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`Companies should know their risk appetite'
Our Bureau
Hyderabad
,
Feb. 25
WHAT should companies do to assess risk and plan to tackle it? Mr Amitabha Guha, Managing Director of State Bank of Hyderabad, has asked companies to first understand `What is their risk appetite'.
Once they did it, they could prioritise risk by judiciously allocating resources, both fund and personnel.
Delivering the keynote address at a CII workshop on `Risk management - the key corporate function' here on Thursday, he said risk was characterised by change and challenges in the seamless global economy, where uncertainty was the key component.
The corporate objective was to enhance the shareholder value and profitability, a CII press release quoting Mr Guha, said. For this, companies needed to assess their risks and prepare strategies to tackle them.
Quoting Darwin, he said the strongest and smartest of the species would survive.
Mr M.K. Patodia, Vice-chairman of CII (AP), said the forex market behaved differently from other markets. The speed and volatility were unlike in any other area.
The forex market was uncontrollable, and no single event, individual or factor impacted on it. He stressed on the need to focus on how best they could hedge their risk both in finance and business.
Mr M. Gopalakrishna, Convenor of Economic Affairs Panel (CII-AP) and Chairman of APSFC (AP State Financial Corporation), observed that ramifications of risk as a preposition were being better understood in the present era of globalisation.
Mr Jamal Mecklai, Chief Executive Officer of Mecklai Financials, in his presentation on `Creating a sound structure for treasury operations', asked the industry to insulate business operations from market fluctuations by empowering the treasury, as it was the sole interface with the market.
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