RISK CATEGORISATION OF PRODUCTS USED FOR THE CONSTRUCTION OF ELECTRICITY DISTRIBUTION ASSETS

Authors

  • A.J. Le Roux Graduate School of Technology Management, University of Pretoria
  • C.C. Van Waveren Graduate School of Technology Management, University of Pretoria

DOI:

https://doi.org/10.7166/19-2-92

Abstract

ENGLISH ABSTRACT: The balance between risk and reward is the very essence of business, and companies take risks in order to generate returns. Eskom, the electricity utility in South Africa, endeavors to construct networks that are reliable and safe for its employees as well as the public. To ensure that product reliability requirements align with company goals, products should be categorised according to the risk they pose to the business. Mitigating strategies can therefore be reviewed for high risk items. A 3x3 risk matrix was derived to identify the risk category for products. The application of the process should result in an improvement in product profitability, either directly through a reduction in purchasing cost, or indirectly through avoiding the various consequential costs associated with poor risk management.

AFRIKAANSE OPSOMMING: Om

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Published

2011-11-05

How to Cite

Le Roux, A., & Van Waveren, C. (2011). RISK CATEGORISATION OF PRODUCTS USED FOR THE CONSTRUCTION OF ELECTRICITY DISTRIBUTION ASSETS. The South African Journal of Industrial Engineering, 19(2). https://doi.org/10.7166/19-2-92

Issue

Vol. 19 No. 2 (2008)

Section

General Articles

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