1. Enterprise Risk Management A SME CENTRIC APPROACH Ankita Agrawal ankita.gpa@gmail.com +919830192095

2. RISK The probability of an outcome which is not desirable

3. Risk Operations I.T RiskControl RiskPersonnel Risk Technology Risk Reporting Risk Compliance Risk Business Market Risk Demand Risk Competitor Risk Material RiskFinancial Risk Credit Risk Forex Risk Environmental Risk Legal Risk Strategy RiskImplementation Risk

4. Risk Assessment Measurement of probable risk

5. Risk Assessment Quantitative Assessment Benchmarking “At Risk” model Assessment of Loss Events Back testing Measures both impact and likelihood of risk Probabilistic vs. Non- probabilistic Sensitivity Analysis Scenario Analysis Stress Testing Measures only impact of risk Qualitative Assessment A qualitative assessment based on non mathematical measurement of risk

6. Risk Appetite The tolerance and capacity of risk

7. Risk Appetite Risk Tolerance Risk averse Risk Neutral Risk prone Risk appetite of the entrepreneur Risk Capacity HighMediumLow Risk appetite of the business

8. Enterprise Risk Management (ERM) Does not mean

9. Enterprise Risk Management (ERM) means Holistic approach to manage risk across organization

10. Unless requires under a statue or an agreement – Risk Assessment and Mitigation May not be documented May not be formal May not be communicated to all levels of employees

11. Enterprise Risk Management requires identifying – The Risk Tolerance The Risk Capacity Steps to bridge the gap between risk tolerance and risk capacity Business and Operational Risk Options to mitigate identified risk

12. MSME IN INDIA

13. MSME Manufacturing Enterprise Investment in Plant and Machinery Micro Enterprise Investment upto Rs. 25 lacs Small Enterprise Investment between Rs. 25 lacs and Rs. 5 crores Medium Enterprise Investment between Rs. 5 crores and Rs. 10 crores Service Enterprise Investments in Equipments Small Enterprise Investment between Rs. 1 lacs and 2 crores Medium Enterprise Investment between Rs. 2 crores and 5 crores Micro Enterprise Investment upto Rs. 10 lacs

14. India has more than 13 million MSME MSME forms for 45% if Indian Manufacturing and 40% of Exports from India Contribute to 22% of the GDP Generate 31 million employment opportunities Spread over 20,000 industries