Assess, measure & control risk: Chanda

 
Speaking at the Risk Management Summit organised by Confederation of Indian Industry (CII) Kochhar said each organisation has to take into account future risks while shaping the risk management tools than merely assessing past risks.  Against the backdrop of global financial crisis which had its origins in disregard of adequate risk management framework in companies,Kochhar highlighted ten principles of risk management.

Risk analysis

Comprehensive assessment of overall risk, measuring co-relation amongst different risks, ensuring that entity that holds the risk finally assesses the risk, modifying models for monitoring risks along with changing times, regulations to keep pace with innovation and aligning incentive structure to risk managements were stressed upon for risk mitigation. 

UTI Asset Management CMD  U K Sinha, stated that respect for internal committees like audit committees, bridging of inter-regulatory gaps and focus on long term performance would ensure effective risk management.  Sinha cautioned that enterprises need to worry if the income from core business is insignificant when compared to other businesses of the enterprise.