The Hindu Business Line : ‘Effective risk management vital for success’

Bangalore, Aug 8 Communication with stakeholders on the risk measures could help an enterprise overcome difficult situations and emerge stronger. Apart from the usual business cycle downside or unwise strategic decisions, enterprise risks manifest in many forms.

Institutionalising risk management, involving all sections of an enterprise, would not only help in managing risks judiciously but also help in turning them into an opportunity.

Giving this impression at a seminar organised by the Confederation of Indian Industry (CII) here on Friday, executives felt risk management should not be confined to top management alone.

Mr Nitin Bhatt, Partner, Ernst& Young, and Chairman of ERM 2008 (Enterprise Risk Management Symposium) said enterprises need to focus on challenges from market volatility, rapid globalisation and opportunity assessment, fraud and corporate disputes and sharper execution focus on issues such as cost, time and quality management to prevent them from any business setback.

Mr Ravi Seth, Chief Executive Officer of Strides Arcolab, and Mr Shumone Chatterjee, Managing Director, Levis Strauss India, while reiterating the importance of communication as a means to remove perception risks about a company’s ability to handle the situation stressed that pre-warning about the risks during volatility of capital and consumer markets would help in overcoming the crisis of confidence in the company from the stakeholder and customers.

Mr Sushil Mantri, Managing Director, Mantri Developers, said bigger companies in the real estate business was able to handle the risks, largely a result of sentiment and perceptions, with the help of education gained from their private equity partners.

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