Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
College of Accountancy, Business, Economics and International Hospitality Management
ACTIVITY NO. 4
MGT 209 – Governance, Business Ethics, Risk Management and Internal Control
BSA 2103
Leader: Florendo, Cristina B.
Members: Dalisay, Shaira Mae G.
Dimailig, Reica Jane M.
Eugenio, Christine Joy R.
Gupit, Jhorja O.
1. Reputation Risk
IMPACT/CONSEQUENCE
LIKELIHOOD
5
4
3
2
1
Catastrophic
Major
Moderate
High
Insignificant
5
Almost Certain
Extreme
(25)
Extreme
(20)
High
(15)
High
(10)
Moderate
(5)
4
Likely
Extreme
(20)
High
(16)
High
(12)
Moderate
(8)
Moderate
(4)
3
Possible
High
(15)
High
(12)
Moderate
(9)
Moderate
(6)
Low
(3)
2
Unlikely
High
(10)
Moderate
(8)
Moderate
(6)
Low
(4)
Low
(2)
1
Rare
Moderate
(5)
Moderate
(4)
Low
(3)
Low
(2)
Low
(1)
Likelihood
Rating
Almost Certain
Impact/
Consequences
Catastrophic
Risk
Rating
Extreme
(25)
Description
Risk that significantly exceeds acceptable
tolerances and needs urgent and
immediate attention.
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
In January 2001, Fox TV began airing the Temptation Island reality series. The idea
behind the show was to put four committed but unmarried couples to the test of their loyalty
by giving them a chance to interact with the single contestants however they want. Globally,
religious and conservative groups protested against the show because its concept violated
their moral standards. On the basis that it legitimized unlawful sex and jeopardized the
relationships of the participating couples, the program's critics, notably religious and
conservative groups, demanded that it be stopped.
Several family associations have also accused Fox TV of exploiting the entertainment
value of sex and infidelity. The fact that one of the four participating couples in the show had
a newborn kid made the situation worse. Moreover, in the protesters' campaign, these
people revealed the advertisers' identities to the public and urged the public to compel the
advertisers to boycott Temptation Island. It must be noted that similar responses to the
program were observed in other nations, particularly in conservative countries like Japan,
Taiwan, and India. Even before the first episode aired in Taiwan, the program was cancelled.
Moreover, the Star TV network had to abandon its plans to produce an Indian version of the
program due to the fact that it faced fierce objections from the public.
The following information proved why the likelihood of reputation risk is almost certain.
As soon as Fox TV’s Temptation Island was aired, it already got involved to several
controversies due to its unethical and offensive show. In a matter of months, several
controversies emerged that affected its reputation to the public. Even if the program’s first
episode in Season 1 received high ratings from its viewers, its downside was, it also garnered
unlimited criticisms from critics, religious and conservative groups. In short, due to these
never-ending controversies, regardless of how high the rating of the show was, Fox TV still
obtained long-term damage to reputation. As a result, in the risk assessment matrix, the
rating of the reputation risk of Fox TV is considered extreme.
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
2. Financial Risk
IMPACT/CONSEQUENCE
LIKELIHOOD
5
4
3
2
1
Catastrophic
Major
Moderate
High
Insignificant
5
Almost Certain
Extreme
(25)
Extreme
(20)
High
(15)
High
(10)
Moderate
(5)
4
Likely
Extreme
(20)
High
(16)
High
(12)
Moderate
(8)
Moderate
(4)
3
Possible
High
(15)
High
(12)
Moderate
(9)
Moderate
(6)
Low
(3)
2
Unlikely
High
(10)
Moderate
(8)
Moderate
(6)
Low
(4)
Low
(2)
1
Rare
Moderate
(5)
Moderate
(4)
Low
(3)
Low
(2)
Low
(1)
Likelihood
Rating
Possible
Impact/
Consequences
Major
Risk
Rating
Description
High (12)
Risk that exceeds the risk acceptance
threshold
and
requires
proactive
management
The overall performance of Temptation Island affected the show's profitability because
Several Asian countries decided to ban Temptation Island from being shown on television;
Hence, explains the decrease in the networks’ profitability and the performance of their
financial stability.
