6.3 Recommendations:
Managing risk is essential for any successful organization. Business must develop enterprise risk management plan to improve their ability to effectively manage any risks. Enterprise risk management surpasses an organization’s silos to identify and manage the variety of risks. Risk management is not a new phenomenon in the gold jewelry industry. To manage the business of risk management, many enterprises were engaged from some time in gold trading industry. The new aspect in this concept is the integration of risk management systems within all the units of the organisation. This is called ERM plan.
ERM plan helps in separating adaptive and responsive organizations from the stagnant ones as it integrates risk management …show more content…
R. Sons Saraf which is profiled in this study still have time to reach that level of maturity but by using the recommendations provided in this thesis they can get a good start in understanding the significant risks related to gold trading industry, the key capabilities required for executing an ERM plan and the benefits of using it to increase their business performance. Based on the findings of this study some recommendations are provided to S. R. Sons Saraf.
Firstly, S. R. Sons Saraf should define the value it will gain by implementing ERM which is risk mitigation for reducing vulnerability from the new risks identified in this study of the gold trading industry. According to a report by KPMG International Cooperative (2013) 47 percent of the organizations felt that it was essential for risk management to add value to the overall business. The value which ERMCF will create for S. R. Sons Saraf is that it will help them in becoming more competitive and capture a larger market share as there is a lack of structured enterprise risk management plan in their region.
Secondly, the ERMCF should include a clear risk management strategy which is properly articulated and mentions the benefits it will create. The company should not skip this step as it might lead to unsustainable and undesired results. The strategy should include following …show more content…
Learning can be capitalized by S. R. Sons Saraf by being a part of various national jewelry associations like GJF (All India Gems and Jewelry Trade Association), GJEPC India, etc. and regional associations. By being a member of these associations, the organisation can identify new techniques to avoid risks. Improving the skill sets of the workforce and collaborating with testing agencies like GIA and BIS will help enhance the speed of transactions for S.R. Sons Saraf. Leadership is also key for developing an enterprise risk management plan as without senior management support, it is difficult to get consensus throughout and implement the plan. S. R. Sons Saraf should have a specific individual allotted as a director heading the processes. But the director should look after the overall risk encountered by the organization rather than working for a single risk i.e. should not approach a risk in silos. A director who has an industry experience should be appointed as a risk management officer. He should be able to lead the other department managers effectively and motivate them to have open discussions about the risks they might be facing in their
Managing risk is essential for any successful organization. Business must develop enterprise risk management plan to improve their ability to effectively manage any risks. Enterprise risk management surpasses an organization’s silos to identify and manage the variety of risks. Risk management is not a new phenomenon in the gold jewelry industry. To manage the business of risk management, many enterprises were engaged from some time in gold trading industry. The new aspect in this concept is the integration of risk management systems within all the units of the organisation. This is called ERM plan.
ERM plan helps in separating adaptive and responsive organizations from the stagnant ones as it integrates risk management …show more content…
R. Sons Saraf which is profiled in this study still have time to reach that level of maturity but by using the recommendations provided in this thesis they can get a good start in understanding the significant risks related to gold trading industry, the key capabilities required for executing an ERM plan and the benefits of using it to increase their business performance. Based on the findings of this study some recommendations are provided to S. R. Sons Saraf.
Firstly, S. R. Sons Saraf should define the value it will gain by implementing ERM which is risk mitigation for reducing vulnerability from the new risks identified in this study of the gold trading industry. According to a report by KPMG International Cooperative (2013) 47 percent of the organizations felt that it was essential for risk management to add value to the overall business. The value which ERMCF will create for S. R. Sons Saraf is that it will help them in becoming more competitive and capture a larger market share as there is a lack of structured enterprise risk management plan in their region.
Secondly, the ERMCF should include a clear risk management strategy which is properly articulated and mentions the benefits it will create. The company should not skip this step as it might lead to unsustainable and undesired results. The strategy should include following …show more content…
Learning can be capitalized by S. R. Sons Saraf by being a part of various national jewelry associations like GJF (All India Gems and Jewelry Trade Association), GJEPC India, etc. and regional associations. By being a member of these associations, the organisation can identify new techniques to avoid risks. Improving the skill sets of the workforce and collaborating with testing agencies like GIA and BIS will help enhance the speed of transactions for S.R. Sons Saraf. Leadership is also key for developing an enterprise risk management plan as without senior management support, it is difficult to get consensus throughout and implement the plan. S. R. Sons Saraf should have a specific individual allotted as a director heading the processes. But the director should look after the overall risk encountered by the organization rather than working for a single risk i.e. should not approach a risk in silos. A director who has an industry experience should be appointed as a risk management officer. He should be able to lead the other department managers effectively and motivate them to have open discussions about the risks they might be facing in their