A SUMMER INTERNSHIP PROJECT REPORT ON

“Risk Identification and mitigation in Corporates and their insurance purchase practices”

Submitted in Partial Fulfilment of the Requirement for the Award of the Degree of Post Graduate
Diploma in Management
of
National Insurance Academy
By
Neha Gupta
2224072
Under the Guidance of
Company Mentor: Faculty Guide:
Mr. Thomas Chandy Dr. Shalini Tiwari
Regional Manager Faculty
Mahindra Insurance Brokers Ltd. NIA, PUNE

Internship Duration
2nd May 2023 – 30th June 2023

i
 DECLARATION

I the undersigned solemnly declare that the project report – “Risk Identification and mitigation
in Corporates and their insurance purchase practices” is based on my own work carried out
during my study under the guidance of Mr. Thomas Chandy– Regional Sales Manager,
Mahindra Insurance Brokers Ltd.
I assert the statements made and conclusions obtained are an outcome of my research work. I
further certify that:
I. The work contained in the report is original and has been done by me under the general
supervision of my mentor.
II. I have followed the guidelines provided by the organization in writing the report.

III. Whenever I have used materials (data, theoretical analysis, and text) from other sources, I
have given due credit to them in the text of the report and giving their details in the references.
IV. This report is my original work and interpretations drawn therein are based on the material
and data collected.

Neha Gupta
(Enrolment No: 2224072)
PGDM (2022-2024)
National Insurance Academy
Date:

ii
 COMPANY CERTIFICATE

This is to certify that Ms. Neha Gupta, PGDM student of National Insurance Academy, Pune, has
worked at Mahindra Insurance Brokers Ltd. under my mentorship and supervision on the project
titled “Risk Identification and mitigation in Corporates and their insurance purchase practices”
from 2nd May 2023 to 30th June 2023. She has submitted this report after the completion of her
designated project for the partial fulfilment of her master’s degree.

Date:

Mr. Thomas Chandy

Regional Sales Manager
Mahindra Insurance Brokers Ltd.

iii
 CERTIFICATE OF FACULTY GUIDE

This is to certify that Ms. Neha Gupta, PGDM student of National Insurance Academy, Pune, has
worked at Mahindra Insurance Brokers Ltd. under my mentorship and supervision on the project
titled “Risk Identification and mitigation in Corporates and their insurance purchase practices”
from 2nd May 2023 to 30th June 2023. She has submitted this report after the completion of her
designated project for the partial fulfilment of her master’s degree.

Date:

Dr. Shalini Tiwari

(Faculty)
National Insurance Academy, Pune

iv
 Acknowledgement
I take this opportunity to thank Mr. Thomas Chandy, Regional Sales Manager, Mahindra
Insurance Brokers Ltd. for guiding me throughout my internship period and for being an immense
source of inspiration, knowledge, and support. I sincerely appreciate the support and direction
provided to me.

I am grateful to my faculty guide Dr. Shalini Tiwari, National Insurance Academy, Pune, who has
provided me guidance on each step. He read all the reports and made valuable suggestions. Without
her support, this study would not have been complete. I express with a deep sense of gratitude and
regard my appreciation to him for his advice and valuable suggestions.

I am thankful to the National Insurance Academy, Pune for giving me such a golden
opportunity of working with such a reputed company.

I am also grateful to Mr. Rishabh Goyal, Mr. Rajneesh Kumar and Mr. Ravichandran
Shankaramakrishnan from Mahindra Insurance Brokers Ltd. for extending their invaluable
support and resources which were very helpful for me to complete my project.

I would like to express my gratitude to all those in the organization who extended their support
and time for answering my queries and helping me in finishing my project on time.

I would also like to thank my colleagues from PGDM who supported me in my project work
by extending their help, support, interest, and valuable hints in doing my study.

Neha Gupta
2224072
PGDM (2022-24)
National Insurance Academy, Pune

v
 Contents
Declaration ii
Company Certificate iii
Certificate of Faculty Guide iv
Acknowledgement v
Abstract vii
Chapter 1 Introduction 1-5
1.1. Risk……………………………………………………………………………... 1
1.2.Need of the Study……………………………………………………………….. 3
1.3.Risk Identification………………………………………………………………. 5
1.4.Hazop Method for risk identification…………………………………………… 5
Chapter 2 Literature Review 8- 11
2.1. Literature review table ………………………………………………………… 8
2.2. Summary of table ……………………………………………………………… 10
Chapter 3 Research Methodology 12-21
3.1. Procedure……………………………………………………………………….. 12
3.2. The Questionnaire……………………………………………………………… 12
3.3. Data Sampling …………………………………………………………………. 16
Chapter 4 Data Analysis 22-33
4.1. Data Type………………………………………………………………………. 22
4.2. Types of risk considered in the project ………………………………………… 22
4.3. Risk Analysis…………………………………………………………………… 27
Chapter 5 Conclusion 34-35
5.1. Risk Identification ……………………………………………………………... 34
5.2. Risk Mitigation…………………………………………………………………. 35

vi
 Abstract
In today's dynamic and unpredictable business environment, companies face a multitude of risks
that can significantly impact their operations, financial stability, and reputation. Effective risk
identification and mitigation strategies, coupled with appropriate insurance coverage, play a
crucial role in safeguarding businesses against potential losses. This research study aims to
explore the risk identification practices and insurance purchase behaviors of companies across
diverse sectors, shedding light on the strategies employed to mitigate these risks.

The study involved a comprehensive survey conducted among 200 companies, out of which 70
responded, providing valuable insights into their risk management approaches and insurance
purchasing decisions. The data collected from the participating companies were analyzed to
identify common trends, challenges, and best practices related to risk identification and
mitigation.

The findings indicate that risk identification is a fundamental step in the risk management
process, enabling companies to proactively assess and understand potential risks. The survey
responses revealed that the majority of companies employ systematic approaches to identify
risks, such as conducting risk assessments, internal audits, and engaging with external
consultants specializing in risk management. The most frequently identified risks included
market volatility, operational disruptions, cybersecurity threats, regulatory compliance, and
natural disasters.

Once risks were identified, companies adopted various strategies to mitigate them. The study
found that a significant proportion of companies implemented risk mitigation measures, such as
implementing internal controls, diversifying suppliers, training employees on risk awareness, and
enhancing physical security. Notably, a subset of companies utilized advanced risk mitigation
techniques, including data analytics, artificial intelligence, and scenario modeling, to assess and
manage risks more effectively.

Regarding insurance purchase practices, the research revealed several important insights. The
survey respondents indicated that insurance coverage played a vital role in their overall risk
management strategy. A majority of companies recognized the importance of transferring certain
risks through insurance, thus mitigating potential financial losses. However, a notable finding
was that a considerable proportion of companies lacked a comprehensive understanding of their
insurance policies, terms, and coverage limits, highlighting the need for improved insurance
literacy among businesses.

Moreover, the study uncovered that cost considerations significantly influenced insurance
purchasing decisions. Companies often sought to balance insurance premiums with coverage
levels, negotiating with insurers to obtain favorable terms. Some companies also leveraged their
industry associations to pool risks and secure more cost-effective insurance solutions.

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While the research provides valuable insights into risk identification and mitigation practices, it
also highlights several challenges faced by companies in this domain. The lack of awareness,
resource constraints, and the rapidly evolving risk landscape were identified as common hurdles.
To address these challenges, the study recommends that companies invest in ongoing risk
management training, engage in knowledge-sharing forums, and adopt emerging technologies
that enable real-time risk monitoring and assessment.

