Risk Management has assumed great significance in the global economic scenario. More and more companies are recognizing the need for implementing the concept in their organization.
Unless the risk is monitored properly the very existence of business may be at stake. Technological advancement has revolutionized the ways of doing business but at the same time has posed new challenges to manage and contain risk.
In western countries, Risk Management is an important area which has attracted the attention of Bankers, Insurers, Financial Institutions, Government, business houses, in forecasting the imminent risk in undertaking any project/work and taking suitable precautions to avoid or minimize the adverse impact of risk.
However in India though the importance of Risk Management has been recognized but no concrete step has been taken to establish it as an integral part of activity so that risks may be perceived in advance and suitable measures are taken to avoid it. After the opening up of the Insurance Industry in 2000 due to extreme competition, the concept of risk management is fading away. We will have to again develop an environment of Risk Management without which the Insurance Industry cannot exist and grow.
Similarly, the banking/financial sector is under extreme distress with rising NPA’s, Recent frauds in Banks, the vulnerability of online transactions, Credit Risk, Interest rate risks, Operational risks.
The Corporate world and businesses are too not aloof from business risk, strategic risk, and operational risk amidst rising competition from new-age entrepreneurs and startups. The entry of JIO in the telecom industry is a classic example of disruption in the whole telecom market and has changed the whole equation of business.