A report by the Indian regional group of the Institute of Risk Management (IRM) and the All India Council for Technical Education (AICTE) reveals gaps in knowledge of enterprise risk management (ERM) in the system of Indian higher education

The publication ‘Business Risk Management and the Indian Higher Education System ‘ attracted responses from over a thousand Indian institutions. This initiative engages with higher education organizations to help them improve risk management education, while focusing on integrating ERM education across the country.

The research was led by Dr. Shashank Shah, SAI Fellow’17, Harvard University, president of the research council, IRM India Affiliate; and dr. Sapna Malya, Associate professor – Finance, SPJIMR, Project co-president, IRM India Affiliate.

Almost 96% of responding establishments considered knowledge of risks essential to organizational and personal success. Yet only 27% of institutions believe that GRE courses should be offered at the undergraduate and postgraduate levels. Unsurprisingly, only 19% of these institutes believed their students had high-risk literacy levels..

Given that 60% of the institutions surveyed were affiliated with universities that exercised control over their course setting, there was a general consensus on the need for regulations that emphasize better risk education, to improve knowledge. risks for students. This was evident, as 82% of study participants believed that university regulators imposing a formal ERM framework would help the teaching-learning process. The lack of risk preparedness extends to the institutional level, with only 37% of them employing a dedicated risk manager or faculty to advise the school’s management team on institutional risks.

Commenting on the survey, Hersh Shah, Chairman of IRM India Regional Group, said:

“Our survey reveals a worrying gap between the need for MRE and the risk awareness of Indian graduate and postgraduate students.

Global events leading to business collapse to risk-related events demonstrate the consequences of ignoring organization-wide risk management issues, ranging from cyberattacks to supply chain and damage to reputation.

This lack of risk preparedness among India’s emerging workforce is a matter of serious concern. To build a robust and resilient economy, we urgently need to fill the gaps in the system by strengthening the curriculum framework to promote ERM education in our higher education institutions. In addition, there must be a sustained and systematic process to ensure the inclusion of new and emerging courses on the subject. ”

Professor Anil D Sahasrabudhe, President of AICTE, added:

“Although the corporate world is now taking a proactive approach to strengthening its risk management frameworks, academia is unfortunately still lagging behind. AICTE has partnered with IRM to raise awareness of risk management in our higher education institutions.

The results of the survey are expected to motivate all stakeholders, including academia, students, instructors, government, and organizations that depend on these schools for their workforce, towards greater soul-searching. We hope that this survey will help give greater impetus to strengthening risk management, both at the institutional level and in the creation of higher education programs across the country. With regulation increasingly focused on risk management, there is a growing demand for qualified ERM and risk management professionals in all industries. It is now incumbent on us in academia to ensure that our students are ready for the challenges of Industry 4.0.

We recognize IRM’s global leadership in ERM qualifications and exams in more than 140 countries and are confident in the support they can provide to educational institutions to create qualified professionals willing to take risks. “

Main conclusions:

45% of responding establishments do not have industry experts to teach courses on risk management topics. Of institutions that offered courses in risk management, 72% said their full-time faculty was engaged in teaching these programs. Of these, 11% of respondents said their at-risk teaching faculty held MRI qualifications.

However, there is a serious shortage of university-industry collaborations, with only 12% of respondents being able to offer their students industry risk management internships. Unsurprisingly, nearly half of those surveyed believed that the current educational framework was insufficient to equip their students to meet the emerging demand for risk-conscious professionals in different sectors.

Considering the importance of risk management, 88% of respondents expressed their willingness to work with professional bodies such as IRM to integrate ERM qualifications into the curriculum.

IRM qualifications can be essential for developing both organizational risk management and risk education in higher education institutions. At the organizational management level, professionals qualified in IRM have been appointed risk managers or risk directors in colleges and universities.

In terms of faculty training, IRM Certified Members and Certified Fellows are employed full-time or part-time in ERM teaching roles at academic institutions, ensuring academic rigor in the delivery of ERM education. In terms of program development, MRI can help develop a clear study path that combines both theory and practice of MRI. Institutional collaborations with IRM can open up career prospects thanks to the latter’s solid industrial network. IRM qualifications can be incorporated into ERM programs at higher education institutions to help undergraduate and postgraduate students develop risk awareness, and facilitate hands-on exposure and industry recognition.

The report can be downloaded here https://www.theirmindia.org/thoughtleadership

Report contributors

Many industry and academia leaders shared their views on the current state of ERM training for the survey, including: Mr. Shailesh Haribhakti, Pr. Himanshu Rai, director, IIM Indore; Sir. Santosh kumar, partner, Deloitte India; Dr. Pankaj Mittal, Secretary General, Association of Indian Universities; Sir. Nirav Doshi, Head of Enterprise Risk Management, National Payments Corporation of India (NPCI); Sir. Sivaram Subramoniam, Head of Internal Audit, Titan Company Limited; Sir. Vijay Chawla, Head of Risk Consulting, KPMG India; Mr. Mohan Tanskale, Former CMD, Central Bank of India and Former CEO, Indian Banks’ Association, Mr. Nandan Pendsey, Partner, AZB & Partners, Dr. Arnab kumar laha, associate professor, Indian Institute of Management, Ahmedabad; and Pr. Abhijit Chattoraj, Program Chair, PGDM (Insurance Business Management), Birla Institute of Management Technology (Greater Noida), among others.

About the Institute of Risk Management, Indian subsidiary:

IRM is the world’s leading professional body for business risk management qualifications and training (levels 1-5). IRM publishes research and advice, as well as professional standards around the world. Our members (including members of the Institute of Operational Risk) work across all industries, across all risk disciplines, and in the public, private and not-for-profit sectors in over 140 countries. With 360 exam centers at India, applicants can obtain the IRM designations by pursuing the Global Examinations through IRM India Affiliate. MRI in India has worked with bodies and umbrella organizations like AICTE, Invest India, Cipla, ICICI Lombard, Deloitte, JB Boda Group, NIMSME, Bombay Chartered Accountants’ Society, including academic institutions like BIMTECH, National Insurance Academy, Jai Hind College, Hansraj College, EDII, DCBS and others.

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About Indian Council of Technical Education:

AICTE is a statutory body and a national council for technical education, under the Department of Higher Education. Established in November 1945 first as a consultative body and later in 1987, endowed with a statutory statute by an act of Parliament,

AICTE is responsible for the good planning and coordinated development of the technical education system and management education in India. He is assisted by eleven statutory study councils, namely, UG Engineering and Technology Studies, PG and Engineering and Technology Research, Management Studies, Vocational Education, Technical Education, Pharmaceutical Education, Architecture, Hotel Management, Hospitality Technology. restoration, information technology, land use planning and applied arts, crafts and design. AICTE has 8,957 approved educational establishments with a capacity of 2,959,296 in all technical programs.

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SOURCE Institute of Risk Management, Indian subsidiary

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