Indian economy better at using risk: BT study

The Indian economy has overtaken developed markets when it comes to capitalizing on the benefits of risk management, says a study by BT Global Services.

According to a release by BT, 90 percent of Indian enterprises see risk management as a means of increasing competitive advantage in comparison to just 44 percent of developed economies, and 85 percent also think that risk encourages innovation and creativity compared to 43 percent in developed economies.

India is also significantly more likely to be investing heavily in risk management strategies and systems than their counterparts in the US and Europe (54 percent of developing economies to 36 percent of developed).

India has acted on this by being more likely to have a board-level corporate security officer (CSO) or corporate risk officer (CRO), more likely to view this as a valued investment and twice as likely to have a risk-management strategy for global risks.

The results suggest that developing countries, contrary to accepted wisdom, are increasingly looking to become the prime movers in establishing international collaboration initiatives.

BT commissioned datamonitor will undertake the study of 2,000 senior executives in the US, UK, France, Germany, Spain, Sweden, Brazil, China, India and South Africa.

The vast majority of businesses in India (96 percent) see international collaboration, either intra- or inter-company, as being vital to the success of their business in the future.

Sudhir Narang, MD, BT India said, “Developed markets have been wary of risks associated with aggressive economic growth. Our evidence suggests that developing countries, fully committed to international collaboration, now boast risk management strategies that surpass even ‘Western’ standards and can be trusted to support innovation and creativity.”