Business organisations across the world are experiencing enhanced volatility, uncertainty, complexity and ambiguity with regard to the environment they operate in. This VUCA business environment is prone to generate risks that, if not managed well, may lead to catastrophic events which may even put a question mark on the survival possibility of a business organization. On the other hand organizations that have effective risk management system can identify opportunities for business growth which may lead to huge business success. Organizations need to embrace risk management to deal with a huge variety of risks faced by them which may include market risk, production risk, new product/ service introduction risk, project delay risk, risks arising from competitor activities, key personnel attrition risk, legal/ regulatory risk, business disruption risk, IT-failure risk etc. If not properly managed many of these risks can have a severe debilitating impact on the business. Risk assessment thus becomes particularly important as choice of appropriate risk management and mitigation strategies critically depend on it. An effective risk manager does not only devise strategies that limit the downside impact of the risky events should they occur but also prepares the organization to seize the growth opportunities that may arise.
It goes without saying that all senior managers working in modern business organisations need to have a clear understanding of the various dimensions of risk, methods of risk modelling and risk assessment, and techniques of risk management. Many organizations in recent times have appointed a Chief Risk Officer (CRO) who is tasked with the development of the overall risk management plan of the organization. The growing importance of the risk management practice in the Indian context can be seen in the provisions of Companies Act 2013 and a recent circular (May 2019) by RBI that suggests appointment of CRO to all large NBFCs.
The objective of this programme is to provide senior managers of manufacturing and service organisations an in-depth understanding of the concepts and techniques of risk modelling, risk assessment, risk management and opportunity engineering.
Module I : Understanding Risk
In this module participants learn about risk and how humans perceive risk. Some generic strategies for dealing with risk would be discussed. The importance of risk management frameworks such as ISO 31000 would be highlighted.
Module II : Scenario Analysis
In this module participants learn about scenario analysis which is an important technique of identifying risk events, their likelihood and impact.
Module III : Risk Assessment using Simulation
In this module participants learn how to quantitatively assess risk using Monte Carlo simulations using case studies chosen from different business sectors. The important notion of Value-at-Risk is also discussed.
Module IV : Financial Risk Management
In this module participants learn how to manage financial risks. Techniques covered include Portfolio management, Options and risk hedging, Credit risk modelling and Credit scoring.
Module V : Risk Adjusted Valuations
In this module participants learn how to adjust value of projects taking into account the various uncertainties that may affect them. The Real options methodology is also discussed in this context.
Module VI : Project Risk Management
In this module participants learn about assessing and managing the project risks – primarily the risks of time and cost overrun.
Module VII : IT and Supply Chain Risk Management
As dependence of organizations on IT-systems and Supply chains continue to increase rapidly managing disruption risks in these functions is of paramount importance. In this module participants learn how to deal with risks impacting these functions.
Module VIII : Legal Aspects of Risk Management
Occurrence of Risk events or Near-misses can have serious legal implications. In this module participants learn about these legal issues and how to deal them.
Module IX : Enterprise Risk Management
In this module the participants learn about the Enterprise Risk Management (ERM) frameworks and issues faced by organizations in terms of their implementation. Some best-in-class ERM implementation cases would be discussed.
Participants should have good quantitative and spreadsheet modelling skills. This would help them to assimilate the course content fully.
This programme is intended for senior managers who require comprehensive understanding of the concepts and techniques of risk modelling, risk assessment, risk management and opportunity engineering.
In the earlier offerings of this programme we had participants from companies operating in diverse sectors. Some of these are Deloitte AERS, State Bank of India, Siemens, S T Microelectronics, American Express, Itzcash Cards, Adani Enterprises, Yes Bank, Deutsch Bank, Ernst & Young, Genpact, NABARD, Lafarge India, Bank of Bhutan, Godavari Biorefineries, Powergrid Corporation, NCDEX, Barclays Bank, Cotton Corporation of India and Mangalam Alloys.