‘Risk management has earned a permanent place on boardroom agenda’

Ona personal level, he has always been passionate about teaching and training. His expertise is in risk management, and he is passionate about education. The concept of establishing an institute where both could intersect was extremely appealing. That vision gave rise to the Global Risk Management Institute (GRMI), an institution dedicated to combining knowledge, practice, and purpose in order to build a new generation of resilient, risk-aware leaders for the global community.

- RITWIK MUKHERJEE

Speaking to The Statesman, Subhashis Nath, Dean & CEO, Global Risk Management Institute, Gurgaon, explains how the growing relevance of risk management arises from the fact that the corporate world is shrinking ~ national borders are becoming less significant as most large businesses operate in several locations and the role that GRMI promises to play in the scheme of things.

Excerpts:

Q: What was the trigger for setting up a dedicated institute on Risk Management?

A: The idea for establishing a separate risk management institute originated during my time at Arthur Andersen and later at EY's Global Center of Excellence. First, I recognised the universality of risk management practices ~ the principles applied across sectors and locations. Second, I experienced how successfully global risk management delivery could be managed with people headquartered in India. Third, I identified a big worldwide gap: there was no institutionalised postgraduate school anywhere in the world that trained people exclusively in risk management.

At the same time, I could see that the world was increasingly turning to India as a hub for talent and aptitude. This provided a rare chance to establish an institution in India that could create globally relevant risk management professionals.

My experience establishing Axis Risk Consulting in 2004 only confirmed my conviction. The firm subsequently became a completely owned subsidiary of the NYSE-listed Genpact, where we established a $100 million practice including owning relationship and service delivery for 6 of the Fortune 50 companies. Strategically, 98.5 per cent of our revenue came from international clients, while 97 per cent of our delivery talent was situated in India. This demonstrated that India could not only provide world-class risk services, but also develop the talent that the world required.

Q: What is the significance of risk management in the current business context?