Marketing Strategies for EWRM in Indian Businesses

Abstract

In this study, we aim to assess the current state of risk management within Indian companies while delving into the factors influencing the adoption or non-adoption of an integrated approach to risk management. Our investigation identifies the compelling reasons for embracing comprehensive risk management solutions, ultimately leading to enterprise-wide risk management (EWRM). Our research underscores the potential benefits of effective risk management in enhancing organizational performance. However, it also reveals that many companies lack the necessary infrastructure for implementing EWRM. We adopted an exploratory research design, employing survey research techniques that included structured questionnaires and interviews with representatives from 130 companies. Our research uncovers several challenges in the realm of risk management within Indian businesses. Chief among these is the issue of integration and incentivization. Risk management functions are often inadequately integrated into corporate strategies, and the utilization of information technology for risk management remains minimal. Additionally, the conventional portfolio approach to risk management, often referred to as integrated risk management or EWRM, is fraught with implementation challenges. This situation necessitates a fundamental shift in the way risks are perceived, highlighting the importance of fostering a risk-conscious culture across all business segments and providing suitable incentives for effective risk management. We emphasize that risk management is an integral component of the decision-making process within companies. Effective risk management can proactively mitigate the potential for business failures. This research underscores the limited understanding of risk management in Indian companies and the hesitancy of sample companies to participate, possibly due to concerns about revealing inefficiencies.