Page 40 - Insurance Times November 2021

RISK

MANAGEMENT

INTEGRAL TO

HIGHER

EDUCATION

E ven before the pandemic hit, the global economy Risk competency is rarely seen as important for non-

managerial professions. However, this is a shortsighted view
was rapidly evolving, with technological innovation
that is based on a limited understanding of risk management.
and changing geopolitical realities driving the
transformation. Covid-19 has accelerated the need
uncertainty. The ability to identify, assess, and mitigate these
for Indian businesses to develop a conscious approach to In practice, every profession contains varying degrees of
Enterprise Risk Management (ERM), given that it is vital, not risks is vital in any profession.
only for dealing with emerging uncertainties, but also for
proper allocation of resources, and organisational growth. Hence, it is time we shifted focus towards resilience-based
education across different disciplines, as the future is laced
As we gradually move towards post-pandemic normalcy and with myriad uncertainties.
work towards revitalising our economy, we will need greater
The recently released sixth assessment report from the United
risk intelligence among professionals across industries, to
make India, its economy and corporations resilient enough Nation’s Intergovernmental Panel on Climate Change (IPCC)
to face future crises. has once again firmly put a lens on the reality of climate
change and its manifold impact on the lives of nations and
To reach this goal, it is important that we facilitate ERM citizens across continents.
education from a very early stage, preferably through higher
Nobody is being spared by the rapidly changing and
education curriculum. This will also be in line with the aim of
developing multidisciplinary abilities among students, as increasingly fragile ecosystem .
outlined in the National Education Policy 2020.
In the 21st century, every profession and industry will have to
Resilience-based education work within the ever-changing environment. Hence risk,
resilience and responsibility are vital focus areas that need to
When it comes to higher and technical education, the be nurtured during the formative years of students in the
emphasis has traditionally been on management and higher education system.
leadership training.
Leading through a crisis
This has often led to skewed understanding, where a lot of
stress is laid on pursuing opportunities, without considering The role of leadership has also undergone a steady
the risks associated with them. transformation. The pandemic required business leaders to
quickly adapt to new technologies, in the face of a highly
As a result, even our business graduates lack a well-rounded volatile environment.
enterprise risk perspective.
Even as normalcy has returned in some small measure, the
In streams such as sciences, humanities, engineering, or challenge lies in ensuring that we can stay agile in a changing
medicine, risk management is completely ignored. global situation.

40 The Insurance Times, November 2021