| Risk Exposure
According to NTT (2021), risk exposure refers to the size or potential future loss and does arise from a risk event. Blunden and Thirlwell (0000) stated that indicators in the risk assessment and control can be used to manage and modify the risk exposure of the organization. System Risk Blunden and Thirlwell (2013) postulated that system risk refers to or includes risks like the failure during the development and systems, implementation process, as well as the failure of the system itself, and shortage of resources. According to the CFA Institute system risk refers to the risk of a breakdown of an entire system rather than simply the failure of individual parts. From the case study, the two identified system risk includes the poor refurbishment that was done to the cargo ship, as well as not changing the sewage system of the ship that led to damage of the ship during the maintenance procedure. The reason for including refurbishment as system risk is that Blunden Thirlwell (2013) stated failure during the development and implementation process as one of the system risks.
Process Risk According to Blunden and Thirlwell (2013), this type of operational risk includes errors in the processes and is not being fit for purposes tools and components. Sailing into the sea without checking the weather, falls among the errors and process risks that happened during this disaster.
External Risk According to Blunden and Thirlwell (2013) refers to the risk that is external in nature, that include disasters, regulatory risks, and political risk. This is risk exposure to the bad weather that led to the wave hitting the ship and thus damaging the vessel. The risk exposure of natural disasters is severe and can lead to the total sinking of the ship.
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