Risk management must be driven by understanding what is good for the company: Former Chairman Sebi

• Risk management must be driven by understanding what is good for companies, said M. Damodaran, chairman of Excellence Enablers and former chairman of Sebi.
• The FICCI-GRMI Model Risk Code is a toolkit for educating senior staff and corporate boards about the risk assessment and mitigation process.
• The Securities and Exchange Board of India (Sebi) mandates that the top 1000 listed companies must have risk management procedures in place.

Risk management must be driven by understanding what is good for the company, said M. Damodaran, chairman and former chairman of Excellence Enablers, Sebi. Obligatory, but as the distilled wisdom of the corporate Indian people, see how you can apply it to your own enterprise.

The FICCI-GRMI Model Risk Code is a toolkit for educating senior staff and corporate boards about the risk assessment and mitigation process.

The Securities and Exchange Board of India (Sebi) mandates that the top 1000 listed companies must have risk management procedures in place. However, in making the model code public, Damodaran said risk management could be a voluntary act for others. “I’m not a big believer in anything being drafted into law,” he said, adding, “If they don’t see the value of it, it can end up being just another checkbox.” However, it is questionable whether it will benefit companies. “Don’t delegate because delegation has a cost”.

Sometimes, Sidharth Birla, the former FICCI president said assessing and addressing risk is a key area of ​​concern for the board. “Any framework that helps companies make more informed, risk-informed decisions would be most welcome,” he said.

In this regard, he notes that the Model Risk Code caters to companies of all sizes, including private and private companies, to help build risk maturity if companies choose to utilize the Code. “This code will support boards as accountability increases by the day,” he said.

At the launching ceremony, Subord Bhargavasaid the GRMI president said the code would be a toolkit to change the mindset of corporate boards and senior staff and make risk assessment and risk mitigation processes part of their DNA.

Subhashis Nath, Founder and CEO – Former Senior Vice President and Enterprise Risk and Compliance Service Line Leader at GRMI, Genpact, said expectations from the corporate world have risen significantly and Indian businesses are becoming more resilient and He said they wanted to be agile and future-proof. evidence. “The Model Risk Code is intended to be a playbook, guide or toolkit for boards and CEOs to ensure effective enablers for building risk into their DNA.”

Anita George, independent director of Piramal Enterprise and former executive vice president and deputy head of CDPQ Global, says risk has always been there, but the pace, unpredictability, volatility and looming threat to us. I said that the myriad of types of risks that exist put us at risk. We recognize that we need someone in our organization who is fighting fires more strategically than just routinely.

Richard LekeyAlluding to the Covid crisis, Mr Rekhy, Director of KPMG Dubai and former Chief Executive Officer of KPMG India, said, “The companies that bounced back faster after Covid were those that had better risk management practices. It is.” Mukesh ButaniFounder and Managing Partner, BMR Legal, Rajan SaxenaRitu Chawla Kochhar, former Vice Chancellor of NMIMS, SVKM, and Spencer Stuart, India Representative, were also present at the occasion.

Related item:
Government seeks proposals for union budget 2023-24

India needs 1,000+ pilots per year, but lacks training infrastructure