In the midst of Global Financial Crisis, which was started in 2006 blamed on Subprime mortgage that brought subprime lenders to collapse starting the year 2007, Sunday night, 18 January 2009: The North Jakarta’s Pertamina Plumpang depot tank no. 24 with a capacity of 5,000 kiloliters of premium, caught fire with early calculations of Rp 22.5 billion loss of state funds.
Three (3) days before, a double bird strike by Canadian Geese has brought down US Airways Flight 1549, flying from New York to North Carolina in the Hudson River today. According to the Bird Strike Committee, bird strikes cause about $600 million worth of damages to the aviation industry every year, while birds flying into planes doesn't even register as turbulence, although around 200 people have been killed since 1988 due to collisions in the air with birds. The size of the bird doesn't matter because even small birds can get stuck in the engines and bring down the plane.
Three (3) days later, as Obama takes oath, Banks plunge deeper into crisis. Shares of Bank of America dropped a dramatic 29 percent, those of Citigroup 20 percent, JPMorgan Chase saw drops of over 20% and State Street Corp. shares dived 59 percent.
Japanese exports fell 27% year-over-year in November, the largest fall ever; remember, exports were a major reason Japan finally emerged from its decade-long slump a few years ago.
Thai exports fell 19% year-over-year in November, the first decline since 2002 - and exports make up 70% of GDP. The numbers may have been artificially reduced by political conflict in late November, but political conflict is hardly a good thing in itself.
China is looking less and less like the big winner of the global recession and more and more like a significant loser. 10 million migrant workers have lost their jobs by the end of November. In response, “the State Council, China’s highest governing body, issued a decree to local governments over the weekend ordering them to create jobs for migrant workers who had returned to their home towns.” Prime Minister Wen Jiabao went as far as saying that a government priority is to “make sure all graduates have somewhere constructive to direct their energy” - somewhere other than social protest, that is.
South Korea announced its bailout plan - $30 billion in foreign currency reserves made available to its banks, and a $100 billion guarantee on new foreign debt of its banks. Korea banks’ have a disproportionately high level of foreign currency obligations. The central government has $240 billion in foreign currency reserves, but that may or may not be enough to support its banking sector, which has $235 billion in foreign liabilities.
Worst things happens….!!!! How could these things happened?
Finger pinpointing surround the situations has blamed different groups as the reasons behind the worst conditions.
Enterprise Risk Management (ERM) divisions where in 24 hours call a day, 7 days a week.
Looking back into last month’ GCG columns on FACT (Fairness-Accountability-Clarity-Transparaency), that needs to be implemented to get an excellent CITRA (Clarity-Integrity-Transparaency-Responsibility-Accountability), then we may need to look back into the GCG implementation.
Without Excellence in GCG implementation, there will be no ERM Excellence, since those two are spouses. Manipulated data that brought in into Excellent ERM machine will not work – GARBAGE in GARBAGE OUT……!!!!!
