1. 1
Introduction
Rohit Kumar Chawda carries behind him an experience of more than 25 years in various
domains like Risk, Compliance, Accounts, Operations and Client servicing. Having completed
his graduation in the field of Commerce from Sambalpur University, he has served various
Asset Management Companies (Mutual Fund) in India like IDBI, SBI, ICICI Prudential, Tata,
Mirae, Shriram and Peerless. These companies he had served in various capacities such as
Director, Chief Operating Officer and Sr. Vice President. His profile has evolved around Control
and risk free operations. During his last stint with Peerless Funds Management Company
Limited, has developed unique risk frame work covering Operational, Regulatory, Reputation,
and Financial risk arising out of each activity across all departments of Asset Management
Company.
2. 2
Why riskindia.com
Since last decade mutual fund industry has witnessed sea changes in regulatory environment. This has
created a niche requirement of external expertise overseeing Risk and Compliance department. A need of
creating risk framework as per regulatory requirement is inevitable today.
Under current regulated environment it is essential for every Asset Management Companies to have
dedicated focus on Risk and Compliance areas. To have dedicated resource with diversified knowledge is
one of the key challenge industry is facing. It also comes with a high cost. Riskindia.com provides support
and helps in creating risk framework through training and one to one interactions with its vide
experience in a cost effective manner.
3. 3
What we offer
Enhanced Risk Management Frame work scientifically designed with
continuous engagement through one to one interactions , training on :-
i. Creation of Risk Inventory- Department wise.
ii. SOPs for each activity
iii. Assignment of risk to each activity.
iv. Validation of existing risk controls.
v. Identification of Residual risk
vi. Define parameter of residual risk
vii. Validation of parameter by risk council
viii.Risk Framework Dashboard
ix. It helps organisation to mitigate risk and proactive action to mitigate
operational risk.
4. 4
What do we do
Identify & Assess Risk
Inherent Risk ( Assign
Risk Rating )
Residual Risk ( Assign
Risk rating )
Identify & Assess
Controls
Monitor & Control Risk
Residual
Risk
Accepted ?
(Review
Risk
Rating)
Continuous Process Yes
No
5. 5
What do we do
Identify &
Assess Risks
• List of all activities to be collected for each function.
• Risks to be assessed at all levels across functions.
• Risks prioritized in relation to the Risk Rating.
Identify &
Assess Controls
• Examine trends and consider past events.
• Discuss with respective departments and management.
•Assess inherent risk (without any mitigation)
➢how likely is risk to occur ?
➢what is the impact of risk?
•Assess existing controls
➢evaluate the effectiveness of existing controls
➢ identify the accountable person for specific control
Assess
Residual Risks
Assess residual risk ( with control mechanism in place)
➢ how likely is risk to occur ?
➢what is the impact of risk ?
➢re assess the impact, likelihood and proximity of risk.
Develop Action
Plan to
Minimize
Residual Risks
• Establish risk tolerance level with management.
• Evaluate if the residual risk is acceptable.
• Evaluate if the current controls have reduced the risk or new mechanism
is needed.
Monitor &
Control
• Ensure processes are in place to review risk levels and effectiveness of
controls
• Monitor the risks and check if there are any new risks ?
6. 6
What are key takeaway of this exercise
• Example of Potential Risk
• Knowledge of Risk
• Risk Mitigation plan
• Critical is execution of Risk Mitigation Plan
• Identification of Risk Champion and process to be followed
– Department head or any other person from the concerned department.
– He should report self compliance report on Risk
– Cross departmental view on Champion’s perceived risk
– Use of technology to mitigate risk
– Risk head to validate & facilitate risk owner’s / champion’s view.
– At least once a year review with risk champions to review Risk identified.
– Risk head to present update to RMC
8. 8
Feedback
Do write to us at riskindia.com
visit us on www.riskindia.com
Handheld +91 9833247022
Contact Person Rohit Chawda
Control and Risk Free is our Passion.