In conclusion, this research contributes to the understanding of risk identification and mitigation
practices in companies and their insurance purchase behaviors. By shedding light on the
strategies employed by businesses, the findings can assist organizations in enhancing their risk
management approaches and making informed decisions when it comes to insurance coverage.
Ultimately, effective risk identification and mitigation practices, coupled with comprehensive
insurance purchase strategies, can significantly enhance a company's resilience in the face of
potential threats and uncertainties.

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 Chapter 1

Introduction

1.1. Risk

Risk is an inherent aspect of life, a double-edged sword that can shape destinies or lead to
undesirable consequences. It is the embodiment of uncertainty and the willingness to step
into the unknown. While commonly associated with negative outcomes, risk is a catalyst
for growth, innovation, and personal development.

At its core, risk represents the courage to take action despite the potential for failure. It
challenges us to push beyond our comfort zones and explore uncharted territories. Whether
it's embarking on a new career path, starting a business, or pursuing a daring adventure,
risk ignites the flame of progress.

Embracing risk is essential for personal and professional growth. It exposes us to diverse
experiences, broadens our horizons, and cultivates resilience. By venturing into the
unknown, we expand our knowledge, skills, and perspectives. Through trial and error, we
learn valuable lessons, developing the adaptability required to thrive in an ever-changing
world.

Moreover, risk is intertwined with innovation. Throughout history, great achievements

have been the result of daring leaps of faith. Innovators and entrepreneurs understand that
progress lies beyond the boundaries of the familiar. They embrace risk, knowing that failure
is not a defeat but a steppingstone towards success.

The dictionary meaning of the word risk is “a situation involving exposure to danger.”
Everything is prone to risk. But does this mean that you stop living in this world? Well, no.
We humans, with time have evolved and have come with various methods to deal with risk.
Mainly

A. Avoid –We can avoid a risk arising due to an event by not being a part of that event.

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B. Prevent- We can prevent a risk by taking proper precautions. But risk as we all
know is inevitable.

C. Control – The next thing we can do is control a risk. We can lessen the loss which
has occurred due to the risk which we could not.

D. Accept- We can accept the loss which might occur due to the risk and try to not get
affected financially.

E. Transfer – Or we can transfer some of the risk to somebody else and get ourselves
Insured.

If we look at all these options carefully. The options of Controlling, Accepting and
Transferring the risks are all viable options. And a person would try to reduce all its
financial risks by opting for a method which is a combination of these options.

After accepting that we all are prone to risks. The next logical step is the identification of
risks. What might affect our business? What might cause our business to face financial
losses? Risk identification is basically documenting a list of all those events. Although
nobody can predict the future, but one can always be prepared for the worst. The first step
of risk identification is to recognize uncertainties and possible sources of disruption to the
supply chain operation, both internal and external.

After listing out the risks, we need to understand that not all risks are insurable. Although,
the main concept of insurance is to transfer risk but it does not intend to cover all the risks.
It intends to cover the most probable ones. In the most basic terms, an insurer will deem a
risk insurable only if it is able to charge a premium that covers possible claims and
operating expenses while making a profit. Insurance companies typically cover pure risks.

Pure risks are risks that have no possibility of a positive outcome—something bad will
happen or nothing at all will occur. The most common examples are key property damage
risks, such as floods, fires, earthquakes, and hurricanes. Litigation is the most common
example of pure risk in liability. These risks are generally insurable.

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 Speculative risk has a chance of loss, profit, or a possibility that nothing happens.
Gambling and investments are the most typical examples of speculative risk. The
traditional insurance market does not consider speculative risks to be insurable.

In addition, other types of business risks are deemed uninsurable based on the potential
that a loss will occur outweighing the potential that it won’t. For example, deterioration of
property caused by wear and tear (because a decision was made to not maintain the property
in question) or income loss due to market changes are typically not insurable. Risk of loss
here may be avoided, or at least mitigated, with proper “controls” in place.

Corporates can be classified into various types. In this research we will be considering the
risks for various industries. The environment and businesses themselves are becoming
more vibrant and complicated. As a result, there is more risk and ambiguity when making
all important judgements. Therefore, prior to making any decision that has a substantial
impact on an organization's operations, it must be thoroughly analysed, planned, and risk
evaluated.
1.2. Scope of the study
The need of this study is as follows –
1.2.1. Understanding risk exposure: The study helps in identifying and assessing the potential
risks that corporations face in their operations. It allows companies to gain a
comprehensive understanding of the various risks they encounter, including financial,
operational, legal, and reputational risks.
1.2.2. Proactive risk management: By examining risk identification and mitigation practices, the
study promotes proactive risk management strategies. It enables corporations to anticipate
potential risks and take necessary preventive measures to minimize their impact, leading
to better overall risk management.
1.2.3. Financial stability and sustainability: Effective risk identification and mitigation practices
contribute to the financial stability and sustainability of corporations. By recognizing
potential risks and implementing appropriate risk mitigation measures, companies can
safeguard their financial health, reduce losses, and ensure long-term viability.

1.2.4. Protection against unforeseen events: Unpredictable events, such as natural disasters,
cyber-attacks, or regulatory changes, can significantly impact corporate operations. This
study emphasizes the need for insurance coverage as a tool to protect businesses against
unforeseen events, providing a safety net to mitigate potential losses.
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1.2.5. Optimal insurance purchase practices: The study sheds light on the best practices for
corporations when purchasing insurance policies. It explores factors like coverage
adequacy, policy terms, pricing, and risk transfer mechanisms. By adopting optimal
insurance purchase practices, companies can ensure they have appropriate coverage while
optimizing costs.
1.2.6. Compliance with regulatory requirements: Corporations are subject to various regulatory
requirements concerning risk management and insurance coverage. This study assists
organizations in understanding and complying with relevant regulations, ensuring legal and
regulatory compliance in their risk identification and mitigation practices.
1.2.7. Enhanced decision-making: The findings from this study can inform corporate decision-
making processes regarding risk management and insurance purchases. By providing
insights into risk exposure and effective mitigation strategies, decision-makers can make
informed choices that align with the organization's objectives and risk appetite.
1.2.8. Industry benchmarking: The study facilitates benchmarking exercises within industries,
enabling corporations to compare their risk identification and mitigation practices with
industry peers. This process encourages continuous improvement and the adoption of
industry best practices.
1.2.9. Overall business resilience: By focusing on risk identification and mitigation, this study
contributes to enhancing the resilience of corporations. A thorough understanding of risks
and effective mitigation measures equips organizations with the ability to withstand
adverse events, adapt to changing circumstances, and recover more efficiently.

Overall, this study on risk identification and mitigation in corporates and their insurance
purchase practices addresses the crucial need for effective risk management, financial
stability, regulatory compliance, and overall business resilience in the corporate sector.

1.3. Risk Identification

Risk identification is an important process in any endeavour, be it personal, professional,
or organizational. It involves recognizing and understanding potential threats and
vulnerabilities that may hinder the achievement of objectives or lead to adverse outcomes.
By shining a light on these hidden dangers, risk identification enables proactive planning,
mitigation, and ultimately, the preservation of success.

