FICCI-GRMI launches draft 'Voluntary Code on Risk Management for Indian businesses'

Jul 16, 2022

NEW DELHI, 16 July 2022: Presenting the pioneering work on risk management, FICCI and Global Risk Management Institute (GRMI) have invited stakeholders' comments on the draft Risk Code, which was released yesterday. The Risk Code is aimed to be a practical playbook for the Indian industry with effective enablers for implementation of risk management practices so that organizations can take bolder, faster, risk-intelligent business decisions.

The Risk Code is intended for listed companies, public unlisted companies, private companies, start-ups, not-for-profit organizations, societies, trusts, as well as MSMEs and start-ups, for which the implementation of risk management practices is nuanced due to their dynamic nature of business, varying maturity levels and risk appetite. The Risk Code would be especially useful for the sectors witnessing multi-dimensional disruption across technological, demographic, financial and other external aspects.

The Code focuses on the following key aspects:  

1. Relevance of Risk Code - why it is imperative for organizations to adopt the Risk Code
2. Principles of Risk Code - the key principles around which the Risk Code is structured such as Strategy & Leadership, Risk Embracing Culture, Ownership & Empowerment, Resources & Structure, Communication & Reporting, Governance & Oversight and Risk Data & Information Repository
3. Implementation Guidelines - guidance for Board of Directors, Risk Management Committee, CEO, and CXOs

Against the background of evolving spectrum of risks, be it industry-specific risks, strategic, ESG, operational, reporting, competition, people, reputational, compliance, physical security, data privacy, or business continuity risks, there is general consensus that being 'risk intelligent' offers competitive advantage to organizations; however, not having robust risk management practices often leads to an existential crisis.

Underscoring the value that can be derived through implementation of risk management practices, FICCI and GRMI had collaborated to develop a 'Model' Risk Code for Indian industry that guides business for effectively managing risks in all segments of business. The Code is painstakingly developed by a dedicated Task Force on Risk under the chairmanship of Mr M Damodaran, Chairperson, Excellence Enablers and former Chairman, SEBI; and would guide businesses to develop effective enablers for practical implementation and benefit from making risk-intelligent decisions, not only dealing with risks but also optimizing risks.

The Risk Code will be released by the end of this year after incorporating feedback received from the stakeholders.

Members of FICCI GRMI Risk Task Force    

	Mr M Damodaran (Chairman)	Chairperson, Excellence Enablers and former Chairman, Securities and Exchange Board of India (SEBI)
	Mr Subhrakant Panda	Sr Vice President, FICCI and Managing Director, Indian Metals & Ferro Alloys Ltd
	Mr Sidharth Birla	Past President, FICCI & Chairman, Xpro India Limited
	Prof. Madhu Vij	Academic Council Chair and President at GRMI, Former Senior Finance Professor at FMS Delhi and visiting faculty at IIM Raipur & IIM Jammu
	Mr Mukesh Butani	Founding & Managing Partner, BMR Legal
	Prof. Rajan Saxena	Former Vice-Chancellor of the SVKM's NMIMS
	Mr Richard Rekhy	Former CEO of KPMG India, current Board Member of KPMG Dubai
	Mr Subhashis Nath	Founder & Mentor of GRMI, SVP & Enterprise Risk & Compliance - Service Line Leader, Genpact
	Ms Jenitha John	Former IIA Global Chairperson
	Mr Nawshir Mirza	Former Senior Partner at E&Y LLP (India)
	Mr P. Dwarakanath	Former Non-Executive Chairman, GSK
	Mr PR Ramesh	Former Deloitte India, Chairman
	Prof. Paul L. Walker	James J. Schiro / Zurich Chair in ERM at St. John's University
	Mr Richard Evans	Former Chief Risk Officer, Citibank
	Ms Ritu Chawla Kochhar	Financial Services & PE India Practice Leader, Spencer Stuart
	Ms Satyavati Berera	Chief Operating Officer, PwC India
	Mr Shardul Shroff	Executive Chairman, Shardul Amarchand Mangaldas & Co Advocates & Solicitors
	Mr Sunil Mehta	Non-Executive Chairman, Yes Bank
	Mr Harish Dua	Former Compliance & Internal Audit Head, Bharti Airtel
	Mr Jayant Palan	Co-Founder, GRMI & Consultant, Genpact Enterprise Risk & Compliance
	Mr NG Shankar	Former Group Executive President - Corporate Audit, Aditya Birla Group
	Prof. Vinay Dutta	Senior Consultant, Sustainability Reporting Standards Board, the ICAI & Former Senior Professor, Fore School of Management
	Mr Vinod Rao	National Business Finance Controller, Indus Towers Limited

 

 

Study

• FICCI GRMI Draft Risk Code