RISK

For easy classification lets consider these major parameters of analysis of risk information
1)
Risk Identification

JSW

8 risks identified - Demand & supply gaps, Infra & logistics, Global financial market,
Investment & project risk, reputation risk, Talent management risk, System risk, Environmental risk

Tata Steel
6 risks identified - Macro environment risk, Industry cyclicality, Regulatory environment, Raw
material & Price volatility, Health/safety/Environment risk, FOREX risk

Comments:
JSW : Provides wide scope of risk identification but very less detailed explanation
Tata steel: Deeper explanation of each identified risk parameter for e.g. macro economic
factor Eurozone crisis
2)

Risk Mitigation How & Who

JSW
1. HOW: Committee Of Sponsoring Organization Framework Max +ve impacts, Min ve impacts,
Risk to opportunities (NEW PRODUCTS)
2. WHO:
Risk owners : Identify risk, opportunity & response plan
High risk affecting unit discussed at respective location
Risk affecting entire company discussed at corporate location
Risk committee of Directors + 3 independent director (review framework) + macro risk and
opportunities
a. Review meeting every 3 months
b. Key Members participation
i. Dr. S. K. Gupta (Chairman)
ii. Mr. Seshagiri Rao (MED)*
iii. Mr. Jayant Acharya (MED)*
iv. Mr. Uday. M. Chitale (MED)*
v. Mrs. Punita Kumar Sinha (MNEID)**
Tata Steel
HOW: Internal Audit control system: Review risk management, financials, operation control
HOW: Assess the opportunities and add value to organization by implementing corrective action

Comments:
JSW : Good risk mitigation contents with detailed process and key participation of members of risk
committee meeting which shows the level of involvement
Tata steel: Poor description of risk management procedures
3)

Risk Measures
JSW :Isolate BF gas leakage by installing a system for online monitoring
Health and safety training to guide new employees.
Waste to wealth : Mill scale briquetting
Raw material innovation VCM ( > Durable

TATA Steel : process optimization of alumina feeding : less coke consumption

Minimizing diesel consumption, emission, optimizing cost
Use of discarded plastic bottles to improve blast parameters of cast iron
Soil erosion Use of Vetiver grass for stabilization of dump slopes

Comments:
JSW & Tata steel : Both are equally innovative and are able to describe the new eco friendly
products to cater the new needs and market at the same time mitigating their risk to environment.