Mumbai, Feb 11:
ICICI Lombard General Insurance, the largest private sector general insurance company, has launched the ‘Corporate India Risk Index’ in collaboration with Frost and Sullivan, a leading management consulting firm to develop the risk measurement tool.
Commenting on the launch, Bhargav Dasgupta, MD & CEO, ICICI Lombard said “Effective risk management starts with having quantifiable risk measurement tools. As we embrace risk mitigation practices, we must have these basic building blocks in place.This initiative will empower India Inc. to gauge risks better, understand their level of preparedness and accordingly adopt effective risk management practices.''
The India’s Corporate India Risk Index in its debut edition stands at 57, which implies optimized risk handling methods. The score suggests that though India Inc. is on the right track, emerging risks need more diligence. Most of corporate India’s risk management strategies are focused primarily on operational and natural hazard risks, influenced by Covid-19.
However, there is a scope for improvement in the way Market, Economic, Technological and Crime or Security risks are being managed.
Corporate risk refers to the potential risks and unforeseen events that can disrupt the planning and operations of an organization. This index is an unified, credible, and standardized corporate
Corporate India Risk Index’ is an unified, credible, and standardized corporate risk indicator, which maps the risks for companies across India's 15 key sectors. It aims to help firms understand the level of risk their business is facing and current level of preparedness.
The framework measures risk across four parameters – Awareness, Probability, Criticality and Preparedness; bifurcated into risk exposure and risk management. Through individual scores, a firm will be featured on a spectrum spanning from being ineffective to over-prepared.