One team one spirit,

one goal

KOC 4362 Organizational Crisis Management

Group 13
DR Nurul Ain Binti Mohd Hassan

Leong Tack Khang

Yang Tong Kai
Siti Nur Fatonah Binti Che Mat
Noorafhizah Binti Abdul Rahman
Nurkhairunnisa Binti Elias
Hazwani Binti AB. Rahman

169219
171624
170508

170543
170532
170486

Introduction
TNB was chosen as a case in point due to the fact
that it monopolies the most important needs of the
mass that is electricity power in the Malaysian market.
Besides, it is the main corporate company of the
Malaysian government.

Tenaga Nasional Berhad (TNB) is the largest

electricity utility company in Malaysia with estimated
RM88 billion worth of assets.

Cont~
Listed on the main board of Bursa Malaysia, the

Company employs approximately 33,500 staff to

serve a customer base of over 8.5 million in
Peninsular Malaysia, Sabah & Labuan.

Today, TNB continues to lead the effort in fostering

economic growth & social development in the
country.

TNB was the most profitable government linked

company.(GLC)

D History of TNB
Keeping the nation's interest in mind, the government
relentlessly pursued its ultimate objective and two pieces
of legislation were passed to replace the existing
Electricity Act, and to provide for the establishment of a
new corporation TENAGA NASIONAL BERHAD
(TNB), purposefully replacing the NEB (Successor
Company Act). Datuk Hj. Ibak bin Abu Hussein became
the last Deputy Chairman and General Manager of the
NEB and the first Managing Director of TNB.

Cont~
On 1 September 1990, Prime Minister Dato Seri Dr.
Mahathir bin Mohamad officially proclaimed TNB as
the heir and successor to NEB. TNB became a
private company wholly-owned by the government;
on the same day, Tan Sri Dato Haji (Dr) Ani bin
Arope was appointed Chairman.

Three Core Businesses

Generation Division
Transmission Division
Distribution Division

Generation Division

Transmission Division

National Grid

Distribution division
The Distribution Division is entrusted to conduct

two value chain business activities on behalf of TNB,

which are the Distribution Network Operations &
Electricity Retail Operations.

To date, the Distribution Division has 13 offices at

state level, 38 area offices, 56 branches, 8 small

brances, 4 Call Management Centres (CMC) and 140
Pusat Khidmat Pelanggan throughout Peninsula
Malaysia.

Customer
The graphite electrode plant here serves the entire
Asian region.

Our clients are steelmakers who own electric arc

furnaces.

Practically all of the steel companies in Malaysia use

graphite electrodes - Southern Steel, Kinsteel
Perwaja, Mega Stee.

Other Activities
Other activities include repairing, testing and
maintaining power plants, providing engineering,
procurement and construction services for power
plants
related
products,
assembling
and
manufacturing high voltage switchgears, coal mining
and trading. Operations are carried out in Malaysia,
Mauritius, Pakistan, India and Indonesia.

Crises That Have Been Facing

TNB has experienced power outage crises in 1996,

2004, and 2005, due to faulty component of circuit

breaker then caused blackout, which immediately
jeopardized the image of the organization.

The 1996 blackout came to be a very big surprise for

Malaysian especially the government and media.

The explanation and actions delivered by TNB had

not helped reduce the uncertainty of the publics
towards TNB's management.

Cont~
In fact, more accusations of poor management were
raised.

Being the most vital company involving in the power

generation in Malaysia, TNB failed to overcome crisis

and TNB did not perform effectively and efficiently
to the matter concerning the blackout.

TNB was slammed by the Prime Minister and the

oppositions. Media had taken the opportunity to
condemn TNB' s management and the entire
corporate image through publications.

Cont~
TNB failed to utilize fully two main elements of
communication, which are channels and messages.

TNB only penetrated into newspapers, magazines

and television as well as press conferences but failed
to utilize communication technology. TNB utilize
only the basic types of channels that had been
utilized centuries ago

Enterprise Wide Risk Management

TNB recognises that effective risk management is the key

element in the Companys overall strategy with a focus on

the on-going implementation of an Enterprise-Wide Risk
Management (EWRM) framework to ensure that the
major areas of risks are managed and controlled
effectively.

The TNB EWRM framework provides for a complete risk

management cycle incorporating the assessment,
reporting, treatment, monitoring and review of the
business risks within the Group.

Cont~
The EWRM framework ensures a uniform
application of risk management across the Group
through standardised risk management processes and
Group-wide exchange of risk information.

As a result, the Management is able to make

conscious and informed decisions by formulating
and implementing necessary action plans and
monitoring the results.

Cont~
EWRM framework is able to prioritise operational
reviews throughout the Group, it also enables the
development of an effective internal audit plan in the
risk management process.

Consequently management and audit resources can

also be directed to high-risk areas on an informed
basis.

Risk Management Structure

Communication Crisis Plan

Risk communication, focusing on the dissemination of

risk information at all levels, forms an integral part of the

risk management activities in TNB.

Two Risk Management Forums were organised as a

platform to communicate decisions made by the

GRMWC, GRMC and BAC to the Risk Managers, Risk
Coordinators and senior management. During the forums,
risk management issues identified in the course of riskbased audits conducted by the Group Internal Audit were
highlighted.

Cont~
Also discussed was the success of using the EWRM
framework to turnaround the performance of a subsidiary

Their crisis communication manual was analysed to

identify the contents.

Their Corporate Communications Department also

focused of the study as public relations is responsible in
producing and exercising crisis communications, as they
are the experts in the field of communication, which
allows them to communicate strategically in any crises.

Cont~
Therefore, the planning and implementation of crisis
communication manual is the responsibility of the
corporate communication department.

Conclusion
Central to the success of risk management is the ability
to successfully embed risk management culture and
processes within the Group. Risk management
initiatives within TNB will continue to be strengthened
to ensure that TNB is able to respond effectively to the
continuing changing business environment while
achieving its objectives to protect and enhance
stakeholders value.