Embed Size (px)
Citation preview
RISK
The probability of an outcome which is not desirable
Risk
Operations
I.T RiskControl RiskPersonnel RiskTechnology RiskReporting RiskCompliance
Risk
Business
Market Risk
Demand Risk
Competitor Risk
Material RiskFinancial Risk
Credit Risk
Forex Risk
Environmental RiskLegal Risk
Strategy RiskImplementation Risk
Risk Assessment
Measurement of probable risk
Risk Assessment
Quantitative Assessment
Benchmarking
“At Risk” model
Assessment of Loss Events
Back testing
Measures both impact and likelihood of risk
Probabilistic vs. Non-probabilistic
Sensitivity Analysis
Scenario Analysis
Stress Testing
Measures only impact of risk
Qualitative Assessment
A qualitative assessment based on non mathematical
measurement of risk
Risk Appetite
The tolerance and capacity of risk
Risk Appetite
Risk Tolerance
Risk averse Risk Neutral Risk prone
Risk appetite of the entrepreneur
Risk Capacity
High Medium Low
Risk appetite of the business
Enterprise Risk Management (ERM)
Does not mean
Pile of Documents Expensive Consultants
Enterprise Risk Management (ERM)
means
Holistic approach to manage risk across organization
Unless requires under a statue or an agreement –
Risk Assessment and Mitigation
May not be documented
May not be formal
May not be communicated to all levels of employees
Enterprise Risk Management requires identifying –
• The Risk Tolerance
• The Risk Capacity
• Steps to bridge the gap between risk tolerance and risk capacity
• Business and Operational Risk
• Options to mitigate identified risk
MSME IN INDIA
MSME
Manufacturing Enterprise
Investment in Plant and Machinery
Micro Enterprise
Investment upto Rs. 25 lacs
Small Enterprise
Investment between Rs. 25 lacs and Rs. 5
crores
Medium Enterprise
Investment between Rs. 5 crores and Rs.
10 crores
Service Enterprise
Investments in Equipments
Small Enterprise
Investment between Rs. 1 lacs and 2
crores
Medium Enterprise
Investment between Rs. 2 crores and 5
crores
Micro Enterprise
Investment upto Rs. 10 lacs
India has more than 13 million MSME
MSME forms for 45% if Indian Manufacturing and 40% of Exports from India
Contribute to 22% of the GDP
Generate 31 million employment opportunities
Spread over 20,000 industries
