Page 42 - AirSelangor_Sustainability_Report_2021

Key Business Risks Key Risk Management Strategies & Action Plans
Environmental risk • In managing effluent and residuals, Air Selangor developed Residuals Treatment
Facility (“RTF”) within its WTPs. There are also RTFs currently being developed and
Air Selangor’s operations result in
under planning to ensure full compliance with environmental regulations.
impacts on the environment where
the Company produces effluent, • The residuals produced can potentially be reused for other applications, and Air
water treatment residuals, and solid Selangor is working toward identifying alternative use of residuals to reduce the
waste which need to be managed in volume of residuals from being landfilled.
accordance with the Environmental • Implemented asbestos removal procedures for Asbestos Cement (“AC”) pipes.
Quality Act. • Organised environmental awareness programmes on Scheduled Waste Compliance
and 4R activities.

Low reserve margin • The construction of the Rasau Water Supply Scheme will help increase the water
reserve margin and reduce dependence on the Sungai Selangor river basin.
The water reserve margin is important
to ensure availability and continuous • Increasing the coverage of the distribution pipeline to optimise distributable capacity
water supply to customers, in from WTPs to customers.
meeting water demand.

Potential shortfall in meeting the • Air Selangor continuously improves its billing efficiency and accuracy to minimise
NRW target potential shortfall in NRW.
NRW is one of the key indicators for • Implementation of NRW programmes.
operational efficiency. • Continuous asset improvement programme to improve asset performance and reduce
leakages.
• To enhance pipe replacement project planning.
• Formulated 5-years plan for Commercial Loss Reduction programme.
• Implemented Field Service Management.

Project delay • Developed a project risk assessment framework and implemented project risk
assessment for construction and infrastructure projects (under CAPEX).
Project delay may lead to increased
project costs, inability to improve • Introduced more stringent tender evaluation to manage projects with high
performance or service quality and investment value.
affects the achievement of SPIs.

Succession planning • Each department and region is expected to identify and create relevant succession
plans relevant to their specific job scope.
As the sole water operator in Kuala
Lumpur, Selangor, and Putrajaya, • Established Talent Programme and Talent Council to drive efforts in further developing
succession planning is important to top talent within the Company.
ensure smooth operations.
Land acquisition challenge • Formalised the land settlement agreement with State Government.

Land acquisition is vital for the future • Dedicated staff to manage land paperwork for Rasau Water Supply Scheme.
development of water treatment and • Dedicated and experienced land liaison officer to manage Land Offices and local
distribution assets to meet consumer authorities for Rasau Water Supply Scheme.
demand.
1 The Air Selangor Risk Profile outlined here is valid as of 31 December 2021