Page 147 - Risk Management in current scenario
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The other risks listed above have been in news over recent past from
some or other part of the world, such as flood, extreme weather,
pandemic, building weapon of mass destruction etc which has been cause
ofworry.
Subsequent sections discusses the risks identified under each of the above
four categories of risks.
Risks
Risk Category Likelihood Impact
Interstate conflict with Weapons of mass
regional consequences destruction
Geo-political Failure of national Interstate conflict with
governance regional consequenees
State collapse or crisis
Environmental Extreme weather events Failure of climate-
change adaptation
High structural
Economic unemployment or
underemployment
Water crises
Socictal Rapid and massive spread
of infectious diseases
No technological risks have been identified during 2015
Geo-political Risk :
For the year 2015, Geo-political risks have figured at three places in terms
of likelihood and at two places in terms of impact. This suggests it weight.
The emergence of this risk is due to current changing political landscape
across the world citing examples of conflicts in Iraq, Syriaand the political
tension existing invarious parts of the world.
How much such risks may affect the Indian financial market, if these risks
materialize?
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