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 

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.

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.

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

THOUGHT FOR THE DAY - WORKING INDEPENDENTLY VS WORKING IN A TEAM

 Is the phrase "Able to work independently with minimum supervision" overrated? The statement seems to defy teamwork, which is an essential part of any successful organization. Instead, we should focus on individuals who are not too dependable on others, capable of learning from their mistakes and improving their skills for the future. True success is achieved when we work together and support each other. #teamwork #collaboration

TWO ISSUES RAISED ON 26/01/2023 - JUST TO LET MALAYSIANS KNOW

 

TODAY'S FOOD FOR THE THOUGHT

Many special awards are being offered to foster goodwill and to inspire others. Unfortunately, some of these special awards; which I feel strongly; have been given to the WRONG person who knows NOTHING about the field. Trust me, we are fully aware those who are actively involved. I won't name the recipients but I think the juries should reconsider a proper standard/code of practice in their selection - otherwise they will be deemed as partial and risk losing respect. Nik Zafri - 18/0/2023 - 11:28 am

CAN TRADE SECRETS BE PROTECTED TODAY? - Overview by Nik Zafri

Nowadays, any organization with full infrastructure of ICT network and systems practicing 'data sharing' using the B2B and B2C platforms, painstakingly since early 2000 are now expanding their business.

However, when we talk about 'data transparency', the challenge is safeguarding 'sensitive data' (such as trade-secrets) and at the same time, not to intervene with the flow of information.

But today, should such secrets are not properly safeguarded, the sensitive data can suddenly become obsolete tomorrow due to "information explosion" on the net. Today, one organization introduced the latest technology, (no-hush-hush) - the next day, you'll see that the 'so-called new technology' ended up with similar but more improvised technology at the cheaper price - surprisingly from another country that thousands of miles away.

To avoid leaking problems, the plumbers are usually ICT and Human Resource Management - but what about the losses due to leaking information. Although the two departments are the right ones to deal with personnel revealing confidential information but it is still deemed as 'fire-fighting'. True enough, it happens again and again.

Humbly, let me share my own experience when I was employed to one organization to make a 'turnaround' under consultancy capability.

Without going into too much details, all I can conclude is that I managed to convince top management and other units/departments to return to the basics (looking back into the Core Business Process profusely written in their very own Company Manual - (chuckle they will find)

1) Research and Development, 

2) Design, 

3) Innovation, 

4) Advertising and Promotion, 

5) Market Survey, 

6) Marketing and Sales. 

Despite the hiccups I had with the 'Executive Management' team, I have succesfully managed to 'rehighlight' the aforesaid '6 profit centre' units to ALWAYS be in the lead to entice prospects, new customers and returning customers.

The 'data sharing' practices (what to share with the customers even on the company's website) must FIRST come and being reviewed by these units as they are the ones who knows better than any other units/departments which data is deemed as confidential or otherwise. 

The root cause of failure is always linked to another department or unit coming in 'too early' into the picture and doing 'someone's else job'. 

Sometimes, rewarding scheme for people achieving targets and definitely punishing those who did not can be BOTH FATAL.

People will start cutting corners, stabbing one another, stepping on other "cats tails" and God knows what. 

What if rewarding and punishing are being applied to Occupational Safety and Health matters, then there may be dangerous risks and hazards even leading to incidents and accidents - when workers start to cut corners either to achieve the objectives OR the fear of not achieving it. 

Mind you, I'm neither implying that other departments/units are of less significance nor rewarding system should not be practiced.

I'm really talking about :

a) 'Who to do What and When' and also 

b) effective monitoring must first be in place before considering to reward or to punish.

PART OF MY ACHIEVEMENTS

 

CARA BERFIKIR DAN BERTINDAK YANG BERJAYA - Nik Zafri

Boleh dikatakan kebanyakan dari kita gagal dalam melakukan sesuatu tugasan adalah bukan kerana cara bertindak tetapi CARA BERFIKIR.

Saya pasti ramai yang menggemari topik motivasi termasuklah menyertai kursus, membeli buku, membaca artikel dll yang memaparkan rahsia kejayaan perniagaan mahupun karier.  Ironinya, tidak ramai pula yang berjaya walaupun telah mendapat tip-tip dari mereka yang berpengalaman.

Sebenarnya, kesalahan bukanlah pada bahan motivasi atau teks yang digunakan oleh penceramah atau cara ceramah disampaikan atau apa yang dibaca, tetapi kegagalan itu adalah kerana peserta kursus atau pembaca bahan-bahan itu sendiri.

Ini kerana terdapat sifat ingin berjaya serta-merta dan beranggapan motivasi yang disalurkan kepada mereka adalah berbentuk magis atau “kuasa yang sakti” untuk mengubah hidup mereka dalam tempoh yang cepat.  Ini sebenarnya adalah sifat tergesa-gesa dan juga rasa “tamak” dan bukannya pemikiran positif.

