- The document discusses Maruti Suzuki India Limited's (MSRIL) risk management framework. - It identifies key risks like shifting consumer preferences towards SUVs, and opportunities like expanding dealership networks. - It outlines objectives to develop a new SUV and expand networks, and responses like launching the Vitara Brezza SUV and expanding Nexa outlets. - Monitoring activities and outcomes are discussed, like the Brezza becoming the top-selling UV and network expansion reaching over 5,000 workshops by 2020.

1. Presented by:
Lalit Mansawi
Ameya K
Prerna Kansara
Naresh Parandhaman
Guided by:
Dr.R.Srinivasan

3. Four Important
Entity Objectives

5.  Management
 The board of directors
 Risk officers
 Internal auditors

6. a)Values
• Responsible
• Open
• Efficient
• Reliable
• Dynamism
b)Strengths
• Cost of Ownership
• Widest Network
a)Over 1.4 million low-
cost and high-quality
cars produced every
year.
b)Taking care of over
46,000 cars a day
c)one of the best
automobile service
networks in the country
Internal Environment Event Identification
Risk:
1)a)Shift in consumer
perspective towards SUV
market
(Note: mentioned by Former
CEO and Managing Director
of Maruti Suzuki India -
Shinzo Nakanishi)
b)Crossovers fall
Opportunities:
2)a)Developing networks to
widen the market
Risk Assessment
1)a)Till 2016, MSRIL had one
MUV - Ertiga, thereby there
was not contender for SUV
segment from maruti:
i)Creta as competition
repositioned (External and
Internal Tweaks - a new grille,
revised bumpers, headlamps,
tail-lamps, alloy wheels and a
sunroof etc.)
ii)Launch of Mahindra Marazzo
(9-10 lakhs)
b)Repositioning of S-Cross
2)a)The presence of NEXA on
tier two segment was very less
Objective Setting

7. 1)a)Development of a
new SUV to cater to the
market
b)Tweaking of existing
Crossovers
2)a)To initiate the
networking process by
providing dealerships or
setting up company
showrooms
1)a)Launch of Vitara
Brezza
b)Repositioning of S-
Cross as S-Cross Facelift:
2)a)Networking:
• 3529 Service
Workshops
• 3367 Sales Outlets
• 1731 Cities Covered
By Service Network,
• Added 64 Nexa
outlets, taking the
total count to 316
outlets in 178 cities
Risk Response Information & Communication
1)a)Marketing Team, R&D,
Operations and Design and
Finance Team
2)a)Strategy Team, Sales and
Marketing Team, Finance Team
Monitoring
Ongoing Monitoring
activities and Separate
Evaluations
Control Activities

8. 1)a)SUV-Market Share - 43% (17-18)
b)Vitara Brezza clocks number one in the UV market by contributing 51,341 units to Maruti's cumulative UV
sales of 90,259 units - (56.88 % of the company's UV sales)
c)I. Slightly more muscular look – Increased Appeal
II. Smart hybrid technology (SHVS) – Improved Fuel Efficiency
2)a)According to Autocar India, Maruti insiders say that taking the Nexa network to Tier 2 towns has helped
widen the market for the S-Cross,
b)The report stated that the company aims to expand its service network by 56% taking it to 5,000 workshops by
2020. Out of 5,000 workshops, 3000 service stations will operate under the dealership.
Outcome

9. a)Energy Conservation
b)Research and
Development
c)Technology Absorption,
Adaptation and
Innovation
i)Energy Cost Reduction
ii)Energy Conservation
iii)Technology
iv)Reliability / Process
Improvement
v)Safety Improvement
vi)Technology
Absorption, Adaptation
and Innovation
Internal Environment Event Identification
Opportunities:
1)a)Govt.Policy to shift one-
third of the petrol and diesel
vehicles to electric fleet by
2030
Risk:
2)a)Followed by the launch of
EV on 2020,what are
difficulties in charging
points?
Risk Assessment
1)a)EV developed and set to
launch by Competitors like
Tata (Tigor, Vision and Nano
etc.)
2)a)JV with Toyota is only for
development of EV and not
charging stations, thereby
development of charging hubs
are to be planned
Objective Setting

