Case Study of Challenge Disaster- from a Risk Management...

2.0 INTRODUCTION AND AIMS Organisations nowadays face various external and internal risks such as strategic risks, operational risks, financial risk and environmental risks. Managers tend to focus on those risks with greater uncertainty like natural disasters. However, some risks also bring destructive outcome even they are predictable and controllable. The inherent risks in the management and control system are among those on the list. Because they are built-in risks of management and control system due to agency problem and asymmetric information, managers often ignore them or are unaware of their existences. The purpose of this report is to provide insight of risk management and control system in the reality from the cases study of†¦show more content†¦Such concerns, combined with weather-related worries, prompted the Thiokol engineers (headed by Robert Lund) to conduct a teleconference with managers from the Marshall and Johnson Space Centres, in order to determine whether the shuttle was safe for launch. This came just one day before the scheduled launch. In the meeting, Thiokol engineers raised their concerns that the low temperature may affect the function of O-rings and objected to the decision of launch. The NASAs managers immediately challenged their conclusion by placing them the burden of proving the O-ring failure. Under such pressure, the managers of Thiokol overturned their no-go position and giving NASA recommendation to launch. After all, the meeting was never known to the top leaders of NASA( see the organisation chart in Appendix 3). 4.0 CASE ANALYSIS 4.1 FLAWED DECISION MAKING PROCESS The flawed decision-making processes leading to the Challenger launch were a result of ineffective and inadequate communications. Lacking of moral awareness and failing to consider interests of various stakeholders were contributory factors to the failure. A closed communication climate had evolved within NASA, where free flow of information and creative thinking were generally not encouraged. Such climate was also transferred to its contractor Thiokol. A year prior to the launch, engineers in Thiokol had expressed their concern on theShow MoreRelatedViewing A Change Disaster Through Change Perspectives1372 Words   |  6 PagesViewing A Change Disaster Through Change Perspectives Introduction Poorly managed organizational change can increase risk, budgets and damage reputations. Organizational change typically educes strong emotions because change interferes with the sense of security, as well as produces feelings of uncertainty (Barabasz, 2016). Employee’s reactions to imposed change, which can range from high turnover, low morale, an assiduous reduction in productivity, to wildcat or other strikes, perplexes many leadersRead MoreDisaster Risk Reduction Should It Be Done?2918 Words   |  12 PagesQuestion: Why should disaster risk reduction be conducted in secondary school? How should it be done? Tsunami Aceh 2004 is real evidence that Indonesia needs to avoid disaster, economic, environmental and generation loss. Brown (2005), the environment correspondent for the Guardian, reported about more than 700 thousand people lost their property and jobs since local industry was damaged. He also added that there was also a big change in the whole social structure as more than 7,000 children becameRead MoreA comprehensive study on civil war: models and real cases1000 Words   |  4 PagesA comprehensive study on civil war: models and real cases The history of ethnic civil war consists of ethnic fragmentation appeared along the societal path to globalization. Over time, human enabled a comprehensive study of variables and motives in attempt to theorize a historical pattern of civil war. Two important models, one constructed by Paul Collier and Anke Hoeffler, and the other by James Fearon and David Laitin, provided hypothesis of the causes of civil war based on social, economic andRead MoreComparison Paper1140 Words   |  5 Pagesinsurance premiums pose a challenge for employees and burden workers with higher health costs and lower wage increases. â€Å"The burden of rising health care costs is particularly problematic for small businesses, which tend to have much smaller pools of workers to spread risk and increasingly choose not to offer any health insurance to employees.† (Carroll, R. 2007). This paper will compare three terms risk, resources and cost, to economics and health care. Risk: Risk management is the disciplineRead MoreThe Oil And Gas Industry1662 Words   |  7 PagesMeibner, Weidinger, 2009). The risks in most cases are contractually distributed and shared among the energy project stakeholders instead of leaving it to the owner. Some of the risks include the reputational risk, environmental risks, and the disasters experienced and which exposes the companies to the costly process of litigation. Accordingly, the oil and gas industry fails to achieve different aspects of the overall strategic business goals because of the challenges that occur in the projects undertakenRead MoreThe Economic Case For Cloud Computing1739 Words   |  7 PagesCOMPUTING SECURITY CLOUD COMPUTING SECURITY By Yoshita Jumili Lawrence Technology University INT7223 Enterprise System Security Summer 2015 Dr. Terrance E. Dillard Instructor Introduction The economic case for cloud computing is compelling and at the same time there are striking challenges in its security. The concepts of cloud computing security issues are fundamentally new and intractable. What appears new is only relative to traditional computing that has been practiced since several yearsRead MoreDisaster Preparedness And Emergency Management2080 Words   |  9 Pages Disaster Preparedness and Emergency Management in Hospitals: A Critical Study on the Hospitals of Eastern Region in Saudi Arabia Introduction The last few decades have witnessed increasing incidents of large scale disasters that result in mass casualties. Apart from the natural disasters like earthquake and Tsunami, there is increasing occurrence of man-made disasters including terrorist attack, oil explosion, spread of epidemics etc. In this context, disaster preparedness, response and managementRead MoreTraditional And Non Traditional Threats Of State Security1650 Words   |  7 Pagesgenerally involved the use of military forces and diplomacy to deter and oppose the threats.   While a case can be made that the military threats in this Century are as apparent as ever, it is now generally recognised that they are not the only threats that face states and the people in them. Since the end of the Cold War, in particular, most scholars readily accept that security threats can emanate from many relatively new and differing sources. Accordingly there are mounting calls for considerationsRead MoreThe Tragedy And Horror Of The Joplin Tornado1627 Words   |  7 Pagestransformed the community’s identity from a virtually-unknown place in Missouri to a symbol of the nation, a transformation further encouraged through the wording of public statements by President Obama and Governor Nixon as well as featuring Joplin on Extreme Makeover: Home Edition and other television shows. To the nation, Joplin became a place amid an undifferentiated region, except to locals, known as fly-over states. Theoretical Implications Disasters are totalizing events, impacting and influencingRead MoreRisks of a Dos Attack1549 Words   |  7 PagesThe security perspective of an e-commerce company varies based on its business model. iPremier follows a Business-to-consumer (B2C) model and the entire sales come directly through web sales i.e. online B2C transactions. Hence the IT security of iPremier should center on the protection of the customer information and needs. The Federal Reserve includes six types of risks a company could face because of an Information Technology (IT) breach, which are credit, market, liquidity, operational, legal