How IRM’s India Affiliate is building a Risk Intelligent Nation: Insights about the International Body, India Leadership, Partners and Global ERM Exams

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Background

Amidst a rising wave of mandates from Indian regulators like the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the Ministry of Corporate Affairs, there was a clear case for certified enterprise risk professionals and even certified risk-intelligent experts in domains like supply chain, legal, finance, technology, marketing, operations and human resources who could shape the risk culture in organisations. Responding to this growing demand and with a strategic aim to expand into India – a key global market, the Institute of Risk Management (IRM) along with Hersh Shah inaugurated the India Affiliate in 2019, making the global Enterprise Risk Management (ERM) programmes easily accessible in India. The IRM (headquartered in the UK) was established in 1986 and is the world's leading professional certifying body for ERM qualifications, training, and examinations across 143 countries. As the only body in the world to confer the Certified Fellowship in ERM and with its professional standards and research publications across a range of risk themes, it is recognised as the preferred thought leader in ERM by industries across the world.

The IRM India Affiliate was established a mere three months before the onset of the national lockdown, a timing that starkly emphasised ERM’s critical role. This crisis and many external shocks that followed, underscored the omnipresent nature of risk, reinforcing the necessity for organisations of all sizes and sectors to urgently adopt ERM, a core principle that IRM has consistently advocated for over 30 years.

From modest beginnings with just three team members in Mumbai, the leadership at IRM India Affiliate demonstrated exceptional commitment to establishing its operations despite several issues during the pandemic. The India Affiliate meticulously adapted the global policies to the Indian context, whilst also setting up a strategic advisory board of industry luminaries and forming alliances with key knowledge partners. IRM India’s efforts also extended to engaging premier academic institutions and collaborating with regulatory bodies on a range of projects and initiatives. The leadership team also prioritised technological advancement and automation, ensuring seamless experience for all candidates and organisations through a dedicated exam advisory and institutional partnerships desk.

IRM India Affiliate is committed to developing risk-intelligent individuals and organisations for a resilient world. With an easily accessible online exam for Level 1 that covers study of over 300 types of risks, an expansive network of 300 exam centres for Level 2 that offers a Financial Services (FS) and General ERM elective  and a rigorous assignment submission for Level 3 that is at par with an International Masters — students, professionals and risk managers across India are registering for the IRM’s 5-level pathway to Certified Fellowship with designations at each stage after Level 2.

Organisations, including government bodies, public sector undertakings (PSU) and private entities, are increasingly focusing on strengthening their risk and governance, ensuring their Chief Risk Officer (CRO) is qualified with a Fellowship in ERM from IRM. Some of the qualified professionals and risk officers who have earned the IRM designations (Level 4 and 5) include ERM thought leaders Rajeev Tanna, Sunder Natarajan, Anisha Udeshi, Jyoti Ruparel, Neeraj Basur, Nishtha Khurana, Jitender Arora, Dr Sajiv Madhavan, Hardik Shah, Sabari Krishna, Sanjay Mathur, Nagabhushan Rao P.V.S, Shiva Subramony, Sanjiv Rathi, Rohit Sarda, Chirag Sheth, Chandrasekar M, Arup Chakraborty, Abhishek Paul, Ravi Raman, Ashutosh Mishra, P C Paikray and Santosh Kumar.

The role of IRM-qualified, risk-intelligent leaders has become pivotal in boosting resilience within organisations, society, and government functions. These leaders are providing strategic foresight to navigate uncertainties and seize opportunities in a world of polycrisis, safeguarding stakeholders' interests while ensuring operational resilience and financial stability. IRM-qualified risk leaders are contributing to a more informed and prepared society, enhancing the collective response to global challenges through a risk-aware culture. Furthermore, their expertise in regulatory compliances, international risk standards and ethical governance is strengthening the trust of the Risk Management Committee (RMC), Board and Independent Directors, thereby resulting in better investment in risk management.

Founding Chief Executive Officer (CEO)

Despite a family legacy steeped in entrepreneurship — his late paternal grandfather having established a reputed iron and steel trading business and his late maternal grandfather being the erstwhile partner of the reputed Reliable Rainwear — Hersh Shah opted for a corporate career to gain diverse experiences with the ultimate goal of pursuing his entrepreneurial passion in ERM and setting up IRM India Affiliate as the Founding CEO. Hersh is a qualified Chartered Accountant and an alumnus of Indian Institute of Management Bangalore (IIMB). He is also the Youngest and Leading Enterprise Risk Expert in India alongwith a Technical Specialist in ERM from IRM.

