A Risk Management Conclave was organized by The Institute of Risk Management, UK (IRM) along with its India Partner – ITI EdVest, in association with IMC Chamber of Commerce and Industry. The conclave was supported by industry stalwarts who came together as panelists to discuss and deliberate on the increasing importance of risk management and its education in India. With the challenges being faced by Indian businesses, rise in corporate governance issues, disruption in traditional business models and volatility in the Indian economy, risk management has gained a lot of traction.
(Panelists: Amit Tandon, Founder, IiAS, Neeta Mukerji, Chief Credit Officer, RBL Bank, Dhanpal Jhaveri, Managing Partner, Everstone Capital & Chairman – Corporate Governance & Sustainability Committee at IMC Chamber of Commerce & Industry, Sudhir Valia, largest shareholder, The Investment Trust of India Limited and Shailesh Haribhakti, Non-Executive Chairman, L&T Financial Services)
*India is home to the third largest family businesses in the world but 43% do not have a succession plan in place. We have advanced significantly in terms of technology using AI, machine learning and big data but over 76% of Indian businesses are vulnerable to cyber-attacks. According to a professor from Yale School of Management, the average life span of an S&P company has dropped from 67 years in 1920 to 15 years today and even predicted that 75% of the S&P 500 firms will be replaced by new firms in 2027.
Appreciation of the value of risk management is becoming evident. “India is perhaps the only country in the world that has mandated a Risk Management Committee of the Board, apart from Audit Committee and Compliance Committee, and these three committees are very distinctly managed for keeping an organisation safe and sustainable” said Shailesh Haribhakti.
“Focus on the risk management process is of paramount importance”, said Amit Tandon. Recently, regulators in India have emphasized the need for a well-defined risk management structure to ensure more transparency from a corporate governance point of view and also to support prudent decision making for smooth functioning of businesses. Mr. Sudhir Valia added “Risks emanate from the shop floor and they should be resolved by the risk owners themselves, because once these risks travel to the board room, the impact cannot be reduced to a desired level.”
The discussion emphasised that risk management is not only about managing financial risks or compliance risks but also taking a holistic approach towards enterprise wide risk management. “Good risk managers should be good at history because those who don’t learn from history will be doomed to repeat it” said Neeta Mukerji.
One key message emerging from the conclave was that risk management will be the driving force behind tackling business failures, improving stakeholder confidence and most importantly, creating a culture of risk based decision making across organisations. From an investment risk perspective, Dhanpal Jhaveri said, “Investing is like a two faced coin – there is always a return on one side and risk on the other side and as investors we are also custodians of others capital so asking the right questions about risk before investing is very crucial.”
At the conclave, the Institute of Risk Management – UK also announced their entry into India in collaboration with ITI EdVest (the education initiative of The Investment Trust of India Limited). This will introduce a full suite of professional enterprise risk qualifications for students, entrepreneurs and working professionals with an objective of nurturing the next generation of risk thinking leaders in India. “Having already trained over 500 students in business risk management through a unique experiential and practical approach, I believe that risk management is as important as financial literacy and there is a need to integrate this with our education system. This will ensure that India’s SMEs, family businesses, startups and large corporate organisations continue to grow with stability and the right risk response strategy to reduce the impact of risks”, said Hersh Shah, India Affiliate Partner of IRM UK.
IRM qualifications will be available through ITI EdVest’s selected education institutions and corporate partners and open enrolment programs at select cities across India will also be announced. For more information, please contact IRM’s India Affiliate – ITI EdVest.
“India as a country has huge potential and we see a huge demand for enterprise risk professionals across industries including financial services. With IRM qualifications now available in India through ITI EdVest, we are confident about bridging the demand-supply gap and developing a large pool of qualified enterprise risk professionals”, added Sanjay Himatsingani, Director of Training & Development, Institute of Risk Management, UK.