Task

• individual task
• questions students are required to answer / task they are required to perform

Based on a Case study: 9 questions need to be answered related to the case and the learned topics of the in class materials

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This case is invented and any relation to names or possible similarities do not exist.

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Background

Electric Vans Ltd. has a moderate risk profile and is one of the top 100 Van companies based on a regular risk assessment from an external audit of the vehicle manufacturing sector in the automotive industry. Country and industry risk pillars strengthened the overall risk score of the company in the last 5 years. An established market position would be a strength for the company, but low profitability and a high proportion of debt could be causes of concern among other risks.

About the company

Headquartered in Shanghai, China, Electric Vans designs, develops, manufactures, sells, and leases fully electric vans and energy generation and storage systems. The company produces and sells the Models UI, UX, UV, vehicles. The company also installs and maintains energy systems, including generation,

storage, and consumption.      UI Model ,  UX Model,   UV Model

Electric Vans Ltd. is one of the newcomer brands in the automotive industry, with reported revenue of $5.82 billion in the financial year 2021 (FY2021), which increased 20.67% over that in FY2020. Net income also increased 100.58% in FY2021 over that in FY2020.

By 2020, Electric Vans had more than 3 manufacturing plants located in China The business now included both small and large household appli- ances. Almost all of its growth came from acquisitions that were paid for out of cash flow and borrowing from the financial markets.

Electric Vans Ltd. strategic plan called for global expansion beginning in 2020. With this in mind and with large financial reserves, Electric Vans planned on acquiring 3 providers for battery production a year. Almost all of the acquisitions were manufacturing companies that produced products related to the electric supply units in the marketplace. However, some of the acquisitions included rubber wheels and light weight alloy rims companies as well as car security systems.

From 2010, when Electric Vans Ltd.  began its rapid acquisition approach, it established a Risk Management Department. The Risk Management Department reported to the chief financial officer (CFO) and was considered to be part of the financial discipline of the company. The general objective of the Risk

Management Department was to coordinate the protection of the company’s assets. The primary means by which this was done was through the implementation of loss prevention programs. The department worked very closely with other internal departments such as Factory Risks and Health Hazards & Safety Department. Outside consultants were brought in as necessary to support these activities.

One method employed by the enterprise to ensure the entire organization and involvement in the risk management process was to hold each manufacturing division responsible for any specific losses up to a designated self-insured retention level. If there was a significant loss, the department must absorb the loss and its impact on the department’s bottom-line profit margin. This directly involved the division in both loss prevention and claims management. When a claim did occur, the Risk Management Department maintained regular contact with the department’s personnel to establish protocol on the claim and cash reserves and ultimate disposition.

As part of risk management, the enterprise purchased premium insurance above the designated retention levels. The insurance were allocated to each division. The premiums were calculated based on sales volume and claims loss history, with the most significant percentage being allocated against claims loss history.

Risk management was considered an integral part of the due diligence process for acquisitions and disinvestments. It began at the onset of the process rather than at the end and resulted in a written report and presentation to the senior levels of management.

 

A new risk shows up on the surface

The original intent of the Risk Management Department was to protect the enterprise’s assets, especially from claims and lawsuits. The department focused heavily on financial and business risks with often little regard for human assets. All of this was about to change.

Electric Vans Ltd. relied heavily on labor-intensive assembly line processes, despite attempts to modernize the factory with new equipment to speed up production. Unfortunately, the manual work intensive nature of the processes led to an increase in workplace injuries and sick days, resulting in rising workers’ compensation costs and healthcare premiums that negatively impacted the company’s financial statements. To address this issue, senior management tasked the Risk Management Department with finding ways to reduce injuries, sick days, and workers’ compensation costs. The department had to examine how workers performed their tasks and improve the interaction between them to achieve the goals.

The risk department was renamed to “Risk Management & Human Centered Work Space Design Department”

Human Centered Work space design is the scientific study of designing the workplace environment to suit the user, with the aim of optimizing both human wellbeing and overall system performance. It is concerned with ensuring that tasks, equipment, information, and the environment are compatible with the user’s capabilities and limitations. Human Centered and Work space design consider factors such as the job being done, demands on the user, size and shape of equipment, and how information is presented and accessed. Human Centered Work space design draws on various disciplines, including biomechanics, industrial design, kinesiology, psychology, and physiology. The focus of Human Centered and Work space design is primarily on the safety and well-being of employees, with the goal of reducing costs by improving safety and decreasing workers’ compensation expenses.

Through Human Centered Work space design, workplaces can be designed, so that workers do not have to overextend themselves and the manufacturing industry could save billions in workers’ compensation.

