THE RISK ASSESSMENT MODEL ............................................................................................................ 3 MODEL DESIGN .................................................................................................................................... 3 MODEL USAGE ..................................................................................................................................... 5 MODEL ARCHITECTURE ....................................................................................................................... 6 OVERALL RISK MEASURED ON AN TEN POINT SCALE ............................................................................ 6 INDUSTRY RISK EVALUATION .................................................................................................. 7
Factor scoring ........................................................................................................................................ 7 1. Demand-supply gap...................................................................................................................... 7 2. Government policies..................................................................................................................... 8 3. Extent of Competition................................................................................................................... 9 4. Input Related Risks....................................................................................................................... 9 5. ROCE (Return on capital employed)......................................................................................... 10 6. OPBDIT/Operating Income ....................................................................................................... 11 7. Variability of operating margins ............................................................................................... 11 8. Growth in operating