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 Effective risk identification requires a comprehensive and systematic approach. It involves
analysing various aspects, including internal and external environments, processes,
resources, stakeholders, and potential scenarios. By conducting thorough assessments,
potential risks can be uncovered, categorized, and prioritized.

There are different methods and tools available for risk identification, such as
brainstorming sessions, checklists, risk registers, and historical data analysis. Engaging
stakeholders and subject matter experts can provide valuable insights and perspectives,
ensuring a more holistic view of potential risks.

Furthermore, risk identification should consider both tangible and intangible risks. While
tangible risks are more easily observable, intangible risks such as reputation damage,
regulatory changes, or technological disruptions can have significant impacts. It is essential
to delve beyond the obvious and delve into the subtler aspects that may pose potential
threats.

By identifying risks in advance, organizations and individuals can implement proactive

measures to mitigate or eliminate them. Risk identification allows for the development of
contingency plans, risk response strategies, and the allocation of appropriate resources. It
facilitates informed decision-making and fosters a culture of risk awareness and
preparedness.

1.4. HAZOP Method for risk identification

HAZOP was developed in the 1970s by the chemical industry to identify risks (Dunjó,
Fthenakis, Velchez, & Arnaldos, 2010), and it has been mainly applied to the oil and
chemical industries to identify operational and safety hazards during the design and
redesign of processes (White, 1995).
A hazard and operability analysis, or HAZOP, is a systematic technique many risk
assessment teams use to identify potential hazards and problems with the operability of a
system or process. This kind of analysis has a relatively straightforward execution, and
when teams take the time and patience to thoroughly evaluate a system by this method,
they’ll be more prepared to address issues when they arise.

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A HAZOP analysis is based on the theory that risk events are caused by deviations in the
design or operational intent of a given system. It can apply to a wide variety of systems
and processes including pharmaceutical quality, industrial equipment handling,
environmental health impacts and more. It’s most useful for studying complex situations
as it allows them to be studied from multiple perspectives.
In its most basic form, the goal of a HAZOP analysis is to identify anything that may cause
harm to persons, property or the environment. These events are called hazards, and at least
for the purposes of this kind of study, they arise whenever a system deviates from its
intended purpose or plan in some way.
HAZOP studies are not exactly like a proper risk assessment. They do not require that the
probability or severity of a hazard be identified, only that the hazard be assessed as
“credible”. However, these studies can be used to identify potential risks in order for these
factors to be quantified during the risk assessment process.
There are four basic stages of a HAZOP analysis.
A. Definition: In the first step, the risk manager needs to choose their risk team. A
successful study cannot occur without the collaboration of a multidisciplinary team of
employees who will be able to provide their unique perspectives to a scenario. Whoever
you choose should have the appropriate experience and demonstrate good judgement. After
your team is identified, you need to define the responsibilities of everyone involved, and
set the scope and objectives of your study.

B. Preparation: Before the analysis can begin, this phase includes several activities
that must be completed. This includes planning, documenting supporting information that
will be helpful during the study, creating a template for recording study results and
arranging a schedule that everyone signs off on. One of the most important tasks that must
be taken prior to a HAZOP analysis is the identification of “guide words”. These will be
very important to guiding your brainstorming sessions.

C. Examination: During examination of your system, you’ll begin by breaking it down

into its individual parts. Those parts can then be further broken down into different
components as necessary. Together, the team will define the design intent of each part or
component, and then, using the guide words, the group identifies deviations. With each
potential hazard, you must determine if it’s a credible threat, and then you need to define
the causes and consequences of it. You’ll also brainstorm which, if any, preventative

6
actions should be taken. You’ll repeat this process for each component and part of the
system.

D. Documentation: Following your study, you should produce a report that documents
your findings and re-examine any parts if necessary. This is also the time when you need
to follow up on the actions assigned to address potential hazards and verify a process exists
to effectively complete them.

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 Chapter 2
Literature Review

2.1. Literature Review Table

Serial Name of
No. Author Title of Paper Findings of Paper

Smith et al. "Effective Risk Identification

1 (2017) Practices" - Conducting risk assessments and audits.

- Utilizing risk management frameworks

and tools.

- Engaging stakeholders in risk

identification.

Johnson "Corporate Risk Mitigation - Developing comprehensive risk

2 (2018) Strategies" management plans.

- Implementing control measures and

safeguards.

- Continuously monitoring and reviewing

risks.

Chen et al. "Insurance Purchase Practices of - Corporates purchase insurance to

3 (2019) Corporates" transfer/mitigate risks.

- Insurance coverage varies based on

industry and risk.

- Some organizations rely on self-insurance

or captive

8
Serial Name of
No. Author Title of Paper Findings of Paper

insurance for specific risks.

Anderson "The Role of Risk Culture in - Strong risk culture promotes proactive
4 (2020) Corporates" risk practices.

- Weak risk culture hampers effective risk

management.

- Risk culture influences insurance

purchase decisions.

Patel et al. "Technological Advancements in - Technology enables more accurate risk

5 (2021) Risk Management" identification.

- Automation streamlines risk mitigation

processes.

- Data analytics improves risk assessment

and forecasting.

- Multinational corporations face unique

Brown et al. "Risk Identification in risk identification challenges due to diverse
6 (2018) Multinational Corporations" operating environments.

- Cultural and regulatory factors impact

risk identification practices.

- Coordination and communication across

subsidiaries are crucial for effective risk
identification.

"The Impact of Enterprise Risk - Effective enterprise risk management

Wilson Management on Insurance practices positively influence insurance
7 (2019) Purchasing Behavior" purchase decisions.

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 Serial Name of
No. Author Title of Paper Findings of Paper

- Proper risk identification and assessment

lead to appropriate insurance coverage.

- Clear risk mitigation strategies reduce

insurance costs.

"The Role of Corporate

Garcia et al. Governance in Risk Identification - Strong corporate governance enhances
8 (2020) and Mitigation" risk identification and mitigation processes.

- Board involvement and oversight

contribute to effective risk management
practices.

- Risk committees play a critical role in

identifying and addressing key risks

"The Relationship between Risk

Liu et al. Perception and Insurance - Risk perception influences corporate
9 (2021) Purchase Decisions" insurance purchasing decisions.

- Higher perceived risk leads to increased

insurance coverage

2.2. Summary of table

The literature review table presents a compilation of studies focused on risk identification and
mitigation practices used by corporates, as well as their insurance purchase practices. The findings
from these studies shed light on various aspects of risk management and provide valuable insights
into effective strategies employed by organizations.

The review begins with studies by Smith et al. (2017) and Johnson (2018), emphasizing the
significance of risk identification and the implementation of comprehensive risk management

10
plans. These papers highlight the importance of risk assessments, stakeholder engagement, and the
utilization of risk management frameworks and tools.

Chen et al. (2019) examine insurance purchase practices and reveal that corporates purchase
insurance to transfer or mitigate risks. The authors note that insurance coverage varies based on
industry sectors and organizations may opt for self-insurance or captive insurance for specific
risks.

The role of risk culture is explored by Anderson (2020), emphasizing that a strong risk culture
promotes proactive risk practices, while a weak risk culture hampers effective risk management.
This culture also influences insurance purchase decisions.

Technological advancements and their impact on risk management are discussed in Patel et al.'s
study (2021). The authors highlight how technology enables more accurate risk identification,
automation streamlines risk mitigation, and data analytics improves risk assessment and
forecasting.

