'Know your risk appetite'

Companies need to create a structure that provides the management comfort to run its business. There is a great need to understand what a company's 'risk appetite' is and thereby prioritise allocation of funds, resources and personnel according to the risk.

Speaking at a workshop on risk management organised by CII, Jamal Mecklai, CEO, Mecklai Financials, said, "Companies need to insulate business operations from market fluctuations, by empowering the treasury as it's the sole interface with the market."

Amitabha Guha, managing director, State Bank of Hyderabad, said, "Uncertainty is the key component of a global economy. The objective of any company is to enhance the shareholders'value and profitability. Companies should therefore understand their risk appetite."