Risk Management Seminar Held at SCMHRD, Pune

Risk Management Seminar Held at SCMHRD, Pune

SCMHRD's "Risk Management Seminar: An Industry Perspective", in association with Ernst & Young and sponsor MCX was held at the JW Marriott, Mumbai, on November 24, 2007. Risk management is emerging as a significant issue in the fast-growing

monetary and capital markets. Recognizing this fact, the seminar brought together corporate stalwarts with diverse experience in the field of financial risk management who put forward different perspectives on the issue and brought to light the different tools to mitigate risks. The seminar also served as an opportunity for students, professionals and managers from various financial institutions to learn about the ever-evolving risks present in their domains and ways to mitigate them.

The Inaugural Address was delivered by Prof. Anant Gupta, Deputy Director, SCMHRD. He spoke about the presence of inherent risk in the various business domains, the pervasive nature of risk in various businesses, and how the mitigation of such risks in vulnerable times makes business sense.

The seminar saw the presence of many distinguished persons from the industry who shared their views on risk management.

The first speaker of the day was Mr. Hemal Shah, Associate Director, Ernst & Young. He initiated his speech by cases in the FRM space and how the non-mitigation of such risks has changed the destinies of the companies like ENRON. From his vast experience, he talked about the debacles of the past, the list of Do`s and Don'ts and the leading practices in the industry. He emphasised on the thumb-rule of risk and reward, and the trade-off for risk appetite.

He further discussed about the fixation of responsibilities, governance and conflicting roles during execution. He explained the importance of Hedge Horizon while determination of hedge instruments, hedge costs, and the need for implementation of AS30 for standardised reporting and disclosures.

The next speaker was Mr. Syed Shahbuddin, Managing Director & CEO, SBI Funds Management Pvt. Ltd. He introduced himself as a practitioner of Risk Management. He defined the concept of Integrated Risk Management covering all facets of risk and its possibilities. He drew the objective of the process of Risk Management, which should aim at sustaining and growing the shareholders' wealth.

He exhaustively talked about risk in the Mutual Fund Industry struggling with market risk and excessive regulations. It includes diverse products and inherent risks involved in the exposure positions on various industries. He demystified the importance of strategic risk and emphasised the alignment of business risk in accordance with the business strategy, group philosophy, risk appetite and monitoring systems. He explained the concepts and opportunities by means of Contra Fund, which opens new risks, return definitions and probabilities.

Next

* Contributed by -
Simanti Talukdar (Campus Associate),
MBA 1st Year,
SCMHRD, Pune.

MBA Alumni \| MBA Students \| MBA Aspirants \| MBA Forums