Indian regional group of Institute of Risk Management (IRM) and All India Council for Technical Education (AICTE) reveal knowledge gaps in enterprise risk management (ERM) in higher education system Indian.
The intelligence of enterprise risk management is a critical requirement for organizational and individual success. A key finding of a survey conducted by the Indian regional group of MRI in collaboration with AICTE revealed that educational institutions in India still have a long way to go when it comes to providing training on Enterprise Risk Management (ERM).
The publication “Enterprise Risk Management and the Indian Higher Education System” drew responses from over a thousand Indian institutions. This initiative engages with higher education organizations to help them improve risk management education while focusing on integrating ERM education across the country.
The research was led by Dr Shashank Shah, SAI Fellow’17, Harvard University, Chairman of the Research Board, IRM India Affiliate; and Dr Sapna Malya, Associate Professor – Finance, SPJIMR, Project Co-Chair, IRM India Branch.
Almost 96 percent of responding institutions considered knowledge of risk essential to organizational and personal success. Yet only 27 percent of institutions believe that GRE courses should be offered at the undergraduate and postgraduate levels. Unsurprisingly, only 19 percent of these institutes believed their students had a high-risk literacy level.
Given that 60 percent of the institutions surveyed were affiliated with universities that exercised control over their course setting, there was a general consensus on the need for regulations that emphasize better risk education, to improve performance. knowledge of risks in students. This was evident, as 82 percent of study participants believed that university regulators imposing a formal ERM framework would help the teaching-learning process. The lack of risk preparedness extends to the institutional level, with just 37 percent employing a dedicated risk manager or faculty to advise the school’s management team on institutional risks.
45 percent of responding institutions do not have industry experts to teach risk management topics. Of institutions that offered courses in risk management, 72 percent said their full-time faculty was engaged in teaching these programs. Of these, 11 percent of respondents said their at-risk teaching faculty held MRI qualifications.
However, there is a serious shortage of university-industry collaborations, with only 12 percent of respondents being able to offer their students industry risk management internships. Unsurprisingly, nearly half of those surveyed believed that the current educational framework was insufficient to prepare their students to meet the emerging demand for risk-conscious professionals in different industries.
Given the importance of risk management, 88 percent of those surveyed expressed willingness to work with professional bodies such as IRM to incorporate ERM qualifications into the curriculum.
IRM qualifications can be essential for developing both organizational risk management and risk education in higher education institutions. At the organizational management level, professionals qualified in IRM have been appointed risk managers or risk directors in colleges and universities.
In terms of faculty training, IRM Certified Members and Certified Fellows are employed full-time or part-time in ERM teaching roles at academic institutions, ensuring academic rigor in the delivery of ERM education. In terms of program development, MRI can help develop a clear study path that combines both theory and practice of MRI. Institutional collaborations with IRM can open up career prospects thanks to the latter’s solid industrial network. IRM qualifications can be incorporated into ERM programs at higher education institutions to help undergraduate and postgraduate students develop risk awareness, and facilitate practical exposure and industry recognition.
The report can be downloaded here
Many industry and academic leaders shared their views on the current state of ERM education for the survey, including: Mr. Shailesh Haribhakti, Prof. Himanshu Rai, Director, IIM Indore; Mr. Santosh Kumar, Partner, Deloitte India; Dr. Pankaj Mittal, Secretary General, Association of Indian Universities; Mr. Nirav Doshi, Head of Enterprise Risk Management, National Payments Corporation of India (NPCI); Mr. Sivaram Subramoniam, Head of Internal Audit, Titan Company Limited; Mr. Vijay Chawla, Head of Risk Consulting, KPMG India; Mr. Mohan Tanskale, Former CMD, Central Bank of India and Former CEO, Association of Indian Banks, Mr. Nandan Pendsey, Partner, AZB & Partners, Dr Arnab Kumar Laha, Associate Professor, Indian Institute of Management, Ahmedabad; and Prof. Abhijit Chattoraj, Program Chair, PGDM (Insurance Business Management), Birla Institute of Management Technology (Greater Noida), among others.