Page 36 - RMAI Bulletin July - September 2021

RMAI BULLETIN JULY TO SEPTEMBER 2021

ROLE OF RISK

MANAGEMENT

PROFESSIONALS

IN EMERGING

ECONOMIES

“The management and control of risk is the riskier than mature markets will continue to apply for
most significant topic in the business world some time, hence, in an increasingly interconnected
today” global economy, managing risk in emerging economies
is and will continue to be an essential competence for
- Robin Kendall
multinational organizations.
“Emerging economies constitute the major Our goal is also to build a picture of best or leading
growth opportunity in the evolving world practice to see how risk management professionals are
order.” successfully managing risk in order that others can
- David Arnold, John Quelch leverage their work.

Risk management professionals can measure risk
Introduction
across markets in terms of their potential impact on
The objective of this study is to explore risk profit and loss, quantify capital allocation to markets
management in emerging economies. We were not and dealers, establish meaningful risk limits and
interested in determining whether individual markets supervise performance.
are more or less risky – that is inherent in emerging
economies given the scale and pace of change and This study also covers definition of emerging
their current level of economic development. economies and spectrum of risks associated with
Experience tells us the conditions that make them emerging economies and general best practises
followed in order to manage risk effectively.
Author
Definition of Emerging economies
Parivesh Khandelwal
The term emerging economy is relatively new however

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