India is one of the most promising economies in the world. India’s size and further potential to grow can be well envisaged by the two facts – India is already the third largest economy in the world on Purchasing Power Parity and per capita income of India is ranked 140th in the world. So, while it is already a good size economy it may grow to exorbitant numbers if it can push per capita income of its 1.2 billion people in the right direction.
India also offers one of the most dynamic risk factors. The risks that were applicable till sometime back have either been replaced by the new revalent risks or have taken change of shape to emerge almost like new risks. In fact the velocity of change of risks in India is noticed not being harmonized by the speed of response and risk mitigations being planned. The evolution of risks in India can be attributed to copious factors – risks may incipient from the traditional social class factors or the modern day socio-economic divide; risks may emerge from the all-time prevalent natural disasters or modern day terrorist attacks. One of the most damaging causes witnessed in recent past is regular attempts to further deepen the existing fault-lines in India that leads to eruption of risks. The continuous localization of politics and weakening national cause has potential to instantaneously disturb the sustainable growth potential. The ever increasing intolerance to accept difference of opinion is doing the same damaging job.
Risk management is an important aspect of our lives. We are exposed to risks, both in terms of threats to service provision and from the potential of lost opportunities. It is essential that of late, businesses should continue to demonstrate their unswerving commitment to consider implications arising out of the potential risks to meet client requirements and maintain their faith in the Operational Excellence of their teams and service providers.
To meet these challenges, FICCI & Pinkerton have launched India Risk Survey 2013 for the second consecutive year. This comprehensive survey is an attempt to recognize possible risk factors faced by the public and private companies while operating in India. The data and comments are an effort to enhance risk literacy leading to effective risk mitigations. I would like to share one more message that response to risks has to be multilateral with good contribution from public, private and individual capabilities. We will have a better solution when we discontinue assuming that risk mitigation is exclusive privilege of the governments.
Vice President – Asia