Risk and Control: Ideas for a better tomorrow
A contrarian view on Risk and Control to make tinkle curiosity leading to creative and critical thinking.
Business Objectives and strategy drive Risk Appetite. If organization has profitability in mind, they will have low risk appetite. However, if organization will have higher risk appetite if they have market share in mind. Risk appetite can be: 1. A certain number, 10 Lac, 100 crore, etc., 2. Certain ratio (No profit, no loss, till […]
Continue ReadingQuestion 2: What is risk tolerance?Risk tolerance is ability to absorb risk. Risk tolerance is the ability to face/ bear/ absorb the negative side of uncertainty on goals. Investopedia defines Risk tolerance as “The degree of uncertainty that an investor can handle on a negative change in the value of his or her portfolio” ISO […]
Continue ReadingRecently I got the honour of becoming course coordinator for ‘Certificate Course on Enterprise Risk Management’ conducted by Institute of Chartered Accountants of India www.icai.org. This course is spread across 6 week-ends followed by an exam. It is interesting to see that Risk Management is still in infancy and the concept though becoming popular, is […]
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