of risk and value management strategies for Prostay Ltd, a company specializing in the manufacturing of household appliances. It begins with an introduction to the company and its exposure to various risks, including floods, explosions, and toxic waste. The report examines the need verification for the company's proposed expansion and expansion, explaining how the expansion aligns with market demand and company growth. A quantitative risk assessment using a risk register is presented, detailing potential risks, mitigation strategies, contingency plans, and impact likelihood. The report then elaborates on disaster recovery plans for floods, storms, and toxic wastes, including strategies to avoid, respond to, and recover from these events. The report also addresses contingency plans for explosions, emphasizing routine evaluation and safety measures. The analysis aims to promote preparedness among organizations facing diverse risks, offering practical recommendations for risk mitigation and disaster response.

RISK AND VALUE MANAGEMENT 1
RISK AND VALUE MANAGEMENT
Student’s Name
Professor’s Name
Institution
Course
Date

RISK AND VALUE MANAGEMENT 2
Introduction
ProstayLtd is the name of the company, and it deals with the manufacturing of household
appliances like locks, sinks, and metallic pipes. The company is not immune to risks, and it has
identified the need to have plans that would help it to deal with different risks. The paper would
be looking into some of the risks the company is exposed to, the way it avoids the risks and the
way it can deal with the risks if they occurred. The main aim is to promote preparedness among
organizations that are exposed to different types of risks.
PREPARE A NEED VERIFICATION FOR THE PROPOSED EXTENSION AND
EXPANSION AT YOUR CURRENT SITE.
Need verification comes in place to help in knowing if a given procedure or activity is
worth being in a place or being implemented. When it comes to the case of the expansion, the
need verification is associated with the reason that has led to the expansion of the company. The
expansion has passed the need verification test because of different reasons. The first reason is
associated with the law of supply and demand. The demand of the products of the company
seems to be increasing, and that means that the expansion will come in place to make sure that
the increasing demand in the market will be met (Haimes, 2015). The second reason is associated
with the growth of the company. The growth of any given organization comes in place to
demand the company to increase in different ways. The company must increase in terms of
capacity, and its teams of resources. For the increased resources and capacity to be handled, the
company must expand from its current state (Kliem, and Ludin, 2019). In this case, it is evident
that the expansion comes in place to promote the growth of the company and also to make sure
that the employees are provided with the best space to work.

RISK AND VALUE MANAGEMENT 3
QUANTITATIVE ASSESSMENT OF THE RISKS USING AN APPROPRIATE RISK
REGISTER
Risk
ID
Risk Distribution Mitigation
Plan
Contingency
Plan
Impact Likelihood
1 Flooding Build a strong
and high
perimeter
wall.
Use machines
to pump out
water and also
move the
project to a
better land.
Damage the
assets of the
company.
High
2 Explosion Teach the
employees on
the best way
to avoid the
explosions.
Shut down the
section that will
have promoted
the issue and
conduct
renovations.
Damage the
reputation of
the company.
High
3 Interruption from the
members of the
community
Talk with the
members of
the
community
on some of
the issues that
Move the
project to a
different place.
Affect the
relationship
between the
company and
the members
of the
High

RISK AND VALUE MANAGEMENT 4
affect them. community
as well as
tarnish the
reputation of
the company.
DISASTER RECOVERY PLAN
a. Floods
Floods are likely to affect the company, and this is because the geographic location of the
company is exposed to the river that breaks its banks. However, the company must have
measures in place that try to protect the floods from affecting the company.
Contingency plan
The cost of dealing with any risk is high, and that is why it is important for the company
to look into ways of avoiding the problem instead of waiting for the problem to affect the
company. In line with the problem of the risks, there are different ways in which the company
could avoid the issue (Sadgrove, 2016). The first way is natural and of great help to the
environment. The strategy entails planting trees at the river bank with the aim of trying to make
sure that the water does not affect the operations and premises of the company (Hillson and
Murray-Webster, 2017). Some trees are good when it comes to absorbing water, and that means
that they can absorb as much as possible to avoid the water from being excess. At the same time,
the trees and plantations have different effects on the level of the soil. When plantations are
planted close to the river, they raise the level of the ground and the river flows following the

RISK AND VALUE MANAGEMENT 5
original channels of the water. When the level that is beside or close to the river is lifted, it
means that it would be a challenge for the water to break the banks and that comes in handy to
make sure that the needs of the company as far as protecting the floods is concerned are met.
The second strategy would be to build a strong perimeter wall around the company. The
company is affected by water that breaks from a river, and that means that the water flows from
another location and comes to the company. When the source of water is external, there is a
remedy for making sure that it does not get to the company. The building of a strong wall around
the company is likely to stop the floods, and that would have saved the company a lot of money
in terms of losses that would have been caused by floods (Wiengarten, Humphreys, Gimenez,
and McIvor, 2016). The third strategy is a long term one, and it can also be an expensive one.
The company can choose to raise the level of its building. The expansion is likely to take place,
and the company can add the additional structures and buildings around the older structure but
this time around make sure that the level of the foundation is higher than the original structures.
Doing so would mean that even if the river banks break, the water will not flow past the new
structures.
Restoring the river to its natural courses is also a strategy that the company can use to
mitigate the problem. The reason why the rivers break is that they have a lot of water to handle at
a given time. Digging tunnels that go back to the rivers is an advanced way to make sure that the
river does not break again (Olson and Wu, 2015). The last strategy is likely to play an essential
role in winning the hearts of the members of the society. The company can choose to harvest the
water by digging a dam and later supplying the water to the members of the community after
purification.

