Business Risks Associated

The risk associated with a maintenance process can be assessed by several factors. As the process comprises of four different levels of activity which are the WIP initiation, execution of work, supervisor review and inspection review. At each process the risk of doing business can be identified. The WIP initiation process is comprised of the three basic initiation steps. These processes can determine a business risk to the company. The hazard of moving the equipment stands at top of the list. The following are a few business risks associated with the plant, equipment and maintenance division of a business. These risks can be identified during the processes and a planning to cope with these risk becomes essential in this regard. Thus, the business risks of a maintenance division can be assessed as:

  • The risk of increasing input costs can change the situation. As the economic conditions are fluctuating on the whole, the input costs can face these fluctuation in the economic variables as well. Another important factor to consider in regard to the input costs, is the transportation costs which are increasing throughout the economies. The transportation costs can be reason for the input costs to increase over the time.
  • The production division of a PEM division is based on the repair and production of the equipment. This production process indicates a vital factor which is the costs of the labor deployment. The labor costs can be vary around a large scale and the production process can be slowed down. In order of the production process to be smooth and consistent, the company must focus on the changing labor costs. This business risk can change the scenario, therefore strategizing a plan to avoid any discrepancies and labor wages in the future.
  • The inspection of the maintenance division can pose an operational risk which is a kind of business risk. The importance of this factor is vital as the discrepancies in the inspection can take place.


The company must focus its planning on dealing with the business risks associated to different levels of activities business. The business risks discussed in this case are the input costs, labor costs and the operational risks associated with the maintenance division of the business. These business risks can be a threat for the company in order to perform its activities efficiently.


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