Global economy is beset with rising uncertainty, volatile geopolitical environment, supply constraints, looming recession, sanctions, slow economic growth and multiple other issues. The changes in risk landscape has been fast and disruptive. The risks are interconnected over the geography and any one risk can have far-reaching implications across the economy or enterprise and put the entire operations at stake.
In this turbulent economic environment, anticipation would be the key. The more quickly we can anticipate and analyse the potential risks it will be easier to handle the same. As we know the risks leads to opportunities also. Loss for some may be opportunity for others. For capturing forthcoming opportunity and avoiding disruption it will require speed and fast action. We need to adapt the strategies and operating models at a rapid pace. We are living in the time of disruptions where any event in one part of the world may trigger disruption locally. Along with disruptions we also need to focus upon internal digital transformation challenges, innovation, managing workforce, Government policies, competition and internal stakeholders.
Managing disruptions frequently is not so easy. The resilience of workforce and the enterprise is tested time and again and only the organisations which has developed broader risk management capabilities and resilience will survive and grow. The business must be quick to adapt to support business agility and to contribute proactive, robust and timely risk insights for decision-making.
As the risks are dynamic and evolving so should be the business strategy and decision making. The leadership team needs to play more proactive role with eye and ears open. Business leaders need to take quick and confident decisions in consonance with their long term strategy.
So challenges and risks would be there but we will need to generate opportunities from adverse situations.
The stability of the global economy is possible only if a proactive risk-based approach is implemented. The risk-based approach in the face of uncertainty allows not only to respond to the challenges of the global economy, but also to open up new opportunities and prospects for further development.
In context of the Indian economy if we see India is one of the fastest-growing economy in the world, having registered 5.5% average gross domestic product growth over the past decade. It is predicted that India is set to surpass Japan and Germany to become the world’s third-largest economy by 2027 and will have the third-largest stock market by the end of this decade.
The long-term growth perspective of the Indian economy remains positive due to its young population and corresponding low dependency ratio, healthy savings, and investment rates, increasing globalisation in India and integration into the global economy.
Overall I believe there is no dearth of opportunities in the Indian market in coming years but the global scenario will have a significant impact which needs to be closely monitored. The global developments needs to be factored in to achieve consistent growth.
Risks would be continuously evolving but we need to be better prepared to handle the risks, follow risk based approach, develop risk management culture and be ready to handle shocks and surprises.
