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Fukushima - an Analysis of Risk

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ACCT 5919 – Fukushima – An Analysis of Risk Management Issues

ACCT 5919 – Business Risk Management

Fukushima – An Analysis of Risk
Management Issues

Page 1 of 11

ACCT 5919 – Fukushima – An Analysis of Risk Management Issues

1.0 Executive Summary
On 11th March 2011, Japan witnessed the second largest earthquake with a magnitude of 9.0 with its epicentre at Tohoku. The earthquake gave rise to a Tsunami which hit the Fukushima nuclear reactor run by The Tokyo Electric Power Company (TEPCO). The disaster escalated by triggering a series of power and equipment failures, explosions, nuclear meltdowns and release of radioactive material. The disaster was regarded as a manmade disaster which could have been avoided with appropriate human response as stated by the chairman of NAIIC,
Professor Kiyoshi Kurokawa (Bloomberg, 2012). TEPCO lacked a sense of responsibility to ensure safety and protection to the people effected by the disaster.
The nuclear incident was caused by poor earthquake safety planning and faulty post-tsunami communication. The collusion between TEPCO and the regulators resulted in there being no separation of atomic regulation and promotion which led to nuclear power become unstoppable force immune to scrutiny. TEPCO, government and the regulators failed to develop the most basic safety requirements like assessing the probability of damage, preparing for containment of collateral damage, and developing evacuation plans. The lack of training and knowledge among TEPCO’s employees greatly reduced the efficacy of response at a critical time after the earthquake and the Tsunami. As the crisis intensified, TEPCO, the government and the regulators failed to reduce the impact of the crisis from getting to epic proportions (Wakatsuki and Mullen, 2012).
By studying the flow of events, I have conducted an analysis of the risk…...

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