Load Shedding Case Study

739 Words 3 Pages
EXECUTIVE SUMMARY.

Load shedding it is whereby there is no enough electricity available that Eskom should supply to its customers. Load shedding cause damage to household appliances and productivity to businesses stop due to load shedding.
Load shedding is caused by a rise in population, growing economy and increased investments, a short supply of the diesel, water and weather.

Objective setting is to make sure that Eskom supply the country with enough electricity meaning Eskom want to avoid load shedding in South Africa.

Method: Currently Eskom and government cannot help with saving electricity instead their will punish a country by load shedding but if people could help by switching off some of the electrical appliances that are not used
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Key performance indicator are the actions that lead to a success of objective settings from key risk indicator meaning that key performance indicator it is an implementation of strategy to solve and avoid the indicated risks in an entity.

WHY ARE KRIs AND KPIs IMPORTANT?
Key risk indicator exists to show an entity if it’s operating well and the risk that it might if experience but the risk indicator does not exist than entities would not be able to see if there are risks that an entity will experience and there would not be able to find solution before the risk occurs.
• Shows emerging risk trends and current risk exposure.
• Firms are able to control the risk and weakness.
• Firms are able to facilitate the reporting of risk,

Key performance indicator evaluate the success of an entity to that particular risk that has been identified, therefore if the was no key performance indicator the entity would not be able to indicate how successful did their strategy work to avoid or control the risk.

FOUR LEVELS OF OPERATIONAL RISK.
1. PROCESS.
2. PEOPLE.
3. SYSTEMS.
4. EXTERNAL.
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SYSTEMS.
Eskom has systems that are unreliable and that would shut down than it had no choice to do load shedding, since the system crashed was going to take approximately two weeks to reboot.

NEGATIVE IMPACT OF LOAD SHEDDING IN SOUTH AFRICA. HOUSEHOLDS: When load shedding occurs it will cause damage to appliances used at the house such as fridge, television, and computers. Since the current flowing to wall outlet will increase after load shedding this will cause appliances and other electronic devices to short-circuit, malfunction or even be destroyed.
COMPANIES: For businesses it is difficult for a companies to plan ahead when load shedding occurs and productivity stop for example for a company that uses machinery for production, machines will stop work and productivity would not take place.

ECONOMY: Load shedding causes an economy R40billion per month than if load shedding occurs continuously than the country would spend more money on load shedding. Load shedding caused the GDP of 2015 to forecast from 2.9% to 1.9%.

PRACTICAL APPLICATION ON SUGGESTED KEY RISK

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