In an Interview with Dr Rakesh Agarwal, Editor, The Insurance Times and Secretary General, Risk Management Association of India, Mr Surath Mukherjee talks about the risk perspective from the point of view of a Corporate Organization. Mr.Surath is a Qualified CA and a Cost Accountant currently Heading the Internal Audit and Risk Assurance vertical at Dalmia Bharat Group having interests in Cement, Sugar, Power & Refractory segments and has a turnover of in excess of Rs. 12000 Cr.
He has been with Dalmia Bharat Group since 2008 where he has been instrumental in setting up the Risk management function and scaling it up to match the expansion of the group, before which he had spent a decade with Sony India Ltd and also a 5 year stint with Philips India.
Over his professional career he has been able to contribute sustainable results for the organizations in the field of Controllership, Finance, Risk Assurance, Fraud Investigations. Surath is a regular contributor & speaker in various Industry forums like ICAI, IIA, ICMA, Assocham etc. and believes in interactive learning through knowledge sharing
- What are the top five risks in your organization?
- Top 5 Risks
| Strategic Risks |
Factors that could impact business continuity |
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| 11 Security of raw materials | |||
| MSecurity of fuels | |||
| MEnvironment compliance risk | |||
| ElEmployee succession risks | |||
| IL Information security risk | |||
| 2. How do you manage those risks? | |||
| Objective | El To effectively manage our business risks to mitigate impacts and achieve business goals | ||
| Risk management organization | El Board Level Risk Committee | ||
| El Risk Management Executive Committee (members CEO, COO, CFO, Head HR, Head Manufacturing, Head Legal) | |||
| II Chief Risk Officer | |||
| El Functional Risk Owners and risk officers (for each function) | |||
| Risk Identification | El An ERM policy is developed | ||
| Il A risk library containing all the identified risks throughout the organization has been prepared. | |||
| Il From the risk library, key risks (strategic and operational risk) have been shortlisted based on high probability and high impact criteria for detailed mitigation plans and regular monitoring | |||
| Mitigation plans | II Each key risk and its corresponding mitigation plan is reviewed by the risk owner every quarter. | ||
| El The consolidated risk assessment report is reviewed by the RiskManagement Committee every quarter |
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- What are the key challenges you have faced in implementation of Risk Management?
It’s a very exciting journey and as an organization we have been able to tie up the loose end of the ERM process effectively.
The success factor of this exercise depends on how we handle the key challenge in this aspect which is to accurately not only understand the business scenario unfolding around us but also to understand the several macroeconomic and other global factors which may impact our operation .
Q4. What are the top three emerging risks from your industry point of view.
Information Security Risk
Environmental Compliance Risk
Market Demand & pricing Risk
Q5. Any lessons or any thoughts that you would like to share with our readers.
This is a topic of extreme importance and relevance for today’s business world and organizations that will successfully understand and navigate the risks will survive and grow and in case the wave of uncertainty is not anticipated and properly quantified and mitigated it may overnight erode significant business value and even affect the organization’s existence.