Buktinya, mereka hanya akan bersemangat dalam tempoh jangkamasa yang singkat.  Selalunya mereka akan gagal (malah sentiasa gagal) mengekalkan keadaan “bersemangat” itu.  Bila semangat yang berkobar-kobar itu mula pudar, perasaan mereka akan sedikit demi sedikit diganti dan akhirnya dikuasai dengan “rasa rugi berbelanja untuk kursus motivasi”, “buat habis duit saja”, “tidak menjadi”, “ianya bohong” dsb. Lebih teruk lagi apabila penulis atau penceramah disalahkan – “penceramah itu hanya nak buat duit sahaja”

Tanpa disedari, pemikiran negatif inilah yang akan mencetus gelombang yang dicemari kebencian, irihati, marah, sakit hati, sangka buruk, sentiasa menyalahkan orang lain atas ‘nasib kita, menjadi pasif’ dll. Ini akan menyebabkan golongan ini berada dalam apa yang saya ibaratkan sebagai “causality loop” (1)  – suatu keadaan yang mana golongan ini terperangkap dalam suatu kitaran hidup yang sama, membosankan dan tidak ada jalan keluar. Produktiviti kerja dan keuntungan/pendapatan perniagaan serta urusan anda juga akan terganggu. Anda rasakan seolah-olah anda tidak cukup masa untuk melakukan sesuatu perkara yang penting dalam hidup anda. Disusuli pula dengan rasa tertekan hampir setiap masa, selera makan anda kurang atau terlalu kuat. Lebih teruk lagi, anda dapati anda telah disahkan mengidap penyakit kronik seperti obesiti, darah tinggi, diabetes dll. Dunia anda akan menjadi sempit sehingga hari anda meninggal dunia dengan penuh rasa kekecewaan.

MAHUKAH ANDA MENJADI BEGINI? SAMPAI BILA??

“Apa yang anda fikir, anda akan zahirkan, anda akan menariknya, jika anda tumpukan masa ke atas apa yang anda tidak mahu, maka semuanya yang anda tidak mahukan itu akan dizahirkan, ditarik pada diri anda satu demi satu”

Apa yang dirasakan seperti “kononnya ada perbezaan” dalam kitaran ini – hanyalah suasana yang dicipta dari ilusi dan escapism sekadar hanya mengisi rasa kekosongan dalam diri. Ibaratkan seseorang yang mengubah kedudukan perabut dalam rumah yang sama untuk menghilangkan kebosanan melihat posisi yang sama setiap hari.

(1) A temporal causality loop (or simply causality loop) is a type of phenomenon whereby a specific moment in time repeats itself continually inside an independent fragment of time.

Kaedah terbaik ialah :

1.  Riadah – apabila anda mengesan masalah bakal melanda dan cuba menguasai diri anda :

kosongkan diri anda serta merta, tarik nafas yang panjang – tahan dan hembus perlahan-lahan (3 X berturut-turut), tutup mata perlahan-lahan seolah-olah anda mula tidur, pandang (antara dua kening) seolah-olah anda berada dalam cahaya yang terang bersuhu nyaman, angin sepoi-sepoi bahasa, suasana di tepi pantai yang indah. 

2. Minda -  segera bersangka-baik (yakin yang negatif tidak selamanya negatif dan ianya pasti berubah menjadi positif), banyakkan senyuman, sentiasa berpesepsi positif - mengambil pengajaran dari kegagalan – menjadikannya satu kekuatan untuk bangkit walaupun jatuh berkali-kali, tidak mudah berputus asa, jika anda sakit - anda akan segera makan ubat dan bertemu dengan doktor, anda akan sentiasa berteguh cita-cita – berusaha ikhtiar – berdoa  - dan berserah setelah bekerja keras untuk mencapai cita-cita yang diidamkan.

Anda akan dapati produktiviti, kualiti kerja malah perniagaan yang anda jalankan mendapat keuntungan (samada besar atau kecil). Lebih menakjubkan anda sendiri tetap berperasaan gembira dan ceria.

PADAMKAN DAN LUPAKAN PERKATAAN ‘GAGAL’ DARI KAMUS DAN DIARI HDUP ANDA

Sekiranya anda boleh berada dalam suasana seperti ini dan mengekalkannya sehingga melihat hasil yang memberangsangkan, saya yakin, gelombang yang dicetuskan dari diri anda adalah berbentuk positif, anda mendapat ketenangan menerusi kesabaran, sentiasa gemar mendapatkan nasihat yang baik, sifat ingin mencontohi mereka yang berjaya malah anda akan kagum melihat mereka yang gagal tetapi tidak pernah putus asa dan bangkit dari kejatuhan dsb.

Anda juga akan bersifat lebih menyintai kemanusiaan – tiba-tiba terasa perasaan insaf dalam diri anda, tiba-tiba menjadi seorang penderma yang ikhlas – membantu mereka yang dalam kesempitan – menjaga alam sekitar – dll.

Anda menjadi seorang pemberi yang tidak pernah mahukan sebarang balasan kerana anda yakin bahawa setiap kebaikan akan dibalas dengan kebaikan. Tanpa disedari, anda juga mendapati anda dikelilingi oleh mereka yang berfikiran positif dan sentiasa berjaya.

Malah tidak mengejutkan saya jika anda akan dapat "hidupkan jiwa-jiwa yang mati" dan mereka yang pernah gagal akan menjadikan anda sebagai contoh untuk mereka kembali berjaya!!

Kekuatan minda umpama ini sangatlah luarbiasa – ianya mampu menukar suasana  ‘causality loop’ kepada ‘ripple effects’  (2) yang membuka peluang demi peluang (seolah-olah tidak pernah kehabisan) dan anda rasakan diri anda sangat bertuah, menyedari betapa luasnya dunia ini terbentang menyediakan pelbagai perkara menarik yang masih belum anda terokai.  

(2) the continuing and spreading results of an event or action.

Anda menjadi seorang yang idealistik dan inovatif.  Andalah pelukis hidup anda sendiri. Anda juga menjadi seorang yang suka berterimakasih dan selalu bersyukur kerana dikurniakan akal yang bijak dan matang.  Pola pemikiran ini akan mempengaruhi tindakan anda. Anda sentiasa melihat jalan keluar dari segala masalah anda. 

Objektif anda adalah satu : “UNTUK BERJAYA”

PILIHLAH MASA DEPAN YANG CERAH SEKARANG!