Page 52 - Risk Management in current scenario

because poor risk culture is a risk to the organization. The first step
towards risk mitigation is risk identification which we have discussed
above. The key core areas that we have identified that need addressing
are:
1. Improvement in risk education
2. Development in risk behavior
3. Change in the attitude towards the risk

Improvement in risk education
There is now a greater need to re-look the course curriculum at an
undergraduate and postgraduate level to ingrain the risk culture slowly
into the habit and behavior of the budding next-generation corporate
workforce. This can be done by introducing risk management in the core
curriculum both at an undergraduate and postgraduate level which
includes subjects of business studies. Risk management can also be
introduced in the commerce and economics stream to develop "What
if" thinking so that when they grow up, their thought process has a natural
inclination of thinking about risk in all their decision-making.

As a part of the risk education, the Indian corporates need to establish a
special program on risk management as a part of employee training on
regular basis rather than a one-off. The employees may be encouraged
to go for standard risk management certification programs that are
imparted by many professional bodies.

There could be incentives for such certification programs. To further
enhance more structured risk management education, Risk team
hierarchy including the position of Chief Risk Officer must have a standard
risk management qualification. Most of the current trends in the risk
management hierarchy are not linked to any risk management
qualifications. Such qualifications will attract new talent to make risk
management a career which the future will need.

50 | Risk Management in Current Scenario