At a young age of 21, Hersh became a vocal proponent of the importance of multi-sector, 360-degree risk management. After delving deeply into the IRM curriculum, certification pathway, thought leadership publications, and group activities in regions such as the UK, Middle East, Africa, Germany, Switzerland, among others, he became convinced of the critical role that risk management plays in driving business growth and its potential in enhancing resilience across all sectors. In 2012, Hersh took the pioneering step of introducing the IRM to India. Following several engagements from 2016 to 2018, the IRM recognised the depth of Hersh's vision and that of the Governance Team, leading to the establishment of the India Affiliate in 2019.

Beginning his professional journey at KPMG within the Governance, Risk, and Compliance (Risk Advisory) division, he contributed to numerous enterprise risk consulting projects across various regions including South Africa, the USA, the UK, China, and the Middle East. With his innovative contributions, he was one of the 'Top 6' individuals selected for the Ideas for Innovation Initiative by the CEO's Office at KPMG India. Before he set up IRM in India, Hersh also established a microfinance NBFC as part of a larger financial services group, successfully expanding its portfolio to USD 15 million and leading a dedicated team of over 250 members across several Indian states such as Maharashtra, Karnataka, Bihar, West Bengal, and Assam. In addition to this, he brings a year's experience of assisting in setting up a business school, demonstrating his proficiency in fundraising, strategy, project management and operations. Hersh is a Committee Member of several trade bodies and associations, Jury Member of the India Risk Management Awards (IRMA) and also an Agenda Contributor to the World Economic Forum. He is also the Co-Creator and Anchor of IRM India’s What’s The RiskTM initiative on CNBCTV18.

Governance Board

The Governance Team is the highest authority of the IRM India Affiliate and backs IRM's global vision of advancing the global risk intelligence skill and ERM profession in the country. Kosha Parekh, LLB, IRMCert, is the Chief Operating Officer and one of the first members to join the Leadership Team. Kosha, an Advocate registered with the Bar Council of India and a Government Law College, Mumbai alumna, has experience in real estate & media law and holds an IRMCert from IRM. She has also contributed to the revision of several key law textbooks used by students nation-wide and completed all 8 grades in Trinity College London’s Speech and Drama examination, regulated by OfQual (Office of Qualifications and Examinations Regulations) in UK. As an exceptionally dedicated professional, she skilfully oversees academics, business development, strategy, and operations of the Institute. Her leadership is marked by a profound commitment to excellence and innovation, significantly enhancing the institute's offerings and reputation. Kosha works collaboratively with Sanjay Himatsingani, Director of Training & Business Development at the Institute of Risk Management, London, drawing on his extensive expertise to further the Institute's goals.

Mehul Shah, who played a pivotal role in strategising the roadmap for the IRM's expansion into India, is the Chief Mentor to IRM India Affiliate. He is the Promoter and Managing Director of Encube Ethicals, the global leader in topical pharmaceuticals.

Shailesh Haribhakti, who holds positions as an Independent Director across a wide array of prominent corporate boards, together with Dhanpal Jhaveri, Vice Chairman of the Everstone Group and CEO of Eversource Capital, provide indispensable insights in corporate governance, strategic business planning, and financial investment. Their collective expertise is instrumental in driving the importance of risk culture in India Inc.

Rahul Parekh, a young and dynamic leader in the Real Estate sector, is actively involved in strategic initiatives designed to advance IRM India’s vision of fostering a risk-intelligent and resilient economy. He is one of the Promoters of Suraksha Realty.

Also serving on the Governance Board are distinguished industry stalwarts — Krutarth Shah, Director of ENAM Holdings; Bheru Choudhary, Partner at IC Universal Legal; Sunder Natarajan, CFIRM and CHRO, IndiaFirst Life Insurance and Dr. Rabi Mishra, Director, College of Supervisors, Reserve Bank of India. Their oversight and wealth of experience play a crucial role in governing the Institute's activities.

Advisory Board

The Strategic Advisory Board  composed of independent thought leaders, is committed to accelerating the growth of ERM as a profession in India. This dynamic think-tank provides strategic guidance and draws on members' sectoral experience that creates meaningful impact. The Advisory Board includes leaders from key worldwide organisations such as COSO and ISO, as well as CROs from a wide range of industries including banking, technology, hospitality, telecom, healthcare and others. The leaders on the Board include Lucia Wind, Michele Wucker, Jason Brown, Paul Sobel, Norman Marks, Dinesh Kanabar, Venkatesh S, Prabha Thomas, S Y Raman, Sachin Mutha, V Swaminathan, Sriram Ramachandran, Dr Leena Vijayvargiy, Kavita Bhatia, Prof. Arnab Laha, Alessandro Giuliani, Amit Sharma, Geethy Panicker, Richard Lukacs, Atul Daga, Prabir Jha, Rui Bastos and KBS Manian.