Additional papers included in the review address specific aspects of risk management. Brown et
al. (2018) emphasize the unique challenges faced by multinational corporations in risk
identification, particularly due to diverse operating environments. Wilson (2019) highlights the
positive impact of enterprise risk management on insurance purchasing behavior, while Garcia et
al. (2020) stress the role of corporate governance in enhancing risk identification and mitigation
processes.

Lastly, Liu et al. (2021) investigate the relationship between risk perception and insurance
purchase decisions, emphasizing that higher perceived risk tends to lead to increased insurance
coverage.

Collectively, these studies contribute to a comprehensive understanding of risk identification and

mitigation practices used by corporates, providing insights into the importance of stakeholder

11
engagement, risk culture, technological advancements, and the influence of risk perception on
insurance purchasing decisions. The findings can assist organizations in developing effective risk
management strategies to mitigate potential risks and enhance their overall resilience.

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 Chapter 3

Research Methodology

3.1. Procedure

Figure 3. 1 Flow Chart

The procedure or methodology of this research is a typical business research. After scanning
thorough secondary data already known to the insurance industry, a questionnaire was created.

After getting approval for the same, it was circulated amongst the various industries and companies
from where I got a data set of all the companies. After this the data was synthesized and analysed.

3.2. The Questionnaire

The questionnaire for the research was as follows –

1. What is the name of your company? 2. Describe your business type

a. Manufacturing
___________________________________________ b. Engineering
_______
c. IT
d. Chemical
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e. Pharmaceutical 8. What kind of risks do you think your
company faces?
f. Other
___________________________________ a. Fire
b. Machinery Breakdown
3. What is the annual turnover of your c. Burglary
company?
d. Electrical Damage
a. Less than 100 crores
e. Product recall might be need to be done
b. 100-200 crores
f. Product liability
c. 200-500 crores
g. Director and officer’s liability policy related
d. More than 500 crores risks
4. What kind of insurance policy do you have? h. Cargo shipment delay
a. Property i. Cyber risks
b. Marine j. Business Interruption
c. Employee Benefits k. Delay in startup
d. Project l. Regulatory risks
e. Liability m. Foreign exchange risks
f. No insurance policy n. Negligence of employees
o. Intellectual property risks
5. How much premium does your company pay p. Reputational Risks
for insurance?
q. Pandemic risks
r. Other _________________________
a. Less than 10 Lakhs
b. 10- 20 Lakhs
9. Do you have a specific risk identification and
c. 20-50 lakhs management team in your company?
d. More than 50 lakhs
a. Yes
b. No
6. What is the basis of final decision making c. The team is temporary
regarding what kind of insurance policy you choose?

10. Is the maintenance performed by company

a. Premium staff?
b. Coverage a. Yes
c. Both b. No
11. Which of the following methods does your
facility use to conduct the risk analysis?
7. Has there been any past insurance claims?
a. Risk assessment questionnaire
a. Yes
b. Evaluating contracts, records, documents
b. No
c. Personal inspections
d. Benchmarking and statistical analysis

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e. Evaluating and analyzing loss histories
f. Other__________________ 12. What are the risk mitigation practices used by
your company?

The insurance and risk management questionnaire serves as a comprehensive tool to assess the
insurance coverage and risk management practices of a company. It is designed to gather relevant
information about a company's insurance policies, risk exposure, risk identification and
management processes, and risk mitigation strategies. By collecting data on various aspects of
insurance and risk management, the questionnaire aims to provide a holistic view of a company's
risk profile and identify areas for improvement.

The need for this questionnaire arises from the recognition that effective risk management and
adequate insurance coverage are crucial for businesses to safeguard their assets, mitigate potential
losses, and ensure business continuity. Insurance plays a vital role in protecting companies from a
wide range of risks such as property damage, liability claims, business interruption, and more.
Moreover, risk management practices enable companies to identify, assess, and manage potential
risks proactively, reducing the likelihood and impact of adverse events.

The questionnaire is designed to cover multiple dimensions related to insurance and risk
management. It includes sections to capture information about the company's business type, annual
turnover, and existing insurance policies. By examining the types of insurance policies held by the
company and the corresponding premiums, the questionnaire aims to understand the coverage and
financial commitment of the company towards insurance.

Furthermore, the questionnaire delves into risk identification by exploring the various risks the
company faces, including fire, machinery breakdown, product liability, cyber risks, and more. It
assesses the presence of a dedicated risk identification and management team within the company
and evaluates the methods employed for risk analysis, such as questionnaires, inspections, and
data analysis.

The questionnaire also investigates the company's risk mitigation practices, aiming to identify the
measures in place to minimize or eliminate risks. It considers factors such as maintenance
practices, past insurance claims, and the decision-making process for selecting insurance policies.
By examining these aspects, the questionnaire provides insights into the company's approach to
risk mitigation and the effectiveness of its risk management strategies.

Overall, this questionnaire serves as a valuable tool for companies, insurance providers, and risk
management professionals to assess the insurance coverage and risk management practices of an
15
organization. It helps identify potential gaps, areas of improvement, and best practices to enhance
the company's overall risk management framework. The analysis of the questionnaire responses
facilitates targeted recommendations and enables companies to strengthen their risk management
capabilities, optimize insurance coverage, and ensure better protection against potential risks.

Here are some of the key areas that can be analysed based on the responses to this questionnaire:

Insurance Policy Coverage: By examining the chosen insurance policy types (property, marine,
employee benefits, project, liability), the analysis can determine the extent to which the company
has covered its assets, employees, projects, and potential liabilities.

Premium Payments: The premium range selected indicates the financial commitment of the
company towards insurance. Analysing this data helps understand the company's budget allocation
for insurance and its willingness to invest in comprehensive coverage.

Decision-making Factors: By analysing the basis of the final decision-making process (premium,
coverage, both), one can assess the company's priorities when choosing insurance policies. This
analysis provides insights into whether the company emphasizes affordability, adequate coverage,
or a balanced approach.

Past Insurance Claims: Understanding the presence or absence of past insurance claims helps
assess the company's historical risk profile and the effectiveness of its insurance coverage. If
claims have occurred, further analysis can be conducted to identify patterns, common types of
claims, and their impact on the company.

Identified Risks: Analysing the selected risks (fire, machinery breakdown, burglary, electrical
damage, product recall, product liability, etc.) provides an overview of the company's risk
landscape. It helps identify the most significant risks the company faces and potential areas that
require attention in terms of risk mitigation.

Risk Identification and Management Team: Determining the existence of a dedicated risk
identification and management team or a temporary team highlights the company's commitment
to proactive risk management. It provides insights into the company's structure for identifying,
assessing, and addressing risks.

Maintenance Practices: Analysing whether maintenance is performed by company staff or

outsourced helps understand the company's approach to asset management and maintenance. It

16
provides insights into the level of control the company has over maintenance activities and the
potential impact on risk management.

Risk Analysis Methods: By examining the methods used for risk analysis (questionnaires, contract
evaluation, personal inspections, benchmarking, etc.), the analysis can evaluate the company's
approach to understanding and assessing risks. This analysis helps determine the level of
sophistication in risk analysis and the comprehensiveness of risk assessments.

Risk Mitigation Practices: Understanding the risk mitigation practices employed by the company
provides insights into its proactive measures to reduce or eliminate potential risks. The analysis
can identify the effectiveness of these practices and areas where additional measures might be
necessary.