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
3. Business Risk
IMPACT/CONSEQUENCE
LIKELIHOOD
5
4
3
2
1
Catastrophic
Major
Moderate
High
Insignificant
5
Almost Certain
Extreme
(25)
Extreme
(20)
High
(15)
High
(10)
Moderate
(5)
4
Likely
Extreme
(20)
High
(16)
High
(12)
Moderate
(8)
Moderate
(4)
3
Possible
High
(15)
High
(12)
Moderate
(9)
Moderate
(6)
Low
(3)
2
Unlikely
High
(10)
Moderate
(8)
Moderate
(6)
Low
(4)
Low
(2)
1
Rare
Moderate
(5)
Moderate
(4)
Low
(3)
Low
(2)
Low
(1)
Likelihood
Rating
Likely
Impact/
Consequences
Major
Risk
Rating
Description
High (16)
Risk that exceeds the risk acceptance
threshold
and
requires
proactive
management.
For the sake of money and views, Fox TV aired “Temptation Island.” It is about couples
who are being tempted in order to test the strength of their relationships. It is not pleasing to
see a show that looks like tolerating someone to cheat on their partners. The management
of the show thinks that the audience will support and watch their show just because they
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
have a unique and interesting show. Basically, the idea of the Fox Tv is to use the four
unmarried couples to test their loyalty with single contestants to gain engagements so that
the show will surely earn a lot.
4. Fraud Risk
IMPACT/CONSEQUENCE
LIKELIHOOD
5
4
3
2
1
Catastrophic
Major
Moderate
High
Insignificant
5
Almost Certain
Extreme
(25)
Extreme
(20)
High
(15)
High
(10)
Moderate
(5)
4
Likely
Extreme
(20)
High
(16)
High
(12)
Moderate
(8)
Moderate
(4)
3
Possible
High
(15)
High
(12)
Moderate
(9)
Moderate
(6)
Low
(3)
2
Unlikely
High
(10)
Moderate
(8)
Moderate
(6)
Low
(4)
Low
(2)
1
Rare
Moderate
(5)
Moderate
(4)
Low
(3)
Low
(2)
Low
(1)
Likelihood
Rating
Likely
Impact/
Consequences
Major
Risk
Rating
Description
High (16)
Risk that exceeds the risk acceptance
threshold
and
requires
proactive
management.
Fox TV originally broadcast "Temptation Island" to the world in 2001, shocking
everyone in the process. Religious and conservative groups around the world protested the
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
show’s airing because of its concept of testing the fidelity of the four couples that were
brought on the show. Based on the case study, Fox TV denied the accusations about them
promoting illicit sex, relying heavily on sex to bring in the viewership, and also breaking up
happy couples. They also said that the objective of the show was to study the dynamics of
the relationships rather than just sex. Ironically, their actions contradicted their words
because before they let the participants join the show, they had to get tested for sexually
transmitted diseases.
5. Legal Risk
IMPACT/CONSEQUENCE
LIKELIHOOD
5
4
3
2
1
Catastrophic
Major
Moderate
High
Insignificant
5
Almost Certain
Extreme
(25)
Extreme
(20)
High
(15)
High
(10)
Moderate
(5)
4
Likely
Extreme
(20)
High
(16)
High
(12)
Moderate
(8)
Moderate
(4)
3
Possible
High
(15)
High
(12)
Moderate
(9)
Moderate
(6)
Low
(3)
2
Unlikely
High
(10)
Moderate
(8)
Moderate
(6)
Low
(4)
Low
(2)
1
Rare
Moderate
(5)
Moderate
(4)
Low
(3)
Low
(2)
Low
(1)
Likelihood
Rating
Impact/
Consequences
Risk
Rating
Description
Republic of the Philippines
BATANGAS STATE UNIVERSITY
Pablo Borbon Campus
Rizal Avenue Ext., Batangas City, Batangas, Philippines 4200
Tel Nos.: (+63 43) 980-0385; 980-0387; 980-0392 to 94; 425-7158 to 62 loc. 1124
E-mail Address: cabeihm.pb@g.batstate-u.edu.ph | Website Address: http://www.batstate-u.edu.ph
Likely
Major
High (16)
Risk that exceeds the risk acceptance
threshold
and
requires
proactive
management.
Fox TV might have the legal risk because the Temptation Island went controversial.
The concept promoted the illicit affair and sexual issues which may affect the morale and
values of the viewers. The promotion of the show made other countries think twice before
they could accept it. In countries where conservative organizations and religious groups are
actively participating in the community, the show should be banned or boycotted. For
instance, Randall Murphree of the American family association remarked on the show to
upset the different groups.