Page 28 - Risk Management Bulletin February 2024

RMAI BULLETIN FEBRUARY 2024

Role of Risk

Management

professionals in

emerging

economies Akhil Khanna

Introduction Risk management is essential for several rea-
Risk management is crucial in emerging economies to sons.
protect businesses from the unique challenges and Y Risk management provides a proactive means of
risks they face. It not only safeguards against poten- identifying and preparing for potential threats,
tial losses but also enhances flexibility, promotes inves- whether they are financial, operational, strategic,
tor confidence, and supports sustainable growth in compliance-related, or related to other aspects of
these dynamic and evolving economies. an organization's activities.
Y Risk management helps in making informed deci-
Risk management professionals play a crucial role in sions by quantifying and prioritizing risks, enabling
emerging economies, just as they do in established
organizations to focus on the most critical issues.
ones. However, the nature and emphasis of their roles
can be somewhat different in emerging economies due Y Risk management supports resource allocation by
to unique challenges and opportunities. optimizing investments in risk mitigation and con-
tingency planning. Furthermore, it aids in compli-
What is Risk Management and why is ance with regulations and safeguarding reputa-
tion, both of which are vital for organizational
it required? sustainability.
Risk management is a structured process of identify-
ing, assessing, and mitigating potential risks to mini- Risk management is integral to long-term success, as
mize their adverse impact on an organization, project, it helps organizations navigate the uncertain and com-
or activity. It involves a systematic approach to under- plex business environment effectively, ensuring they
standing and addressing uncertainties that could affect can adapt and thrive in the face of unexpected events
objectives, assets, or operations. and challenges.

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