Today, Directors and Senior Management cannot escape some buzz words that keep coming back in their lives. "Corporate Governance, Reputation Risk, Risk Management, Frauds,Mis-selling, Operational Losses, Compliance." Now some of these words may have to be part of a Corporate Risk Management Policy. Recent news in LiveMint relating to a Risk Survey conducted by KPMG...."India’s Companies Bill, expected to be presented in Parliament in the monsoon session, proposes that the report of a company’s board of directors should include a statement indicating the development and implementation of a risk management policy, including the identification of risks that the board thinks may threaten the company’s existence."

Risk management is essential for all organisations of all sizes. Despite this, many companies are still not proactive in establishing such frameworks. Some that do adopt some form of Risk Management usually do not implement as per best practices.

While you could go to the Magic website “Google” and download more than 50-100 risk management policies using any of the following keywords. - Risk Management Policy - Sample Risk Management Policy - Sample Risk Management Policy Template - Example Risk Management Policy India - Draft Risk Management Policy Template - Risk Policy Template - Risk Policy PDF etc However, one fundamental risk in doing so is that you will not know what elements are important and what are not. This is something only a real risk practioner can help you with. It is like trying to take medicine based on information on the internet by reading health blogs. You could be right, but if you are wrong, then you are in for a big trouble. The whole objective of risk management is to prevent a major “Black Swan” disaster. And by taking information you are not sure, you are very likely to take that risk rather than mitigate that major risk.

So, what does a sample risk management Policy Look like. Well, firstly, it should have standard sections that define the roles and responsibilities of the Risk Governance. Along with these, appropriate processes and procedures relating to Risk Identification, Mitigation and Risk Management need to be in place. For an example of a sample Risk Management Policy, please click on the link below.

Riskpro India has a first move to develop a unique risk management policy for Indian SME segments. The policy and related documents are well defined to cater to companies of all sizes. Please contact manoj.jain@riskpro.in or phone at 98337 67114 to know about the price of the Risk Management Toolkit and how you can obtain a copy of the risk management policy.