Page 17 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

oping economies is corruption. It can be challeng- Putting Money Into Technology
ing for businesses to conduct their operations in Those in the field of risk management may find that
an ethical and transparent manner when corrup- making investments in emerging technologies like data
tion in the form of bribery, kickbacks, and other analytics and artificial intelligence can help them iden-
schemes is present. Professionals in the field of tify risks and develop more effective mitigation strat-
risk management are required to devise strategies egies. These technologies can help organisations iden-
for recognising and mitigating the dangers associ- tify patterns and trends in data that may be difficult
ated with corruption. These strategies should in- to identify manually.
clude the implementation of stringent anti-corrup-
tion policies and procedures. Establishing Solid Connections with Stake-
holders on the Local Level
3. Inadequate Infrastructure Establishing solid working relationships with local stake-
Inadequate infrastructure, including poor transpor- holders, such as customers, regulators, and suppliers,
tation networks and unreliable power supplies, can can assist businesses in operating more efficiently in
make it difficult for businesses to operate efficiently developing economies. Professionals in risk manage-
and effectively. Risk management professionals ment can contribute to the development of these rela-
must develop strategies for mitigating the risks as- tionships by engaging in dialogue with local stakehold-
sociated with inadequate infrastructure, including ers, determining areas of shared interest, and formulat-
investing in new technologies and developing con- ing plans to address problems faced in common.
tingency plans to address potential disruptions.
The Establishment of Robust Compliance
4. Weak Regulatory Frameworks Policies and Procedures
Because the regulatory frameworks in many de-
veloping economies are weak, it can be difficult Businesses can improve their performance in emerg-
ing economies by strengthening their compliance poli-
for businesses to comply with the various laws and cies and procedures. These policies ought to be
regulations that are in place locally. Professionals adapted to the laws and regulations of the relevant
in the field of risk management are required to jurisdictions, and they ought to be routinely reviewed
devise strategies for the management of the risks and brought up to date in order to guarantee continu-
associated with regulatory frameworks that are in- ous compliance.
adequate. These strategies must include the
implementation of stringent compliance policies Conclusion
and procedures as well as the development of
solid relationships with local regulators. Professionals in the field of risk management play an
essential part in assisting businesses in navigating the
Strategies that are utilized by profes- difficulties associated with doing business in emerging
economies. These professionals are accountable for
sionals working in Risk Management locating, analysing, and mitigating risks that may have
in Emerging Economies an effect on the operations, financial performance, or

Risk management professionals employ a range of reputation of an organisation. However, risk manage-
ment professionals who work in emerging economies
strategies to manage risk effectively in emerging face a number of challenges, including political insta-
economies. The following are some of the most impor- bility, corruption, inadequate infrastructure, and weak
tant strategies: regulatory frameworks. These challenges can be par-
Developing a Comprehensive Risk Manage- ticularly difficult to overcome. In order for risk man-
ment Plan agement professionals to effectively manage these
The development of an all-encompassing risk manage- risks, they need to develop comprehensive risk man-
ment plan should serve as the initial step towards ef- agement plans, invest in cutting-edge technology, and
fective risk management in emerging economies. This cultivate strong relationships with local stakeholders.
plan should identify the risks facing the organisation,
assess the likelihood and potential impact of each risk, Reference
and develop strategies for mitigating those risks. Various Sources.

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