Companies can no longer ignore reality of climate change
The ongoing geopolitical risk and uncertainty means that companies in India can no longer afford to turn a blind eye to the realities of climate change and supply chain fragility.
Instead they should be investing more in monitoring the geopolitical situation and recruiting staff who are passionate about risk management.
These were the conclusions of a session on geopolitical risk at the Parima conference in Mumbai.
Chaitanya Basrur, lead, key accounts and strategic initiatives, at India-based insurance broker JB Boda Group spoke of the interdependence between India and the rest of the world, stressing that what happens globally will affect India and what happens in India can affect the world. “The world is shrinking, regardless of physical borders, as global events have far-reaching consequences,” said Basrur.
The turbulent geopolitical climate is consistently testing the resilience of Indian corporations and the fragility of their supply chains, said Mehul Shah, principal, insurance at Indian agrochemical manufacturer UPL.
“It is therefore critical that organisations rethink their strategies to account for the volatility and for risk managers to be well-versed in geopolitical risks and their potential consequences,” said Shah.
There is also a need to educate companies on the significance of geopolitical risk and to “build a team of passionate individuals dedicated to managing geopolitical risks” said Jayesh Gadekar, chief strategy officer and head of employee benefits at JB Boda Group.
He stressed the widening of the supply chain and the need for risk managers to navigate this turbulent cycle effectively and fostering resilience through risk management initiatives.
In addition to supply chain fragility, there are the complex risks that come under the ESG banner – climate change, diversity and inclusion, brand reputation, regulatory compliance, and many others.
Increasing competition, public perception, credit reporting, sustainability reporting and access to capital and insurance can influence the accelerated maturity of ESG practices in India.
The panel emphasised how impactful a top-to-bottom approach can be with board leaders driving change and how measuring processes can help organisations to visualise the results of their practices.
