Owing to reports, ICICI Lombard on Thursday launched the first corporate risk index in order to aid businesses navigate the post-pandemic world.
This is to be implemented through addressing a myriad of issues across the operation, supply-chains, cyber threats, falling revenue, hybrid working, among others.
Accordingly, this is intended to be a unified, standardised corporate risk index that spans industries and companies.
As a part of this Index, a total of 15 sectors such as IT/ITeS, BFSI, automotive and ancillary, pharma and biotech, e-commerce, manufacturing, realty, FMCG/retail are included.
One of the key features of the index include a quantifiable measure to gauge the level of a company’s risk exposure.
The index also aims to help firms understand the current level of preparedness based on a framework that comprises 32 risk elements across six broad dimensions.
Further, the company also released its first risk index report, which has found superior risk handling in healthcare, BFSI, media and telecom and IT-ITES.
While companies from the FMCG, automotive and transportation and logistics sectors have high-risk exposure as they deal with high transaction volumes and customer touch points
Moreover, no standard practices around handling crime and security risks could be a major cause of significant variations of risk index across corporates.
Telecoms, media and communications sectors are very well equipped to handle operational, physical, and market/economy-linked risks as a matter of fact.
Due to the intrinsic nature of their business, sectors like healthcare, IT/ITeS, and metals/mining have low-risk exposure.
This however makes the sectors vulnerable to only specific risks while they stay immune from most others.
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