Workplaces may either take the reactive or proactive approach when applying Human Centered Work space design practices. Reactive Human Centered Work space design is when something needs to be fixed and corrective action is taken. Proactive Human Centered Work space design is the process of seeking areas that could be improved and fixing the issues before they become a large problem. Problems may be fixed through equipment design, task design, or environmental design. Equipment design changes the actual, physical devices used by people. Task design changes what people do with the equipment. Environmental design changes the environment in which people work but not the physical equipment they use.

Questions: 

1. Define clearly how is risk management understood in this article?
2. Clarify shortly how you understand the term Risk Management? Does the ISO norm fit to risk management in this article?
3. What are the general questions one has to ask oneself when looking into the definition of the intangible meaning of risk management”
4. The original intent of creating the Risk Management Department for Electric Vans Ltd. was to protect corporate assets. In other words, was this really risk management?
5. Critically discuss if the new responsibilities of the department, specifically Human Centered and Work Space Design, a valid interpretation of risk management?
6. Can the lowering of health care costs and workers’ compensation costs be considered as a project?
7. How successful do you think Electric Vans Ltd. was in lowering costs?
8. What kind of process needs to be implemented for a successful risk management of any kind.
9. Apart from country and industry risks that Electric Vans Ltd. can face, what are 4 other possible risks that should not be forgotten?

Format to submit the assignment: max 2000 Word or PDF document

Formalities:

• Wordcount: 1500-2000words
• Cover, Table of Contents, References and Appendix are excluded of the total wordcount.
• Font: Arial 12,5 pts.
• Text alignment: Justified.
• The in-text References and the Bibliography have to be in Harvard’s citation style.

 

It assesses the following learning outcomes:

• Outcome: Explaining the importance of risk management in the business world based on the given case study.
• Outcome: The case study will let each student understand how risk management can have different meanings and interpretations.

Rubrics grading:

Learning Descriptors	Fail Below 60%	Marginal Fail 60-69%	Fair 70-79 %	Good 80-89%	Exceptional 90-100%
Purpose & Understanding   KNOWLEDGE & UNDERSTANDING   5%	Very poor coverage of central purpose, goals, research questions or arguments with little relevant information evident. Virtually no evidence of understanding or focus.	Minimal understanding of purpose of the study; factual errors evident. Gaps in knowledge and superficial understanding. A few lines of relevant material.	Reasonable understanding and clearly identifies the purpose, goals, research questions or argument. Reflect partial achievement of learning outcomes.	A sound grasp of, and clearly identifies, the purpose, goals, research questions or argument. Some wider study beyond the classroom content shown.	Effectively describes and explains the central purpose, arguments, research questions, or goals of the project; explanation is focused, detailed and compelling. Recognition of alternative forms of evidence beyond that supplied in the classroom.
Content   KNOWLEDGE & UNDERSTANDING   5%	Content is unclear, inaccurate and/or incomplete. Brief and irrelevant. Descriptive. Only personal views offered. Unsubstantiated and does not support the purpose, argument or goals of the project. Reader gains no insight through the content of the project.	Limited content that does not really support the purpose of the report. Very poor coverage. Displays only rudimentary knowledge of the content area. Reader gains few if any insights	Presents some information that adequately supports the central purpose, arguments, goals, or research questions of the project. Although parts missing, it demonstrates a level of partially proficient knowledge of the content area. Reader gains some insights.	Presents clear and appropriate information that adequately supports the central purpose, arguments, goals or research questions of the project. Demonstrates satisfactory knowledge of the content area. Reader gains proficient insights.	Presents balanced, significant and valid information that clearly and convincingly supports the central purpose, arguments, research questions or goals of the project. Demonstrates indepth and specialised knowledge of the content area. The reader gains important insights
Organization	Information/content is not logically organized or presented.	Information/content is not, at times, logically organized or presented. Topics/paragraphs	Information/content is presented in a reasonable sequence.	Information/content is presented in a clear and understandable sequence.	Information/content is presented in a logical, interesting and effective

 

