India will emerge powerful globally—Say the Experts from Indian Financial-Services Sector

Key Takeaways from Finance Conclave 2020 @FIIB

For years, risk management has been an exercise undertaken in fear, as a means to address compliance-driven activities. Perceived in the past as an act to protect the organization, the viewpoint has shifted to that as an opportunity to create value and drive organizational performance. Risk management is a performance enabler and a powerful tool to derive utility across various spheres of functioning and services, ranging from product cross-selling, financial crime management and regulatory compliance management.

Over the years, various economic positions, changing international relations, trade competition and war, and changing government policies and compliance frameworks globally have made India prone to risk across various sectors of businesses, particularly in its financial services sector. While the Indian banking and financial services sectors play a crucial role in boosting the consumption, saving and investment, the ability of doing a tradeoff between risk and return plays a major role in retaining the profitability and customer satisfaction—making the risk management a performance enabler.

While the Finance Conclave 2020 on the theme of “Risk Management Practices in Financial Services Sector” held at Fortune Institute of International Business (FIIB), New Delhi, on 11th January 2020, deliberated the existing challenges in the Indian financial-services sector, and contemporary risk management practices, it provided on the sidelines a great networking opportunity too, to all the stakeholders that included industry experts, academics and students. Using the financial game, DARTFIN, students were able to express their financial acumen.

Across the board, the industry experts agreed that India with its sheer demographic dividend will emerge a major global power very soon, in the next decade to be precise. Already, the introduction of structural changes like demonetization and Insolvency and Bankruptcy Code, 2016, has strengthened the financial sector of the country. Moreover, due to the controlled fiscal deficit, low inflation and stable political situation, the fundamentals of Indian economy would remain robust and strong, felt the industry experts and academics alike. The representatives of Indian financial services sector further suggested that the asset-liability mismatch of the banks might be further improved by rapidly developing the bonds market. Investors who could hedge their positions through derivatives instruments, should not worry otherwise, since the external risks such as geopolitical situations are generally short-lived and, therefore, these wouldn’t come in the way of the country’s growth, said the leaders from the Indian financial services sector. All the present experts were of the view that the dream of becoming a $5 trillion economy is in fact a short-term goal for India and India has all the factors to go much beyond that dream.

Plenary Session of the Conclave that discussed the issues involving the risk management practices in the Indian financial services sector, was addressed by two financial-services securities experts, Chief Guest Dr. Naresh C. Maheshwari (Chairman, Farsight Group), and Keynote Speaker Mr. Sanjiv Bhasin (Director, India Infoline Securities Ltd., IIFL). Panel Discussion that followed the Plenary Session explored the veracity of our country’s dream of becoming a $5 trillion economy vis-à-vis the contribution of Indian financial services sector, with the help of four industry experts who joined the discussion, namely, Mr. Salman Ali Khan (Client Portfolio Manager, BOX PFA), Mr. Anuj Shyam (Associate Director—Business Head, North, JM Financial Services), Mr. Gopal Sharma (Co-Founder, FinAdvantage Consulting Private Limited, Gurgaon), and Mr. Kunal Kaushesh (Deputy Vice-President, Aviva Life Insurance).

Apart from sharing their insight with the stakeholders, the corporate speakers were able to gather enriching feedback from the academics present on the occasion and they further appreciated the FIIB for the knowledge and understanding of its students, who made an introductory but comprehensive presentation from the academic perspectives on the theme.

The occasion further proved to be an excellent opportunity for building and strengthening networks among the present stakeholders. While the academics were able to update on themselves on the existing industry practices in risk management, the students particularly benefitted in every way from discussion by the corporate speakers, which eventually would help them in refining their long-term goals.