Webinars Communicating Value of a Risk Reduction Culture | Page 18

Low Employee Morale, Supply Chain Disruption, Brand Damage

Operational Risk can lead to…

Legal Risk can lead to…

Demoralizing Employee Morale:

Supply Chain Costs:

Human Risk (Human Error)
can lead to…
Brand Damage:

After two explosions, deaths and
hospitalizations, low pay and
excessive work hours:
300 workers at a factory in
Chengdu threatened a technology
contract manufacturer with a mass
suicide. Mass riots occurred and
brawls eventually led to a forced
shutdown.

1.3 million PlayStations (EUR160
million) prevented from being imported
into the Netherlands due to high levels
of Cadmium. Company had to replace
impounded cables with cadmium-free
components.

A large Pharmaceutical is
currently being investigated for
illegal briberies to Doctors made
by China Director of Human
Resources, VP, and Legal Affairs
Director

Complete Cease of Operations:
Four tanneries in Nigeria were forced to
shut down completely for “insulting the
environment”

Communicating the Value of Risk Reduction – September 2013

Major net sales losses after
incident in Europe & Japan,
share price slumped 3.5% in
London and 2.4% on the NYSE

18