Page 38 - Insurance Times May 2022

(b) Trade Credit Risk changing, along with risk uncertainties and volatilities. Due
This risk arises when customers are unable to pay the bills to these, emerging risks are to be faced by emerging
on account of the purchase of goods on credit. Therefore, markets. To respond to these risks, risk management
such risk gives rise to shortage of cash inflow, which is professional spreads across the industries to reduce such risks
required to be managed by organizations themselves. Risk and their effects. However, despite risk management
management professionals suggest that critical client professionals' availability, entire responsibility cannot be a
analysis shall take place with credit ratings and payment burden over them. Immediate, relevant departments shall
histories via third party credit agencies to mitigate this risk. be the First Line of Defence to mitigate the risk, and risk
Some credit policies require specific pre-requisites to be management professionals shall support them with their
fulfilled before extending credit purchase facilities to expert opinion as the Second Line of Defence. The Risk
customers. These requisites shall cover imposing credit Management professionals, while dealing with emerging
terms such as limitation of supply of goods and bad-debt economies should plan for the worst and ensure the
treatment policies. Risk professionals will cover all aspects utilization of tools and technologies to reduce risk to the
to secure the corporate financial interest through these lowest possible extent.
measures.
Reference
(c) Financial Reporting Risk 1. Olsson, C., 2002. Risk management in emerging markets.
It is referred to as risk that may arise due to the inaccuracy Financial Times and PrenticeHall, London.
in financial reporting data to regulatory authorities. The 2. Clarke, C.J., and Varma, S., 1999. Strategic risk
entire organization faces such risk as different departments management: the new competitive edge. Long-range
share different data types with regulatory bodies, as per planning, 32(4), pp.414-424
statutory requirements. Risk management professionals 3. Cornalba, C., and Giudici, P., 2004. Statistical models for
suggest reporting the financial data via systematic reporting operational risk management. Physica A: Statistical
templates duly automated via the core system to gain direct Mechanics and its applications, 338(1-2), pp.166-172.
information to cover this risk. The respective department 4. Bürer, M.J., and Wüstenhagen, R., 2008. Cleantech
shall validate such numbers. By implementation of a venture investors and energy policy risk: an exploratory
systematic check, the chances for inappropriate financial analysis of regulatory risk management strategies.
reporting will be minimized. Sustainable Innovation and Entrepreneurship. Edward
Elgar Publishing, pp.290-309.
Conclusion
5. Christoffersen, P., 2011. Elements of financial risk
The economies of the world are not static. They are rapidly management. Academic Press.

100K excess premature deaths linked to air pollution in 8 cities
Exposure to air pollution has been linked to 100,000 excess premature deaths in the Indian cities of Mumbai, Bangalore,
Kolkata, Hyderabad, Chennai, Surat, Pune and Ahmedabad between 2005 and 2018, according to a study.
The international team of scientists aimed to address data gaps in air quality for 46 cities in Africa, Asia and the
Middle East using space-based observations from instruments onboard NASA and European Space Agency (ESA) satellites
for 2005 to 2018.

The study, published last week in the journal Science Advances, shows rapid degradation in air quality and increases
in urban exposure to air pollutants which are hazardous to health.
The researchers found significant annual increases in pollutants directly hazardous to health of up to 14 per cent for
nitrogen dioxide (NO2) and up to 8 per cent for fine particles (PM2.5).
They also found increase in the level of up to 12 per cent for ammonia and up to 11 per cent for reactive volatile
organic compounds.
The team, including researchers from the Harvard University in the US, attributed this rapid degradation in air quality
to emerging industries and residential sources like road traffic, waste burning, and widespread use of charcoal and
fuelwood.

38 The Insurance Times, May 2022