96% Survey Respondents Consider Risk Literacy Critical For Success | Report

Institute of Risk Management (IRM) India Regional Group and All India Council for Technical Education (AICTE) report uncovers gaps in Enterprise Risk Management (ERM) knowledge in the Indian higher education system.

Enterprise risk management intelligence is a critical requirement for both organisational and individual success. A key finding of a survey conducted by the IRM’s India Regional Group in collaboration with AICTE found that education institutions in India still have a long way to go when it comes to delivering Enterprise Risk Management (ERM) education.  

The publication ‘Enterprise Risk Management and the Indian Higher Education System’ drew responses from over one thousand Indian institutions. This initiative is engaging with higher educational bodies to help them to improve risk management education while focusing on embedding ERM education across the country. 

The research was led by Dr Shashank Shah, SAI Fellow’17, Harvard University, Board Research Chair, IRM India Affiliate; and Dr Sapna Malya, Associate Professor - Finance, SPJIMR, Project Co-Chair, IRM India Affiliate.

Nearly 96 per cent of the responding institutions considered risk literacy as critical for both organisational and personal success. Yet, only 27 per cent of institutions believe ERM courses should be offered at the undergraduate and postgraduate levels. Not surprisingly, only 19 per cent of these institutes thought that their students had high-risk literacy.

Given that 60 per cent of the respondent 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 among students. This was evident as 82 per cent of the study participants believed 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 per cent employing a dedicated risk officer or faculty to advise the school’s leadership team on institutional risks.

Key findings:

45 per cent of responding institutions do not have industry experts to deliver courses in the risk management subjects. Among the institutions that offered courses in risk management, 72 per cent said that their full-time faculty was engaged in teaching these programs. Of these, 11 per cent of the respondents said that their risk-teaching faculty held IRM qualifications. 

However, there is a severe paucity of academia-industry collaborations, with only 12 per cent of the respondents being able to provide industry-linked risk management internships to their students. Not surprisingly, almost half the respondents believed that the current educational framework was insufficient to equip their students to meet the emerging demand for risk-intelligent professionals across different sectors.

Given the importance of risk management, 88 per cent of the respondents expressed a willingness to work with professional bodies such as IRM to integrate ERM qualifications into the curriculum.

IRM’s qualifications can be key in developing both organisational risk management and risk education in higher education institutions. At the organisational management level, IRM-qualified professionals have been appointed risk leaders or chief risk officers 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 in academic institutions, ensuring academic rigour in the delivery of ERM education. In terms of developing the curriculum, IRM can help in developing a clear study pathway that combines both the theory and practice of ERM. Institutional collaborations with IRMcan open up career prospects through the latter’s robust industry network. IRM qualifications can be integrated with the ERM programmes of higher education institutions to help undergraduate and postgraduate students to build risk literacy, and facilitate practical exposure and industry recognition.

The report can be downloaded here 

Report contributors

Many senior industry and academic leaders shared their views on the current status of ERM education for the survey, including: Mr. Shailesh Haribhakti, Prof. Himanshu Rai, Director, IIM Indore; Mr. Santosh Kumar, Partner, Deloitte India; Dr. Pankaj Mittal, Secretary General, Association of Indian Universities; Mr. Nirav Doshi, Head – Enterprise Risk Management, National Payments Corporation of India (NPCI); Mr. Sivaram Subramoniam, Head - Internal Audit, Titan Company Limited; Mr. Vijay Chawla, Head – Risk Advisory, 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 Prof. Abhijit Chattoraj, Programme Chairperson, PGDM (Insurance Business Management), Birla Institute of Management Technology (Greater Noida), among others.

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