Risk management should be in company's DNA: Ex-SEBI Chief M Damodaran
Risk management provides a business with a basis upon which it can undertake sound decision-making. For a business, assessment and management of risks is the best way to prepare for eventualities that may come in the way of progress and growth.
Shri M Damodaran, ex-SEBI chief, recently expressed his views on Risk Management and said that it should be in the day-to-day DNA of a company. The risk code should not just be for big companies. In fact, this should be for the smaller companies too. Shri Damodaran was speaking at an event for releasing of Model Risk Code which is a practical playbook or a tool kit with best practices and guidelines around risk management. It covers two key aspects -- key principles of risk management and implementation of risk management.
He further emphasised that the Companies Act, 2013 does not specifically contain any provisions with respect to the constitution of a risk management committee and how SEBI amended SEBI LODR 2015 for mandatorily constitution of Risk committee by certain class of companies.
