Page 36 - The Insurance Times January 2022

ROLE OF RISK

MANAGEMENT

PROFESSIONALS

IN EMERGING

ECONOMIES

“The management and control of risk is the most economies is and will continue to be an essential
significant topic in the business world today” competence for multinational organizations.
- Robin Kendall
Our goal is also to build a picture of best or leading practice
to see how risk management professionals are successfully
“Emerging economies constitute the major growth
managing risk in order that others can leverage their work.
opportunity in the evolving world order.”
- David Arnold, John Quelch Risk management professionals can measure risk across
markets in terms of their potential impact on profit and loss,
Introduction quantify capital allocation to markets and dealers, establish
meaningful risk limits and supervise performance.
The objective of this study is to explore risk management
in emerging economies. We were not interested in
This study also covers definition of emerging economies and
determining whether individual markets are more or less
spectrum of risks associated with emerging economies and
risky – that is inherent in emerging economies given the
scale and pace of change and their current level of general best practises followed in order to manage risk
economic development. Experience tells us the conditions effectively.
that make them riskier than mature markets will continue
to apply for some time, hence, in an increasingly Definition of Emerging economies
interconnected global economy, managing risk in emerging The term emerging economy is relatively new however it is
one that is broadly utilized now a days. One way to depict
emerging economy as simply “all those countries not
Author considered developed”. Developed here meaning essentially

Parivesh Khandelwal the major European countries plus the US, Canada, Japan,
Australia and New Zealand.

36 The Insurance Times, January 2022