Page 36 - Risk Management in current scenario

CURRENT RISK MANAGEMENT

POSITION IN INDIA

T his article covers the current risk management position in India

and looks into the future from an opportunities' point of view in
the area of risk management. Key points discussed in the article
are drivers of risk management, current corporate governance practices,
challenges in the implementation of risk management and emerging
future opportunities. The article looks into the present risk management
position and advocates that there are plenty of opportunities in this field
in time to come.

Corporate Governance Guidelines

Human existence is fraught with future uncertainties and managing the
same in your own way is not something new, however, in recent times,
with successive failure of businesses across the globe, there is greater
focus on management of risk. The series of changes made to corporate
governance guidelines across the globe is a testimony of the seriousness
shown by different regulatory authorities. Some of the recent changes
brought up by regulatory authorities across the globe are risk-based
capital provision in the banking and insurance sector. The focus of
different regulatory bodies has increased on setting up of Risk
Management Committees and strengthening the role of these
committees in providing risk oversight. It has been realized that risks
cannot be eliminated but can only be managed, so their identification is

34 | Risk Management in Current Scenario