By analysing the responses to this questionnaire, companies, insurance providers, or risk

management professionals can gain a deeper understanding of a company's risk exposure,
insurance coverage adequacy, risk management effectiveness, and areas for improvement. It
allows for targeted recommendations to enhance risk mitigation strategies, strengthen insurance
coverage, and optimize risk management efforts.

In summary we get the following information from the questionnaire –

Question What do we get

Name Identity of the respondent

Type of Business Study of buying behaviour based on the

industry

Annual Turnover Study of buying behaviour based on the

turnover/size of business

Nature of existing policies Current Buying Behaviour

Amount of Premium currently paying Current Buying Behaviour

A claim in the past Claim Behaviour

Main factor- taking final decision Key Criteria to Final Buying Decision

Types of risk Risk Perception

Permanent Risk Identification types Sincerity towards risk

17
3.3. Data Sampling

For my research around 200 companies in the Nariman Point Area, Worli Area and MIDC, Andheri
area were approached and around 70 companies obliged and helped with the research. The names
of those companies are as follows –

S. No. Name of Company

1 Alok Industries
2 Sunshield Chemicals Limited
3 Khosla Profil Pvt. Ltd
4 Turnkey Whitepaper Constructions (TWCo)
5 Ohm Stock Brokers
6 Nisus Finance Services Co. Pvt. Ltd.
7 Cadmach Machinery Co. Pvt. Ltd.
8 G.R Engineering
9 Taurian MPS Pvt. Ltd.
10 Shree Renuka Sugars Ltd.
11 Inox Air Products Pvt. Ltd.
12 Caprihans India Ltd.
13 M/S Amines and Plasticisers Ltd.
14 Matrix Partner India Advisors Ltd.
15 NTT Data
16 CBC India
17 KLT Automation
18 SKS Ispat and Power LTD.
19 Rajesh Life Spaces
20 STS Synergy Technology Services Pvt. Ltd.
21 Roehm Chamicals India Pvt. Ltd.
22 Atri Ventures India Pvt. Ltd.
23 DahNAY Logistics Pvt. Ltd.
24 Samson Trading Company
25 RSB Insight and Analytics Pvt. Ltd.
26 CVC
27 ITD Cementation
28 Cipla

18
29 MMSI
30 Good Wood Ship Management
31 Chellaram Shipping Pvt. Ltd.
32 Burns Mc Donnell Engineering
33 Standard Coastal Shipping Pvt. Ltd.
34 Pristine Comeercials Pvt. Ltd.
35 Mellona Infrastructure Pvt. Ltd.
36 STA Technical Consultant Pvt. Ltd.
37 URVI IMPEX
38 JNJ Group
39 United Polymers
40 Premier Road Carrier Ltd.
41 Beauknitt India Pvt. Ltd.
42 R.A. Chule
43 Globus Travels Services
44 Trucut Tools
45 Anmol Industries
46 AMN Life
47 Dorche Group
48 Tubacex
49 New Consolidated Construction Company
Limited
50 Matrix Partner India Advisors Ltd.
51 Meher Foundations and Civil Engineering Private
Limited
52 Toyo Engineering Pvt. Ltd.
53 Thyssenkroup
54 Karamtara Engineering
55 Five star shipping company pvt. Ltd.
56 Great Eastern Shipping Company
57 ACT Infraport Ltd.
58 Prayati Shipping Pvt. Ltd.
59 Lila Polymers
60 Techstar India Ltd.
19
 61 Megaplast
62 Shivaji Roller Flour Mill
63 Optimum Commercial
64 Rishabh Metals
65 Agio Pharmaceuticals Ltd.
66 Salam Kisam
67 SchottPoonawalla Pvt. Ltd.
68 SAVEX
69 Modern India Ltd.
70 LABDHI Pharmaceuticals

If we divide the companies into various sectors, the following data can be seen

Row Labels Count of Company %

Automobile 1 1.22%
Chemical 4 4.88%
Engineering 15 18.29%
Financial 12 14.63%
Infrastructure 2 2.44%
IT 3 3.66%
Manufacturing 19 23.17%
Other 2 2.44%
Pharmaceutical 5 6.10%
Real
Estate/Construction 8 9.76%
Shipping and
Logistics 11 13.41%

This shows that the research is well rounded and all the sectors are tried to be covered.

The sampling type used here is convenience sampling.

Convenience sampling is a non-probability sampling technique widely used in research studies

and surveys. It involves selecting participants who are easily accessible and readily available to
the researcher. Rather than employing random selection methods, convenience sampling relies on

20
the convenience and proximity of potential participants to the researcher or the research location.
This method is often chosen due to its practicality, cost-effectiveness, and time efficiency.

One of the main advantages of convenience sampling is its convenience, as the name suggests.
Researchers can quickly gather data by approaching individuals who are conveniently located or
accessible. This method is particularly useful when the researcher has limited resources or time
constraints. It allows for the collection of data from a wide range of sources, such as students on a
college campus, shoppers in a mall, or attendees at a specific event.

However, convenience sampling is not without limitations. The major drawback is its inherent
bias, as participants are not selected randomly and may not be representative of the target
population. This can compromise the external validity of the research findings and limit the
generalizability of the results. Additionally, convenience sampling may lead to the exclusion of
certain groups or individuals who are not easily accessible, resulting in a biased sample.

Despite its limitations, convenience sampling can be suitable for certain research contexts and
exploratory studies. It can provide initial insights, generate hypotheses, and serve as a starting
point for further investigations. However, caution should be exercised when interpreting the results
obtained from convenience sampling, as they may not be reflective of the broader population.

In conclusion, convenience sampling offers a practical and efficient way to gather data, particularly
when time and resources are limited. While it provides convenience and ease of data collection,
researchers should be aware of its limitations, particularly its potential for sampling bias.
Researchers must carefully consider the specific research objectives, context, and limitations
associated with convenience sampling when deciding to utilize this sampling technique.

In this particular research, convenience sampling was deemed useful due to several reasons:

Accessibility: The research aimed to gather data quickly and efficiently, and convenience sampling
allowed the researcher to approach individuals who were easily accessible and readily available.
This approach saved time and effort in locating and recruiting participants, making convenience
sampling a practical choice.

Cost-effectiveness: Conducting research can be resource-intensive, and convenience sampling

offered a cost-effective solution. By selecting participants who were conveniently located or easily
reachable, the researcher minimized expenses associated with travel, recruitment, and data
collection.

21
Time constraints: The research was subject to time constraint of 2 months, making convenience
sampling the most feasible option. By targeting participants who were readily available, the
researcher could expedite the data collection process and meet any deadlines or time limitations.

22
 Chapter 4
Data Analysis
4.1. Data Type
Analysis is the process of systematically and rigorously applying statistical and/or logical
techniques to describe and illustrate, condense, and recapitulate, and evaluate data. An essential
component of ensuring data integrity is the accurate and appropriate analysis of research findings.
Data analysis is the process of collecting, modelling, and analysing data to get insights into the
issue so that proper decisions can be taken. The data collection was done by visiting 200
companies. Out of which 70 companies filled the questionnaire. The data collected was qualitative
in nature and a percentage analysis was done with it.

