DUE DILIGENCE ON TROUBLED COMPANIES - A SIMPLE GUIDE BY NIK ZAFRI

 BASIC PRINCIPLES OF DUE DILIGENCE (ON TROUBLED COMPANIES)

Due diligence on a troubled company requires a particularly rigorous and comprehensive approach. It involves delving deeper into potential risks and liabilities than a typical due diligence process.  See the table below - please expand further. (Remember : It's not as easy as it looks)

hashtag#DueDiligence hashtag#Audit hashtag#RiskAssessment hashtag#RiskManagement 

REFRESHER – BRANDING – WHAT IS IT REALLY – Overview by Nik Zafri

A look back into the branding trend.

Branding is the process of creating a unique identity and image for a :

a) product,

b) service,

c) company, or organization in the consumer's mind.

It involves the use of names, logos, slogans, designs, and other elements to distinguish a brand from its competitors and to establish a presence in the market. The goal of branding is to build recognition, trust, and loyalty among customers.

There are several types of branding, each serving a different purpose:

Industries that Use Branding

Branding is essential across various industries, including but not limited to:

Retail, Consumer Goods, Food and Beverage, Technology, Healthcare, Entertainment, Fashion, Automotive, Finance, Travel and Hospitality, Real Estate

Suppliers and Consultants for Branding

Branding suppliers and consultants are typically specialized agencies or individual experts who provide services to help companies develop and manage their brands.

These services might include:

• Brand Strategy Development
• Market Research 
• Logo and Identity Design
• Brand Messaging and Positioning
• Digital Marketing and Online Branding
• Packaging Design
• Public Relations
• Advertising Campaigns
• Social Media Management
• Content Creation

These agencies often have a global presence and work with large corporations, but there are also many boutique agencies and freelance consultants who specialize in branding for smaller businesses and specific niches.

IT'S ALL ABOUT US. GOOD JOB EVERYBODY. TAKE A BREAK AND SPEND QUALITY TIME WITH YOUR FAMILY

 

KNOWLEDGE MANAGEMENT HAS REACHED A NEW HEIGHTS - NIK ZAFRI

The evolution of Knowledge Management requires adapting knowledge to fit the present landscape. Big data and data mining might soon yield to the capabilities of Artificial Intelligence, Quantum Computers, and even blockchain. However, it's crucial not to undermine the core principles of KM; otherwise, we risk losing our sense of direction.

THOUGHT FOR THE DAY - INTELLIGENCE CAN SOMETIMES BE AN ANNOYANCE

Popularity alone doesn't guarantee respect; it must be earned. It's not always about skill or intelligence but about one's character. I know several renowned individuals who aren't actively seeking fame but are consistently praised for their admirable qualities.

Conversely, many bright minds face rejection, likely due to tendencies toward arrogance. The key lies in balancing intelligence with humility—a blend that embodies true wisdom.

DATA PRIVACY, IS IT REALLY SAFE? - NIK ZAFRI

Data Privacy must be the most important topic for the day.

Organization should have a clear policy outlining how they collect, use, store and protect personal information of individual.  Policy; in this context; must be deemed as a legal statement not simply a written policy pasted on the wall. It must be something that inform users about their rights regarding their personal data.

Data Privacy should take into account :

a) Information collected - details on types of data collected from users/customers - such as names, email, addresses, phone numbers, addresses, even birthdays etc. As such any typical CRM system that collects such data MUST BE protected at the front office level or quality assurance level or public relation level (do not overlap one another)

Three examples :

i) if birthdays are revealed to third parties, it may pave to way to corruption. Or;

ii) like what's happening today; phone numbers are being collected by scammers and conners. There are rumours that these information are being sold internally to 3rd parties - what is the top management action on this issue?

iii) How secure is the protection of the collection system? How good is the firewall or other anti-hacking facilities?

b) Purpose of Data Collection - There should be jsutifications of why the data is being collected especially when being asked by users/customers. This can range from processing orders to improving services or marketing purposes.

c) How will the Data be Used - Information on how the collected data will be utilized by the organization.

d) Data Sharing - Disclosure about whether the organization shares user data with third parties and the reasons for doing so.

e) User Rights - Explanation of users' rights regarding their data, such as the right to access, rectify, or delete their information.

f) Data Security Measure - Details about the security measures in place to protect the collected data from unauthorized access or breaches.

g) Contact Information - Information on how users can contact the organization regarding their data privacy concerns or requests.

h) If there is a breach, exposure, or hacking of the collected data, will there be a specific investigation or special enquiry? What penalties might the organization face if found responsible for such a breach?

