Covid-19 has already cost over US$ 11 trillion compared to US$ 3 trillion for World War-II, according to a report by Global Preparedness Monitoring Board. Hence, widening risk governance, deepening structural reforms, and re-skilling across the enterprises is crucial to empower the 2nd most populous country to overcome the crisis with confidence, as discussed in a BFSI event held recently.
The humanitarian and economic dislocations resulting from the pandemic have affected life, societies, and economies worldwide. Pre-Covid weakness in the Indian economy (that is, large corporate defaults, rising NPAs, falling savings, and investment) worsened due to the crisis.
Therefore, to analyze, debate, and suggest future roadmap, PRMIA – the leading global association of risk professionals – recently organized a webinar. More than 100 participants from banks, asset management companies, non- banking finance companies, insurance companies, risk professionals, consultants, audit firms, business media, academicians, students, technology solution providers joined industry experts in the event.
Setting the tone of the event, the chief guest, Siddhartha Sengupta – former deputy managing director of State Bank of India – threw light on risk governance’s failure as the key factor behind the current mess. “It is not black swan (low frequency, high impact event), but grey rhino (high probability, high impact, but ignored),” he emphasized.
Industry experts comprised Shailesh Dhuri, chief executive officer of Decimal Point Analytics, A V Rama Rao (CRO- Canara Bank), Sidheswar Patra (CRO- Bank of Baroda), and Arvind Kumar Sharma (CRO- CSB Bank). Strategic inputs from leaders included in-depth granular monitoring of credit, liquidity, and operational risks, focusing more on rural and agricultural sectors, leveraging Artificial Intelligence and digital models for early detection and mitigation of risks.
PRMIA (Professional Risk Managers’ International Association) offers industry-focused education, competency- training, and global-certifications to promote risk management standards and best practices. According to Nirakar Pradhan, chief executive officer of PRMIA India, “This is a defining moment!
PRMIA’s mission is to empower millions of young graduates and industry professionals with globally competitive qualifications and job placement assistance through its India Channel Partner SRICHID Academy.”
Rishikant Dubey, regional director of PRMIA Bangalore Chapter, welcomed the guests, and the industry veteran M V Hariharan extended the vote of thanks.