In 1990, Mr. Ashok Singhal decided to start a small scale industry which will procure as well as produce room fittings out of galvanized steel, copper, iron and aluminum.

He started with a capital of 25 lakhs, with a self owned factory and a business outlet in the main market to get the orders.

He desires to further increase the level and scope of business.

In order to reduce the Worker's Turnover Ratio he gave orders to maintain proper safety gears, thus reducing the cost of regular recruitment.(RESEARCH)

As the business involves the use of metals he ensured that go downs are properly ventilated in order to minimise the problem of rust. (KNOWLEDGE).

To secure his investment he thought of buying an insurance, and thus he made his stock, factory and business outlet premises insured.(INSURANCE)

After the initial losses for a certain quarter, the business got on track with the help of the customer feedback.

Mr. Singhal developed insights and soon realised the importance of sales maximisation rather concentrating on profit maximisation.

The firm was doing well with good amount of profits, satisfied customers as well as the staff.

From the profits of the firm a part was kept as a RESERVE by Mr. Singhal in order to meet the contingencies.

After 5 years of steady business, floods hit the area thus destroying the factory and the go downs.

There were heavy losses in terms of kind as the whole stock was exposed to rust making it useless to sell.

A set back to the smooth running business.

Loss of stock

Loss of manpower as the workers lost the job

Loss of business as there was no economic activity

Loss of machines as they became obsolete

Loss of market share

Loss of business contacts

It was really swift.

It was cost effective.

The business within days regained the strength and the lost market share.

Growth was visible within the first quarter only.

Profits that ought to be a far cry for many firms after going through such a shock, but Singhal Industries were enjoying that in a single quarter.

Mr. Singhal was smart enough to understand the nature and presence of different threats to the business like natural disasters, illness etc.

So in order to minimise the impact of the shock he built a resilient industry by :-a) Researching the given conditionsb) Using the skills and knowledgec) Insuring all the capital goods

By perfectly preparing for the shocks he was a bit relieved and secured in such a mishappening.

All the machines were renewed free of cost because of the insurance.

The stock got a turnover, though it took a little bit of time but it was compensated too. Also the dead stock got converted into the CASH.

Mr. Singhal then sighted the "opportunity side of the risk" i.e. having a resilient industry he expanded his business and increased the level of operation after the floods hit the other firms that were not prepared for it.

So when firms had a set back to their operation process Singhal Industries took the charge and soon attained the boom stage.

Thus effectively preparing for the risk and sighting a chance to attain prosperity again are the key goals of RISK MANAGEMENT which was efficiently undertaken by SINGHAL INDUSTRIES.