Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  ICICI Lombard Corporate India Risk Index to help India Inc. manage risks effectively amid COVID-19
BackBack

ICICI Lombard Corporate India Risk Index to help India Inc. manage risks effectively amid COVID-19

ICICI Lombard on Thursday unveiled 'Corporate India Risk Index', spanned across industries and companies
  • To develop the tool, ICICI Lombard joined hands with Frost and Sullivan, a leading management consulting firm
  • India’s Corporate India Risk Index stands at 57, which implies optimized risk handling methods (MINT_PRINT)Premium
    India’s Corporate India Risk Index stands at 57, which implies optimized risk handling methods (MINT_PRINT)

    Healthcare sector has very high exposure to risks because of the nature of business and given coronavirus. Are they managing it? How do I know if my company is managing risks better than others?

    To answer all these queries, ICICI Lombard on Thursday unveiled 'Corporate India Risk Index 2020', spanned across industries and companies. The index will help companies to understand the level of risk that their business is facing, ICICI Lombard said. The index will also assist them in developing a successful risk aversion plan, it added. It aims to help firms understand the level of risk their business is facing and current level of preparedness.

    To develop the tool, ICICI Lombard joined hands with Frost and Sullivan, a leading management consulting firm. Fifteen sectors that will come under the purview of Risk Index are — IT/ITeS, BFSI, healthcare, pharmaceuticals and biotech, energy, automotive and ancillary, hospitality/tourism, manufacturing, FMCG/retail, infrastructure and realty, metals and mining, transportation and logistics, media and telecommunications, chemicals and petrochemicals, e-commerce and new age.

    "This initiative will empower India Inc. to gauge risks better, understand their level of preparedness and accordingly adopt effective risk management practices," said Bhargav Dasgupta, managing director and chief executive officer, ICICI Lombard.

    The sectors such as healthcare, IT/ITES, and metals/mining have low-risk exposure, according to The intrinsic nature of their business makes the sectors vulnerable to only specific risks while they stay immune from most others, according to Corporate India Risk Index 2020.

    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.

    There are five categories under ICICI Lombard Corporate India Risk Index —a) Below 30 (Ineffective): The corporate has very high exposure or very poor risk management practices

    b) Between 30-50 or sub-optimal: Not all risks are handled effectively. Risk management practices are likely dated or inefficient.

    c) Between 50-60 (Optimal): Most current risks are being handled effectively. Emerging risks associated with strategic initiatives need more diligence.

    d) Between 60-80 (Superior): Very effective and efficient risk management practices. Well positioned to handle current and future risks across dimensions.

    e) Over 80 (Over-prapared): Very effective and efficient risk management practices. Well positioned to handle current and future risks across dimensions.

    The India’s Corporate India Risk Index 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," the company mentioned.

    The Corporate India Risk Index 2020 report showed that "Technology Risks are not very well managed by most service-heavy sectors such as FMCG, logistics, media-telecom, energy-utilities, hospitality, etc." Indian corporates handle physical and operational risks well, the report added.

    "The BFSI sector has very high-risk exposure compared to others but excels in risk management too. Risk management investment is properly deliberated and comprehensive making this sector one of the best-managed sectors in the country," it added.

    'Most risk management strategies are focused on operational and natural hazard risks in the wake of COVID-19. Need better management of market/economic, technological and crime/security risks," it further mentioned.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 11 Feb 2021, 07:19 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie