RISKFor 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– JSW1. 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

opportunitiesa. Review meeting every 3 monthsb. Key Members participationi. 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.