Page 37 - Insurance Times May 2022

and Giudici., 2004). Organizations shall focus on the risk
management professional and security consultants to secure
themselves from any risk that arises from destabilized law
and order situations. In case an organization requires prior
intimation related to a security risk, risk professionals can
carry out security reviews against the organizations' risks.
They can advice using insurance coverage for properties,
medical, and other operational related matters. Further
security planning and back plans can be suggested by the
risk professional to cover the risk aversions.

(d) Supply Chain Risk
This risk is referred to as an assessment of customer and
suppliers review related to product offer by organization in
emerging markets. Such risk can be mitigated by maintaining
close business relationships with wholesalers, distributors,
suppliers, and final products' consumers. Risk professional management can use experts such as auditing or accounting
suggests that the organization shall ensure the availability firms to gain expert advice. Further, the organization shall
of alternative suppliers and multiple outsourcing options to strengthen the internal compliance department to look after
eliminate any delay in productions. Further, the organization statutory issues in coordination with regulatory bodies.
shall develop direct contact to get firsthand knowledge of
customer requirements and the latest customers' tastes. (b) Fraud, Bribery and Corruption risk
This risk arises due to the illegal exchange of an undeserved
(e) Intellectual Property Risk return to pressure someone's behavior. It is also any illegal
It refers to copying the work created by an organization or inappropriate behavior that seeks to get a benefit
such as product, brand, and design. Emerging economies, through illegitimate sources. Risk management professionals
such as China, face a significant issue of protecting suggest implementing healthy internal controls through
intellectual property rights where protection is nearly documentation and monitoring of transactions for clear
impossible. Risk Management professionals suggest signing authorities. The organization shall implement policies
protection of intellectual rights by trademark registration. such as a code of conduct, training, internal
Further, the organization may protect their agreements and communications, and management policies to educate the
contract containing the designs and model secrets by staff members to avoid such practices. Anti-fraud
covering the protection act with lawyers and risk departments, along with internal audit, can perform
management professionals' help. yardstick function by use of whistle blower policy.

3) Role of Risk Management Professionals 4) Role of Risk Management Professionals
in Regulatory risk management. in Financial Risk management.

(a) Compliance / Integrity Risk (a) Currency /Treasury Risk
An organization faces the compliance risk when there is a It is linked with the administration of corporate holdings,
failure to act by the guideline laid with applicable industrial which covers money market instruments, equities, liquidity,
laws, regulations, policies, and procedures desired by and capital (Christoffersen, 2011). With the middle money
regulatory bodies (Bürer and Wüstenhagen., 2008). Exposure market management strategy's help, risk management
to penalties, financial forfeit, and reputation loss to an professionals respond to these risks through hedging
organization is faced against the compliance risk. Risk techniques. To support the hedging, natural hedging toll and
professionals in emerging markets monitor the day-to-day the negotiation of foreign deals in local currency can cover
changes in legislation and check its compliance with the treasury risk. Risk professionals appreciate, if the
organizational, operational activities. Any gaps identified organizations have separate middle money market risk
during such exercise is reported, to rectify and become department, which will remain responsible for control, risk
compliant with regulations. For such purposes, risk mitigation procedures, and limiting currency exposure.

The Insurance Times, May 2022 37