Page 41 - Insurance Times November 2021

Leaders, whether they head businesses or smaller teams a certain asset size. For insurance companies, risk compliance
within an organisation, must therefore have the skills to comes under corporate governance guidelines, as specified
manage a crisis. by the Insurance Regulatory and Development Authority of
India.
By integrating ERM education into the university curricula,
we can help students develop risk competency from an early With the Securities and Exchange Board of India expected to
age. announce a risk regulatory structure for the top 1,000 listed
companies, these regulations may be extended beyond
Such holistic education ensures an in-depth knowledge of the financial institutions. As more regulatory bodies mandate the
principles and practices of ERM and lays the foundation of a appointment of risk committees and CROs, ERM
risk-conscious approach in our future leaders. qualifications/examinations will facilitate faster career
advancement for professionals and more resilient
In the last few years, we have seen an increasing demand for organisations
risk-intelligent professionals. This demand has shot up further
during the pandemic as businesses realised the importance Moving beyond finance
of a risk-aware organisational framework. The aim is to ensure Traditionally, risk compliance has been confined to financial
that ERM is adopted as an integral part of organisational institutions such as banks, NBFCs, brokerage firms or insurance
culture and decision-making, instead of being an intermittent companies. Consequently, risk management qualifications
and compliancebased exercise. were pursued only by students who aspired to work in the

financial sector.
Shifting focus
With emerging risks from cyber-attacks, geopolitics, climate However, with compliance structures now extending to non-
disasters, terrorism, wars, and other corporate governance- financial organisations, there is a push towards risk-embedded
related issues, we will see an increasing focus on enterprise corporate governance in different sectors. To facilitate this
risk compliance, and a corresponding rise in demand for risk- growing demand, ERM examinations that provide a pathway
intelligent professionals. The inclusion of ERM in the higher to Certified Fellowship (CFIRM) — provided by the Institute
education curriculum can also improve the employability of of Risk Management — should be included higher education
graduating students. curricula.

A tightening compliance strucin ture, with strict enforcement Under the NEP2020, students can opt for a second degree, in
from regulatory bodies, has also added to the increasing parallel with their primary course. This means that five-level
demand for risk-intelligent professionals. For instance, the ERM qualifications can also be pursued, along with almost
Reserve Bank of India mandates the appointment of Chief any graduation or postgraduation programme.
Risk Officers (CROs) in non-banking finance companies beyond
Students and working professionals can opt for higher-level
qualifications as they gain experience and develop a deeper
understanding of the subject.

A robust economy demands that our emerging workforce be
capable of staying agile in the face of an uncertain business
environment. This demands a risk-conscious approach that is
deeply embedded within organisational structures. It has
become imperative for future leaders to equip themselves
with the knowledge of risks, as applicable to every aspect of
business. We must ensure that future professionals and
business leaders have the academic knowledge and the
competence to take decisions using a risk-conscious
framework. Towards this end, including ERM courses in the
Indian higher education curriculum would be the first step.
(Courtesy: Business Line) R

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