The world of finance in 2018 has been characterised by one term above all else, and that is risk mitigation. Once relegated to the side-lines, thanks to becoming a sophisticated theoretical exercise without the necessary thrust from the top for implementation, risk management is now back under the spot light due to some disastrous trends which could have been easily controlled with an effective risk framework. The gradual resurgence of the term into the industry lexicon is also due, in large part, to the poor decisions taken by certain companies and sectors exposing breaches in their armour; costing them dearly. Many once-respected organisations have had their finances and reputation badly scarred, often beyond repair due to the leadership not giving risk management its true value.
Here are just some of the trends that defined risk management in 2018:
Non-Performing Assets
Indian public sector banks are in the global scanner for their non-performing assets and bad debts. It has been estimated that the gross value of NPAs in Indian PSUs is Rs.8, 40,958 crore, which is over $122 billion. 2018 was the year that this on-going scandal attracted significant public outcry, following the sensational…