RISK AND VALUE MANAGEMENT 6
Disaster Response
Responding to floods can take three different forms. The first form is associated with the
process of saving what can be affected by the water (Sweeting, 2017). Some goods or materials
are likely to be affected by water, and that means that as soon as the place is flooded, it becomes
essential to make sure everything that can be affected by the water is transported to a safer or
different place. Second, the company can take the step of making sure that water is pumped out
of the premises. Considering the size of the river, the water is likely to be in its biggest volumes,
and that comes in place to affect the organization's premises (Grace, Leverty, Phillips, and
Shimpi, 2015). The company should use a pump to draw out the water from the compound of the
company. However, if the company had implemented the strategy of taking the water back to its
courses, it can pump the water back to its courses.
b. Storms
Predictability is not present in all disasters. Whereas there are some hazards that can be
predicted, some hazards come as a surprise (Koks, Jongman, Husby, and Botzen, 2015). Storms
are likely to hit the company, and it is for this reason that it becomes important for the
organization to make sure that it has some of the best methods to try and prevent the storms as
well as the most appropriate methods to use to deal with the issue of the storm of it hits the
company.
Contingency plan
The first strategy is to make sure that the structures of the company are firm. In a
contingency plan, it is important to look at what is at risk as well as the type of the disaster (Ho,
Zheng, Yildiz, and Talluri, 2015). In the case of the storm, there are no methods that can stop the

RISK AND VALUE MANAGEMENT 7
storm, and therefore the most helpful strategies are the strategies that make sure that what is
likely to be affected by the storms is protected at all cost. In this case, there is the aspect and the
consideration of the buildings of the company. The designs of structures can dictate if the
structure can be easily carried away by the storm or not. The buildings should also be built using
structural designs that are designed to stand the forces and pressure of the storms.
Apart from the design, there is also another aspect of the materials that a company uses to
build its structures. The materials that are the most strong are the ones that make a building
stronger, and that means that if the company makes sure that the materials used during the
construction are durable and genuine when the storm comes, it would be difficult for the storm to
take down the company. The introduction of a safe house is also another strategy that is likely to
be effective in dealing with the effects of a storm (Chance and Brooks, 2015). Some storms are
not random, and that means that despite them traveling at high speed, one can notice them from a
distance. Having a safe house would make sure that the effects of the storm are reduced. A safe
house must be strong and stable, and it should support the lives of the employees and the
management until the storm is over (Giannaki and Papadopoulos, 2016). At the same time, the
company can make sure to have full gear when it comes to dealing with the storm. Tools of
communication and movements should be in place to make sure that communication of the
people who are inside and the communication of the people outside are promoted.
Disaster Response
There are two strategies of response, and they are rescue and rebuild. It is essential to note
that a storm cannot be dealt with when it is still on its course. In this case, the company has no
choice but to let the storm complete its processes (McNeil, Frey, and Embrechts, 2015). After the

RISK AND VALUE MANAGEMENT 8
storm, it is the best time to look for the affected persons, to rescue them, take the injured to
hospital and later work on rebuilding the areas that were damaged.
c. Toxic wastes
Contingency plan
The best contingency plan in toxic wastes is making sure that waste management
strategies are embraced by the company. In waste management strategies, the company makes
sure that the waste is well disposed (Glendon and Clarke, 2015). The company can also have a
policy that guides the employees on the best methods of making sure that the waste is well
managed and it does not affect the health of the members of the communities around.
Disaster Response
The only way to deal with toxic waste is by collecting it and managing it in a way that it
would not have effects on the members of the community (Cole, Giné, and Vickery, 2017). At
the same time, it would be essential to decontaminate the areas where the waste has
contaminated with the aim of making sure that it does not affect the health of the population
around.
d. Explosions
Explosions are likely to take place especially in an organization that uses gas and engages in
other processes that use energy. There are different methods in place that can help in protecting
the accident from taking place and also methods of dealing with the case in case it takes place.
Contingency plan

RISK AND VALUE MANAGEMENT 9
Routine evaluation and maintenance of the machines and the gas channels within the
company would be essential (Burtonshaw-Gunn, 2017). The routine checks help an organization
to identify any issue and also to make sure that the company is not exposed to any risk.
Disaster Response
The best method to deal with the issue is evacuating the people who are affected and also
trying to save the properties that might be burning in case the explosion was accompanied by
fire. The company can also use its resources and the resources of the government as well to put
down the fire if the explosion caused one.

RISK AND VALUE MANAGEMENT 10
References
Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. London:
Routledge.
Chance, D.M., and Brooks, R., 2015. Introduction to derivatives and risk management. Boston:
Cengage Learning.
Cole, S., Giné, X. and Vickery, J., 2017. How does risk management influence production
decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6), pp.1935-
1970.
Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management
approach. International Journal of Production Economics, 171, pp.455-470.
Glendon, A.I. and Clarke, S., 2015. Human safety and risk management: A psychological
perspective. New York: CRC Press.
Grace, M.F., Leverty, J.T., Phillips, R.D. and Shimpi, P., 2015. The value of investing in
enterprise risk management. Journal of Risk and Insurance, 82(2), pp.289-316.
Haimes, Y.Y., 2015. Risk modeling, assessment, and management. New York: John Wiley &
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Kliem, R.L. and Ludin, I.S., 2019. Reducing project risk. London: Routledge.
Koks, E.E., Jongman, B., Husby, T.G. and Botzen, W.J., 2015. Combining hazard, exposure and
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