4.2. Types of risk considered in the project.

a. Fire –

Fire is a destructive peril that poses significant risks to property and lives. It can rapidly engulf
structures, causing extensive damage and loss. Fire can originate from various sources such as
electrical faults, cooking accidents, arson, or natural disasters like wildfires. The intense heat,
flames, and smoke produced by fires can lead to devastation, injuries, and even fatalities. Fire
perils necessitate the implementation of preventive measures like fire alarms, extinguishers,
and sprinkler systems. Insurance coverage against fire is crucial to mitigate the financial
burden associated with repairing or replacing damaged property. Prompt response, fire safety
awareness, and preparedness are essential in minimizing the impact of this peril.

b. Machinery Breakdown

Machinery breakdown is a peril that poses significant risks to businesses and operations.
Sudden and unexpected mechanical or electrical failures can lead to costly disruptions,
production delays, and financial losses. Equipment failure can occur due to factors such as
wear and tear, operator error, power surges, or manufacturing defects. Machinery breakdown
can impact a wide range of industries, including manufacturing, construction, and agriculture.
Businesses should implement regular maintenance, inspections, and monitoring to minimize
the risk of breakdowns. Machinery breakdown insurance provides coverage for repair or
replacement costs, business interruption losses, and additional expenses incurred during the
breakdown, helping businesses recover and resume operations swiftly.

23
c. Burglary-

Burglary is a peril that poses a significant threat to individuals and businesses. It involves the
unlawful entry into premises with the intent to commit theft or other criminal acts. Burglaries
can result in stolen property, damage to doors/windows, and emotional distress for the victims.
Homes, businesses, and even vehicles can be targets of burglary. Preventive measures such as
security systems, sturdy locks, and proper lighting can help deter burglars. Insurance coverage
against burglary provides financial protection, reimbursing for stolen or damaged property and
assisting in repairing or replacing damaged doors or windows. Vigilance and security measures
are essential in minimizing the risk of burglary.

d. Electrical Damage

Electrical damage is a peril that poses risks to properties and can lead to significant disruptions
and financial losses. It can occur due to power surges, faulty wiring, lightning strikes, or
electrical equipment malfunctions. Electrical damage can cause fires, damage appliances,
disrupt power supply, and pose safety hazards. It can result in property damage, repair costs,
and business interruptions. Adequate preventive measures like surge protectors, regular
inspections, and proper electrical installations can mitigate the risk. Insurance coverage against
electrical damage can provide financial protection, covering repair or replacement costs and
assisting in business recovery. Awareness, maintenance, and adherence to electrical safety
protocols are crucial to minimize this peril.

e. Product recall might be need to be done

Product recall is a peril that companies face when their products are found to be defective or
pose potential risks to consumers. It involves the process of removing and replacing or
repairing products already in the market. Product recalls can result from manufacturing errors,
design flaws, contamination, or safety concerns. They can have severe consequences,
including damage to brand reputation, financial losses, legal liabilities, and potential harm to
consumers. Timely and effective communication, traceability systems, and rigorous quality
control measures are crucial in minimizing the risk of product recalls. Insurance coverage for
product recall helps mitigate the financial burdens associated with this peril, providing
assistance with recall expenses and potential legal costs.

f. Product liability

Product liability is a peril that businesses face when their products cause harm or injury to
consumers. It encompasses the legal responsibility for damages resulting from defective

24
products. Product liability risks can arise from design flaws, manufacturing defects, inadequate
warnings or instructions, or failure to meet safety standards. It can lead to costly lawsuits,
settlements, and reputational damage. Businesses should implement robust quality control
processes, thorough testing, and proper labeling to mitigate product liability risks. Product
liability insurance provides coverage for legal defense costs, settlements, and judgments,
helping businesses handle the financial consequences of product-related claims. Diligence in
product safety and compliance is crucial to minimize this peril.

g. Director and officer’s liability policy related risks

Director and Officer's (D&O) liability policy covers risks associated with the actions and
decisions of corporate directors and officers. It protects them from potential legal claims
brought by shareholders, employees, or other stakeholders for alleged wrongful acts, such as
negligence, breach of duty, or mismanagement. D&O liability risks include shareholder
lawsuits, regulatory investigations, employment disputes, and allegations of financial
impropriety. These risks can result in significant financial losses, reputational damage, and
personal liability for directors and officers. D&O insurance provides coverage for legal defense
costs, settlements, and judgments, helping to safeguard the personal assets and reputation of
directors and officers while enabling effective corporate governance.

h. Cargo shipment delay

Cargo shipment delays pose significant risks to businesses involved in international trade and
logistics. Delays can be caused by various factors such as adverse weather conditions, port
congestion, labor strikes, customs issues, or transportation disruptions. These delays can result
in financial losses, missed sales opportunities, damaged customer relationships, and increased
storage costs. Businesses may incur additional expenses for alternative transportation or
storage arrangements to mitigate the impact of delays. Proactive measures such as contingency
planning, supply chain visibility, and effective communication with stakeholders can help
minimize the risk. Adequate cargo insurance coverage can provide financial protection against
delays and associated losses, providing businesses with peace of mind.

i. Cyber risks

Cyber risks are a growing and pervasive threat to businesses and individuals in the digital age.
They encompass various perils, including data breaches, ransomware attacks, phishing scams,
and network intrusions. Cyber risks can lead to significant financial losses, reputational
damage, legal liabilities, and compromised personal information. Businesses need robust

25
cybersecurity measures, including firewalls, encryption, employee training, and incident
response plans, to mitigate the risk. Cyber insurance provides coverage for expenses related to
data breaches, legal costs, notification and credit monitoring, and business interruption losses.
Vigilance, proactive security measures, and cyber insurance are crucial in protecting against
the ever-evolving landscape of cyber risks.

j. Business Interruption

Business interruption is a significant risk that can disrupt normal operations and cause financial
losses for businesses. It occurs when unexpected events, such as natural disasters, fires, or
equipment failures, render a business temporarily unable to operate. The consequences of
business interruption include loss of revenue, increased expenses, customer dissatisfaction, and
reputational damage. Adequate risk management measures, including disaster recovery plans,
backup systems, and contingency arrangements, can help mitigate this risk. Business
interruption insurance provides coverage for lost income, ongoing expenses, and additional
costs incurred during the interruption, helping businesses recover and minimize the financial
impact of unexpected disruptions.

k. Delay in startup

Delay in startup is a risk that businesses face when their planned operations or projects
experience unforeseen delays. These delays can arise from factors such as construction
setbacks, regulatory hurdles, supply chain disruptions, or unexpected changes in market
conditions. A delay in startup can result in increased costs, missed market opportunities,
contractual penalties, and damage to reputation. To mitigate this risk, businesses should
conduct thorough project planning, risk assessments, and contingency planning. Adequate
insurance coverage, such as delay in startup insurance or advance loss of profit insurance, can
provide financial protection by compensating for lost revenue and additional expenses incurred
due to project delays.

l. Regulatory risks –

Regulatory risks are inherent in the corporate world and arise from changes in laws,
regulations, or government policies. They encompass various compliance challenges,
including industry-specific regulations, environmental regulations, data privacy laws, financial
reporting requirements, and labor laws. Non-compliance with regulations can lead to legal
penalties, fines, reputational damage, and operational disruptions. To manage regulatory risks,
businesses must stay updated on applicable laws, establish robust compliance programs,

26
conduct regular audits, and maintain open communication with regulatory authorities.
Engaging legal counsel and implementing internal controls and training programs are essential
for mitigating regulatory risks and ensuring corporate compliance.

