Risk management practices - empirical evidence from Indian corporates

The purpose of this paper is to describe the current practices of risk management in the Indian companies and to provide a normative framework (guidelines) for practitioners. The paper is primarily based on the research monograph titled Financial Management Practices: An Empirical Study of Indian Corporates (ISBN 978‐81‐322‐0989‐8) published by Springer. The authors have obtained the requisite permission to publish this paper. The scope of this study is limited to the 166 non‐financial BSE 200 companies, listed on the Bombay Stock Exchange (BSE) engaged in the manufacturing and service rendering businesses. Nearly half of the sample companies are investing abroad, however, less than one‐fifth of the sample companies are receiving capital from abroad. An overwhelming majority of the sample companies respond that risk is understood in its entirety and measures are taken to mitigate it.