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  Mani Thomas November 10, 2010 4:12

  I feel it is both cultural and lack of education on the benefits of employing risk management by the concerned executives.Following procedures and changing them in case they are cumbersome or requires change as they are no longer useful etc should become the culture.Education on the risk of not following procedures which is the fist step in ensuring compliance and mitigation of risks need to be understood by all.
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  Sonia Jaspal October 28, 2010 0:12

  Ketan,
  
  Couple of things which need to be done are:
  
  1) Assess the level of senior management commitment to risk management
  2) Understand what are the reasons which senior managers are not committing
  3) Plan a strategy to build awareness and brand building of the risk management initiatives
  4) Implement the same.
  
  The problem with risk managers in India is that we have an audit report focused on doing transaction audits. Which basically checks controls at junior and middle level. We are not focused on strategic risks, hence don't come on the radar of senior managers, as a transaction audit observation is immaterial to them.
  
  I have written a couple of posts on my blof, regarding the details of the steps mentioned above. You might like to read the same.
  
  Kind regards,
  
  Sonia
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  Ketan Dholakia October 27, 2010 18:06

  Sonia,
  
  Thanks for the post. So how do you establish a risk culture with Indian companies? If the senior management don't see the value in risk management, that is followed by the people below, which also means that your success in educating them in RM also yields low percentages. It's an interesting problem and would like to hear from anyone.
  
  Thanks
  Ketan
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  Sonia Jaspal October 27, 2010 7:23

  Ketan,
  
  I think it is both. Senior management does not perceive benefits from risk management, since they are not aware of the overall aspects of risk management. Hence, the focus is not there in organization culture to build a risk culture.
  
  Sonia