COMMUNICATION   5%	Topics/paragraphs are frequently disjointed and fail to make sense together. Reader cannot identify a line of reasoning and loses interest.	are frequently disjointed which makes the content hard to follow. The reader finds it hard to understand the flow of the report.	Topic/paragraph transition is unclear in places with linkages for the most part. Reader can generally understand and follow the line of reasoning, although work needed to be proficiently organized.	Topic/paragraph transition is good with clear linkages between sections and arguments. Reader can understand and follow the line of reasoning.	sequence. Topics and arguments flow smoothly and coherently from one to another and are clearly linked. Reader can easily follow the line of reasoning and enjoyed                          reading                      the report.
Style & Tone   COMMUNICATION   5%	Writing is poor, unclear and unengaging, and the reader finds it difficult to read and maintain interest. Tone is not professional or suitable for an academic research project. A reorganization and rewrite is needed.	Writing is unengaging and reader finds it difficult to maintain interest. Tone is not consistently professional or suitable for an academic research project. Work needed on academic writing style.	Writing is usually engaging and keeps the reader’s attention. Tone is generally appropriate for an academic research project, although a clearer and more professional style and tone is needed.	Writing style and tone is generally good and sustains interest throughout. Tone is professional and appropriate for an academic research project.	Writing is compelling and sustains interest throughout. Tone is consistently professional and appropriate for an academic research project.
Use of References   COMMUNICATION   5%	Little or no evidence of reference sources in the report. Content not supported and based on unsubstantiated views.	Most references are from sources that are not peer- reviewed or professional, and have uncertain reliability. Few if any appropriate citations are provided. Reader doubts the validity of much of the material.	Professionally legitimate references are generally used. Fair citations are presented in most cases. Some of the information/content/evidence comes from sources that are reliable, but more academic sources needed to be convincing.	Professionally and academically legitimate references are used. Clear and accurate citations are presented in most cases. The majority of the information/content/evidenc e comes from sources that are reliable.	Presents compelling evidence from professionally and academically legitimate sources. Attribution is clear and accurate. References are 75% from primarily peerreviewed professional journals or other approved sources.
Formatting   COMMUNICATION   5%	Research project exhibits no                      formatting,                      or frequent and significant errors     in                      Harvard formatting.	There are too many errors in the Harvard formatting to be acceptable as a partially proficient piece.	Harvard formatting is employed in the research project with minor errors. A review and rework of format and style of referencing in text and in the bibliography is needed.	Harvard formatting is used accurately and consistently throughout the research project, although some issues are apparent as the reader is unable to find sources.	Harvard formatting is used accurately and consistently throughout the research project. Accurate hyperlinks are included where required, making it easy for readers to review sources.
Written Communication Skills   COMMUNICATION	The written project exhibits multiple errors in grammar, sentence structure and/or spelling. Inadequate writing skills (e.g., weaknesses in language facility and mechanics) hinder	The written project exhibits errors in grammar, punctuation and spelling. The written project comes across as untidy and not properly checked for mistakes. Errors present in	Written research project displays good word choice, language conventions and mechanics with a few minor errors in spelling, grammar, sentence structure and/or punctuation. Errors do not	Readability of the project is good due to the clarity of language used. Grammar, spelling and punctuation is without error. Spelling and grammar thoroughly checked.	Readability of the project is enhanced by facility in language use/word choice. Excellent mechanics and syntactic variety. Uses language conventions effectively (e.g., spelling,

 

