BSE and Ernst & Young launch Mastering Risk series

** Six part series, to discuss risk and its importance of risk management initiatives **

Mumbai, September 15, 2006 - The Bombay Stock Exchange in association with Ernst & Young today announced the launch of Mastering Risk series. The series was inaugurated by Mr G Anantharaman, Whole Time Member, Securities and Exchange Board, in the presence of Mr Rajnikant Patel, Managing director & CEO, Bombay Stock Exchange and Mr Sunil Chandiramani, National Director, Risk and Business Solutions, Ernst & Young. Mastering Risk is an attempt to identify various aspects of risk companies are exposed to and the importance of risk management initiatives.

This six part series will span over four months and will focus on themes like Operationalising Enterprise Risk Management, Role of Internal Audit in Corporate Governance, Managing Treasury Risk and Clause 49 & Risk Management - Maximising benefits of compliance initiatives.

According to Mr. Rajnikant Patel, Managing Director & CEO, Bombay Stock Exchange, "The revised Clause 49 has made it essential for the CEOs and CFOs to be aware of the various aspects related to corporate governance and risk management initiatives. Enterprise management requires managing and mitigating risk on an ongoing basis. This series on Managing risk is a joint venture by BSE and E&Y to arm the CEOs and CFOs of various enterprises with the knowledge and the tools required for timely and fair evaluation of risk assessment and management enterprise."

This series will be held at the Bombay Stock Exchange in the form of breakfast sessions every month from September 06-Januray 07. This series will end with a panel discussion on Companies on Risk - Benefits of Alignment. The theme for the inaugural event is investors on risk where Ernst & Young launched its Global Institutional Investor Risk Survey.

Global Institutional Investor Risk Survey - "Investors on Risk"

Investors demand better transparency, communication on risk management from companies.

According to the survey, majority of the global respondents (69%) identified transparency as top priority in considering an initial investment in a company. Investors feel that they might be making investment decisions based on incomplete information about how companies are managing risks and stress the importance of a detailed investor communications program to make them aware about these risks.

61% of the respondents avoided investing in companies lacking a risk program and 48% actually de-invested from companies where risk management performance was insufficient. At the same time, 82% of investors were willing to pay a premium for companies with good risk management. Investors also felt that the onus of managing risk lies with the CEO of the company and the risk management program should go beyond just compliance and corporate governance to encompass legal, statutory and voluntarily adopted requirements.

"With the increasing level of uncertainty in our business environment and more organizations raising equity capital in India, both institutional investors and private equity players are insisting upon a clear articulation of risks from their investee companies. Clearly, risk management is now beginning to be recognized as a fundamental enabler for an organisation's future growth", says Sunil Chandiramani, National Director, Risk and Business Solutions, Ernst & Young.

About Ernst & Young

Ernst & Young, a global leader in professional services, is committed to restoring the public's trust in professional services firms and in the quality of financial reporting. Its 107,000 people in 140 countries pursue the highest levels of integrity, quality, and professionalism in providing a range of sophisticated services centred on our core competencies of auditing, accounting, tax, and transactions.

Ernst & Young operates from 7 cities* in India (www.ey.com/india) with a work force of over 2400 people, who work towards the firm's vision of being the trusted business advisor that contributes most to the success of people and clients by creating value and confidence. Global Tax Advisory Services, Risk and Business Solutions and Transaction Advisory Services are the core services offered by the firm.

The Risk And Business Solutions (RABS) practice helps clients deal effectively with the myriad risks facing businesses today. Competencies in technology, process, environment and fraud investigation, can support any organization in managing and mastering risk.

* Ernst & Young has offices in New Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Bangalore and Pune

Back