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Our Bureau

Dec. 8

Enterprise risk management (ERM) is not a serial process. It is a multi-directional and interactive process in which almost any component can and does influence others, according to Mr Ashok Soota, Chairman and Managing Director of MindTree Consulting, and Past President of CII.

Delivering the theme address at a CII seminar on `Corporate governance and risk management' here on Friday, he said it was important to place more emphasis to the quality of people in the function than the hierarchy to ensure risk function independence in measuring and monitoring risks.

"Risk management as a function should have unambiguous sponsorship of the top management. It should be monitored by the audit committee," he said.

Quantitative framework

Speaking on best practices in ERM, he also wanted companies to move towards a quantitative framework of measurements of risk appropriate for the respective companies.

ERM would help improve decision-making, increase accountability and provide clarity on key organisational risks.

"It builds a culture of informed risk taking, while building confidence in stakeholders," he said.

The fundamental responsibility of management was to decide on how much risk to take on while trying to maximise stakeholder value.

Speaking on `Corporations of the future' Mr Vinay Krishna, Business Productivity Advisor of Microsoft India, said technological solutions could help corporations to ensure better compliance with regulatory mandates.

More Stories on : Corporate Governance | Events | Andhra Pradesh

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