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Original Research

DEVELOPMENT AND TESTING OF A FRAMEWORK FOR INTEGRATING STRATEGIC PLANNING WITH RISK MANAGEMENT IN INDIAN MANUFACTURING INDUSTRY

SALIM G PURUSHOTHAMAN, and Dr. TAPASH RANJAN SAHA

Vol 17, No 06 ( 2022 )   |  DOI: 10.5281/zenodo.6731108   |   Author Affiliation: Research Scholar, Lincoln University College, Malaysia; Associate Professor, Lincoln University College, Malaysia.   |   Licensing: CC 4.0   |   Pg no: 1119-1141   |   To cite: SALIM G PURUSHOTHAMAN, and Dr. TAPASH RANJAN SAHA. (2022). DEVELOPMENT AND TESTING OF A FRAMEWORK FOR INTEGRATING STRATEGIC PLANNING WITH RISK MANAGEMENT IN INDIAN MANUFACTURING INDUSTRY. 17(06), 1119–1141. https://doi.org/10.5281/zenodo.6731108   |   Published on: 24-06-2022

Abstract

With a nominal GDP at current prices of US$ 3.12 Trillion, India has emerged as the fastest growing major economy in the world, and is poised to become one of the global top three economic powers in another decade. Sustenance and growth of its Manufacturing Sector is vital for this development trajectory. Effective and efficient Strategic planning is the key to engender competitive edge and enhanced bottom line for any organisation. The Kaplan-Norton strategic planning framework (David P Norton & Robert S Kaplan, 2008) links strategy with operations which can be applied in the manufacturing industry scenario also. But this model is not capable to deal with the unanticipated threats, the Risks that may visit the organisations at any time. This calls for deploying a full-fledged Risk management function within the organisation. Literature points to the necessity of integrating the Risk management and Strategic Planning functions so as to avoid selection of mistaken strategies, to manage strategic risks etc. The recent among Risk Management standards, ISO 31000, which gifted us a well-defined model for implementation of Risk Management, strongly advocates that Risk management is to be an integral part of Strategic planning in any organisation, and provides for a generic Risk management framework, that links Risk management with operational activities. This paper is an attempt to develop a conceptual framework that integrates Strategic planning with Risk management by synthesising the most acclaimed Strategic management (Strategic planning) framework and the latest Risk management framework through a functional amalgamation, and to test that framework dynamically in a medium type manufacturing organisation . The trial run of the model resulted in not only setting the right strategy, but also in ensuring the compliance of performance with the mission and objectives of the organisation, despite the many risks identified. This model can be refined further by future works, field trials etc and can be extended to other industries as well.


Keywords

Integration of Strategic planning with risk management, Indian manufacturing organisations, Risk management, Strategic planning.