10. 1)a)To Initiate the
process of developing EV
by Joint Ventures or
Merger & Acquisition
Strategy
2)a)To Initiate the
process of developing EV
Charging points plan by
Joint Ventures or
Merger & Acquisition
Strategy
1)a)Partnership among
Suzuki, Toshiba and Denso
(a Toyota Company) for
Developing EV.
2)a)Maruti Suzuki said
they "will set up some
(charging) infrastructure
for people to be able to use
these cars."
(Speaking on the macro
picture, The Maruti Suzuki
chief said that India is unlikely
to have a pan-India charging
infrastructure by 2020)
Risk Response Information & Communication
Marketing Team, R&D,
Operations and Design and
Finance Team
Monitoring
Ongoing Monitoring
activities and Separate
Evaluations
Control Activities

11. 1)a)i)WagonR EV will be the first electric car to be launched by the company, in 2020 (Manufacture in the
Gujarat Plant)
ii)MSRIL - Chairman Statement - "We will start road-running tests using a fleet of 50 EV prototype vehicles
in India from next month in order to develop safe and easy-to-use EVs for Indian customers," Osamu Suzuki
said at the Global Mobility Summit at New Delhi
The company would launch EVs in India around 2020 in cooperation with Toyota Motor Corp, he added.
2)a)Maruti Suzuki has said that there will be using the battery-swapping technology to power them and the
company will develop its own lithium-ion battery packs, set up its own battery plant, identify suppliers and
“only then we will be able to take a definite solution to our customers with total investment of Rs.1151
Crores
Outcome

12. a)Statutory Compliance
and Reporting
b)Organisational Policy
and Code of conduct
i)Compliance
ii)Reporting
iii)Policy
iv)Committee
Internal Environment Event Identification
Risk
1)a)Initiation of GST
b)Non-Adherence of Tax
laws
2)Internal Policy framed and
communicated:
i)Whistle Blower Policy,
ii)Policy on subsidiary
companies,
iii)Policy unrelated party
transaction,
iv)Policy on kmp
v)Policies employee code of
conduct
Risk Assessment
1)a)Brezza sales are down seven
percent on July 2017's sales of
15,243 - GST for SUV is kicked
higher(new decision with GST
rates now pegged at an even 50
per cent (28 per cent GST+22 per
cent Cess)
b)Non-Adherence of the following
laws:
Income Tax Act,1961
Wealth Tax Act, 1957
The Central Excise Act,1944
The Finance Act,1994
Customs Act,1962
Sales Tax laws
2)a)Absence of Policies can lead to
a series of organisational risks
and hostile for employees to work
on
Objective Setting

13. 1)a) As per the market
information the Car-
Prices dropped for other
competitors like
Mahindra and Mahindra
b)Adhere to the norms or
conditions as prescribed
by the Government of
India
2)a)Develop Policies as
prescribed by
Government of India
and to proved a formal
framework
1)a)Increased GST could be
attributed to the huge demand led
by GST-driven benefits after the
reformative tax kicked in
b)Streamlining the SOP w.r.t Filing
the returns and paying of the taxes
by the Finance and Taxation team
or hire a third party to perform the
same
2)a)Framing and Communicating
the following:
Policy
i)Whistle Blower Policy,
ii)Policy on subsidiary companies,
iii)Policy unrelated party
transaction,
iv)Policy on kmp
v)Policies employee code of conduct
Risk Response Information &
Communication
Legal and Compliance
Team, Marketing Team
and Finance Team
Monitoring
Ongoing Monitoring
activities and Separate
Evaluations
Control Activities

14. 1)a)When market stabilised -Nonetheless, the SUV remains a popular buy because it is practical,
spacious, well equipped and reasonably good to drive
Like Autocar India says, "Not revolutionary in any way but ticks all the boxes that matter."
b)On-going litigations:
Income Tax Act,1961
Wealth Tax Act, 1957
The Central Excise Act,1944
The Finance Act,1994
Customs Act,1962
Sales Tax laws
(Refer Annexure - Attached)
2)a)Two complaints were received and both Are under investigation. One complaint received in
2016-17 was investigated and closed
b)One complaint received during 2017-18 was investigated and closed while two others are under
investigation
Outcome