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Concept of Reputation Risk Management || Trainer Anil Maurya

Objective To learn about the reputation risk    Key Learnings from the Video 1. Concept of Reputation Risk The loss of a business/brand’s reputation is known as reputation/reputational risk. The following are the consequences when the brand name of a business gets spoiled: Decreased sales Declined market share Reduction in the social capital (Value of brand on social media platforms) Reputation risk causes loss to business from all aspects. Businesses have to struggle for a long time to gain the lost reputation. For example, a few years back Maggi lost its reputation and was even banned and was away from the market for a long time. The reputation loss also caused loss to its parent company Nestle and also created a challenge for its future in the country, and this resulted into changes in the top management of Maggi. 2. Reasons of Reputation Risk a. Product Failure It means the product is not up to the mark as per customers’ expectations or the commitments which you made while...
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COMPLIANCE AND LEGAL RISK || TRAINER ANIL MAURYA

Compliance And Legal Risk। Trainer Anil Maurya  Objective  To minimise the compliance and legal risk Key Learning 1. When does compliance risk arises? Compliance risk arises due to: Breach of internal & external regulations Breach of contracts Breach of laws 2. Key points of compliance & legal risk Applicable laws Companies act Trust Income tax FSSAI (Food safety and standards act) Drug license Applicable penalties Imprisonment Fine Appear before magistrate Obligations under a contract Quarterly budget Actuals Returns Tax Risk rating CRISIL CARE ICRA Compliance status 3. Impact of compliance risk (i.) Legal impact Fine Imprisonment Product seizures Penalties Legal impact arises when you ignore laws thinking that related ministry is also ignorant about the same. For example: In the year 2017, the Ministry of corporate affairs strike off around 2,00,000 companies nationwide because these companies failed in legal compliance. This hampered the business operations wherein ...
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Technological Risk Faced By A Business || TRAINER ANIL MAURYA

Objective To learn about the technological risk faced by a business   Key Learnings from the Video 1. Concept of Technology Risk Every business faces different types of technology risks. For example, The Kirana store has to protect the address, phone number, and purchase history of its 1000 customers whereas Airtel Telecom needs to protect the call history of more than 1 crore customers. Even the technology risk of the two Kirana stores is also different. 2. Types of Technology Risk The technology risk can be in the form of theft of any of the following: a. Customer’s data b. Accounts c. Earnings   3. Impact of Technology Risk It impacts the following: a. Business and project goals b. Service continuity c. Bottom line result d. Business reputation e. Security infrastructures 4. Technology Risk - Problems A business faces the following problems due to technology risk: a. Physical threats b. Electronic threats c. Technical failures d. Infrastructure failures e. Human e...
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STRATEGIC RISK || TRAINER ANIL MAURYA

Objective  To learn how to manage strategic risk  Key Learnings 1. What is Strategic Risk?  Risks associated with business strategies and plans are called strategic risks. Strategic risk arises due to the failure or the absence of strategies to run any business.  For example, in absence of any strategy to launch new products in the market may trigger "an innovation risk," which is a type of strategy risk.  Strategic risk can also be defined from the perspective of liability risk. If you do not properly assess any liability and there is no liability coverage provision in your company, then this becomes a liability risk.  For example, a company wants to work on a new project to expand its business. In this case, a project risk arises in case of: Project planning failure Improper planning Strategy failure Not getting a new project  Missed deadline Project risk is also a type of strategy risk.  All the aspects of business in which strategy or decision...
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OPRATIONAL RISK || TRAINER ANIL MAURYA

OPRATIONAL RISK || TRAINER ANIL MAURYA  Objective To learn about the operational risk    Key Learnings  1. Concept of Operational Risk A company/business has a threat of operational risk when its procedures are held up due to any of the given below reasons: a. Problem in system b. Failure of Standard Operating Procedures (SOPs) c. Mistakes or fraud done by employees d. Criminal conspiracy in business The probability of loss due to the above-mentioned hindrances is known as operational risk. 2. Factors of Operational Risks a. Employees: Overworked employees or improperly trained employees are the first reason for the operational risk of a company/business because such employees: Follow the wrong business process Do work with lethargy Are unaware of business processes  b. Macro environment: The elements of the macro environment of a business are: Society (Socio-environment) Political environment Economic environment Legal environment Technological environment Gove...
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ASSET BACKED RISK || TRAINER ANIL MAURYA

Objective of the E-BOOK  To avoid asset-backed risk Key Learnings from the E-BOOK  1. What is asset-backed risk? Asset backed risk arises when an asset is used as a collateral or as security against some risk. This asset is sold, liquidated, and transferred to reimburse the risk amount. When there are fluctuations in underlying securities, asset backed securities valuations will also be affected by them. This will result in the following challenges for a business: Prepayment risk Repayment income stream Change in interest rates For example: 1. Share value increase An investor checks asset backing while investing in your company. If your asset backing is sound, he will invest money in your business; otherwise, he will withdraw even the invested amount. So, your share value increases if you have asset backing. 2. Mining sector Mines are the main asset of mining sector. If there is no more exploration in the mines, the company will be over and the investor will withdraw the mon...
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CURRENCY RISK || TRAIN ANIL MAURYA

Currency Risk Management || Trainer Anil Maurya   Objective of the E- book  To learn how to manage currency risk  Key Learnings from the Video 1. What is Currency Risk? Currency risk is also called "exchange rate risk" that arises from the change in the price of one country's currency with respect to another. Investors or companies that have assets or business operations in other countries are exposed to currency risk. For example:  An Indian company agrees to purchase $10,000 worth products every month from a US company.  In this case, the Indian company has to convert INR into USD for making monthly payment to the US company. If the price of USD increases, the Indian company has to pay extra for the $10,000, then what they were paying earlier.  This situation is called currency risk for the Indian company.  2. Types of Currency Risk  i. Transaction Risk  This risk arises when a company deals with another company in a country that has a...
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