(Are our strategies for witness protection, anti-corruption, and governance/transparency proving effective?)

Data Privacy Policies are important for transparency and compliance with data protection laws (such as GDPR in Europe or CCPA in California). They help users understand how their personal information is handled and provide them with a level of assurance about its protection.

SOLAR SYSTEM DESIGN AND NETWORKING - a brief guideline

 

Networking in in solar systems design has always been a topic that is "easier said than done". But with proper guideline, the networking has a big future potential to open up a network of business.

I personally believe that building connections is extremely important within the industry to enhance collaboration.

We also need to stay updated on advancements, and create opportunities for professional growth.

Here are some useful tips :

a. Get the knowledge by attending events such as conferences, trade shows, and seminars related to solar energy and systems design. These events provide excellent opportunities to meet professionals, learn about new technologies, and stay updated on industry trends. Remember solar system design is a very unique scenario. You may think that you have what it takes but you need others to provide other expertise that you may not possess.

b. Affiliate with the right professional organizations - don't be afraid or timid to become a member of organizations like the Malaysian Photovoltaic Industry Association, Solar Energy Industries Association (SEIA) or the International Solar Energy Society ISES. These groups offer networking events, forums, and access to valuable resources.

c. LinkedIn is a great online platform that I know of connecting with professionals in the solar energy field. Join relevant groups, participate in discussions, and share your knowledge and experiences.

d. Seek Opportunity to collaborate on solar projects. Working with others not only enhances your skills but also expands your network within the industry.

e. Stay Informed - on the latest developments of solar technology by taking courses, attending webinars, or pursuing certifications. This not only enhances your knowledge but also connects you with like-minded professionals.

f. Be part of Local Networking by attending local events and meetups related to renewable energy. Building connections within your geographic region can lead to valuable partnerships and opportunities.

g. Find the right Mentor - from experienced professionals in the solar industry. A mentor can provide guidance, share insights, and introduce you to their network.

h. Write Blog Post or articles about solar systems design and contribute them to industry publications. This can help establish you as an authority in the field and attract networking opportunities.

i. Maintain a Professional Presence on Social Media - especially those popular within the industry. Share relevant content, engage with others, and build a reputable online presence.

j. Reach Out - be proactive - take the initiative to reach out to professionals you admire or want to connect with. Be clear about your goals and how you can contribute to the solar energy community.

Remember, effective networking is about building genuine relationships, sharing knowledge, and being open to collaboration. It's not just about what you can gain, but also about what you can contribute to the community.

ARE YOU REALLY SERIOUS IN DOING BUSINESS?

 

CARBON CREDIT - Basic Understanding - by Nik Zafri

Question : Mr. Nik, I saw your YouTube video on Industrial Symbiosis. Are you familiar with carbon credits and its process such as application etc. (Top management of MNC)

Organizations can apply for carbon credits through various processes that are typically part of carbon offsetting programs. Carbon credits are a key component of national and international emissions trading schemes that aim to mitigate the effects of climate change.

Not limited to the following; where applicable and customized to the nature of industry; here are the general steps that an organization can follow to apply for carbon credits (exclude any elements where necessary) :

1.0  Measure the Carbon Footprint

The first step for any organization is to calculate its carbon footprint. This involves assessing the amount of greenhouse gases emitted directly and indirectly from its operations, including energy use, transportation, waste generation, and other relevant activities.

Calculating your carbon footprint involves assessing the amount of greenhouse gases, primarily carbon dioxide, that you directly or indirectly produce. The carbon footprint is usually measured in units of carbon dioxide equivalents (CO2e). Here's a general approach to calculating it:

a. Determine the Scope of Your Calculation

There are typically three scopes of emissions that you should consider:

1. Scope 1: Direct emissions from sources that are owned or controlled by the entity (e.g., emissions from vehicles you own).
2. Scope 2: Indirect emissions from the generation of purchased electricity consumed by the entity.
3. Scope 3: Other indirect emissions, such as the extraction and production of purchased materials, transportation-related activities, waste disposal, and so on.

b. Calculate Home/Office/Site Energy Use:

Determine your energy use including electricity, heating, and cooling. You can usually find this information on your utility bills. Use conversion factors to convert the energy use into CO2e emissions.

