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The panel discussion had industry experts discussing the aspects of risk mitigation & corporate governance with a focus on synergies & dissimilarities between the two.<\/p>\n

Panelists: <\/b><\/p>\n

Amit Prabhu, Executive Director \u2013 Puma<\/p>\n

Pratap Swarup, CFO, Bestseller<\/p>\n

Riaz Ahmed, Head\u00a0– Finance, IT and Logistics, ITC \u2013 LRBD<\/p>\n

S Kannan, CFO – Arvind Lifestyle<\/p>\n

Moderator: Amar Chintopanth, Director, C C Chokshi Advisors<\/p>\n

<\/b><\/p>\n

Opening Remarks <\/span><\/b><\/p>\n

Amar Chintopanth, Director,\u00a0C C Chokshi Advisors<\/span><\/b><\/b><\/p>\n

We often use Risk Management & Corporate Governance interchangeably. But are they really same?<\/i><\/b><\/p>\n

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 <\/p>\n

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• Corporate Governance (CG) and Risk Management (RM) are used interchangeably. There similarities and differences are the focus of this panel discussion.\u00a0 Other questions to debate:\n
  \n
  • RM can be imposed by management diktat – can CG be imposed?<\/li>\n
  • For listed companies – CG has been imposed. Can it be done for all companies?<\/li>\n
  • How do independent directors influence CG?\u00a0<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

    Relationship between Risk Management & Corporate Governance <\/span><\/b><\/p>\n

    Amit Prabhu, Executive Director, Puma<\/span><\/b><\/p>\n

    Risk Management is an important part of Corporate Governance.<\/i><\/b><\/p>\n

    <\/p>\n

     <\/p>\n

    \n
    • Risk Management is independent of Corporate Governance. It is also a part of CG.<\/li>\n
    • For instance, our Bangladesh unit saw an immediate 40% decline in sales, when their factory structures collapsed due to lack of basic risk management structures.<\/li>\n
    • CG is self imposed.\n
      \n
      • The board is responsible for CG – but the CFO is responsible for compliance.<\/li>\n
      • Culturally, Boards and the CFO have to push for the evolution of CG.\u00a0 Implementing structures such as a \u201cWhistle-blower policy\u201d\u00a0 is the first step.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

        \u00a0<\/b>How company can discharge their Corporate Governance responsibilities with the required level of care?<\/span><\/b><\/p>\n

        Pratap Swarup,\u00a0CFO,\u00a0Bestseller<\/span><\/b><\/p>\n

        Risk management is a subset of business. Corporate governance takes care of the entire business.<\/i><\/b><\/p>\n

        <\/p>\n

         <\/p>\n

        \n
        • Corporate Governance is different from strategy and innovation.<\/li>\n
        • Balancing between the interest of the various stakeholders is mandatory.<\/li>\n
        • Strategy is to quantify and qualify risk.<\/li>\n
        • Analyze the best practices to keep the business transparent.<\/li>\n
        • CFOs play a major role. They have a reach across various functions. CFOs should have a parallel reporting to the board.<\/b><\/li>\n<\/ul>\n

          \u00a0<\/b><\/p>\n

          Relationship between Risk Management & Corporate Governance <\/span><\/b><\/p>\n

          Riaz Ahmed, Head – Finance,\u00a0 IT & Logistics,\u00a0 ITC – LRBD<\/span><\/b><\/p>\n

          Corporate governance has been the DNA of ITC.<\/i><\/b><\/p>\n

          <\/p>\n

           <\/p>\n

          \n
          • Risk\u00a0 Management is managing the balance of risk and reward. It is a subset of Corporate Governance.<\/li>\n
          • CG is to be self-imposed. Everyone should have uniformly calibrated moral compass.<\/li>\n
          • All companies irrespective should come under or adopt codes of corporate governance.<\/li>\n
          • For corporate governance,\u00a0 holistic approach &\u00a0 a change in the mindset is required in the organization.<\/li>\n
          • Risk management is a subset of business. Corporate governance takes care of the entire business.<\/li>\n<\/ul>\n

            \u00a0<\/b><\/p>\n

            It is easy to impose risk management on an organization. Can same be said about corporate governance? <\/span><\/b><\/p>\n

            S. Kannan, Sr. VP & Chief Financial Officer, Arvind Lifestyle Brands Ltd.<\/span><\/b><\/b><\/p>\n

            Corporate governance is like a \u201cmovement\u201d \u2013 it can be enabled, not imposed.<\/i><\/b><\/p>\n

            <\/p>\n

             <\/p>\n

            \n
            • \u00a0\u00a0<\/b>Corporate Governance is like a \u2018quality movement.\u2019 \u2013 it can be enabled, but not imposed.<\/li>\n
            • \u00a0\u00a0Currently,\u00a0 Corporate Governance is seen as a regulatory requirement.<\/li>\n
            • \u00a0\u00a0In the retail value chain, we are interdependent. A problem at one level effects all. Hence, we should have CG in place to take care of the entire value chain.\n
              \n
              • \u00a0\u00a0\u00a0Rating of the boards should be done.<\/li>\n
              • \u00a0\u00a0\u00a0Disclosure norms should be uniform and done in a right manner.<\/li>\n
              • \u00a0\u00a0\u00a0We should have CRO (Chief Reporting Officer).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n

                 <\/p>\n

                Conclusion<\/strong><\/span><\/p>\n

                \n
                • RM & CG are different.\u00a0 CG should be in the DNA of the organization.\u00a0 CG & RM move across the tangible and the intangible such as the Brand.<\/li>\n
                • CFOs have a significant role within the powers conferred.<\/li>\n
                • CG takes time to evolve.<\/li>\n
                • While CFO is responsible for Risk but the CRO is responsible for directional indicators.<\/li>\n<\/ul>\n

                  <\/p>\n