Question 2
Business risk on Sindo Ferry:
The first business risk that may affect Sindo Ferry are operational risk. From the case
study, the operational risk shown happen internally, externally and a combination of other
factors, from paragraph 3 on the first page stated that it was not possible to see the front of
the rear doors from the main control bridge of the ship upon departure from a port, the safety
aspect is the main requirement starting from the design of the ferry itself to the operation of
the transportation mode, therefore it is important for the staff to make sure that the door was
closed according to the guidelines before they depart from the port.
The second operational risk from Sindo Ferry is from paragraph 5 first line, there is a
change in the staff reporting procedures which they were supposed to checked the door if it
was closed before sailing, but the checking responsibility had changed which then cause the
incident to occurred. Next business risk is from the same paragraph, but on the fourth line. It
is shown that the business risk is compliance risk, a reporting system in each department
which is car deck, navigation department on the ship had been separately reported readiness
for the sea to the captain, this system readiness had been abandoned because they thought
it was too inconvenient to operate. This is an abundance of laws and regulations from their
standard operating procedure which they supposedly comply before and after the departure.
The third business risk of Sindo Ferry is from the paragraph 7 on the first line. One of
the survivors said that the staff procedure on the board ship is relied on human teamwork
rather than following paperwork system that has been provided to comply he added that on
the incident day, a mistake had occurred which delayed the ship’s departure but a pressure
operation of the business.