Enterprise Risk Management in the Indian Information Technology Industry

Abstract:     
These are the various risks faced by IT companies in India. Enterprise Risk Management provides an integrated approach to the managing of risks, for maximizing business value and minimizing risk exposure. The present study analyses the risks faced by a sample of fifteen information technology (IT) companies operating in India. The major risks were found to be the financial risks, including FOREX risk, liquidity risk, leverage risk, and interest rate risk. These were analysed in terms of their dependence on geographical concentration, service concentration, and industry/vertical domain concentration. Other, less important risks included strategic risks, operational risks, and hazard risks. The relationship between the different risks was also analysed and explained.

Number of Pages in PDF File: 12

Keywords: enterprise risk management, information technology, financial risks, strategic risks, operational risks, hazard risks

JEL Classification: G30

working papers series