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Executive Summary General Motors is one of the largest manufacturers and distributors of cars and trucks in the global market. The company deals with both automotive and non-automotive related brands. Despite its widespread operations in almost all industrial sectors in the 1900s, the company encountered a number of pure risks that led to negative impact in its financial portfolio in the past five years. This led to a drop in its gross and net income due to increasing depreciation and rise in operating costs.

The major area of the study is on the different pure risks that the company has encountered within the past few years, the major one being product liability that occurred in their faulty ignition switch. The failure led to recall of many of their vehicles that affected the public image of GM due to the death count caused by this safety-related problem and possible violation of federal laws. The recall had several implications that include decline in stock price and stock volume. However, the company implemented some risk practices and recommendations since the company seem not to have had enough measures to rectify the mass recall.

Other associated risks emerged such as strategic risks, supply chain risks, hazard risks as well as financial risks. In this case, it was the responsibility of the executive team to realign the company’s management structure through implementation of significant recommendations capable of rectifying the previous mistakes. There were also recommendations that were geared towards building of corporate stakeholder relationships. Therefore, this study seeks to identify the different pure risks that transpired at GM Company in the last five years, the effects and the general solutions that were put in place to rectify the mistakes suffered by the company.