Companies looking more closely at risk - LIC Chairman

LIC of India and LIC Lanka Ltd Chairman Dinesh Kumar Mehrotra was the keynote speaker at the recently held AAT annual conference at the Hotel Galadari Meridian. With risk management being an important ingredient for today’s business, Mehrotra focused on this subject in his address and outlined that risk management involves assessing and quantifying business risks, then taking measures to control, monitor and minimize the probability and impact of risk.

He pointed out that most successful firms in any industry get there not by avoiding risk but by actively seeking it out and exploiting it to their own advantage. Therefore risk management should evolve as a part of the organizational strategy where management departments and risk management professionals in the organizations, take active roles in setting policy regarding risk and set procedures that must be followed by people who are responsible for this risk management task, in order to reduce the risk as much as possible.

Mehrotra affirmed that companies are looking more closely at risk these days, and they are finding not only that is there more risk to manage but that managing it well can help them be more competitive. There has been a clear maturation of risk management capabilities across all industries, a rapid march up the business value chain and the development of governance and organizational structures and companies today are spending more time and effort advancing their risk management capabilities and they are using them more aggressively.