| Enterprise Risk Management at GTL |  | 
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 Case Details:
 
 Case Code : ERMT-008
 Case Length : 10 Pages
 Period : 2003
 Pub Date : 2003
 Teaching Note :Not Available
 Organization : Global Television Limited
 Industry : Information Technology
 Countries : India
 
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		| Legal and Statutory Risks
If GTL did not meet specified performance requirements, customers might 
terminate its service agreements. GTL had clearly charted out a review and 
documentation process that evaluated the legal risks involved, ascertained the 
legal responsibilities and restricted its contracted liabilities under the 
contract... |   
 |  Regulatory RisksIT and Telecom industries being relatively newer industries, 
the regulatory framework was in an evolutionary phase. Regulations were changed 
by the authorities regularly as and when needed. While GTL had systems in place 
for ensuring compliance with all the existing rules and regulations, it was 
possible that it might overlook certain aspects or interpret these in a wrong 
way. This could result in penal and other actions against GTL by the concerned 
authorities... Catastrophe Risks
Natural disasters might result in a significant slow down in the demand for the 
services by corporates in that region... 
	
		|  | Human Resources Risks
GTL believed that employees were vital to its success, Competition for good 
manpower was intense. Attracting and retaining talented people was a major 
challenge. This was especially so at a time when stock options were looking 
unattractive. In order to offset the fall in the value of the ESOPs and to fight 
the dangers of employees being poached by GTL's competitors, GTL might need to 
increase its staff and administrative expenses and training costs... |  Systems, Processes and ControlsGTL's business had grown rapidly in recent times. 
			Future success depended on GTL's ability to manage growth. To manage 
			this growth, GTL would need to:
			 Expand and enhance operating and financial procedures and 
			controls;Replace or upgrade operational and financial management 
			information systems;Attract, train, manage and retain key employees...
 Financial Risks
Exchange Rate Fluctuations37% of GTL's total revenues in 2001 were dollar-denominated. But a large portion 
of costs was incurred in Indian rupees. If the rupee became stronger vis-a-vis 
other currencies, GTL would incur losses...
 Exhibits
Exhibit I: GTL: Business StructureExhibit II: GTL: Business Profile (FY-2001)
 Exhibit III: GTL: Sales by Customer Segment
 Exhibit IV: GTL: International Sales Analysis
 Exhibit V: GTL: Liquidity Position Analysis
 
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