Risk Assessment of India - Assignment Example

Download file to see previous pages Risks can spread throughout the entire geography of a country or a localized area and can be covariant or correlated. If they affect individuals within communities, then they are uncorrelated-idiosyncratic. Some risks are very rare while others are repeated with relative frequency. As they differ in their effect, some risks are mere nuisances while others have catastrophic consequences (Graves, 2000). This study uses media reports and existing studies to identify the different risks that communities, regions and individuals, and the state of India face based on their likelihood and frequency of occurrence. Key national, community, environmental, and individual risks are discussed. This report provides a background of risks, risk assessment register, risk matrix, fault tree analysis, and distribution of funds to eliminate or reduce the risks.

1.1 Background of Country risks-India

1.1.1 Corruption in public programs
Corruption in monetary terms represents the average leakage rate from the actual quantity of materials or funds allocated to certain projects or programs. The National Rural Employment Guarantee Scheme (NREGS) is one of the largest welfare programs in India. The leakage rate is notoriously difficult to measure even after every rural household is entitled to up to 100 days of paid employment annually (Staley, 2006). This scheme costs an estimated 1 percent of India’s GDP and covers about 11 percent of the population of the world. The statutory wages are frequently revised by state governments offered through NREGS. However, officials who are implementing this program do not always pay workers their actual due, and it remains unclear if reforms determine the wages paid. For example, the results of a study conducted between March and June of 2007 showed that any wage increase did not pass through to workers.

Before the policy change, the average leakage was close to 0 percent from wage payments but after the change, the marginal leakage shot up to 100 percent. Interestingly, villages in which a Non-Governmental Organization is active showed some evidence of 36 percent of positive pass-through of wages (Ghosh, 2004). Though not enough to be detectable in the aggregate, this suggests that factors correlated with the presence of NGOs facilitate voice. The nature of corruption in public programs has led to diminished margins and averages for public workers. Since the inception of the program, NREGS wages have frequently changed due to the financing of the scheme.  ...Download file to see next pages Read More