With advancements in technology, disruptive business models, and changes in the world of work, the Institute has also set up a Young Leaders Board to foster innovation and harness youthful insights. This board aims to integrate the perspectives of the next generation into risk management practices, ensuring that strategies remain relevant and adaptive to future challenges and opportunities. The board includes Pratik Oswal, Head - Passive Funds Motilal Oswal AMC, Pearl Mistry, Director, Della Group, Kritika Padode, Trustee, IFIM Institutions, Jai Thakur, Renewable Energy Expert, Manas Chawla, CEO, London Politica, Aman Kulthia, Founder, A-List Club, Rushva Parihar, SDG Expert and others.

Knowledge and Academic Partners

The Institute has forged strategic partnerships with industry titans such as Reliance Jio, HDFC Asset Management, Cipla, Tata Consumer Products, Indian Hotels (IHCL), ICICI Lombard, and UltraTech Cement, among others, to champion the critical role of ERM and cultivate a robust risk culture across respective sectors. These collaborations underscore the commitment to elevating risk management standards and practices, demonstrating the imperative of integrating ERM at the core of organisational strategies for resilience and sustainable growth.

In line with the National Education Policy, leading educational institutions are working with IRM to internationalise their curriculum and develop certified professionals on campus by integrating the global ERM exams. Notable institutions awarded the Certificate of Affiliation include NMIMS, Mahindra University, Sri Sri University, National Insurance Academy, FLAME University, IFMR GSB, MAHE-MIT, IFIM Institutions, DCBS Indore and others.

IRM India Affiliate is also in the process of establishing Global Centers of Enterprise Risk in North, West, South and East India at UPES Dehradun, Symbiosis International University, Mahindra University and Sri Sri University respectively. These institutions have been acclaimed for their dedication to enhancing the study and practice of ERM in their region, upholding the highest standards of education, and knowledge that enhance organisational outcomes through IRM-qualified professionals. By supporting local organisations, working on joint research and nurturing certified leaders who embody ethical integrity, champion decarbonisation, enable diversity, equity, and inclusion (DEI), safeguard reputations, and act as business saviors with risk intelligence, these institutions, along with IRM India, will not only shape the future of the industry but also steer the country towards a proud and prosperous destiny.

In the wake of the pandemic, several private equity funds and venture capitalists started evaluating startups based on their ability to manage risks and crises. In light of this, IRM India also partnered with Invest India (the National Investment Promotion and Facilitation Agency), to launch one of the world’s first short training course on “Enterprise Risk Management for Startups”, especially designed to help founders / entrepreneurs and other stakeholders in the entrepreneurial ecosystem identify and manage enterprise-wide risks, enhance governance and protect investor capital.

The Institute has also collaborated with the National Institute of Securities Markets (NISM), the capacity-building arm of the Securities and Exchange Board of India (SEBI), to host the Annual ERM Summit, which has become the premier event for India's Chief Risk Officers. This summit is highly regarded as a pivotal gathering, setting the standard for risk management discourse in India. It offers an unparalleled platform for thought leadership, strategic insights, and networking, making it a critical event in the calendars of top risk professionals across the nation. NISM and IRM also offer the joint Enterprise Risk and India Regulation Course[HS18]  that is designed to equip candidates with the practical knowledge of ERM implementation and reporting as per all the regulatory mandates in the country.

Additionally, IRM has also partnered with NIMSME (National Institute of Micro, Small and Medium Enterprises), an Organisation of the Ministry of MSME, Govt. of India, to boost risk thinking / resilience and also develop certified risk officers in India’s vital MSME sector.

Global ERM Exam Track and Skills

Students from diverse fields like technology, engineering, business, law, accounting, entrepreneurship and marketing can kick-start their risk management career path right after completing their 12th grade by taking the Level 1 ERM foundation  exam. This foundational level, pursued alongside undergraduate or postgraduate studies, provides knowledge on ISO and COSO frameworks, as well as risk identification and analysis across 200 areas. Likewise, professionals from various sectors, including those in audit/risk roles, family-owned businesses, or entrepreneurs, can upskill while continuing their employment. Globally recognised and recently evaluated by the AICTE under the Ministry of Education, Government of India, this exam establishes a solid foundation in ERM.

Professionals can also pursue the Level 2 ERM qualification (OFQUAL Level 5), choosing between General ERM or Financial Services ERM. This level offers exam flexibility at designated centers across India. The Level 3 qualification requires candidates to work on assignments over a period of 12-18 months. CROs and Risk Leaders with 8-10 years of active ERM experience are eligible to apply for the Certified Membership (CMIRM, Level 4), recognising their technical competence and experience, as a Certified / Qualified Risk Officer.

From Level 2 onwards, candidates are awarded professional designations, marking their progress and expertise in the field: IRMCert for Level 2, GradIRM for Level 3, CMIRM for Level 4, and CFIRM for Level 5, with the Fellowship at Level 5 representing the pinnacle of achievement in IRM. These designations  are globally recognised as the most esteemed credentials for ERM professionals, denoting a high level of knowledge and skill in managing risks across various sectors and addressing critical issues such as cybersecurity, supply chain, climate change, geopolitics, frauds, pandemics and reputation.

