Risk Management

Project Details

Case: Company planning to set up a factory for consumer durable products in one of the Indian villages

Methodology: IICPL’s team of researchers conducted field research and location risk assessment of the identified location for the same. Checks were done to understand all kinds of risks that might pose an impact on business operations. This included understanding the local scenario and demographic profile of the area, crime statistics from local police, availability of local labors, the profile of local NGOs available, traffic conditions, connectivity of the village to understand the nearest rail track, seaport and airport, supply chain risks, emergency services, local community issues, regulatory conditions, HSE analysis etc.

Risk Identification: Field intelligence was conducted to ascertain the risks associated with the location and it was found that the area has low availability of talent pool and they would not allow all labors from outside without their employment. Hence, it was suggested that the company needs to quickly set up a training center for the locals and start training them so that they get acquainted with the process soon and they don’t create a bottleneck for outside employment. We involved some local NGOs also to pacify the situation with the locals. Further, local travel was a risk as the conditions of the road was very bad and crime data indicates road rage, petty crimes after sunset. Hence, the company needs to set up a security supported movement of employees in case there is a delay in moving out of the office. No major risk was identified but developed the risk parameters and tabulated them in a way that can easily demonstrate the risk patterns. We provided details of all emergency services located nearby such as nearby hospitals, police stations, fire stations, etc.