Corporate Governance

Submitted by:
Asadali Attarwala
Roll no. 06
Div-C
Submitted to :
Prof.Kagal

Gajra Bevel Gears Limited-Introduction

Founded by Late Shri I. S. Gajra in 1962.

It offers a wide range of around 1700 gears for virtually every major brand of truck, car, jeep,
and tractor.

Itboasts a strength of over 1000 trained and committed employees

Turnover of around Rs. 400 million.

Export in 40 countries including USA.

Its exports more than 50% of its production globally.

RISK DESCRIPTION

RISK TYPE

IMPACT

HANDLING OPTION

COMMENTS

EXPANSION OF
DELIVERY CENTRES

POLITICAL

BUSINESS AND LAW

AVOID RISK

DUE DILIGENCE OF
POLITICAL
STABILITY

EMERGENCE OF NEW
TECHNOLOGIES

TECHNOLOGICAL AND
BUSINESS

LACK OF HUMAN
CAPITAL AS WELL AS
PROVIDING BUSINESS
CHALLENGES TO
TRADITIONAL
CUSTOMERS eg
CLOUD COMPUTING
AND EARLIER
FAILURE OF ASP
MODEL

RISK MITIGATION AND

CONTROL

NEED FOR STRATEGIC

PLAN ON
ACQUISITION AND
FORTIFICATION OF
CORE COMPETENCES
IN EMERGING
TECHNOLOGIES AND
INITIATIVES SUCH AS
IFRS
3BL ETC

RISK DESCRIPTION

RISK TYPE

IMPACT

HANDLING OPTIONS

COMMENTS

GLOBAL ECONOMIC
RISK

ECONOMIC RISK

SLOWDOWN OR
MELTDOWN IN THE
ECONOMIES WILL
AFFECT THE
GROWTH

RISK LIMITATION
IMPROVE ON IT
THROUGH EFFECTIVE TECHNOLOGY WITH
COST CONTROL AND CONSTANT GROWTH
WASTAGE
MINIMIZATION

ANTI BRIBERY

BUSINESS ETHICS

LOSS OF REPUTATION AVOID SUCH KIND OF

RESULTING IN BAD
SUCH BUSINESS
IMAGE

Keeping Balance
between Demand
and supply of
manpower

Human capital risk

ALSO ATTRACTING
TALENTED PEOPLE
AND ATTRITION
REMAINS A RISK.

NEED TO HAVE
STRONG VALUES AND
EFFECTIVE
MONITORING

THROUGH EFFECTIVE COMPARABLE

HUMAN CAPITAL
REMUNERATION
MANAGEMENT
STRUCTURE,
MATURED HR
PROCESS AND
VARIOUS INITIATIVES

RISK DESCRIPTION

RISK TYPE

IMPACT

HANDLING
OPTIONS

COMMENTS

CUSTOMER
INSOVENCY

FINANCIAL

MOUNTING ACR
LEADING TO BAD
DEBTS

RISK CONTROL
THROUGH
INSURANCE

DEALING THROUGH
BANKS

PLANNING BY SBU

HUMAN RESOURCE
CAPITAL

REDUCE CORE
COMPETENCE

RISK CONTROL

KEEP IN TOUCH
WITH ADVANCED
TECHNOLOGIES

OCCURRENCE OF
EVENT WHICH
CREATES A BAD
NAME FOR THE
COMPANY

REPUTATIONAL

FINANCIAL ,
SOCIETAL

RISK CONTROL

STRONG ETHICS TO
MINIMIZE NEGATIVE
EFFECTS OF
REPUTATIONAL RISK

RISK DESCRIPTION

RISK TYPE

IMPACT

HANDLING
OPTIONS

COMMENTS

NEW PRODUCT
ANNOUNCEMENT

TECHNOLOGICAL

CUSTOMER
DISSATISFACTION

RISK CONTROL

OFFER NEW
PRODUCTS TO
RETAIN CUSTOMER
BASE

SUCCESSION
PLANNING FOR
TECHNICAL
PEOPLE

HUMAN RESOURCE

LOSS OF HUMAN
CAPITAL

RISK CONTROL

HAVE SECOND
LINE OF PEOPLE
FOR KEY POSTS

LAWS BANNING
AND
OUTSOURCING

POLITICAL

INABLITY TO DON
BUSINESS IN MANY
COUNTRIES
WITHOUT LOCAL
PARTICIPATION

RISK SHARING

ENTER INTO JV OR
LOCAL PARTNER
FOR SETUP

RISK DESCRIPTION

RISK TYPE

IMPACT

HANDLING OPTION

COMMENTS

COMPETITION RISK

BUSINESS

STIFF COMPETITION
CAN LEAD TO
PRESSURE ON
PRICING, VENDOR
CONSOLIDATION
AND THEREFORE
CAN IMPACT
COMPANY
GROWTH AND
PROFITABILITY.

PRICING CONTROL

DELIVERY
CAPABILITIES AND
EFFICIENT SALES
FORCE AND
RELATIONSHIP
MANAGERS TO
HELP RETAIN ITS
COMPETITIVE
POSITIONING
AMONGST PEERS

CURRENCY
VOLATILITY

ECONOMIC

VARIATION IN
EXCHANGE RATES
CREATES IMBALANCE
IN REVENUES
ESPECIALLY IF RUPEE
APPRECIATES
AGAINST A CURRENCY

NEED TO HAVE
STRONG VALUES
STATEMENT AND
EFFECTIVE
MONITORING
PROCESSES TO
THWART ATTEMPYS AT
RECEIVING /GIVING
BRIBES