Additionally, the IRM offers a Digital Risk Management (DRM) Certificate Exam, created in collaboration with the University of Warwick, focusing on digital disruptions and providing individuals with the necessary tools and techniques for the digital era. Like the ERM exams, the DRM exam is available at over 300 centres throughout India, further enhancing accessibility to cutting-edge risk management education.

IRM’s pathway in ERM, enhances candidates' ability to identify, assess, and manage organisational risks while boosting problem-solving and analytical skills. It also empowers individuals with a strategic mindset, essential for safeguarding organisational objectives. Additionally, it develops negotiation and stakeholder management skills crucial for articulating risk strategies and fostering proactive risk awareness at all organisational levels, preparing professionals for navigating modern business complexities and making critical decisions under uncertainty.

Growing Certified Community and Increasing Organisational Risk Maturity

With a dedicated team of highly driven women at the helm, the Institute continues to offer career guidance and support ongoing professional development, robustly backing the rapidly expanding community of IRM-certified professionals. This support includes webinars, local networking meetings, and placement initiatives. With certified risk-intelligent students and professionals spanning over 30 cities and with an increasing number of qualified CROs who have cleared the Senior Executive Route (SER) to earn the Fellowship, the Institute is actively expanding its membership base to foster a more connected and well-supported network of experts from corporate organisations, academia, family businesses and even startups.

The Institute continues to elevate organisational risk maturity through its comprehensive global ERM programmes and exams for employees, which cover a broad spectrum of risk-related subjects and themes from risk appetite and tolerance to reputation risk management. Numerous organizations across India have engaged with IRM India, aiming to achieve greater alignment with international standards like ISO and COSO, enhance risk compliance, and cultivate trust and a strong reputation among stakeholders by winning national awards.

People, Society and Compliance

The Institute operates under the guiding principles of COPE – Courage, Ownership, Passion, and Empathy, integrating these values into every aspect of its operations and strategy. From providing fee reductions based on need and merit, to offering no-cost EMI options to all candidates, the Institute extends its commitment through various scholarships to select academic institutions and is faculty. Additionally, its annual "giving back" initiative supports various causes such as senior citizen mental health, child cancer care, employee wellness, further exemplifying its dedication to social responsibility and community engagement.

IRM India also follows the highest standards of governance, having inducted two independent directors on the Board and adopting a 'compliance-first' approach to ensure transparency and integrity. This governance framework is designed to uphold strict ethical standards and foster a culture of accountability and openness across all levels of the organization.

Navigating Challenges

Like any organisation, the Institute has faced its fair share of challenges, navigating through a complex landscape marked by various hurdles. Firstly, the proliferation of misleading and substandard marketing strategies by certain online edtech companies and institutions in India that posed significant issues. These entities engaged in unethical practices such as replicating the advertising materials, visual assets, course names, and even the curriculum and course content. Most notably, the Institute’s advertisement content was directly copied with the IRM name being misused in a blatant attempt to deceive customers into registering for courses, which are strikingly similar to those offered by the Institute.

Additionally, the Institute has encountered targeted misinformation campaigns by various professionals, both known and anonymous, aimed at undermining its reputation and the integrity of its examinations. These challenges however have necessitated a robust response to safeguard the integrity of the Institute and ensure it continues to serve as a beacon of quality as the leader of ERM education across the world.

The Path Ahead

By offering internationally recognised qualifications/examinations, enhancing the profile of CROs, increasing awareness of ERM through its What's The Risk?TM podcasts/talk shows, and GOER – Game of Enterprise RiskTM competition/workshop initiatives, assisting companies in assessing and improving their risk culture with its proprietary RMAT® test, and fostering a community of certified risk-intelligent professionals –- IRM India Affiliate aims to instill a culture of risk thinking and good governance throughout the country. This comprehensive approach aims not only to equip individuals, organisations and Government with the necessary tools and knowledge to effectively anticipate, mitigate, and navigate risks but also to instill a mindset that views risk management as an integral part of strategic decision-making and operational excellence. Through its efforts, IRM India is dedicated to elevating the standards and practices of risk management to a global benchmark, thereby contributing to the resilience and success of the nation's economy and society at large.

The mission of IRM's India Affiliate is dedicated to Aatmanirbhar Bharat — aiming to transform India into a self-reliant nation that is proficient, proactive, and always prepared to navigate risks and external shocks effectively. With this mission at its core and through all its initiatives, the Institute will raise the stature of risk-intelligent professionals, certified risk managers and qualified CROs, ensuring they are recognised as essential business enablers in any function and secure a rightful seat at the decision-making table. If you are interested in associating with the international body in India, you may write to communications@theirmindia.org.

Moneycontrol journalists were not involved in the creation of the article.