Hemal Shah: The first speaker of the day was Mr. Hemal Shah, Associate Director, Ernst and Young. He initiated his speech by pointing out the importance of the relationship between risk and awareness. He emphasised that while taking risk is not in itself a problem, ignorance of the potential consequences is an entirely different matter. His speech covered the following aspects of risk management, i.e. Scope of financial risk management, A sneak-peek at the impact of financial risks, Organizing an optimal financial risk management framework, Leading practices relating to financial risk management, and Strategizing to manage financial risks for Corporates. He defined the entire risk universe of FRM space and how the non-mitigation of such risks has changed the destinies of the companies like ENRON. He enumerated the different components of an Optimal Financial Risk Management Framework, viz. procedures, controls, processes, policies, reporting and governance along with enablers like performance monitoring, human resources, automation and strategies. From his vast experience he talked about the debacles of the past, the list of Do`s and Don’ts and the leading practices in the industry. He emphasised on the thumb rule of risk and reward and the trade-off for risk appetite. His discussion also threw light on the components of forex risk management, investment risk management, commodity price risk management, and interest raterisk management. He further discussed about the fixation of responsibilities, governance and conflicting roles during execution. He explained the importance of Hedge Horizon while determination of hedge instruments, hedge costs and the need for implementation of AS30 for standardised reporting and disclosures. Finally, as he deftly addressed the queries from the delegates, he ended his speech on a lighter note by drawing a parallel between real-life scenarios and quotes from the Dilbert comic strip.

Syed Shahbuddin: The next speaker was Mr Syed Shahbuddin, Managing Director & CEO, SBI Funds Management Pvt. Ltd. He focussed upon risk management in AMCs, the challenges faced, means of leveraging risk and the future scenario. He introduced himself as a practitioner of Risk Management. As he elucidated the two faces of risk, viz. that of uncertainty and its adverse impact and the other of uncertainty and its positive impact, he defined the concept of Integrated Risk Management covering all facets of risk and its possibilities. He drew the objective of the process of Risk Management which should aim at sustaining and growing the shareholders’ wealth.

He exhaustively talked about risk in the Mutual Fund industry struggling with market risk and excessive regulations. It includes diverse products and inherent risks involved in the exposure positions on various industries. He demystified the importance of strategic risk and emphasised the alignment of business risk in accordance with the business strategy, group philosophy, risk appetite and monitoring systems. He explained the concepts and opportunities by means of Contra Fund which opens new risk return definitions and probabilities.

"Empowerment at all levels will counter strategic risk"- By this he opined that alignment with the central strategy and responsibilities at all levels can reduce the internal risk uncertainties. He ended his speech on a positive note as he remarked that the Mutual Fund industry has matured and become more regulated and secure with a bright future ahead.

Anuj Agarwal: Mr. Anuj Agarwal, the CFO of SBI Life Insurance Company, spoke about the risks in the Life Insurance sector and his discussion touched upon the following points: Traditional Capital requirement model for life insurers, Risk Based Capital model and Risk Management at SBI Life. He highlighted the fact that "Growth itself poses risk" and elucidated it by emphasizing that the life insurance industry is growing at a rate of over 70%. His speech comprehensively explained the approaches of SBI Life Insurance with regards to risk management viz. avoiding risk, accepting risk and transferring risk. He highlighted the basic risks in Insurance as operation risk, investment risk and business risk. He threw light on SBI Life’s approach to risk management and its alignment with IRDA and RBI regulations which is duly approved by the Board.  He also mentioned the key challenges of SBI Life Insurance as talent crunch; process, system and inflation; asset-liability management along with mis-selling. Finally he gave a comparative analysis of risk management in India vis-à-vis other countries, like Singapore and UK. He also discussed an upcoming concept in life insurance risk management, viz. Solvency II, the proposed new EU legislation which will govern the capital requirements of insurance companies. His well structured speech drove home his point which is aptly captured as “if you are able to manage your risks well, it will require far less capital”.

P K Choudhury: Mr. P K  Choudhury, the Vice Chairman of ICRA Limited & CEO of the ICRA Group  talked about Integrated Risk Management as acomprehensive and integrated framework for managing Credit risk, Market risk and Operational risk. He defined Integrated Risk Management as "A comprehensive and integrated framework for managing Credit risk, Market risk, Operational risk, Economic Capital and Risk Transfer in order to maximise value". He also illustrated the goal of Basel II Capital Accord as to align regulatory capital more closely with economic capital using the 3 “pillars” approach, viz. capital, supervision and disclosure. He compared the traditional concept of management within the organizational “silos” vs the Integrated Risk Management tool which provides a wholesome and linked value-added approach. He enumerated different risk strategies by which banks can apply a cost-benefit analysis of various risk options and identify the key risks. He highlighted the three major initiatives which need to be taken by banks in order to implement the IRM framework, viz. Organization Structure for Risk Management, Appropriate Tools and Techniques and Appropriate Processes and Policies. Finally he also portrayed a snapshot of the multi-dimensional IRM framework which takes a holistic approach in dealing with the different types of risks, via. Credit risk, Market risk and Operational risk on a common platform. He concluded his speech by enumerating the benefits of IRM and explained the role of IRM as managing risks & opportunities in a bid to create / preserve value while ensuring regulatory compliance.

Dinyar Manekshaw: Mr. Dinyar Manekshaw Jivaasha, the Group Global Head & Sr. Vice President of the Transnational Essar Group’s Corporate Risk & Insurance Management Function. A pioneer in designing "The First Industrial All Risks Policy in India", Mr., Jivaasha is credited for designing effective mega risks covers for the ESSAR conglomerate group. Mr. Jivaasha shared his experiences from the field and talked about the importance of the Strategic Risk Management and Enterprise Wide Risk Management. As he emphasized the relevance of SRM in today’s global environment, he discussed the three principles of SRM, viz. robustness, transparency and co-ordination. He also expressed his concerns regarding corporate espionage which has taken business risk to a different dimension. SRM helps businesses in a structured and proactive manner by instilling higher degree of transparency and corporate governance. With his unique style of speaking and illustrations through popular comic strips, Mr. Jivaasha explained the perception towards risk and enthralled the audience with various live examples.

Mr Saxena: The concluding speech was conveyed by Mr. Saxena, Head- Knowledge Development, BSE. He clarified the issues related to risk management at BSE. He echoed the importance of public trust in the stock market and highlighted the most serious risks, i.e. integrity risk, the risk of incompetence, default risk and the risk of market abuse. He further reiterated the importance of a strong regulatory framework, and quoted the famous saying: "Risk is a four-letter word, so is loss"