1. Transportation: Calculate the emissions from transportation activities. This includes vehicles/machinery fuel consumption. Use standard emission factors for different modes or types of vehicles to convert the activities into CO2e emissions.
2. Dietary/Food : Consider the carbon footprint of one's diet, including the emissions from the production, transportation, and disposal of the food consumed. This can include both the food itself and its packaging.
3. Other Consumption Habits: Assess the emissions associated with other consumption habits such as clothing, electronic devices, and other products. This involves considering the emissions associated with the production, transportation, and disposal of these goods.
4. Offsetting Activities: After calculating the carbon footprint, consider offsetting some or all of the emissions by supporting projects that reduce or remove greenhouse gas emissions, such as reforestation, renewable energy projects, or carbon capture and storage initiatives.
5. Use Carbon Footprint Calculators: There are several online carbon footprint calculators available that can help estimation of carbon footprint based on the data provided. These tools make it easier for businesses to estimate their emissions.

By following these steps, companies can get a general idea of the carbon footprint. Reducing the carbon footprint can involve various lifestyle changes, such as using more energy-efficient appliances, using public transportation, reducing meat consumption, and supporting sustainable products.

2.0  Implement Carbon Reduction Strategies

After identifying the sources of emissions, organizations should implement strategies to reduce their carbon footprint. This can include adopting energy-efficient technologies, using renewable energy sources, optimizing transportation, and improving waste management practices.

e.g. adopting an environmental management strategy; avoid unnecessary printing; recycle; incentives for public and sustainable transport; reduce energy consumption, and define renewable energy use targets.

e.g. Energy Efficiency

Implementing energy-efficient measures, such as insulation, efficient HVAC systems, and LED lighting, can significantly reduce energy consumption and operational carbon emission

3.0  Assessment and Certification

Scheduled or non-scheduled inspection, risk assessment and internal audit should be conducted by the organization. Auditors should possess the necessary training, competency and experience without elements of partiality.

3rd party audit will look into :

e.g. wind or solar farm - to ascertain actual generation and renewable energy are measured including emission of Greenhouse Gases (GHG) such as Water Vapour (H2O), Carbon dioxide (CO2), Methane (CH4), Ozone (O3), Nitrous Oxide (N2O), Chlorofluorocarbon (CFC), Hydrochlorofluorocarbon (HCFC), Carbon tetrachloride (CCl4)

Organizations can get their emissions reduction projects certified by accredited certification bodies or relevant agencies. The certification process typically involves verification of the emission reduction methods and the actual reduction achieved. Common certification standards include the Clean Development Mechanism (CDM), Verified Carbon Standard (VCS), and Gold Standard.

4.0  Apply for Carbon Credits

Once the emission reduction project is certified, the organization can apply for carbon credits. This involves submitting the necessary documentation and data to the relevant carbon credit registry or authority. The application process may vary depending on the specific requirements of the carbon credit program or market.

5.0  Verification and Validation

The carbon credit application is usually subject to verification and validation by independent auditors or certification or regulatory bodies. This step ensures that the emission reduction claims are accurate and meet the standards set by the specific carbon credit program.

6.0  Issuance and Trading

Upon successful verification, the organization will receive carbon credits for the verified amount of emission reductions. These carbon credits can then be traded on the carbon market or used to offset the organization's own carbon footprint. Organizations can sell their excess carbon credits to other entities looking to offset their emissions.

7.0  Compliance and Reporting 

Organizations are often required to comply with reporting requirements, providing regular updates on their carbon reduction efforts and the utilization or trading of carbon credits. Compliance helps ensure transparency and accountability in the carbon credit market.

It's essential for organizations to stay informed about the evolving standards and regulations related to carbon credits, as they may vary across different jurisdictions and markets. Engaging with experienced consultants or carbon management firms can also help streamline the process of applying for and managing carbon credits.

In Malaysia, Bursa Carbon Exchange ( BCX ), Malaysia’s voluntary carbon market (VCM) exchange, is part of the nation’s commitment towards achieving net zero greenhouse gas (GHG) emissions as early as 2050.

BCX is a spot exchange that facilitates the trading of high-quality carbon credits via standardised carbon contracts. Corporates may purchase these credits to offset their carbon footprint while the sale of carbon credits, in return, will help to finance and drive the development of domestic GHG emission reduction and removal solutions and projects.

Please contact Bursa Malaysia and BCX for more information