The Reserve Bank of India (RBI) has been awarded the “Risk Manager of the Year Award 2024” by Central Banking, a renowned publication headquartered in London.
- Executive Director Shri Manoranjan Mishra received the award on behalf of the RBI.
Key points
- The award highlights the RBI’s significant progress in cultivating a robust risk culture and heightened awareness, solidifying its essential role in maintaining the stability of India’s financial system.
- During the recent global economic turmoil, the RBI took a cautious approach to monetary policy.
- The Indian central bank did not drastically increase interest rates, unlike many other central banks, which could have stifled economic growth in India. However, it maintained a holding stance, keeping rates steady while closely monitoring inflation.
- The RBI established a regulatory sandbox to facilitate controlled experimentation with new financial technology products and services.
- On June 7, the Reserve Bank of India (RBI) relaxed overseas investment regulations and clarified ambiguities for wealthy Indians, business families, and startups seeking to invest in foreign securities, funds, and companies.
ERM framework
- The RBI was lauded for rolling out a new ERM framework .
- RBI rolled out a new ERM framework across an organisation as large as the RBI, with its more than 12,000 members of staff.
- Enterprise risk management (ERM) is the process of planning, organizing, directing and controlling the activities of an organization to minimize the harmful effects of risk on its capital and earnings.
- Enterprise risk management can include financial, strategic and operational risks as well as risks associated with accidental losses.
- ERM is designed to manage and identify risks across an organization and its extended networks.
