RBI awarded Risk Manager of the Year Award 2024 by London-based Central Banking

The Reserve Bank of India (RBI) has been awarded the Risk Manager of the Year Award 2024 by London-based Central Banking. The Reserve Bank was awarded the best risk manager for improving its risk culture and awareness. 

“Reserve Bank of India has been selected for the Risk Manager Award by Central Banking, London, as part of Central Banking Awards 2024, for rolling out a new enterprise-wide risk management (ERM) framework across the organization,” RBI said in a post on X (formally Twitter). 

Executive Director Shri Manoranjan Mishra received the award on behalf of the RBI. 

Rolling out a new ERM framework across an organisation as large as the RBI, with its more than 12,000 members of staff (according to the latest annual report), was never going to be easy, Central Banking said in a statement. 

But, with the central bank’s last ERM dating back to 2012, this was work that had to be done, it said. 

What is ERM? 

Enterprise risk management (ERM) is the process of planning, organizing, directing and controlling the activities of an organization to minimize the harmful effects of risk on its capital and earnings. Enterprise risk management can include financial, strategic and operational risks as well as risks associated with accidental losses. 

ERM is designed to manage and identify risks across an organization and its extended networks. 

ERM is a holistic approach to managing risk, which requires a broad management-based approach. This means that instead of individual business units managing the risk, a company-wide approach is preferred.