Malaysia Airlines System Berhad - Risk Management

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Was the response effective?

It’s devastating to say this, but Malaysia Airlines response wasn’t effective in many ways. As an organization they fail to have a proper management system. In the process of looking for MH370, Malaysia Airline was so focused on getting an answer that they forgot what they informing the public. They gave statements without solid evidence, and kept changing their information. It was a one way communication with Malaysia Airlines, they did not consider alternative viewpoint from others. Malaysia Airline was afraid of change; they were poor listeners and poor managers. They were so hooked up with getting a solution for MH370. In addition, they were really struggling in public eyes as a company. Yet, they decided to change the catering service to Brahim's Airline Catering Sdn Bhd, which is more costly than the previous cater service. Malaysia Airlines did not prioritize their objective which was customer’s satisfaction. Also, Malaysia Airlines decide to downsize almost 6000 staff to cut cost and claimed that this would help them to restructure the company for a better future. ( Al Jazeera Media Network, 2015) . Essentially, the steps Malaysia Airlines took were not adequate instead they ruin their own reputation due to their ineffective comments and answers.

What would you have done differently?

Today, when public hears the word Malaysia Airlines the first thought would be something awful. This is because, Malaysia Airlines is known for their back to back fatal accident. Although it has been two years since the accident, however the public is not able to get out of the situation. If I was the head of Malaysia Airlines, I would select a spokesperson that is able to address concerns with the media, in a more professional manner as well as with solid evidence. This spokesperson needs to convince the media and public on the safety of the airline and also how the company is taking steps to improve and correct their mistakes.

Moreover, I would rebrand the organization. I would change the vision, mission, and layout of the company. By rebranding the company, it might help to change the airline image and reputation so that public does not associate MH370 or MH17 with the new airline. Besides that, Malaysia Airlines could address the latest disaster by expressing sympathy and updates on where the airline will heading to through newspaper ads. Malaysia Airlines claim that they follow the steps of the SOP, however when asked where is the SOP placed, no one could tell. An organization SOP should be at a suitable place, where it’s visible and easy access to. Malaysia Airlines and Malaysia government declare passengers and crew member dead, without any evidence. As far as the law is concern, to announce if a person is dead it takes 7 years, if there isn’t any evidence of the person. Malaysia Airline should not have acknowledged passengers and crew members’ death without finding solid evidence.

Last but not least, Malaysia Airline could interview former customer/passengers and use that as a promotion. By interviewing a former passenger, it will help the public to regain their trust and confidence in Malaysia Airlines. In addition, one of the biggest and most careless mistake Malaysia Airline made was, by informing families of MH370 that passengers that board the plane was lost - through a text message. It is very significant to convey a certain message or news in a sensitive manner. This kind of news should have been conveyed with more compassion and empathy, sending such news via text message is very insensitive. (CommProGlobal, 2015)

Conclusion

Basically Malaysia Airline should improve in their management skills. One of the reasons Malaysia Airline is facing crisis is due to poor management skill. They should have an expert to assist them to manage the company. If the management were to change, there is hope for Malaysia Airlines to get out of this crisis. Many other organization can learn from Malaysia Airlines mistakes, however this could be a great lesson to them as well Malaysia Airline. No organization should ever repeat this mistake, because this inaccuracy will tarnish their reputation. Therefore, company should make advance planning, especially double checking. It is very important to plan ahead for any promotion or event. Next, company should always try to think “what/how could go wrong”? Companies have to be proactive and expect the unexpected. Thus, if anything goes wrong company has a plan on how to solve the issue. Malaysia Airline needs to plan and prepare ahead, so they can react to some of their risks. Also, the company needs to know how to accept the risk and transfer the risk as well. It does not matter where who and what you are, but risk is something we all face. All company and individual are exposed to risk, what matters most is, what you are going to do about it.