Page 23 - RMAI Bulletin July 2024

RMAI BULLETIN JULY 2024

Climate Risk understand their supply chain dependencies and

Climate change is one of emerging risk which can lead minimise supply disruptions.
to our life very difficult to exist, if not controlled within
the specific time. They the affect the water bodies, What are the frameworks to identify
seas and glaciers, climate change etc. The climate the emerging risk?
change had led to various problems like drying soil, There is no best practise standard for identify the
raising temperature, etc. Risk assessments based on emerging risk conduct emerging risk review-develop a
formal examination of the ramifications, probabilities, formal and other documented way of identify the risk.
and reactions to the effects of climate change, as well All the risk which might affect the working of business
as how social restrictions influence adaptation alterna- might be considered and even small risk which might
tives, are referred to as climate risk assessments. not be affect, must also be considered.

Legislative and Regulatory Risk Companies need to find a discipline for dealing with

This is those risk where change in the laws and regu- the risk and what are the results of uncertainty of the
lations affecting working of the organization or their event.
investment might also affect by business, sector, mar-
ket. Government can imply new rules and regulation Ways to identify risks in your
in the working of the firm which eventually increase
the cost of doing business and making less profitable organisation-
business as compared to earlier. One sector which is Consult an expert- Company have relationships with
facing the regulatory risk giant tech company Amazon, many people to identify the risks like financial advisor,
Meta, Apple, etc. Government shall also charge huge insurance broker, accountant, and many consulting
penalty if data is breach by the company. firms, etc. Insurance broker know what risk an
organisation might face in future due to claim history,
Pandemic Risk and analysing current scenario. If an organization is
Pandemic risk is risk which lead to close our business facing an risk again and again then broker can give
better consultants and way to reduce it. The financial
for months in the world. No one can assumes that a advisor give best advice where to invest the capital,
situation like pandemic can affect our business in this and ways to decrease the effect of any scam. They can
way and Insurance company which is thinking to bear prepare the organization advance for an unknown risk.
huge claims in life insurance, but on other hands Busi-
ness Interruption policy lead to pay huge amount of Taking the help of models and software - there are
claim .It is difficult to predict this kind of risk because many business strategies that can help to identify risk.
there was no previous data for analysing this type of There are many organization that provide information
problem. In history, there are no. of pandemic emerge on identifying unique risk. These models are not al-
in world like smallpox. There was one more disease ways 100% true because it is always based on the as-
plaque which taken life of several people.
sumption.

Supply Chain and Vendor Risk Employee feedback is important- Everyone in the
The covid 19 had disrupt the global supply chain in the company have different role in the organization to play,
world. For more than years companies and consum- like CEO looks the company in the broad sense
ers have facing problem of supply chain, shortage of whereas the employee look in the narrow way. All the
goods, delays and rising cost. The supply chain and stakeholder, might have the information on the risks
business interruption have widen, from event based to that they face in their day to day life. Employees feed-
impact but also from property to non-property. Con- back play an important role in identifying the risk and
ducting vendor-resiliency evaluations will become even finding as soon as possible risk is advantage to the
more crucial for businesses in this setting so they can company.

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