Knowledge of enterprise risk management crucial: report
Enterprise risk management (ERM) intelligence is a critical requirement for both organisational and individual success. However, a survey conducted by the IRM’s India Regional Group in collaboration with the AICTE found that education institutions in India still have a long way to go when it comes to delivering ERM education.
The survey ‘Enterprise Risk Management and the Indian Higher Education System’ drew responses from over 1,000 Indian institutions.
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Nearly 96% of the responding institutions considered risk literacy as critical for both organisational and personal success. Yet only 27% believe ERM courses should be offered at the undergraduate and postgraduate levels. Not surprisingly, only 19% of these institutes thought that their students had high risk literacy.
Given that 60% of the responding institutions were affiliated with universities that exercised control over their course framework, there was a general consensus on the need for regulations that emphasise better risk education, for improving risk literacy amongst students. This was evident as 82% of the study participants believe that academic regulators mandating a formal ERM framework would help the teaching-learning process. The lack of risk preparedness extends to the institutional level, with only 37% employing a dedicated risk officer or faculty to advise the school’s leadership team on institutional risks.
Hersh Shah, chairman, IRM India Regional Group, said: “Our survey reveals a worrying gap between the need for ERM and the risk literacy of India’s graduate and postgraduate students. To build a robust and resilient economy, we must address the gap in the system by strengthening the curriculum framework to promote ERM education across our higher educational institutions.”
Anil D Sahasrabudhe, chairman, AICTE, added: “Although the corporate world is taking a proactive approach towards strengthening their risk management frameworks, academia is still, unfortunately, lagging behind.”