m. Foreign exchange risks

Foreign exchange risks are a concern for corporations engaged in international trade or with
operations in multiple countries. They arise from fluctuations in currency exchange rates,
which can impact the value of financial transactions, revenues, and costs denominated in
foreign currencies. Exchange rate volatility can result in financial losses, reduced profitability,
and increased uncertainty. To manage foreign exchange risks, businesses can employ strategies
like hedging through derivatives, diversifying currency exposures, using natural hedges, or
entering into forward contracts. Monitoring market trends, conducting risk assessments, and
implementing robust treasury management practices are essential for mitigating foreign
exchange risks in corporates.

n. Negligence of employees

Negligence of employees is a risk that corporations must address to maintain operational

integrity and protect against legal liabilities. Employee negligence refers to instances where
employees fail to exercise reasonable care or act in accordance with their duties, resulting in
harm or losses to the organization, clients, or third parties. Examples include mishandling of
confidential information, failure to follow established procedures, or errors in decision-
making. To mitigate this risk, corporations should implement comprehensive employee
training programs, establish clear policies and protocols, conduct regular performance
evaluations, and promote a culture of accountability. Adequate insurance coverage, such as
professional liability insurance, can provide financial protection in cases of employee
negligence.

o. Intellectual property risks

Intellectual Property Rights (IPR) play a crucial role in the corporate world, protecting the
intangible assets and innovations of businesses. IPR includes patents, trademarks, copyrights,
and trade secrets. Corporates face risks related to IPR, such as infringement by competitors,
unauthorized use or disclosure of proprietary information, and counterfeiting. To mitigate these
risks, businesses should conduct thorough IP searches, file for appropriate protections, enforce
their rights through legal means, and implement robust security measures. Additionally,
corporate policies should emphasize employee awareness of IP rights, confidentiality

27
 agreements, and non-disclosure obligations. Proactive management of IPR helps safeguard
corporate innovations, maintain market competitiveness, and preserve the value of intangible
assets.

p. Reputational Risks

Reputational risks are a critical concern for corporates as they can have a significant impact on
brand perception, customer trust, and long-term success. Reputational risks can arise from
various factors, such as ethical misconduct, product recalls, data breaches, environmental
controversies, or negative media coverage. These risks can result in loss of customers,
decreased market value, legal challenges, and stakeholder mistrust. To manage reputational
risks, businesses should prioritize ethical practices, establish robust corporate governance,
maintain transparency, engage in proactive communication, and swiftly address any issues that
may arise. Building and protecting a positive reputation requires consistent efforts to ensure
trust, credibility, and responsible business practices.

q. Pandemic risks

Pandemic risks pose significant challenges to corporates, as demonstrated by recent global

events. Pandemics, such as the COVID-19 outbreak, can disrupt supply chains, limit consumer
demand, and force business closures. Corporates face risks of reduced revenue, increased costs,
operational disruptions, and workforce health and safety concerns. To manage pandemic risks,
businesses should develop robust business continuity plans, implement remote work
capabilities, prioritize employee health and safety, diversify supply chains, and stay informed
about public health guidelines. Adequate insurance coverage, such as business interruption
insurance, can provide financial protection. Agility, resilience, and proactive measures are
essential for corporates to navigate pandemic risks and maintain operational viability.

4.3. Risk Analysis

To do the analysis a dashboard was created by me where all the charts were attached in a same
sheet. Analysis was done to compare the questions between each other.

28
On analysis it was found out that
a. 42.68% Companies have a permanent risk identification team
b. 29.51% Companies have a temporary risk identification team
c. 87.8% Companies get their maintenance done by the company staff only.

A. Method of Risk Identification Industry Wise –

1. Chemical Industry

Method of Risk Identification Industry Wise

5 8
Shipping and Logistics 1
1
2 3
5 6
Real Estate/Construction 1 3
3 Count of Evaluating Contracts, Records,
1
2 5 Documents
Pharmaceutical 1
2 3
1 2 Count of Personal Inspections
Other
5 19
Manufacturing 4
4
2 8 Count of Done By Broker/Consultant
2
2
IT 1
Infrastructure 2 Count of Benchmarking and Statistycal
1
Analysis
6
6
Financial 2 3
2
Count of Evaluating and Analyzing Loss
4 11
Engineering 2 4 Hisatories
3 7
2 4 Count of Risk Assessment
Chemical 1
1 2
1 Questionnaire
Automobile 1
1

0 5 10 15 20

29
2. Engineering Industry

Method of Risk Identification Industry Wise

1 5 8
Shipping and Logistics 1 2 3
1 5 6
Real Estate/Construction 3
3 Count of Evaluating Contracts, Records,
1
2 5 Documents
Pharmaceutical 1 2 3
1 2 Count of Personal Inspections
Other
4 5 19
Manufacturing 4 8 Count of Done By Broker/Consultant
2
2
2
IT 1
Infrastructure 1 2 Count of Benchmarking and Statistycal
6 Analysis
6
Financial 2 3
2
Count of Evaluating and Analyzing Loss
4
4 11
Engineering 2 7 Hisatories
3
1 2 4
Chemical Count of Risk Assessment
1 2
1
1 Questionnaire
Automobile 1

0 5 10 15 20

3. Financial

Method of Risk Identification Industry Wise

5 8
Shipping and Logistics 1
1
2 3
5 6
Real Estate/Construction 1 3
1 3
2 5
Pharmaceutical 1
2 3
1 2 Count of Evaluating Contracts, Records,
Other
Documents
5 19 Count of Personal Inspections
Manufacturing 4
4
2 8
2 Count of Done By Broker/Consultant
2
IT
1
Count of Benchmarking and Statistycal
2 Analysis
Infrastructure 1
Count of Evaluating and Analyzing Loss
6 Hisatories
3 6
Financial 2
2 Count of Risk Assessment
Questionnaire
4 11
Engineering 2 4
3 7
2 4
Chemical 1 2
1
1
1
1
Automobile

0 5 10 15 20

30
4. Manufacturing

Method of Risk Identification Industry Wise

1 5 8
Shipping and Logistics 1 2 3
1 5 6 Count of Evaluating Contracts, Records,
Real Estate/Construction 3
3
1 Documents
2 5
Pharmaceutical 1 2 3
1 2 Count of Personal Inspections
Other
4 5 19
Manufacturing 4 8 Count of Done By Broker/Consultant
2
2
2
IT 1
Infrastructure 1 2 Count of Benchmarking and Statistycal
6
6 Analysis
Financial 2 3
2
4 11 Count of Evaluating and Analyzing Loss
Engineering 2 3 4 7 Hisatories
1 2 4
Chemical
1 2
1 Count of Risk Assessment
Automobile 1
1 Questionnaire

0 5 10 15 20

B. Industry Wise Premium

1. Engineering Industry

Industry wise Premium

14 13
Automobile
12
10 Chemical
8
8 7 Engineering
6 5
4 Financial
4 33 3 33 33
2 2 2 2 22 Infrastructure
2 1 1 1 1 1 1 1 11 1 1 1
0 IT
10-20 Lakhs 20- 50 Lakhs 20-50 Lakhs Above 50 Above 50 Less than 10 Manufacturing
lakhs Lkahs Lakhs

