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also can diversified the credit risk. Moreover, there are few such ways that can beauthorised the credit risk such as application for the approvals and monitor and limit
39the procedures. As mentioned previously, the deposits, derivative security and bankbalance, if these take place in the the major financial institution and the reputablecompanies by Airasia group and company, if it well manage and control the risk alsocan be diversified. Airasia had announced on the financial report about they do nothave any concentration issue on credit risk that arise by the trade receivables.2. Safety RiskIt is also called hazard risk, it is a risk that a person will suffer harm or damage suchas, from physical hazard, moral and morale hazards or from accidents. There is twosafety risk has happened for the airasia. The first news is the Perth to Bali flights,there was a technical issue on the flight QZ535 of the the lost of pressure in the cabinand fall about 20000 feet gap, the watchdogs from the Australia transportationdepartment had realised this issue for the initial investigations. After the 20000 feetplunged from 32000 to 100000 feet, the airplane crew members ask the passenger tostay calm and get down, and the oxygen mask drop and wear. They also ask thepassenger to stay down in a steady and sustainable position. After all the dramaticincident happened, no one is injured and no one suffer from damage. After the flights,a post investigation and maintenance test were implemented and the result is the cabinpressure was faulty. This is where a plane and passenger safety will be risk at whenthere is without a proper maintenance. (Appendix 3) Second case is about theIndonesia to Singapore flights QZ8501 got crashed and fall into Java Sea in nearBorneo and it had a lost of contact after the 40 minutes flights. A preliminaryinvestigation said that it might happened because of the bad weather is one of thebiggest factor in the crash. The reporters said there is also a technical issue about thereis a little crack on the tiny electronic module and it had impacted on the system thatshows resetting system continuously and the pilot remove the autopilot, it had alsolost control when the pilot tries to turn left, afterwards it unable to turn right and theplane crashed. During the flights, there were 155 passengers in total, include 17children and one infant. (Appendix 4) Not forget to mention, there are also 7 crewsinclude 2 pilots, four flight attendants and one engineer were passed away during thisincident. This is why the weather report and the maintenance of plane is important inorder to keep safety and prevent from incident happens.
40ii. Recommend two other viable sources of financing1. Commercial PaperOne of the financial instruments I would like to suggest is “Commercial Paper” forAirAsia Berhad. Commercial paper, also known as unsecured loan is a short term debtinstrument usually less than a year or 270 days that usually will be invested by thecorporations. Once in a while, the commercial paper will be offer in interest bearingnotes, and it usually issues on discount to its par value. In another words, means acorporation buy below the par value and receive the par value when it has reached the