Which risks should a food factory in Johor pay to reduce?
New to this industry?Start with its one-minute summary: Industrial manufacturing and aerospace
| Risk | Chance a year (percent) | Impact if it happens (MYR millions) | Expected loss a year (MYR millions) | Owner |
|---|---|---|---|---|
| Main flour supplier fails | 10 | 8 | 0.8 | Head of purchasing |
| Flood shuts the plant for months | 2 | 50 | 1 | Plant manager |
| Oven breakdown (the bottleneck) | 30 | 2 | 0.6 | Head of maintenance |
| Cyberattack stops ordering | 5 | 6 | 0.3 | Head of IT |
| Product recall | 3 | 20 | 0.6 | Head of quality |
The prompt
A biscuit factory in Johor, Malaysia makes about MYR 15 million of profit a year. Its risk register is in the table with this case. Three actions are proposed: a second flour supplier (MYR 0.4 million a year extra), which would cut the impact of the main supplier failing from MYR 8 million to 2 million; a spare parts kit for the oven (MYR 0.15 million a year), which would halve the impact of a breakdown; and flood insurance (MYR 1.2 million a year), which would pay MYR 40 million of the MYR 50 million flood loss. Which should it take? (Fictional company, illustrative figures.)
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
The exhibit
| Risk | Chance a year (percent) | Impact if it happens (MYR millions) | Expected loss a year (MYR millions) | Owner |
|---|---|---|---|---|
| Main flour supplier fails | 10 | 8 | 0.8 | Head of purchasing |
| Flood shuts the plant for months | 2 | 50 | 1 | Plant manager |
| Oven breakdown (the bottleneck) | 30 | 2 | 0.6 | Head of maintenance |
| Cyberattack stops ordering | 5 | 6 | 0.3 | Head of IT |
| Product recall | 3 | 20 | 0.6 | Head of quality |
My notes on this case
0 of 5,000 characters. Saves automatically.