Page 18 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

RISK MANAGEMENT

PROCESS/LOOP ON

VARIOUS RISK

ISSUES(MFI

SECTOR)

Learning objectives are part of an interactive and dynamic flow of
information from the field to head office to senior
The objective of this chapter is to make readers
understand: management and back to the field. These steps are
part of a continual risk management feedback loop
What is Risk Management process that consistently questions whether the assumed risk
How it works? is reasonable and appropriate, or whether it should be
reassessed.
Significance of risk loop in the industry
Different components in risk loop In a nutshell, the risk management process includes

How the loop will work in the salvation of risks the identification of risks to be controlled, the
development and implementation of strategies and
Arrears concept as a live example, which was
developed from the risk loop. policies to control risk, and the evaluation of their
effectiveness. If results indicate that risks are not
adequately controlled, then policies and procedures
Introduction are redesigned, re-implemented, re-tested, and
The Risk Management process consists of various steps reevaluated.
to ensure minimization and avoidance of risks to the
company. The steps in the risk management process This risk management process is common for all the
entities in the industry, but some entities are working
About the author with 5 or 4 major components in the loop.

Aniket Kirtiwar
Associate Member However, here for clear understanding and detail
RMAI learning purpose 6 components are taken in the loop
and also Arrears concept was taken as a live example,

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