Adopt integrated risk management processes in CPSEs: SCOPE

To safeguard CPSEs against potential risks, public sector body SCOPE has advocated adoption of integrated risk management processes in the country's public sector entities.
"In today's globalized and market driven environment, risk management has become very crucial as the companies are exposed to various financial and natural risks in business. If risks are not identified and monitored properly, these can affect their performance goals and sustainability before they become redundant," SCOPE Director General U D Choubey said.
There is a need to build adequate risk management mechanism as contained in the Companies Act 2013, SEBI Guidelines, and Guidelines on Corporate Governance issued by the Department of Public Enterprises as returns are directly linked to the level of risk, he added.

Stating that effective risk management is a part of corporate governance, Cement Corporation of India CMD R P Tak said governance demands that the affairs of the companies are carried out in such a way to ensure that stakeholders' interests are protected to the best of management's ability.