Analyzing Risk: Developing Resilience and Adaptability in The Dynamic Business Environment

Abstract

This study explores the critical role of understanding risk and defining it as the process of   
identifying, assessing, and evaluating potential risks. Resilience and adaptability, characterized 
by absorptive, adaptive, and restorative capacities, are discussed as interconnected concepts. 
The coal-based electricity generation company, Kapar Energy Ventures Sdn Bhd, is used to 
illustrate the practical implementation of risk analysis, particularly in light of environmental, 
social, and governance (ESG) challenges to enhance decision-making, competitive advantages, 
sustainable business practices, increase stakeholder confidence and business continuity.         
Sustainability is explored in the context of risk management, emphasizing the link between risk 
management and sustainable practices. The challenges faced by KEVSB in transitioning from 
coal-based energy to renewable sources are acknowledged, with a recognition that extensive 
investments are required for full sustainability. Business continuity is presented as closely          
related to risk analysis, with both complementing each other in ensuring organizational                  
resilience. However, organizational resilience and adaptability go beyond risk analysis and        
encompass organizational culture, leadership, planning, and change management. Building 
resilience requires a comprehensive approach that considers investing in employees, fostering 
innovation, building relationships, and maintaining financial flexibility contribute to                          
organizational resilience and adaptability.