10%	readability and contribute to an ineffective research project.	written communication make readability frustrating.	represent a major distraction or obscure meaning.		punctuation, sentence structure, paragraphing, grammar, etc.).
Oral Communication Skills   COMMUNICATION   0% (no Oral presentation)	Oral presentation cannot be understood because there is no logical sequencing of research information. Presenter uses superfluous graphics or no graphics; graphics do not support or relate to the information presented. Presenter reads most or all of the project notes with little or no eye contact. Presenter mumbles, incorrectly pronounces terms and/or speaks too quietly. Oral presentation rambles, is unclear and cannot be followed by the audience. Presenter is unprofessional, lacks confidence, is uncomfortable and cannot answer basic questions.	Research information is presented in a sequence that at times is difficult to follow. Graphics support and are related to the content of the project, but presenter reads from slides and does not talk around the topic. Presenter tries to maintains eye contact with the audience but reads from notes too much. Presenter uses good voice dynamics and clearly enunciates terms, however they are uncomfortable for the most part and finds it hard answering questions. Overall, the oral presentation is delivered in a borderline manner and needs more practice and preparation to reach required standards of delivery.	Research information is presented in a sequence that the audience can follow. Graphics support and are related to the content of the project. Presenter maintains eye contact with the audience with a few minor exceptions; presenter reads from notes on a few occasions. Presenter uses good voice dynamics and clearly enunciates terms. Presenter is comfortable for the most part and adequately answers questions. Overall, the oral presentation is delivered in a satisfactory manner and meets expectations with respect to oral communication skills.	Research information is presented in a sequence that the audience can follow. Graphics support and are related to the content of the project. Presenter maintains eye contact with the audience with a few minor exceptions, seldom returning to notes. Presenter uses good voice dynamics and clearly enunciates terms. Presenter is comfortable and answers questions well. Overall, the oral presentation is delivered in a good manner and meets expectations with respect                      to                   oral communication skills.	Research information is presented in a logical, interesting and effective sequence, which the audience can easily follow. Oral presentation uses effective graphics to explain and reinforce the information presented. Presenter maintains eye contact with audience and does not read from notes. Presenter speaks in a clear voice and uses correct, precise pronunciation of terms. Oral presentation is thorough, clear, compelling, informative and professionally delivered. Presenter is professional, confident and comfortable, and answers questions effectively.
Analytical / Critical Thinking Skills   CRITICAL THINKING   35%	Research problem, concept or idea is not clearly articulated, or its component elements are not identified or described. Research information is poorly organized, categorized and/or not examined; research information is often inaccurate or incomplete. Presents little if any analysis or interpretation; inaccurately and/or inappropriately applies	Research problem, concept or idea is not clearly articulated at times and confusing. Research information is badly organized, categorized, and/or only superficially examined; research information is often incomplete. Presents limited analysis or interpretation; inaccurately and/or inappropriately applies research methods,	Adequately identifies and describes (or sketches out) the research problem, concept or idea and its components. Gathers and examines information relating to the research problem, concept or idea; presents and appraises research information with some minor inconsistencies, irrelevancies or omissions. Generally applies appropriate research	Formulates a clear description of the research problem, concept or idea, and specifies major elements to be examined. Selects information appropriate to addressing the research problem, concept or idea; accurately and appropriately analyses and interprets relevant research information. Effectively applies appropriate research methods, techniques,	Effectively formulates a clear description of the research problem, concept or idea, and specifies major elements to be examined. Selects and prioritizes information appropriate to addressing the research problem, concept, or idea; accurately and appropriately analyzes and interprets relevant research information. Precisely and effectively applies appropriate research
	research methods, techniques, models, frameworks and/or theories to the analysis. Presents few solutions or conclusions; solutions or conclusions are often not well supported, are inaccurate and/or inconsistent, and are presented in a vague or rudimentary manner.	techniques, models, frameworks and/or theories to the analysis. Presents some solutions or conclusions but they are often not well supported, or logical.	methods, techniques, models, frameworks and/or theories although with inaccuracies. Outlines solutions or conclusions that are somewhat logical and consistent with the analysis and evidence; identifies and/or lists solutions or conclusions although not always clearly.	models, frameworks and/or theories in developing and justifying multiple solutions or conclusions; solutions or conclusions are coherent, well supported and complete.	methods, employs advanced skills to conduct research. Uses techniques, models, frameworks and/or theories in developing and justifying multiple solutions or conclusions; solutions or conclusions are insightful, coherent, well supported, logically consistent and complete. Displays a mastery of complex and specialized areas.
Integration Skills   APPLICATION & EVALUATION     25%	Shows little ability to employ theory and practice across the functional areas of business in the assessment of issues relating to the research problem, concept, or idea. Does not recognize or correctly identify crossfunctional organizational issues relevant to the research problem, concept or idea. Does not adequately evaluate the research problem, concept or idea in light of relevant principles, theories and practices across the business functional areas. Few if any solutions, recommendations for action, or conclusions are presented, and/or they are not appropriately justified or supported.	Shows some ability to employ theory and practice across the functional areas of business in the assessment of issues relating to the research problem, concept or idea. Recognizes organizational issues relevant to the research problem, concept or idea but does not show understanding. Does not adequately evaluate the research problem, concept or idea in light of relevant principles, theories and practices across the business functional areas. Some solutions offered but difficult to understand. Recommendations for action, or conclusions are presented, but they are often not well supported, or logical.	Exhibits application of principles, theories and practices across the functional areas of business to the analysis of the research problem, concept or idea. With some exceptions, outlines and describes (or sketches out) some cross- functional organizational issues that are relevant to the research problem, concept or idea. Adequately identifies and describes (or summarizes) solutions, recommendations for action, or conclusions that are, for the most part, appropriate, but which need to be more aligned with principles and concepts in the functional areas of business.	Demonstrates an ability to integrate and apply principles, theories and practices across the functional areas of business to the analysis of the research problem, concept or idea. Identifies, examines and critically evaluates important cross- functional organizational issues associated with the research problem, concept or idea. Clearly justifies solutions, recommendations for action, or conclusions based on analytics and an insightful synthesis of crossdisciplinary principles and concepts in the functional areas of business.	Demonstrates welldeveloped ability to integrate and apply principles, theories and practices across the functional areas of business to the analysis of the research problem, concept or idea. Effectively identifies, examines and critically evaluates important crossfunctional organizational issues associated with the research problem, concept, or idea. Clearly and effectively justifies solutions, recommendations for action, or conclusions based on strong analytics and an insightful synthesis of crossdisciplinary principles and concepts in the functional areas of business. Can link thinking across disciplines and contexts.