2. Financial Industry

Industry wise Premium

14 13
Automobile
12
Chemical
10
8 Engineering
8 7
5 Financial
6
4
33 3 33 33 Infrastructure
4
2 2 2 2 22
2 1 1 1 1 1 1 1 11 1 1 1 IT

0 Manufacturing
10-20 Lakhs 20- 50 Lakhs 20-50 Lakhs Above 50 Above 50 Less than 10 Other
lakhs Lkahs Lakhs

31
3. Manufacturing Industry

Industry wise Premium

14 13
Automobile
12
Chemical
10
8 Engineering
8 7
5 Financial
6
4
3 3 3 33 33 Infrastructure
4
2 2 2 2 22
1 1 1 1 1 1 1 11 1 1 1 IT
2
Manufacturing
0
10-20 Lakhs 20- 50 Lakhs 20-50 Lakhs Above 50 Above 50 Less than 10 Other
lakhs Lkahs Lakhs

4. IT Industry

Industry wise Premium

14 13
Automobile
12
Chemical
10
8 Engineering
8 7
5 Financial
6
4
3 3 3 33 33 Infrastructure
4
2 2 2 2 22
1 1 1 1 1 1 1 11 1 1 1 IT
2
Manufacturing
0
10-20 Lakhs 20- 50 Lakhs 20-50 Lakhs Above 50 Above 50 Less than 10 Other
lakhs Lkahs Lakhs

C. Annual Turnover Wise Industry

Annual Turnover wise industry

2
2
2 Shipping and Logistics
Less than 100 crores 1
4 5 Real Estate/Construction
2 4 Pharmaceutical
4
Above 500 crores 1 8
1
1 Other
2 6
2 5 Manufacturing
1
200-500 crores 1 8
1 3 IT
1 5
1
2 Infrastructure
100-200 crores 1 2
3 Financial
1
Engineering
0 2 4 6 8 10

32
D. No. of companies turnover wise

No of Companies Turnover Wise

11%
20%

100-200 crores
200-500 crores
Above 500 crores
34%
Less than 100 crores

35%

E. No. of Companies v/s Type of Claims

1. EB Claims
Type of Past Automobile
Claims
9% 4%
4%
Chemical
Engineering
14% 14%
Financial
Infrastructure
5%
9% IT
Manufacturing

9% Other

27% Pharmaceutical
5%
Real Estate/Construction

2. No
Type of Past Claims
9% 4% Automobile
4%
Chemical

14% 14% Engineering

Financial
Infrastructure
5%
9% IT
Manufacturing
Other
9%
Pharmaceutical
27%
5% Real Estate/Construction

33
3. Yes

Type of Past Claims

9% 4% Automobile
4%
Chemical
Engineering
14% 14%
Financial
Infrastructure
5% IT
9% Manufacturing
Other

9% Pharmaceutical

27% Real Estate/Construction

5%
Shipping and Logistics

34
 Chapter 5
Conclusion

5.1. Risk Identification

a) 42.68% Companies have a permanent risk identification team: This suggests that a
significant portion of companies recognize the importance of having a dedicated team
focused on identifying and managing risks. These companies likely prioritize proactive risk
management practices, which can contribute to better overall risk mitigation and
organizational resilience.
b) 29.51% Companies have a temporary risk identification team: This finding indicates that
a smaller percentage of companies have a temporary risk identification team. It could imply
that these companies recognize the need for risk identification but may not have a full-time
team dedicated to this task. It's possible that they assign risk identification responsibilities
to existing staff on a temporary basis or rely on external consultants when needed.
c) 87.8% Companies get their maintenance done by the company staff only: This conclusion
suggests that a large majority of companies prefer to handle maintenance tasks internally
using their own staff members. This may indicate that these companies have a higher level
of control over maintenance activities and can tailor them to their specific requirements.
However, it's important to consider factors such as the size and complexity of the
companies and the types of assets being maintained.
Overall, these conclusions indicate varying approaches to risk identification and maintenance
practices among companies. The presence of permanent risk identification teams and reliance on
internal staff for maintenance highlights a commitment to proactive risk management and self-
sufficiency in addressing maintenance needs.
Personal inspection is the most employed method of risk assessment among the surveyed
companies, while some companies utilize evaluating and analysing loss histories as an alternative
approach. The fact that a majority of companies rely on personal inspection as a risk assessment
method suggests a preference for firsthand observation and evaluation of potential risks. This
approach involves physically inspecting the work environment, equipment, processes, and other
relevant factors to identify hazards and assess their potential impact. Personal inspection allows
for direct engagement with the operational aspects, facilitating the identification of risks that may
not be apparent through other methods.
Evaluating and Analysing Loss Histories: While a smaller proportion of companies employ
evaluating and analysing loss histories as a risk assessment method, this indicates a recognition of
the value in studying past incidents, accidents, and losses to identify patterns, root causes, and
areas of vulnerability. By analysing historical data, such as incident reports, insurance claims, or
accident records, companies can gain insights into recurring risks and develop strategies to
mitigate or prevent similar incidents in the future.
It is important to note that the choice of risk assessment methods can vary depending on various
factors such as industry, company size, complexity of operations, and available resources. The
preference for personal inspection highlights the significance of on-the-ground assessments, while
the use of evaluating loss histories reflects an understanding of the value of learning from past
experiences to improve risk management practices.
35
The fact that the maximum premium is collected from the manufacturing industry indicates that
this sector represents a significant source of revenue for the insurance industry. This implies that
manufacturing companies are more likely to purchase insurance coverage to protect their assets,
operations, and liabilities compared to other industries.

Based on the given information, the conclusion that can be drawn is that the majority of the
surveyed companies identify fire as a significant risk they face. This finding emphasizes the
prominence and potential impact of fire-related hazards in the business environment.

5.2. Risk Mitigation

The risk mitigation done by most of the companies follow some common techniques. Some of
them are as follows –
1. Safety Training and Compliance: Ensure that all employees receive proper safety training
and adhere to safety guidelines and regulations. Regular safety audits should be conducted
to identify and rectify any non-compliance issues.
2. Supply Chain Management: Establish a robust supply chain management system to
minimize disruptions. Diversify suppliers, maintain good relationships, and regularly
monitor their performance to avoid delays or quality issues.
3. Environmental and Sustainability Measures: Adopt environmentally friendly practices to
minimize the impact on the environment and comply with regulatory requirements.
Implement waste management systems, energy-efficient processes, and promote
sustainability initiatives.
4. Internal Controls and Auditing: Implement strong internal control mechanisms, including
segregation of duties, regular internal audits, and independent risk assessments. This helps
detect and prevent fraudulent activities, errors, and operational failures.
5. Due Diligence: Perform thorough due diligence on borrowers, clients, and counterparties
before engaging in financial transactions. Assess creditworthiness, financial stability, and
reputational risks associated with potential clients or borrowers to minimize credit risk.
6. Technology and Automation: Invest in advanced manufacturing technologies and
automation systems to improve efficiency, reduce human error, and enhance product
quality. This can include robotics, artificial intelligence, and data analytics.
7. Quality Control and Assurance: Implement stringent quality control measures at each stage
of the manufacturing process to minimize defects and ensure product reliability. Use
statistical process control techniques and perform regular inspections.
8. Vessel Maintenance and Inspection: Regular maintenance and inspections of vessels are
conducted to identify and rectify any potential safety hazards or mechanical issues. This
helps prevent accidents and ensures the seaworthiness of the vessels.

36
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