PROACTIVE RISK IDENTIFICATION IN THE CHANGING AUTOMOTIVE INDUSTRY: A COMPREHENSIVE FRAMEWORK

Abstract

Advancements in technology, shifts in consumer preferences, and revised regulations are all propelling rapid growth in the automotive industry. Traditional approaches to risk management are insufficient when confronted with the emerging risks presented by this transition. Adopting a proactive approach to detecting hazards is essential for successfully navigating this constantly evolving world. The present work presents a comprehensive framework for the proactive identification and management of risks within the ever-changing automotive sector. The essay commences with providing an overview of the industry's historical context and current advancements, followed by an analysis of the inadequacy of conventional risk management methods facing emerging risks. Furthermore, it proposes a complete framework specifically tailored to tackle the unique challenges faced by the automotive sector. Implementing a comprehensive approach to risk management, this framework integrates assessments of technology, markets, legislation, cybersecurity, and supply chain vulnerabilities. The analysis proceeds to discuss potential issues associated with implementing this methodology and offers remedies to overcome them. In order to enhance their decision-making and resilience in the face of industry-wide complexity, stakeholders in the automobile sector might adopt a pre-emptive approach to risk management. This study contributes to our knowledge of proactive risk management strategies and enhances our understanding of future risk identification in the automobile industry. Methodology: By employing this approach, these enterprises can enhance their ability to make well-informed judgements on their risk management plans. The technique facilitates the identification of critical vulnerabilities, therefore enabling the implementation of preventive measures to mitigate the effects of specific risks on net income. Moreover, the model possesses the capability to undertake data analysis from multiple companies within the same industry, thereby offering potential insights that can be extrapolated to other similar organisations. This has the potential to result in enhanced risk management strategies within India's automobile industry.