The Institute of Risk Management (IRM) India Regional Group and the All India Council for Technical Education (AICTE) report exposes the gaps in Enterprise Risk Management (ERM) knowledge in the Indian higher education system.
Enterprise risk management intelligence is a critical requirement for both organizational and personal success. A key study conducted by IRM’s India Regional Group in collaboration with AICTE found that educational institutions in India still have a long way to go in providing Enterprise Risk Management (ERM) education.
The publication ‘Enterprise Risk Management and the Indian Higher Education System’ has received response from more than a thousand Indian institutions. The initiative involves higher education institutions to help improve risk management education by focusing on embedding ERM education across the country.
The research was led by Dr. Shashank Shah, SAI Fellow’17, Harvard University, Board Research Chair, IRM India Affiliate; And Dr. Swapna Mallya, Associate Professor – Finance, SPJIMR, Project Co-Chair, IRM India Affiliate.
About 96 percent of respondents found risky literacy important for both organizational and personal success. Nevertheless, only 27 percent of institutions believe that ERM courses should be offered at undergraduate and postgraduate levels. Not surprisingly, only 19 percent of these institutions felt that their students had high-risk literacy.
Given that 60 percent of respondent institutions were approved by universities with control over their course structure, there was a general consensus on the need for rules that emphasize better risk education to improve risk literacy among students. This was evident because 82 percent of study participants believed that forcing academic regulators to have a formal ERM framework would help the teaching-learning process. The lack of risk preparedness extends to the institutional level, with only 37 percent employing a dedicated risk officer or faculty to advise the school leadership team on institutional risk.
Forty-five percent of respondents do not have industry experts to offer courses on risk management. Of the institutions offering risk management courses, 72 percent said their full-time teachers were hired to teach these programs. Of these, 11 percent of respondents said they have IRM qualifications from the risk-education faculty.
However, there is a serious lack of academic-industry collaboration, with only 12 percent of respondents being able to offer their students industry-linked risk management internships. Not surprisingly, almost half of the respondents believed that the current education structure was insufficient to equip their students to meet the emerging needs of risk-averse professionals in various sectors.
Given the importance of risk management, 88 percent of respondents expressed a desire to work with a professional body such as IRM to integrate ERM qualifications with the curriculum.
IRM qualifications can be important in both institutional risk management and risk education in higher education institutions. At the organizational management level, IRM-qualified professionals have been appointed as risk leaders or chief risk officers in colleges and universities.
In terms of faculty training, IRM Certified Members and Certified Fellows are appointed full-time or part-time in ERM teaching roles in academic institutions, ensuring academic rigor in providing ERM education. In curriculum development, IRM can help create an explicit study path that integrates both ERM theory and practice. Institutional collaboration with IRM can open up career prospects through the next strong industry network. IRM qualifications can be integrated with higher education institution’s ERM programs to create risky literacy for undergraduate and graduate students and to facilitate practical exposure and industry recognition.
The report can be downloaded here
Many senior industry and education leaders shared their views on the current state of ERM education for the survey, including: Mr. Shailesh Haribhakti, Prof. Himanshu Roy, Director, IIM Indore; Mr. Santosh Kumar, Partner, Deloitte India; Dr. Pankaj Mittal, Secretary General, Association of Indian Universities; Mr. Nirv Doshi, Head – Enterprise Risk Management, National Payments Corporation of India (NPCI); Mr. Shivram Subramaniam, Head – Internal Audit, Titan Company Limited; Mr. Vijay Chawla, Head – Risk Advisory, KPMG India; Mr. Mohan Tanskale, Former CMD, Central Bank of India and former CEO, Indian Banks Association, Mr. Nandan Pendse, Partner, AZB & Partners, Dr. Arnab Kumar Laha, Associate Professor, Indian Institute of Management, Ahmedabad; And Professor Abhijit Chatterjee, Program Chairperson, PGDM (Insurance Business Management), Birla Institute of Management Technology (Greater Noida), among others.